North Korea IP Guide: Navigating Sanctions and Strategy

1. Introduction

North Korea (DPRK) is currently pushing for the modernization of its industrial structure. Inevitably, this has led to an overhaul of its Intellectual Property (IP) system. However, this development comes at a time when the international sanctions network against the regime is tighter than ever.

For global IP managers, North Korea represents a paradox: it is both a potential future market and a current compliance minefield. This report provides an in-depth analysis of the DPRK’s Trademark and Invention Laws (amended in 2023) and proposes strategic positions for global companies to mitigate risk while securing rights.

2. Key Changes in the North Korean IP System (2025 Outlook)

The North Korean IP system possesses a unique dual structure. While it formally adheres to WIPO international standards, it is simultaneously utilized as a control mechanism for regime maintenance.

2.1. Amendment of the Trademark Act

The 2023 amendments to the Trademark Act reflect the emergence of a nascent "digital economy" within North Korea.

• Expanded Definition of 'Use': The concept of trademark use now extends beyond physical goods to include the transmission of "digital goods" such as mobile applications and e-books.
• Strengthened Service Marks: Protection regulations have been reinforced to accommodate the rise of state-run e-commerce platforms (e.g., 'Manmulsang', 'Okryu') and delivery services.
• Introduction of Partial Refusal: Previously, if a part of the goods in an application had grounds for refusal, the entire application was rejected. The new system introduces a convenience measure allowing the registration of non-problematic goods.

2.2. Technology Control: Radio Management & Anti-Reactionary Thought Laws

• Radio/Frequency Management: State control over IT devices (smartphones, tablets) has been tightened. This acts as a formidable non-tariff barrier for foreign IT hardware and software entering the market.
• The Reality of Copyright: While copyright laws exist, they function less as a tool for protecting creators and more as a censorship mechanism to block the influx of external information.

3. Practical Guide: Filing and Registration Strategy

Although North Korea is a closed state, administrative procedures for IP exist. The key is to choose the "safest route" that ensures compliance.

3.1. Patent Filing Strategy

• Dual Structure: The system is split into 'Inventor’s Certificates' (rights belong to the state; for locals) and 'Patents' (exclusive rights recognized; for foreigners).
• Recommended Route (PCT): We strongly advise filing via the PCT route. Because this utilizes WIPO mechanisms, the procedure is stable. Note that submitting a translation in the Korean language is mandatory.
• Examination Characteristics: Due to a lack of internal databases, DPRK examiners rely heavily on examination results from the IP5 (US, EP, KR, JP, CN).

3.2. Trademark & Design Strategy

For global companies, the most realistic and necessary strategy is "Defensive Filing against Squatting."

• Utilize the Madrid Protocol (Highly Recommended):
  • Cost: Basic fee + Individual Designation Fee (100 CHF).
  • Advantage: Fees are paid to WIPO headquarters in Geneva, Switzerland. This completely bypasses the risk of direct financial transfers to North Korea, which could violate sanctions.
• Caution on Non-Use Cancellation: A trademark can be canceled if not used for 3 consecutive years. While "export impossibility due to sanctions" can be argued as a legitimate reason for non-use, the safest defense is periodic re-filing.

4. Core Risks: Sanctions and Financial Compliance

The biggest barrier an IP manager faces regarding North Korea is not legal theory, but money.

4.1. Structure of Sanctions and Exceptions

• Principle: UN and US unilateral sanctions (NKSR) strictly prohibit financial transactions with North Korea.
• The Exception (General License): The US Department of the Treasury’s OFAC regulations (31 CFR § 510.517) provide a general license authorizing payments for the filing, registration, and maintenance of IP rights.

4.2. Practical Difficulties (De-risking)

Even though legally permissible, most commercial banks will reject any wire transfer containing the keyword "North Korea" due to internal de-risking policies.

Pine IP Firm’s Solutions:

1. Prioritize WIPO Systems: Settle all official fees through WIPO to avoid direct remittance issues.
2. Due Diligence on Intermediaries: If you must use a Chinese law firm as an intermediary, strict Due Diligence is required to ensure the firm is not on the US SDN (Specially Designated Nationals) list.
3. HR Security Warning: There is a rising trend of North Korean IT workers disguising their identities to gain employment at overseas firms to acquire technology. IP protection is now directly linked to HR security.

5. North Korean Agency Information

Foreign applicants must appoint a state-designated agent within North Korea. Below is information on major agencies.(Note: Do not confuse these with South Korean firms that may have similar names.)

Disclaimer: The above contact information is based on public WIPO data. Direct contact carries compliance risks. We strongly advise using an intermediary or WIPO channels.

6. Pine IP Firm's Recommendation

In 2025, the North Korean IP landscape remains opaque. However, from the perspective of brand protection and future market preparation, it is an area that cannot be ignored.

1. Actively Utilize WIPO: The Madrid and Hague systems are the only secure corridors to secure rights in North Korea without immediate sanctions risk.
2. Preemptive Defensive Filing: Particularly for software and e-commerce brands, defensive filing is necessary under the 2023 amended laws to prevent squatting.
3. Document Financial Records: If any costs are incurred for North Korean IP, retain all records regarding OFAC license applicability and wire transfers for at least 5 years to prepare for potential audits.

North Korean Intellectual Property may seem complex and risky, but there is a path forward. Pine IP Firm provides optimal solutions to safely protect your valuable intellectual property amidst complex sanctions.

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