North Korea Intellectual Property (IP) Guide

1. Introduction

North Korea is pursuing the modernization of its industrial structure. This inevitably leads to the reform of its intellectual property system. However, at the same time, international sanctions against North Korea are more stringent than ever.

For IP professionals, North Korea represents a dual role: a potential future market and a current compliance minefield. This report provides an in-depth analysis of North Korea's trademark and invention laws, revised in 2023, and proposes strategic positions for Korean and global companies.

2. Key Changes in North Korea's IP System for 2025

North Korea's IP system formally follows WIPO's international standards while maintaining a unique dual structure that utilizes it as a control mechanism for regime maintenance.

2.1. Amendments to the Trademark Law

The Trademark Law, revised in 2023, attests to the emergence of a 'digital economy' within North Korea.

• Expanded Definition of 'Use': Not only physical goods but also the transmission of 'digital goods' such as apps and e-books are recognized as trademark use.
• Strengthened Service Marks: Protection regulations have been enhanced due to the increase in e-commerce platforms and delivery services, such as 'Manmulsang' and 'Okryu'.
• Introduction of Partial Refusal System: Unlike the past where the entire application was refused if even one item had grounds for refusal, a convenience system has been introduced to register items without issues.

2.2. Technology Control Measures: Radio Wave Management Law and Anti-Superstitious Ideology Law

• Radio Wave Management Law: Strengthened state control over IT devices such as smartphones and tablets. This acts as a strong non-tariff barrier for foreign companies entering with IT hardware/software.
• The Other Side of Copyright: Although copyright law exists, it tends to function more as a censorship tool to 'block the inflow of external information' rather than protecting creators.

3. Practical Guide: Application and Registration Strategies

Although North Korea is a closed country, IP administrative procedures exist. The key is to choose a 'safe route'.

3.1. Patent Application Strategy

• Dual Structure: There is a separation between 'Inventor's Certificate (rights belong to the state)' for internal use within North Korea and 'Patents (recognition of exclusive rights)' for foreigners.
• Application Route:
  
  • PCT Route (Recommended): Procedures are stable as they go through WIPO. Submission of a Korean (Chosŏn'ŏ) translation is mandatory.
  • Examination Characteristics: Due to a lack of internal databases, examination results from IP5 (Korea, US, Europe, Japan, China) are heavily referenced.

3.2. Trademark and Design Acquisition Strategy

The most realistic and necessary strategy for Korean companies is 'defensive trademark squatting'.

• Utilize the Madrid Protocol (Highly Recommended):
  
  • Cost: In addition to the basic fee, there is an individual country designation fee (KP) of 100 CHF.
  • Advantage: Fees are paid to WIPO headquarters in Geneva, Switzerland, thus completely blocking the risk of sanctions on remittances to North Korea.
• Caution Regarding Non-Use Cancellation: Applications can be canceled if not used for 3 years after registration. While non-export due to sanctions can be argued as a 'justifiable reason', periodic re-filing is the safest defense.

4. Core Risk: North Korea Sanctions and Financial Compliance

The biggest barrier faced by IP professionals is not legal theory but 'money'.

4.1. Structure and Exceptions of Sanctions

• Principle: UN and US unilateral sanctions (NKSR) strictly prohibit financial transactions with North Korea.
• Exception (General License): US Department of the Treasury Office of Foreign Assets Control (OFAC) regulations (31 CFR § 510.517) exceptionally permit payment of fees for the application, registration, and maintenance of IP rights.

4.2. Practical Difficulties

Even if legally permissible, commercial banks refuse remittances related to 'North Korea'.

• Pine IP Firm's Solution:
  
  1. Utilize WIPO System (Top Priority): All official fees are settled through WIPO to avoid remittance issues.
  2. Utilize Chinese Intermediaries (Caution): If unavoidable, proceed through a law firm located in Beijing, but thorough due diligence is required to ensure the firm is not on the US SDN list.

Caution: There is a surge in cases where North Korean IT personnel disguise their identities, get employed by overseas companies, and then steal technology. IP protection is now directly linked to HR security.

5. Overview and Information on North Korean Agencies

Foreigners must work through designated North Korean agents. The following are key agents; be careful not to confuse them with similarly named entities in Korea (e.g., Patent Law Firm Koryo).

[List of Major North Korean Patent/Trademark Agencies]

6. Pine IP Firm's Recommendations

In 2025, the North Korean IP landscape remains uncertain. However, from the perspective of preparing for unification and brand protection, it is an area where 'we cannot afford to stand idly by'.

1. Actively Utilize WIPO: The Madrid and Hague Systems are the sole and safe channels to secure rights in North Korea without sanctions risk.
2. Secure Defensive Filings in Advance: Especially for trademarks related to software and e-commerce, proactive defensive filings are necessary under the revised law of 2023.
3. Maintain Thorough Financial Records: If IP-related expenses for North Korea were incurred, records of whether they fall under the OFAC license and remittance details should be kept for at least 5 years to prepare for future audits.

North Korean intellectual property rights may seem complex and risky, but there is a way forward.

Pine IP Firm provides optimal solutions to securely protect your valuable intellectual property rights amidst complex North Korean sanctions.