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Practice Notes

Key Considerations for Employee-Invention Compensation Following Korea’s Introduction of Automatic Succession

1. Key Change Under 2024 Amendment: Automatic Succession of Employee Inventions A 2024 amendment to the Korean Invention Promotion Act significantly changed the mechanism by which employers succeed to rights in employee inventions.   Under the previous framework, even where an employment agreement or employment regulations provided that the employer would succeed to rights in employee inventions, the employer generally had to separately notify the employee of its decision to succeed to the invention after receiving the employee’s invention report.   Under the amended Act, where an employment agreement or employment regulations provide in advance for the employer’s succession to rights in employee inventions, such rights, in principle, automatically vest in the employer upon completion of the invention. As a result, companies may substantially simplify the individual succession procedures that were previously required.   2. Automatic Succession and Employee-Invention Compensation are Separate Issues The introduction of automatic succession does not eliminate an employer’s obligation to compensate employee inventors.   The Invention Promotion Act requires “reasonable compensation” for employee inventions. However, it does not require employers to provide separate categories of compensation for succession, patent filing, patent grant, implementation, or other specific events.   Accordingly, where a company’s existing “succession award” was essentially a fixed payment triggered by the completion of the formal succession procedure, the introduction of automatic succession provides an opportunity to reconsider whether such a separate award should be maintained or instead integrated into other components of the company’s inventor compensation program.   The key issue is therefore not whether a particular category of compensation continues to exist, but whether the overall compensation framework provides reasonable compensation under Korean law.   3. Establishing Uniform Compensation Framework Companies, particularly multinational companies, may wish to replace Korea-specific succession awards with a compensation framework that is more closely aligned with their global inventor award programs.   In considering whether the compensation provided under the program as a whole can be regarded as reasonable, factors such as the overall level of compensation, the economic benefit obtained by the employer from the invention, the inventor’s contribution, and the manner in which the compensation program is established and administered are taken into account.   Accordingly, a company may establish a uniform compensation program centered, for example, on filing and grant awards. What is important is that the company establish objective and consistent compensation standards applicable to employee inventions and administer those standards in a fair and transparent manner.   4. Addressing Exceptional High-Value Inventions on Case-by-Case Basis In practice, it is extremely difficult to accurately determine the future economic value of every invention at the time of filing.   An invention that appears relatively insignificant when filed may later become a core technology or generate substantial licensing revenue. Conversely, an invention initially regarded as strategically important may ultimately have little or no commercial use.   It is therefore neither practical nor necessarily desirable to design an overly complicated compensation policy intended to anticipate every exceptional circumstance.   A more practical approach is to apply uniform compensation standards as a general rule while maintaining a mechanism for case-by-case review where an invention generates exceptional economic value or an inventor raises a reasonable concern regarding the adequacy of the compensation received.   Employee-invention compensation disputes remain relatively exceptional compared with the overall number of employee inventions handled by companies. It may therefore be inefficient to design or materially modify an entire compensation system solely around the possibility of such unusual cases.   5. Compensation for Former Employees and Changes to Existing Policies One issue that deserves particular attention when applying a global compensation program in Korea is any requirement that the inventor remain employed at the time an award becomes payable.   For example, if a grant award is available only to inventors who remain employed when the patent is granted, an inventor who completed the invention and contributed to the patent filing may be excluded solely because he or she left the company before the patent was granted.   Employee-invention compensation is different in nature from an ordinary employee welfare benefit or retention incentive. Accordingly, a policy that categorically excludes former employees from compensation solely on the basis of their employment status should be carefully reviewed under Korean law.   Companies should also consider Korean employment law requirements when modifying an existing inventor compensation program. For example, if an existing succession award is eliminated, it may be necessary to consider whether the change constitutes an unfavorable amendment to the applicable employment rules and, if so, whether the relevant procedural requirements have been satisfied.   6. Conclusion The 2024 amendment to the Korean Invention Promotion Act allows companies to substantially simplify the process for succeeding to rights in employee inventions. Automatic succession, however, concerns the mechanism for acquiring rights and does not eliminate the separate requirement to provide reasonable compensation for employee inventions.   At the same time, companies should not necessarily attempt to design a complicated compensation formula capable of anticipating every exceptional case.   A more practical approach is to establish reasonable and uniform baseline compensation standards, administer them consistently and transparently, and maintain an appropriate mechanism for reviewing exceptional cases individually where concerns regarding compensation arise.   Such an approach can allow companies to take advantage of the simplified succession framework introduced by the amended Act while reducing administrative burdens and continuing to satisfy the fundamental principle of reasonable compensation for employee inventions under Korean law.

