Proposal for Reformation of Patentability Standards Against Predatory Innovation

Present patent law system and the standard of examination of patentability have not kept pace with the rapid development of high technology industry. Idemitsu Kosan having original material patents in the display market have tried to build patent portfolios using chemical combination inventions as one of the patent strategies to extend their monopolization with their market power. Recently, domestic material firms cannot enter into the display market because of such chemical combination patents, so competitor have brought patent invalidation lawsuits against the invalid patents in Korea, Europe and Japan. These strategic patenting, however, may block competitors’ exploitation of follow-on invention, and as a result, such conduct adversely affects consumer’s welfare to enjoy high quality and cheap products by preventing free competition. If the predatory innovation such as combination patents of Idemitsu Kosan restricts the competition or actually monopolizes the relevant market, such conduct shall be subject to Section 2 of the Sherman Act as monopolization or attempted monopolization by considering two prongs of the dominant firms’ blocking intent and the patent’s validity. To reduce anticompetitive predatory innovation or invalid patents causing patent disputes, and to differentiate true improved invention from predatory innovation in OLED industry, and thereby, encouraging free competition market without anticompetitive coercions, uniform and effective patent system including patent examination guidelines should be established.