Korea has continued to add to the number and content of laws designed to protect intellectual property, but enforcement is another thing. Generally speaking, most Koreans have little or not sense of intellectual property rights anf for the most part simply ignore laws aimed at protecting them - especially when the rights involve foreigners. The double standard is alive and well in Korea. The American Chamber of Commerce in Korea states bluntly: "There is no effective protection today."

There are serious problems in every category of intellectual property protection, including virtually all areas of copyrights and patents, from books and computer software to trademarks to trade secrets. With increasing pressure from foreign governments, this is expected to gradually change in the future, with the Semiconductor Chip Protection Act of 1992 helping to lead the way. In the meantime, transferring technology to Korea remains a gamble and a challenge. One thing of special improtance: foreign technology registered abroad is not automatically protected in Korea. It must be registered there as well. Ultimately, the problem will not end until Koreans develop a sense of the creator's rights to intellectual property and choose to abide by the laws because they believe it is the right thing to do.

It is very important for foreign companies to register pertinent trademarks in Korea prior to establishing a tie-up with a Korean company. The trademarks should be registered separately in the Korean language and the home-country language. It is also vitally important that each of these two registrations show the corresponding registration in the other language.

A Korean trademark does not require prior usage is normally issued in about one year. There are numerous specific regulations concerning the registration of foreign patents, so professional help is usually necessary. Among other things, several guarantees of the identity of quality must be provided (by the TAA or JVA, the raw material supplier, etc.) before a foreign trademark can be registered.

Foreign patent holders should also keep in mind that if they allow a Korean to use their registered trademark, or if they fail to use it, it may be canceled following a trial brought by someone wanting to break the registration. Koreans frequently register foreign trademarks and then hold them in the hope of cashing in when the foreign owner opts to enter the Korean market.

The Korean government and foreign businesspeople have a basic conflict when it comes to the amount of royalties that are proper for the use of patents and technology in the chemical and other process industries. It is the position of the ROK governemnt that such royalties should not exceed 3 percent, while foreign companies thing 4 or 5 percent is both fair and needed.

Excerpted from Korean Etiquette and Ethics in Business, by Boye Lafayette De Mente Excerpted from Korean Etiquette and Ethics in Business, by Boye Lafayette De Mente Kuala Lumpur Malaysia at 11:18 AM