2026-08-10
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Practice Notes

South Korean IP Filing Trends in the First Half of 2026

Patent Filings Rise by 29%, with AI Driving a Surge in Self-Filed Applications by Individuals   Intellectual property filings in South Korea showed clear growth in both patents and trademarks during the first half of 2026. In particular, patent applications filed by domestic individuals increased by approximately 150% year-on-year, contributing significantly to the overall increase in patent filings.   The growing availability of generative artificial intelligence tools appears to have lowered the barriers to patent searching and application drafting, resulting in a sharp increase in “self-filed applications” submitted without the assistance of a patent attorney or other professional representative.   Patent Filings Reach 141,259, Up 29% Year-on-Year   A total of 141,259 patent applications were filed in South Korea during the first half of 2026, representing an increase of approximately 29% from 109,322 applications during the same period in 2025.   Applications filed by domestic applicants increased from 83,817 in the first half of 2025 to 116,186 in the first half of 2026, marking a substantial rise of approximately 39%. By contrast, applications filed by foreign applicants decreased by approximately 2%, from 25,505 to 25,073.   Among domestic applicants, corporate patent filings increased from 69,400 in the first half of 2025 to 80,100 in the first half of 2026, representing growth of approximately 15%. This indicates that Korean companies continue to compete for early patent protection in advanced industries such as semiconductors, artificial intelligence, batteries, biotechnology and healthcare.   The most notable development, however, was the rapid increase in filings by individuals. When corporate filings are excluded from the total number of domestic filings, non-corporate applications, including applications filed by individuals, increased from approximately 14,417 in the first half of 2025 to approximately 36,086 in the first half of 2026. This represents year-on-year growth of approximately 150%.   At the inaugural Intellectual Property Strategy Forum, Kim Yong Sun, Minister of Intellectual Property, stated that patent filings during the first half of the year had increased by approximately 30% year-on-year, while filings by individuals had increased by 150%.   He further noted that approximately 70% of applications filed by individuals were “self-filed applications” submitted without professional representation, and that AI was believed to have played a significant role in this trend.   AI Is Lowering Barriers to Patent Filing   Patent filing has traditionally been regarded as a highly specialized process because it involves prior art searches, preparation of patent specifications and drafting of claims. It has therefore been difficult for individuals without professional knowledge or experience to handle the entire process independently.   With the rapid adoption of generative AI and patent search services, however, individuals can now more easily organize the details of their inventions, search for similar technologies and prepare initial drafts of patent application documents.   There has also been an increase in the number of entrepreneurs, researchers, university students and individual inventors using AI to develop their ideas and pursue patent protection. This trend may be viewed positively in that it improves access to the intellectual property system and creates more opportunities for individual ideas to be converted into legal rights.   Nevertheless, an increase in the number of applications does not necessarily result in a corresponding increase in valid and commercially valuable patents. AI-generated patent specifications may contain technical errors or overly abstract descriptions. They may also fail to properly distinguish the invention from prior art or may define claims that do not adequately correspond to the core features of the actual invention.   A patent application generally cannot be amended after filing to include new technical subject matter. The contents of the application as originally filed therefore substantially determine the potential scope of protection available in the future.   Accordingly, applicants should carefully examine the technical features of the invention, its differences from the prior art, its commercialization potential and possible design-around strategies by competitors before filing.   AI can serve as an effective tool for prior art searching and initial document preparation. However, it remains difficult for AI to fully replace professional judgment in defining the scope of protection and assessing legal issues. For patents intended to protect core business technologies or to be used in fundraising, technology transfer, licensing or dispute resolution, professional review before filing remains advisable.   Trademark Filings Increase by 16%, Led by Domestic Applicants   Trademark filings also maintained an upward trend. A total of 174,192 trademark applications were filed during the first half of 2026, representing an increase of approximately 16% from 149,554 applications during the same period in 2025.   Applications filed by domestic applicants increased by approximately 21%, from 126,104 to 152,896. By contrast, applications filed by foreign applicants decreased by approximately 9%, from 23,450 to 21,296. As in the patent sector, the overall increase in trademark filings was primarily driven by domestic applicants.   The expansion of online distribution and social media marketing, the growth of independent brands and small businesses, and the continued development of the cosmetics, food, content and platform industries appear to have contributed to the increase in trademark filings.   As products and services can now be introduced to the market more quickly, businesses are increasingly seeking to secure trademark rights before publicly launching their brands.   A trademark application may be refused where an identical or similar mark has already been filed or registered for identical or similar goods or services. Businesses should therefore conduct clearance searches before finalizing a brand or service name.   It is also important to prepare the list of designated goods and services by considering not only the applicant’s current business activities but also areas into which the business may expand in the future.   Quality of Rights Must Keep Pace with Growth in Filings   The filing statistics for the first half of 2026 demonstrate that the domestic IP filing base is expanding rapidly as a result of the widespread use of AI and continued growth in entrepreneurship and technological development.   The sharp increase in the number of individuals directly using the patent system may represent a structural change in the Korean IP market.   However, both companies and individuals should focus not merely on increasing the number of applications, but on securing rights that are closely connected to their actual business activities.   Patent claims should be designed to provide practical protection for core technologies and products, while trademark applications should cover an appropriate range of goods and services based on both current operations and anticipated business expansion.   AI significantly improves the accessibility and efficiency of IP-related work, but it does not automatically guarantee the accuracy of an application or the validity and enforceability of the resulting rights.   Going forward, it will become increasingly important to combine the efficient use of AI with appropriate technical and legal review in order to build IP portfolios with strong prospects for registration and meaningful commercial value

