Suitable Measures for Innovation

September, 2014

1

2

Toyota Case (Patent Assignment)

Expansion of

Business

Patent Assignment

Company’s Roots Entry into a New Business Area

Factory Automatic Loom

Capital: $3.7 billion 　

Annual sales: $210 billion

Today

Source: http://www.toyota-global.com/

in 1929in 1924

Sakichi Toyoda

3

Gradually expanded operations

The company started by making minor improvements to wiring equipment ・・・

Company’s Roots Workplace The first product

Today

Capital: $2.4 billion

Annual sales: $70 billion Source: http://panasonic.net/

in 1918Kounosuke Matsushita

Panasonic Case (Creation and Protection)

4

Ajinomoto Case (Industry-University Cooperation)

Commercialize inventions!

Expand ourbusiness using the new product!

We lack R&D capabilities …

We don’t know how to apply our research results …

Company commercializes university’s

research results

Fill the gaps in each other’s weak areas

“Umami” seasoningby Prof. Kikunae Ikeda

(Tokyo University)

in 1907

5

Changes in Business Environment (Globalization)

（ No. of Applns.)

Changes in No. of PCT applns. filed in Japan

0

100,000

200,000

300,000

400,000

500,000

600,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

(billion dollars)(Number of Patent Applications)

(year)

Number of Patent Applications

Gross Domestic Product

Acceleration of Innovation along with the Growth of GDP

Business expansion overseas

Increase in the number of patent 　applications filed overseas

2005 2006 2007 2008 2009 2010 201120

25

30

35

40

45

50

55

22 23

24 23

25 27

30

43 45 46

46 52 53 52 47 47 48

46 47 47 47

Japan U.S.A. Europe

(%)

Global Application Rate of Japanese, U.S. and European Applicants

Global application rate means the number of applications filed both at one's own country and at other countries, divided by the total number of applications filed at one's own country.

20,000

30,000

40,000

50,000

2006 2007 2008 2009 2010 2011 2012 2013

6,000

5,000

4,000

3,000

2,000

1,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

0

500

1,000

1,500

2,000

2,500

3,000

Amount of export

Amount of import

balance

Source: Created based on Science and Technology Research Report

Trends in Technical trade balance of Japan

A surplus in the technical trade balance of Japan has increased because of Japan’s technological advantages. It is more than 20 billion dollars annually.

Billion dollars

FY

6

30

25

20

15

10

5

0

7

Acceleration of Global Innovation Cycle

③Aggressive exertion of rights against infringements

Exerting rights against infringements is necessary in order to (1) prevent the market share of genuine

articles from falling and (2) obtain appropriate license income.

②IP utilization through licensingSpeedy international development of emerging industries and acquisition of license income are

possible by conducting strategic licensing activities.

①Granting IP rights / Creating relevant know-how

Acquisition of IP rights by taking into consideration business development / Protection by creating

relevant know-how

It is necessary to strategically “utilize” intellectual property in global markets. Japan accelerates the global innovation cycle by returning profits, which are generated from utilizing IP, to the country and by reinvesting the profits in further innovation.

Promotion of Innovation in Japan

Reinvestment in R&D

Stra

teg

ic

IP U

tilizatio

n

Glo

bal

Develo

pm

en

t of B

usin

esses

Exp

an

sio

n o

f Te

ch

nolo

gic

al

Trad

e S

urp

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“Basic Policy Concerning Intellectual Property Policy” “Basic Policy Concerning Intellectual Property Policy”

Based on the strategies approved by the Japanese cabinet, and the needs of Japanese companies, Japan is set to establish the best “IP-based nation” in the world. The first major issue is to substantiate the strategies and “implement” the specific details.

Intellectual Property Policy

…Looking 　 squarely 　 at 　 the 　 current 　 situation, 　 and 　 aiming 　 to 　 become 　 the most 　advanced 　 nation 　 in 　 the 　 area 　 of 　 intellectual 　 property 　 in 　 the 　 next 　 decade, 　Japan 　 must 　 create 　 intellectual 　 property 　 policy 　 with 　 a 　 sense 　 of urgency, 　targeting 　 the 　 following 　 three 　 goals.

・ Without simply aiming to catch up with other countries in the manner of previous intellectual property policy, nor with the goal of making up for lost ground, Japan will build up the most advanced intellectual property system in the world, which will attract companies and people from Japan and overseas.

・ Japan will actively support emerging countries including countries in Asia to build their intellectual property systems, and will take measures to make Japan’s world-leading intellectual property system sufficiently well known to become the world standard.

・ Japan will continue to produce human resources endowed with creativity and strategic capability who can play an important role in the knowledge generated through the world’s most advanced intellectual property system.

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『 Japan Revitalization Strategy 　 Revised in 2014 　 -Japan’s challenge for the future - 』『 Japan Revitalization Strategy 　 Revised in 2014 　 -Japan’s challenge for the future - 』

(Realizing a national system of innovation and the world’s most excellent intellectual property-based nation)　… We will continuously try to make Japan the world’s most excellent intellectual property-based nation by appropriately addressing the current situation in which international disputes over intellectual property including trade secrets and competition for acquisition of international standards are growing fiercer in line with the globalization of corporate operations and the deepening of open innovation.

Key Policy Measures in the Revised Strategy 　

Cabinet decision June 24th 2014

Cabinet decision June 7th 2013

JPO’s Initiatives for “Accelerated Examination Procedure”

Changes in the Number of Examiners at the JPO

In order to reduce the pendency for patent examinations, since fiscal 2004, the JPO has increased the number of fixed-term patent examiners to a total of 490, and reinforced its examination system.

