Appraisers Association Urges Intellectual Property Office to Revise Patent Attorney Act... "Self-Appraisal Must Be Prevented"

Patent Attorneys Handling Patents

Direct Valuation Raises Fairness Concerns

Industry Cooperation on IP Appraisal Urged

The Korea Association of Property Appraisers has called on the Intellectual Property Office to revise the proposed amendment to the Patent Attorney Act, stressing that patent attorneys who represent patents should be prohibited from directly appraising the value of those patents—a practice referred to as "self-appraisal."

The association announced on the 1st that its chairman, Yang Gilsoo, recently met with Commissioner Kim Yongseon at the Seoul Intellectual Property Office in Gangnam-gu, Seoul, where he submitted a written proposal containing these recommendations. The proposed amendment is currently pending review by the National Assembly’s Legislation and Judiciary Committee.

Intellectual Property Office Seoul Branch, Gangnam-gu, Seoul. Korea Association of Property Appraisers

Intellectual property valuation involves determining the monetary value of patents, trademarks, and similar rights. The results of such appraisals serve as vital benchmarks when buying or selling these rights, raising investment based on them, or using them as collateral for loans.

Other professionals such as appraisers, lawyers, and certified public accountants are legally prohibited from conducting work where conflicts of interest could arise. The association proposed stronger disciplinary regulations and a more robust management system to prevent a recurrence of the substandard patent right evaluations by patent attorneys that occurred in 2020.

To enhance the reliability of intellectual property valuation, the association also requested the prompt revision of the Enforcement Decree of the Intellectual Property Promotion Act, which currently excludes property appraisers from the eligibility requirements for invention appraisal institutions. The association asserted that establishing a diverse system for cooperation between the government, the property appraisal industry, and patent attorneys is essential to support IP commercialization.

There was some disagreement regarding whether sufficient consultation had taken place on the proposed amendment. The association expressed regret, noting that while the National Assembly’s Legislation and Judiciary Committee stated on March 30 that discussions between the association and the Intellectual Property Office had been concluded, there had in fact been no such consultation.

The association conveyed to the Intellectual Property Office, “We are concerned that the discussions on this amendment could escalate into conflicts over work domains between professionals. For Korea to become a global leader in intellectual property, it is essential to pursue productive discussions rather than conflict.”

This content was produced with the assistance of AI translation services.