International Patent Filings Dominated By Asia

China, Japan, and South Korea show dominating growth in international patent filings and exhibit a significant shift of economic, competitive and scientific power to Asia, based on data released in February 2011 by the World Intellectual Property Organization (WIPO).

The World Intellectual Property Organization said China had increased its international patent filings in 2010 by 56.2% to 12,337, tripling its 2006 figure and elevating China into fourth place in global rankings.  These figures include a 33% increase in patent filings in electrical engineering and 220% increase in nanotechnology.

South Korea, ranked 5th with 9,686 filings, grew 20.5%, and Japan, a country with a mature economy, still attained growth of 7.9% with 32,156 applications to place 2^nd, and Germany, with 17,171 applications, ranked 3^rd on the list.

The United States is stilled ranked number one, although it experienced a drop of 1.7% to 44,855 filings, some 20% below its 2007 level.  International patent applications by universities are still dominated by U.S. schools.  Leading the pack is the University of California, Massachusetts Institute of Technology, University of Texas, and University of Florida.  Under this ranking, the University of Tokyo follows closely at number 5.

The top 10 companies by filings include 3 from Japan, 2 from China, and 1 from South Korea, with 1 U.S. and 3 European firms completing the list.

Looking at the data from a corporate perspective, Japanese consumer electronics group Panasonic Corporation (NYSE: PC; TYO: 6752) again led the list with 2,154 applications, and China’s telecommunications giant, ZTE Corporation (SZSE: 000063; SEHK: 0763), jumped into 2^nd place with 1,863 applications.  U.S. chipmaker Qualcomm Inc. (NASDAQ: QCOM) was in 3^rd place with 1,677 filings, and Chinese telecoms equipment maker Huawei Technologies Co. Ltd. is in 4^th place with 1,528 applications.  LG Electronics Inc. (KRX: 066570; LSE: LGLD) of Korea takes the 7^th place with 1,298 applications.  Of the top 10 corporate applicants, 6 are from Asia.  The U.S. juggernaut Google Inc. is ranked only 80^th with 171 applications.

Under the Patent Cooperation Treaty (PCT), the WIPO offers inventors and industry an easier route for obtaining patent protection internationally.  By filing one “international” patent application under the PCT, protection of an invention may be established simultaneously in each of the current 142 treaty member countries.

Both applicants and patent offices of PCT member states benefit from the uniform formality requirements, the international search and preliminary examination reports, and the centralized international publication provided by the PCT system.

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South Korea’s Shinsegae Group and Lotte Group square off in a battle for supremacy in the retail industry.

Last year, Shinsegae Group opened its latest luxury department store on the home turf of archrival Lotte Group, igniting another round of aggressive competitions for customers. Shinsegae Centum City, the 510,000 square meters (approximately 5.5 million square feet) colossal shopping and entertainment complex has eclipsed even Macy’s New York City Herald Square flagship store to set a new Guinness Record as the largest department store in the world.

Located on a former airport site in the coastal city of Busan, Korea, Shinsegae Centum City is comprised of a 14-story east wing which houses an 8-floor department store, restaurants, a gym and a golf driving range, as well as a 9-story west wing which features an indoor ice skating rink, concert hall, multiplex cinema, an art gallery, and spa facilities. It costs 1.025 trillion won (US$1.09 billion) to build.

Not to be outdone, Lotte Group is already building its own new colossal project, Lotte World, in Busan. It features a Las Vegas Bellagio like water fountain that is supposed to be the largest in the world. A planned skyscraper with a scheduled completion in 2016 would be among the tallest in Asia.

Shinsegae and Lotte have arrived at the top of the retail game through different paths. Lotte’s empire is built on its high-end department stores, a segment where it claims three times the market share of Shinsegae. The foundation of Shinsegae’s business empire is built on its discount E-Mart stores, and this lower end retail market is where Shinsegae claims three times the market share that the discount Lotte Mart attracts. In 2009, for the first time in its operating history, Shinsegae overtook Lotte in total revenue, posting $11.4 billion in sales compared to Lotte’s $10.7 billion.

This fierce domestic battle is continuing overseas. Shinsegae now operates 26 discount stores in china and plans to open another 100 stores there by 2015. Lotte operates 79 discount stores in China as well as many other outlets in Vietnam and Indonesia. This year, Lotte continues its expansion by opening a hotel in Russia, right next to the high-end department store it founded there in 2007.

Anyway, the Clash Of Titans Continues….