Although the number of examiners at the JPO is less than that at the U.S. or Europe, Japan has established an efficient and effective examination system by taking advantage of outsourcing such as placing orders for search activities.

Number of Outsourced Prior Art Searches

FY

9

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

3,365 3,365 3,449 3,555

3,689 3,864 3,969

3,966 3,949

3,987

1,126 1,243(98)

1,358(196)

1,468(294)

1,567(392)

1,680(490)

1,692(490)

1,703(490)

1,711(490)

1,713(490)

513 558 728 727 660 678 675 712 711 726

1,178 1,247 1,427

2,046 2,801

3,355

3,859

4,062 4,402

5,730

3,535 3,681

4,177

4,779

5,376

5,955 6,143 6,128

6,690

7,831

EPOJPOKIPOSIPOUSPTO

CY

Examiners(Unit: 1,000)

Request for examination First Action Granting patent rights

The period from the time a request for examination

【 Previous goal 】　　　　　　　　 11 months

Source: JPO

More “Prompt Examination” and “Enhancing Examination Quality” 　 The previous goal concerning patent examination procedures was to shorten the period from the time a request for

examination is made, up to when the first notice of examination results (first action (FA)) is set to 11 months or less (FA11) by the end of FY2013, which has been met as scheduled. 　

The JPO set new goals to be achieved in the next decade (by FY2023). That is to say, the examination period required for granting patent rights should be 14 months or less, and “the period from the time a request for examination” is made, up to when the first notice of examination results is sent” should be 10 months or less.

Aiming to further enhance the quality of examination, the JPO decided to create a new committee consisting of external experts and make them review the current situations and systems underway concerning quality management of the examination procedures.

Changes in FA pendency

* “The examination period required for granting patent rights” excludes such cases where the JPO requests an applicant to respond to the second notification of reasons for refusal and other actions by submitting an amendment and other documents within a period stipulated under the law.

The examination period required for granting patent rights

【 The period from the time a request for examination and the examination period required for granting patent rights in JPO】

10

2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

10

20

30

40

50

60

70

80

90

100

0

5

10

15

20

25

30

35

65

7986

9185

69

54

42

29

19

26.2

25.726.7

28.3 29.3

29.127.3

22.2

16.1

10.4

Number of Application Awaiting the FA

FA pendency

(month)(Unit: 10,000)

(FY)

materials

device control

vehiclestructure

software technology companyapplication contents

Collective ExaminationEntire project

battery

manufacturingtechnology

electric vehicle

motor

material

device control

vehicle structure

software technology

battery

manufacturingtechnology

motor

In line with corporate business activities,examiners will collaboratively conduct examinations.

JPO

IP networks to be used for effectively expanding global business activities

(building an IP portfolio)

Team examiners in each specific technology field

business strategies

applications

In order to support smooth and strategic development of global activities by companies through establishing “IP networks,” the JPO has introduced a system of “collective examinations for IP portfolios” on a trial basis. Under this system, examiners conduct examinations collaboratively on a cross-sectional basis in order to grant multiple intellectual property rights in a variety of fields. The system is expected to be operated as standard procedure at a later date. 　

electric vehicle

Collective Examination for IP portfolios

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Improving the operations of the Patent Prosecution Highway (PPH)

In order to enable patent system users to achieve earlier acquisition of patent rights overseas with less procedural effort at lower cost, the JPO, based on bilateral and multilateral discussions, will advance efforts to improve operability and user-friendliness of the PPH procedures. Such efforts involve simplifying required documents and standardizing requirements for PPH applications.

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As of Sep. 1, 2014,32 offices participate in the PPH.

(Japan implements the PPH with 29 offices.)The accumulated total number of requests

for PPH filed worldwide is about 61,000as of the end of June 2014.

As of Sep. 1, 2014,32 offices participate in the PPH.

(Japan implements the PPH with 29 offices.)The accumulated total number of requests

for PPH filed worldwide is about 61,000as of the end of June 2014.

As of September 1, 2014

DPMA(Germany)

The Tegernsee meeting was held among the Trilateral Patent Offices (EPO, JPO and USPTO), and patent offices of some European counties (United Kingdom, Germany, France, Denmark). • It is a meeting to discuss harmonization with the EPO and patent offices of some European

countries that have the authority to amend the European Patent Convention. • At the meeting, the participants discuss 4 key issues for the harmonization (Grace period, 18-

month publication, Prior use rights, and Conflicting applications)

• The Tegernsee Offices conducted User Consultation (questionnaire survey and round table) on the 4 key issues respectively, and each office made a report on the consultation.

• At the fifth “Tegernsee Heads” Meeting took place on April 8, 2014, the participants approved the Final Consolidated Report on the Tegernsee User Consultation consisting of a joint factual summary analyzing the results of the individual reports, including commonalities and differences in user views.

• The Tegernsee Offices agreed to 1) publish the Final Consolidated Report, 2) endeavor to communicate the results and provide opportunities for feedback from users, 3) meet to review progress in the light of input received from users, or other relevant discussions or developments, in due course.

• As for the JPO, we held a symposium for the feedback to the users on July 10, 2014, with much international participation including SMEs and Universities/research institutions in a balanced manner.

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Discussions toward Patent Harmonization - Tegernsee Offices -

Thank you very much

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