“Broadening the IP investment ecosystem”... Intellectual Property Office opens a “channel for dialogue” with private VCs

[Financial News] The Intellectual Property Office is establishing an official channel of communication with the venture capital (VC) industry to boost investment in intellectual property (IP) and discuss policy improvements focused on the needs of the field.
The Intellectual Property Office said it would hold the launch ceremony for the IP-VC Council at El Tower in Seocho-gu, Seoul, on the afternoon of the 28th. The council was launched in response to a request from the investment industry at a venture capital industry meeting held last June, where participants said, “Without an official channel for communication, voices from the field are not being properly reflected in policy.”
The newly launched IP-VC Council will include 35 investment institutions currently managing sub-funds under the Patent Account of the Fund of Funds. To maximize investment expertise, the council will operate through three dedicated working groups: transactions and commercialization, monetization, and startups and regional investment. The Intellectual Property Office and Korea Venture Investment will jointly review proposals for institutional improvement raised by each group and immediately incorporate them into policy, with the results to be shared regularly with the council.
The Intellectual Property Office will also significantly expand benefits to provide practical support for participating fund managers’ investment activities. Incentives for VCs in the council will include preferential access to financial support for investment-linked IP valuation costs and bonus points when applying for investments under the Patent Account of the Fund of Funds. In addition, starting next year, the office plans to hold joint investor relations (IR) events with the council and provide close support to help deep-tech companies with outstanding patented technologies expand their fundraising opportunities.
Kim Il-gyu, Director General for Intellectual Property Policy at the Intellectual Property Office, said, “The launch of this council will create a forum to listen closely to voices from the IP investment field and bring about institutional innovation.” He added, “We will spare no effort in providing active support, boldly removing obstacles in the field so that a private-sector-led IP investment ecosystem can take firm root.”
Meanwhile, amid persistently high interest rates and a downturn in venture investment, IP is becoming more important than ever to technology-based startups and venture companies with few tangible assets. The IP finance and investment market—which includes raising funds using patents or technological capabilities as collateral and investing directly in IP—is seen as a key driver of deep-tech venture growth. However, uncertainty in valuing technology and the lack of a market for realizing returns have been cited as barriers to a strong influx of private capital. The venture investment industry therefore expects the launch of the council to usher in substantive policy discussions on standardizing IP valuation models, developing an IP monetization market—including IP licensing and patent infringement litigation—and diversifying fund exit routes.
[email protected] Kim Won-jun Reporter