Market Research
Last updated
Last updated
The digital asset market has grown rapidly, with global transactions amounting to $2 billion in the first quarter of 2021. Experts anticipate that this growth will continue, expecting it to grow to $12 billion in 2026, which is 2.3 times the size of the market in 2021. The activation of transactions through the digitalization of Intellectual Property (IP) assets has emerged as a megatrend in connection with the NFT market. In particular, the trend is towards the active promotion of transactions through the partitioning of ownership of IPs, mainly copyrights such as music.
The global IP market is steadily growing, and as of 2021, the size of the global IP transaction market is estimated to be about $250 billion. This represents an annual growth rate of approximately 5% over the past decade. This growth is expected to continue, with the global IP transaction market projected to grow to over $350 billion by 2026.
Noteworthy trends in the global IP market recently include digitization, open innovation, and the emergence of intellectual property rights platforms. Advances in cutting-edge technologies such as blockchain and artificial intelligence are further digitizing the IP market, thereby improving transaction efficiency.
The number of intellectual property applications in 2021 was recorded at 23,061,400, an increase of 5.5% from the previous year. Among these, the market shares were trademarks, patents, and designs, in that order, accounting for 78.7%, 14.7%, and 6.6% respectively. Looking at the growth rate during the same period, patents increased by 3.6%, trademarks by 5.5%, and designs by 9.2% compared to the previous year.
Despite its high level of research and development spending, South Korea has shown low levels of technology transactions and utilization. In 2019, South Korea's research and development (R&D) spending as a proportion of Gross Domestic Product (GDP) was 4.64%, ranking second among the Organisation for Economic Co-operation and Development (OECD) countries. The total R&D spending was 89.471 trillion KRW, ranking fifth in the world. However, the technology transfer rate in South Korea has not exceeded 30% for all public research institutes and universities, and it has decreased from 38.6% (2015) to 36% (2019) in the last five years. In relation to this, the government has been promoting various policies to activate technology transactions over the past decade, but the effects appear to be minimal. Therefore, it seems to be the time to need measures to improve the activation of technology transactions.
As such, the digital asset market is experiencing rapid growth, and the activation of transactions through the digital assetization of intellectual property (IP) has emerged as a mega trend in conjunction with the NFT market. With the increasing importance of intellectual property rights and the active trading activities in various industrial fields, technological advancements and innovation are expected. Hence, the need for a fair technology value assessment system and trading system is becoming increasingly prominent. However, there is a lack of platforms that can evaluate and trade IP transparently and fairly. In response to these changes, there is an urgent need for a platform that can enhance the efficiency of IP trading and promote the activation of the IP ecosystem.
Xangle focuses on the cryptocurrency market, providing digital asset disclosure services to offer investors swift and accurate information. Tech Transfer Exchange (Techinfo / Ministry of Trade, Industry and Energy) supports the trade of technology and patents of small and medium-sized enterprises (SMEs), offering technology trade mediation and its own financial support (loans, guarantees). Particularly, their strength lies in technology financing, including insurance systems related to IP finance.
Musicow is a music copyright investment platform targeting the MZ generation, offering creators direct opportunities to generate revenue. Wadiz is the first equity crowdfunding company in South Korea, serving as a platform that connects various startups and investors. While there are issues with securing profitability, it provides the nation's first comprehensive crowdfunding service.
Each of these competitors is focused on a particular niche within the broader market, be it cryptocurrency, technology transfer, music copyright investment, or crowdfunding. However, they each represent potential competitors in the broader IP marketplace.
Xangle addresses the issue of information asymmetry and provides reliable disclosure information and assessment reports, but it has limitations in its content services. The Medium-Sized Enterprises Specialized Technology Exchange operates through public sector participation such as technology intermediation and IP auctions, but it has limitations in the use of its own experts and lacks assessment of new technologies and ideas. Musicow confirms the possibility of copyright trading and provides stability of divided copyright ownership, but there are issues with trading transparency. Wadiz has limitations in trading activity due to restrictions on secondary trading.
