December 02, 2020
RCEP expected to eradicate exploitation of Korean Wave in 15 countries including ASEAN
- Acts of using the name of Korea on products not made in Korea to misguide and confuse the country of origin prohibited ⇒ limitations on activities of companies that exploit the Korean Wave
- Rejection or cancellation of malicious applications of trademarks of Korean companies by local trademark brokers ⇒ Prevention of plagiarized use of trademarks
Fifteen countries including Korea, ten countries of ASEAN, Australia, Japan, and New Zealand signed the Regional Comprehensive Economic Partnership at the Fourth RCEP Summit (Nov 15, 2020). Through this partnership, a basis for intellectual property rights such as patents, trademarks, and designs will be established in a huge market that accounts for 30% (USD 26.3 trillion) of the global GDP, 30% (2.26 billion) of the world's population, and 28.7% (USD 5.4 trillion) of global trade.
ASEAN is an important region as they account for a large share in exports by Korean companies. It is expected that detailed provisions on IP rights will be applied to ASEAN as the RCEP becomes effective, thus effectively protecting the IP rights of Korean companies that have advanced or plan to advance into the region.
An FTA between Korea and ASEAN has been in effect since 2007. However, the agreement is only declaratory regarding sharing of IP rights information and experience, raising awareness of IP rights protection, etc., and has limits in effectively protecting the IP rights of Korean companies.
The RCEP specifically defines a total of 83 provisions with respect to trademarks, patents, and designs, and it is expected to further strengthen IP rights protection in ASEAN countries.
The main issues are as follows.
ㅁ (Trademarks) It becomes possible to reject malicious applications of trademark brokers who aim to preoccupy the trademarks of Korean companies in the region or to cancel their registration. With this, cases where the trademarks of Korean companies are plagiarized are expected to be dramatically reduced.
A system in which applications can be submitted and processed electronically and a database through which the public can search and use patent/registration information will also be established.
In addition, trademark applications and registrations are to be processed in accordance with the classification system of the World Intellectual Property Organization (WIPO), creating an environment where Korean companies can conveniently file a trademark application and search for related information on the international classification system on site in ASEAN.
ㅁ (Unfair competition) An act of using the country name of Korea on products that are not made in Korea to misguide or confuse the country of origin is prohibited. Accordingly, business activities of companies that exploit the Korean Wave for their interests, which have been major problems in ASEAN, etc., will be greatly limited.
Suitable means of relief will be provided when a third party preoccupies a domain name that is identical or similar to a trademark of others in the local area.
ㅁ (Patent) Patent applications for which 18 months have elapsed after filing should be published. Accordingly, cases in which Korean companies filed applications in certain ASEAN countries that didn't employ such system and similar patents of third parties were filed and registered for the reason that the patents were not published or that the publication time point was not consistent, are expected to decrease.
The basis for introducing such a system to ASEAN is established, as it is now required to process patent applications and registrations in accordance with the classification system of WIPO.
ㅁ (Design) Grounds are provided for introducing a system where each component that comprises an article can be filed and registered for design rights (partial design).
Also, grounds are provided for introducing the same system to ASEAN since it is now required to process design applications and registrations in accordance with the classification system of WIPO.
The provisions of the RCEP will be in effect from next year after ratification by the national assemblies of each country and the procedure for coming into effect is completed.
Director Yeon Woo Chung of the Intellectual Property Protection and International Cooperation Bureau of the Korean Intellectual Property Office said that "With the RCEP, it is now possible to establish an IP rights system that is similar to our own in ASEAN, a region to which our companies actively advance," adding that "The KIPO will make every effort to promote the implementation of RCEP provisions in ASEAN through bilateral and multilateral cooperation to aid our companies."