2026-08-03
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Practice Notes

Korean IP High Court Confirms Narrow Scope of Protection for 3D Confectionery Trademark

▒ Introduction On May 28, 2026, the Korean Intellectual Property High Court issued an important decision concerning the scope of protection for three-dimensional product-shape trademarks.   In IP High Court Case No. 2025Heo10583, the court dismissed an appeal filed by RiGO Trading S.A. (“RiGO”), the owner of a registered 3D trademark for a bear-shaped gummy, and upheld the earlier decision of the Korean Intellectual Property Trial and Appeal Board (IPTAB), which had rejected RiGO’s positive scope confirmation claim against Nestlé Korea LLC (“Nestlé Korea”).    The decision is significant because it confirms that even where a product-shape trademark has been registered based on acquired distinctiveness, the owner cannot monopolize the general idea of a bear-shaped gummy. Protection remains limited to the specific expressive features of the registered 3D mark.   This case is part of a broader series of Korean disputes concerning the enforceability of 3D bear-shaped gummy trademarks, and it provides further guidance on how Korean courts assess trademark use, product-shape similarity, and market context.   ▒ Case Background The registered trademark at issue was Korean Trademark Registration No. 1183782, a 3D mark representing the shape of a bear-shaped jelly, registered in Class 30 for “confectionery.” The mark was registered on the basis of acquired distinctiveness under Article 33(2) of the Korean Trademark Act.  RiGO filed a positive scope confirmation action before the IPTAB (Case No. 2023Dang886), arguing that the bear-shaped gummy used in Nestlé Korea’s FRUTIPS Mallang product fell within the scope of RiGO’s registered 3D trademark. The trademark and product in question are as follows:   RiGO’s 3D Trademark Nestlé Korea’s Product   (For reference, a scope confirmation trial is an inter-partes administrative action that determines whether the use of a specific mark on specific goods falls within the scope of — and thus potentially infringes — a registered trademark. In this case, the claimant was seeking positive confirmation that the respondent had infringed their registered 3D trademark. Decisions in scope confirmation trials are often used to support a claim of infringement in a parallel civil damages suit.)   Nestlé Korea responded that: 1.    the challenged bear-shaped gummy was used only as a product design, not as a trademark;  2.    the challenged shape was not similar to the registered 3D mark; and  3.    in any event, the shape fell within the statutory limitations on trademark rights under Article 90(1)(ii) and (iii) of the Korean Trademark Act.    On September 25, 2025, the IPTAB dismissed RiGO’s claim, finding that the challenged shape was not similar to the registered 3D mark and therefore did not fall within its scope.  RiGO appealed to the IP High Court. The court rejected the appeal and upheld the IPTAB decision.   Court’s Key Findings 1. Challenged Shape Was Not Used as a Trademark The court first considered whether Nestlé Korea’s bear-shaped gummy was used as a trademark at all. Under Korean trademark law, a sign must be used as a source identifier in order to fall within the scope of a registered trademark. Even if a product shape resembles a registered trademark, there is no trademark use if the shape is perceived merely as the product’s form or design.   The court found that Nestlé Korea sold the relevant product under packaging clearly bearing the mark FRUTIPS 프루팁스 말랑 [FRUTIPS Mallang in Korean]. The bear-shaped gummy was only one of the shapes contained in the product line, alongside fruit-shaped gummies such as strawberries, blueberries and other fruit forms. The court also noted that the product description referred to the gummy as a soft, round bear-shaped jelly. In the court’s view, this indicated that the shape was being used to describe the product’s form and appearance, rather than to identify commercial origin.   Importantly, the court placed weight on the market environment. Various bear-shaped gummy products had already been sold in Korea by different companies under different brand names, including No Brand, Albanese, Trolli, Bebeto and others.    Although the court acknowledged that HARIBO’s bear-shaped gummies appeared to have achieved a certain degree of recognition among Korean consumers, it held that this did not mean consumers would perceive bear-shaped gummies in general as originating from HARIBO or RiGO.   2. Registered 3D Trademark Cannot Cover the General Motif of a Bear-Shaped Gummy The court then addressed similarity. Both the registered mark and the challenged shape depicted a bear facing forward, with two ears, a protruding nose, short arms and legs, and arms extending from the middle of the body. However, the court emphasized that the scope of a 3D trademark must be limited to the specific expressive features of the registered shape. It cannot extend to the general motif or concept of a “bear-shaped gummy.”    