As the new knowledge economy approaches, Intellectual Property Rights is rising as a strategic tool to lead the innovation and creativity. Korean Government is aware of the importantness of IPRs protection and EU Chamber welcomes Korea’s recent efforts to improve the IPR system. Yet, the EU business community kindly requests for the government to address other unresolved barriers that are prohibiting a fair and sound IPR environment in line with the interests of consumers and new nation’s wealth creation. Items Issues Recommendations A. Criminal deterrence & Sentencing Although there has been progress in perception on IP protections among IP related Government authorities, IP infringers seem to continue due to the inadequate deterrence and sentencing. Even when criminal sentences are actually given, European rights holders note there is virtually no deterrence value in light of great leniency: nearly all sentences are suspended or convertible relatively cheap fines. Apply strict penalties and sentencing against IPR offenders which can create a deterrent impact. Intensify enforcement, especially in notorious counterfeit goods selling markets (i.e. Itaewon, Dongdaemoon) Korea must invest in the investigatory and prosecutorial resources necessary to deal with organized criminal groups, manufacturers and distributors. B. Trademark issues   European well known brands companies spend billions of Korean Won to advertise and market their products and free riders, including unauthorized gray importers, have used the brand reconition that trusted brands companies have built up over the decades. To attract the consumers, they usually use famous trademarks or the images of brand name products as the vital motif of their advertisements.? Although they often argue that such use is merely to describe the goods, it will very likely mislead consumers into believing that the trademark owners of the renowned trademarks. Related Government authorities must clampdown on free riders who are abusing well known brands companies’ prestige and infringe trademarks to promote their sales. C. Specialized IPR Force According to the Ministry of Justice (MOJ), there are currently 35 senior prosecutors assigned to IPR related cases. To make it more worse, not all of these prosecutors’ workload is confined to IPR issues even though the increasing IPR related problems to be resolved. In addition, due to their position circulation by 2 years, on average, it is not unreasonable to assume that the law enforcement officials are not fully aware of well known brands, its distribution channel and way of infringements. Thus, they are reluctant to conduct proactive investigations. Establish a separate IP crimes investigation and prosecution unit within enforcement agencies. Expand IPR training programs for enforcement authorities Nurture communication channels between the right-holders and the specialized IPR force Grant enforcement power to authorities of the Industrial Property Protection Division of KIPO. D. Public Awareness We welcome Korean IP Authorities’ recent activities, such as IP protection campaign, contest, to raise public awareness, but we see there is lack of essentials to improve it. Intensify publicity on the dangers of IPR infringements through multi dimensional channel in a consistent communication way, targeting from children to old generation, fake demand side as well as supply side. F. Copyright Copyright piracy (books, entertainment software) is widespread at online in line with the world’s highest broadband access rate. Downloads from unauthorized sources have increased sharply over recent years resulting in that legitimate music sales have fallen by more than 55% since 2001 and movie studios are frustrated about the private DVD copies sold on the streets. Since 2006, major movie studios left Korea and the mighty internet is also killing video rental outlets; The country had more than 10,000 video shops in 2001 but had just 3,500 at the end of in 2007. Copyright Act should be reexamined in light of the growth of internet piracy and impose penalties against copyright offenders that is realistic enough to uphold a deterrent effect Reinforce liabilities of Internet Service Providers against copyright infringement. Intensify protection of DVD copies and game related software in the street. G. Data Protection Foreign companies continue to have strong concerns about the handling of trade-secrets cases. For example, some foreign manufacturers of cosmetics, energy and chemistry, face continuing problems with government regulations requiring submission of very detailed product information, such as formulae, as part of registration, certification or bidding procedures. Although the release of business confidential information is forbidden by Korean law, in some instances, the related document seems to be flowed to third parties. Data for registration, certification and project bidding should be protected clearly. H. Border Control The Korea Customs Service implemented risk management system which can control effectively for the imported goods.??? Though EU right holders are very sensitive to this, in light of relocation of manufacturiung of counterfeit goods to China and more sophisticated fake distribution flows channel. Continuous efforts to address the misuse of import declaration forms by merchants and importers. KCS risk management system should be optimized continuously. I. Tourism Japanese tourists are often lead by middlemen; tour companies and/or tour guides and/or taxi drivers to secret place where the lion’s share of counterfeit is transacted. Frequently, these middlemen are given a percentage of the total sales amount as commission for attracting tourists. Tour guides or agents knowingly aiding the principal offender committing a trademark crime should be punishable as an accessory to the crime.