Cases of Successful IP Licensing(Jinseok Park)

Cases of Successful IP Licensing in Korea

June 2018

Jinseok Parkjspark@daraelaw.co.kr

APEC IPEG

T: +82.2. 3475.7764

E-mail: jspark@daraelaw.co.kr

BSc in Elec. Eng, PhD in Law

Work Experience

•Patent Examiner (KIPO)•Director of International Cooperation (KIPO)•Administrative Judge of the Intellectual Property Tribunal and Appeal Board (IPTAB)•IPR Counselor of the Korean Embassy to the EU•Director for International Affaires of KPAA

Jinseok Park

IP Licensing in the Olympics

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IP Licensing in the Olympics

5 Millions of redmittens by Hudson’sBay sold inVancouver.

With 22 Millions ofUSD profit

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IP Licensing in the Olympics Sports Game

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IP Licensing in the Olympics

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IP Licensing in the Olympics

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Character Licensing Business In Korea

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Annual average growth rate: 10.2% Market size: 9.4 Bil. USD (2015) Character licensing had 7.9% of annual growth with 735 Mil. USD in 2015

Character Licensing Business in Korea

Business 2013 2014 2015Annual average

growth rate (%)

Character develop &

licensing632 700 735 7.9

Character goods

Manufacture3,214 3,520 4,032 12.0

Character goods

wholesale1,360 1,469 1,535 6.2

Character goods

retail2,578 2,795 3,144 10.4

Total 7,784 8,484 9,446 10.2

(Unit: Mil. USD)

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90% of Korean licensees are not importers but manufacturers70% licensees are SMEs while 30% are conglomerates Strong local brand power- Local market chain >> Walmart, Carrefour- Local search engine (Naver) >> Google- Local instant messenger (Kakao Talk) >> WhatAapp

Characteristics of Licensing Market in Korea

Case Study 1: KAKAO FRIENDS

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10,000 New Kakao Bank accounts opened every single hour2.8 Mil. Debit Cards issued just 2 Months

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Kakao Mini sold out 15,000 AI speakers in 9 minutes

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18 offline shops2,000 of merchandisesIP licensing with Louis Vuitton, Coca Cola, KleenexKAKAO FRIENDS 65 Mil. USD Sales, 22 Mil. USD Operating Profit (2017)

Hottest Character in Licensing

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Temporary shops : 2 weeks – 1 monthStrong advertisement by SNS, Internet Promotion targeting younger generation near colleges

KAKAO FRIENDS Pop-up Store : New Distribution Model

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Doing wholesale & retail shops altogetherPurchasing licensing goods from licensees- Guarantee licensee’s steady sales volume Co-existence of licensor & licensee

Distribution by Licensor

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Two Billions of Monthly Emoticon Talks

30 % + Annual growth & 100 Mil. USD emoticon market in Korea 80 % of mobile phone users enjoy emoticon communications

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24 Emoticon creators sold over a million of their emoticons in 2017

KAKAO Emoticon Merchandises & Buyers

Case Study 2: PORORO

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Created by joint project: Ocon, IconixAnnual licensing income: USD 20 Mil.Annual licensing goods sales: USD 500 Mil.Partner companies: 600+Licensing goods: 1,000+Economic value: USD 5 Bil.Brand value: USD 750 Mil. Licensed over 120 countriesAnnual trademark royalties: USD 14 Mil.

PORORO: The Little President

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PORORO & FRIENDS

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OSMU (One Source Multi Use)

Character

Animation

Music/

Performance

Cartoon

Toys

Licensing/

FranchiseVideo Game

Movie

TV

Broadcasting

Profits are mainly produced by character-related businessesTV sales accounted for 10% of total revenues

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PORORO Movies

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PORORO Musical

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Indoor theme parks :19 places in China, Thailand, Singapore, KoreaVR+IoT technologies applied

PORORO Theme Parks

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PORORO Licensed Merchandises

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Collaboration with optimum business partners- Iconix: Advertisement & marketing- Ocon: Korea’s leading animation studio-EBS: Specialized for children contents Thorough pre-market research

-English naming, Animal behavior patterns for penguin, bear etc.

Success Factors of PORORO

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Understanding different needs of consumers - Separation of the user(child) and buyer (parents)Media strategy for continuous exposure - Longer broadcasting & rebroadcasting the episodes Strict licensing policies: targeting children productsStory telling - Building up identity of character-based merchandise Systemic character licensing process

Success Factors of PORORO

Jinseok Park Patent & Trademark Attorney, PhD in Law

Email: jspark@daraelaw.co.krT: +82-2-3475-7764F: +82-2-3475-7788

Thank You!