IP Newsletter | Spring 2014
	PATENT
	Korea Fair Trade Commission Announces Closer Review of Non-Practicing Entities
	The Korea Fair Trade Commission ("KFTC") is expected to take a closer look at potentially abusive practices of non-practicing entities or NPEs this year. On February 20, the KFTC reported its work plan for 2014 to President Park Geun-hye. The KFTC outlined five core policy objectives, one of which is the facilitation of an innovation-fostering market environment. As a step towards achieving this goal, the KFTC will focus on preventing abusive patent assertions by NPEs.
	The KFTC's work plan specifically mentions two growing concerns: (1) the excessive exercise of patent rights by companies that used to manufacture and sell products on a global scale but are now behaving more like NPEs; and (2) the impediment to competition and innovation should NPEs acquire and abuse standard essential patents. In this regard, the KFTC indicates that it will monitor developments made in the U.S. and the E.U. in regulating NPEs and closely examine the impact of NPE activities on competition. The work plan also notes that the U.S. Fair Trade Commission began a status review of NPEs in September 2013.
	Given the above, two possible KFTC developments can be anticipated this year. First, the KFTC may amend the Review Guidelines on Unfair Exercise of Intellectual Property Rights, as it has publicly announced a few times in recent years, to provide further guidance on the types of NPE activities that may be subject to Korea's fair trade laws. Second, the KFTC may conduct an investigation into potential intellectual property right abuses by NPEs and operating companies involved with NPE activities. Exactly how the KFTC will proceed and which companies it will focus on remains to be seen.
	Back to Main Page
	If you have any questions regarding this article, please contact:
	Hye Joo MIN hjmin@ip.kimchang.com Hun Shik KIM hskim1@ip.kimchang.com
	For more information, please visit our website: www.ip.kimchang.com