- 1) Exclusive License
- a) An exclusive license cannot come into effect unless it is registered
on the original patent register.
- b) The exclusive licensee is able to take any action against
infringement of the patent right without the consent of the patentee.
- c) The exclusive licensee is not able to assign his right to exclusively
work the patented invention to a third party without the consent of
the patentee.
- d) The patentee is not able to work his patented invention without the
consent of the exclusive licensee.
- e) The exclusive licensee can exclusively work the patented invention
within the scope of the license agreement.
- f) The exclusive licensee can establish a pledge or grant of a
nonexclusive license in the exclusive license only with the consent
of the patentee.
- 2) Nonexclusive License
- a) A nonexclusive license comes into effect when the license
agreement is concluded by both parties, irrespective of its
recordation on the original patent register. However, without
recordation, the nonexclusive license can't be exercised against any
third person.
- b) The nonexclusive licensee only has the right to work the patented
invention within the scope of the license agreement or the extent
prescribed in this Law.
- c) The nonexclusive licensee cannot assign his nonexclusive license,
other than nonexclusive licenses according to a arbitration decision
on grant of nonexclusive license and a trial for granting nonexclusive
license, to third party or cannot establish a pledge on the non-
exclusive license without the consent of the patentee, or the
patentee and the exclusive licensee in case of a nonexclusive
license on an exclusive license.
- 3) Necessary Documents
- a) Exclusive License/Nonexclusive License Agreement (to be
notarized);
- b) Corporation Nationality Certificates or Individual Nationality
Certificates of both parties (to be notarized); and
- c) Powers of Attorney of both parties (to be simply signed).
- 4) Government Approval of License Agreement
- The Korean Government has enacted the Foreign Capital Inducement
Act ("FCIA") to promote inducement of foreign capital into Korea.
Foreign capital is classified into three aspects: direct capital investments
by foreigners into Korean enterprises; inducements of foreign technology
by Koreans; and loans by foreigners to Koreans.
- Technology transfer and/or licensing of Intellectual Property Rights such
as Patent, Design, Utility Model and Trademark by foreigners to Koreans
fall under the category of the Technology Inducement Agreement ("TIA")
provided under FCIA. Accordingly, the license agreements for patent,
trademark, design, etc., are also classified as a TIA and shall be
subject to Government approval.
- The main purpose for regulating TIA is to control the outflow of foreign
currency to pay royalties, and to prevent unfair trade practices. Without
Government approval of TIA, the Korean party cannot pay royalties
under TIA.