Taiwan and South Korea have signed two memorandums of understanding that are expected to slash patent review and approval time, and government officials said petrochemical, electronics and semiconductor industries are poised to reap the most benefits.

According to The China Post, the signing of the Patent Prosecution Highway (PPH) will facilitate the spread of industry-related knowledge among the public. It also marks an important milestone for the two countries' IP exchange and cooperation.

Under the PPH mechanism, once a patent review is completed in one country, the patent's applicant can immediately request a PPH review in the other country.

Joseph Shin, Taipei's representative in South Korea, said in the signing ceremony that the Korean Intellectual Property Office ranks among the top five IP offices in the world, and that many Taiwanese consider South Korea a strategic base for patent applications.

Shin said that government officials arrived at South Korea in February to discuss the potential of IP cooperation, and conditions were ripe to foster the agreement yesterday.

With a bilateral trade topping US$30 billion last year, the two countries are each other's sixth largest trade partners. Since integrated circuit products account for 65% of Taiwan's exports to South Korea, the new PPH is expected to give Taiwan firms more edge, according to Shin.