The purpose of Patent System is "to encourage, protect and utilize invention, thereby improving and developing technology, and to contribute to the development of industry". Namely, the purpose of the patent system is to contribute the development of industry by opening and utilizing invention while it also allows the inventor with the exclusive right.

In this point of view, patent system is also called as new technology protection system, invention encouragement system or private exclusive possession security system. To achieve above identified purpose, relevant systems was established as follow:

Originally, Utility model system was established in Germany as supplements for patent system. In process of application of patent system, in some cases, improved-invention or micro-invention was neglected and exclusive right for them was not allowed. Accordingly, it was required to protect and encourage micro-invention of small businesses and individual inventors as industrial policies.

As a result, Utility model system was established in several nations as well as Germany to supplement patent system, but the substances and applications thereof are different in each country. In Korea, the Patent Decree was announced in 1908, and the Utility Model Law was established in 1946 based on the Japanese Utility Model Law.

The Utility Model Law has been amended several times (1963, 1973, 1980, 1990 etc.) and the number of application for utility model filed between 1953 and 1988, for 35 years, was always larger than the number of applications for patent. However, since 1989 the situation reversed and the number of patent applications exceeded the number of utility model applications.

In this point of view, the Utility Model System in Korea has provided the improved-inventions and micro-inventions obtained through introduction, digestion and assimilation of fundamental invention of leading industrial countries with the systemic basis of exclusive right under utility model registration.