The court made clear that the claimant could not rely merely on the fact that both products were bear-shaped. Instead, the comparison had to focus on the concrete visual expression of each shape.   3. Clear Visual Differences The court identified several differences between the registered 3D mark and the challenged gummy shape. In particular: 1.    the registered mark had relatively pointed ears, nose, arms and legs, while the challenged shape had rounder features;  2.    the registered mark showed a broadly smiling face, while the challenged shape had no mouth;  3.    the registered mark depicted a bear standing upright, while the challenged shape appeared to be seated;  4.    the registered mark appeared to have a thick outer contour, while the challenged shape had a clearer and more direct outline;  5.    the registered mark had small moulded dot-like features on the belly, which were absent from the challenged shape;  6.    the head-to-body proportions differed; and  7.    the treatment of the eyes was different, with the registered mark having recessed-looking eyes and the challenged shape having rounder, protruding-looking eyes.    Based on these differences, the court concluded that ordinary consumers would be able to distinguish the two shapes and would not be confused as to source.   4. Generic Names and Concepts Are Not Enough The court also considered the fact that both shapes could be called “bear-shaped jelly,” “bear jelly,” “gummy bear,” or similar names. However, it held that such generic names or concepts could not, by themselves, support a finding of similarity. The court reasoned that if two 3D product-shape marks were considered similar merely because they shared a common generic name or concept, the scope of trademark protection would become excessively broad and would unfairly restrict competitors’ freedom to use ordinary product shapes. This reasoning is especially important in crowded product-shape markets. Where many sellers use similar product shapes, a trademark owner must show similarity in the specific expression of the registered shape, not merely similarity in the underlying product concept.   ▒ Relationship with Earlier Bear-Shaped Gummy Cases This decision forms part of a broader series of Korean disputes concerning RiGO’s 3D bear-shaped gummy registrations. Related proceedings have involved other bear-shaped gummy products, including those sold under brands such as Weeny Beeny, Bebeto and Trolli.   Although the specific target shapes differ from case to case, the recent decisions show a consistent analytical approach. Korean courts and tribunals have focused closely on whether the challenged shape is used as a trademark, whether the specific expressive features of the registered 3D mark are reproduced, and whether the relevant market is already crowded with similar product shapes.   In the Weeny Beeny case, the IP High Court had already taken a narrow view of the scope of protection for a 3D bear-shaped gummy mark, and the Korean Supreme Court later dismissed RiGO’s appeal. The current FRUTIPS decision extends that reasoning to another challenged bear-shaped gummy product and reinforces the principle that the general shape of a bear cannot be monopolized through trademark law.   ▒ Comment This decision is important for both trademark owners and their competitors.   For trademark owners, the case confirms that registration of a 3D product-shape mark, even on the basis of acquired distinctiveness, does not guarantee broad enforcement rights. To succeed, the owner must show that the challenged shape is used as a trademark and that it reproduces the specific expressive features of the registered mark. Evidence that the owner’s main brand is famous may not be enough. Where the relevant market contains many similar third-party product shapes, courts will carefully examine whether consumers perceive the shape itself as a source identifier, rather than merely as a familiar product form.   For competitors, the decision provides useful guidance. A registered 3D trademark does not necessarily prevent competitors from using the same general product motif, provided that their product shape is not used as a trademark and has sufficiently different visual features. More broadly, the case reflects a consistent judicial trend in Korea: product-shape trademarks are protectable, but their scope is narrow where the shape is common, decorative, or widely used in the relevant industry.   The judgment is particularly relevant for industries where product design and trademark protection overlap, including confectionery, food products, fashion accessories, toys, household goods and consumer products. The key takeaway is clear: in Korea, a 3D trademark may protect a specific product shape, but it does not give the owner a monopoly over the general product concept.   For further background on related Korean disputes involving 3D bear-shaped gummy trademarks, see the author’s earlier APAA e-Newsletter article, “Ongoing Dispute over the Scope of Protection for a 3D Bear-Shaped Trademark in South Korea”.  

2026-07-01
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