Preparing for a Patent Application#
Patent applications might look complicated, but they're not that hard once you understand the key procedures and things to watch for.
Patent Application Process at a Glance#
- Consultation: Write an invention disclosure and start consulting with a patent office.
- Retainer fee notice: Receive guidance on engagement and advance payment.
- Prior art search and registration feasibility review: Investigate whether similar patents already exist and assess registration feasibility.
- Registration feasibility opinion: Receive an opinion based on the research results.
- Draft specification writing: A draft patent specification is prepared.
- Draft specification delivery and review: Receive and review the draft.
- Draft specification revision: Request revisions if needed.
- Balance billing: The remaining balance is billed.
- Patent filing and filing report: The patent is filed with the final specification, and you receive the filing report.
- Filing procedure completion and cost settlement: All procedures are wrapped up and costs are settled.
Note: Most patent offices don't charge a consultation fee -- they receive fees through the engagement.
Things to Watch for with Domestic and International Filing#
- If you plan to file internationally: You must file overseas within 1 year of the Korean filing date to claim priority based on the Korean filing date.
- Substantive examination vs. formality examination: Once the formality examination is passed, the filing is complete. Registration is decided during the substantive examination.
- The essence of patents: Patents are a system for publicly disclosing technology so others can reference it. This promotes technological advancement.
- Patent searching: It's important to get in the habit of searching for similar patents in advance.
Understanding the Basics of Finance and Accounting#
Corporate Stakeholders and Financial Information#
A company's financial information plays an important role for various stakeholders.
| Stakeholder | Primary Concerns |
|---|---|
| Investors | Investment value, profitability |
| Creditors | Interest and principal recovery, cash flow |
| Consumers | Company sustainability, customer service like A/S |
| Government | Tax collection, corporate support and regulation |
| Employees | Profitability, growth potential, fair compensation |
| Product sellers | Transaction payments, growth potential, sales strategy |
| Raw material suppliers | Payment recovery, profitability, production strategy |
Business Activities and Accounting#
- Business activities are divided into financial activities, investment activities, and operating activities.
- Accounting is the process of recording a company's various transactions (changes in assets, liabilities, equity, revenue, and expenses) according to generally accepted accounting principles.
Getting Started with Financial Statement Analysis#
How to Read Financial Statements#
- Focus on the income statement and balance sheet to analyze financial ratios.
What Is Financial Ratio Analysis?#
- A method of comparing figures between financial statement items to understand a company's financial condition and business performance.
- Key ratios: liquidity, stability, profitability, activity, etc.
Using Standard Ratios#
- Company's own historical ratios: Compare against your own company's past figures
- Industry average ratios: Compare against industry averages provided by sources like the Bank of Korea's Corporate Management Analysis and the Korea Development Bank's financial analysis
Tax Essentials You Need to Know#
Tax Filing and Business Registration#
- National taxes are, in principle, confirmed when the taxpayer files directly.
- Business registration certificate: For corporations, the incorporation registration date is recorded; for sole proprietors, the registration issuance date.
Key Tax Types#
- Corporate tax, local corporate income tax, income tax (business income), local income tax, value-added tax, etc.
Tax Reduction Programs#
- Tax reduction benefits when establishing a corporation outside the Seoul metropolitan over-concentration control zone
- Young entrepreneurs can receive various benefits including registration tax and education tax exemptions, income tax exemptions, acquisition tax reductions, and property tax benefits.
- However, if early-stage revenue is low, the reduction benefits might not be very significant.
Tax and Business Support Services#
- National Tax Counseling Center: Call 126
- Business Support Team: Call 1357, website available
Qualified Receipt Requirements#
- When paying other businesses, you must always obtain proof documents (tax invoices, invoices, credit card receipts, cash receipts, etc.).
If you're preparing or running a startup, I highly recommend getting familiar with the basics of patents, finance, and taxes based on the content above!
You're not obligated to win. You're obligated to keep trying to do the best you can every day.
— Marian Edelman
