wipo-jpo six-month study-cum-research fellowship juldin bahriansyah
TRANSCRIPT
WIPO-JPO six-month study-cum-research fellowship
Juldin BahriansyahJuldin Bahriansyah
HYPHOTESIS
THERE IS CORRELATION BETWEEN
INCENTIVES OF IPR SYSTEM and SMES IPR
AWARENESS
INCENTIVES OF IPR SYSTEM
Fee structure
Supporting unit
Accelerated examination process
Why SMEs are Important in National Economic Growth?
SMEs contribute to market AND Economical Activities
bF
Sn
Sb
FcP SbFX
where: n: number of firms S: size of marketP: price F: fixed cost X: firm’s output c: marginal cost
Source:Krugman, Paul R., and Obstfeld, Maurice. (2009). International Economics: Theory and Policy.
1. Number of firms , size of market 2. size of market , price 3. size of market , firm’s output
More SMEs exist, better market will be available for public
Competition Theory: Porter’s Five ForcesBUYER FACTORS
buyer choicebuyers size/numberchange cost/ frequencyproduct/service importancepurchasing volumes
SUPPLIER FACTORS
brand reputationgeographical coverageproduct/service level quality
NEW ENTRANTS FACTORS
entry ease/barriersgeographical factorsincumbents resistancenew entrant strategyroutes to market
SUBSTITUTER FACTORS
alternatives price/ quality market distribution changesconsumer behaviourlegislative effects
RIVALRY FACTORS
number and size of firmsindustry size and trendsdifferentiationstrategy
Incentive Theory
Assistance impact
Nola Hewitt-Dundas
where: is an indicator of business performance;x is a vector of firm, market and owner-manager characteristics;z is 1 if firm receiving assistance and 0 if no assistance
zx '
COUNTERBALANCE:Laffer’s Curve: increasing tax level will contribute to national revenue, but at such degree will lead REVERSAL phenomena
Incentive Theory continuationThe importance of incentive system is acknowledged by SMEs-selves. According to last SMEs White Paper released by Japan Small Business Research Institute (2008, p. 127), Japan SMEs have difficulties to face profit decline due to intensifying local competition.
Sou
rce: JP
O 2008
An
nual Re
port
Population
Source: JPO 2008 Annual Report
Sample1. 2
dN
Nn
where:n = Minimum sample numberN = Population numberd = Error
105.04197719
41977192
n
n ≥ 399 ≈ 400
To overcome said minimum sample number, researcher designed three breakthroughs:Mixed method (i.e. qualitative and quantitative method); Combination of questionnaire (100 SMEs) and in-depth interview (8 SMEs) whereas considering geographical-representative SMEs; andPerception controlling.
Incentive system
Fee structure
PATENT ANNUITY FEE
Every year from 1st to 3rd
year
2,300 yen + Number of claims x 200
yen
Every year from 4th to 6th
year
7,100 yen + Number of claims x 500
yen
Every year from 7th to 9th
year
21,400 yen + Number of claims x
1,700 yen
Every year from 10th year 61,600 yen + Number of claims x
4,800 yen
TM REGISTRATION FEE
Application for trademark
registration
Number of classes x 37,600
yen
Application for trademark
registration (installment
payment)
Number of classes x 21,900
yen
Application for defensive mark
registration
Number of classes x 37,600
yen
TM RENEWAL FEE
Application for trademark registration Number of classes x 48,500 yen
Application for trademark registration
(installment payment)
Number of classes x 28,300 yen
Application for defensive mark
registration
Number of classes x 41,800 yen
Supporting unit
① Visits SMEs to provide individual consultations (303 visits);
② Lecturer at intellectual property seminars / training sessions (216 seminars / sessions);
③ Promotions of awareness on IP measures by holding exhibitions (21 exhibitions); and
④ Free individual consultation services by experts (patent attorneys, etc.) on specific matters related to industrial property rights nationwide (17,576 sessions).
Accelerated examination
“Any eligible applicant may engage this system with free of charge. JPO will release application decision only for 2-3 months,
while normally for 27 months”
1. "Working invention-related applications"2. "Internationally-filed applications" 3. "Academic institutes-related applications" 4. "SMEs-related applications"
effectivenessof IP Incentive System
4 questions
Fee structure
4 questions
Supporting unit
5 questions
Accelerated exam.
5 questions
interview
questionnaire
controlling
parameter
perception
explorer
PHASE PERIODESEN
T
RESPONDEDCOMMENTQUESTIONNAI
REINTERVIE
WI 12 June – 10 July 50 17 4 5 companies are SMEs
and 12 companies are big firms. So there are only 7 questionnaires are suitable. For interviewing availability, only two are SMEs and will be further proceeded.
II 21 July – 7 August 200 105 0 76 companies are SMEs and 29 companies are big firms.
asset (fixed and movable assets) and product value (in yen) every month1 company is less than 50 millions;3 companies are less than 100 millions;1 company is less than 300 millions; and1 company is more than 300 millions.
product value (in yen) every month1 company is less than 500.000; and5 companies are less than 150 millions.
number of workers within their business, including permanent and non-permanent1 company is less than 50; and5 companies are less than 300.
Duration of business has run in year6 companies are more than 5 years.
location of company1 company is in resident district; and5 companies are in other areas (manufacturing area).
Within company
ability
Within company
ability
Internal R&DInternal R&D
outsourcingoutsourcing IP protectionIP protection
COSTUMER DEMANDCOSTUMER DEMAND
Advance process and/or product
Advance process and/or product
ManufacturingManufacturing
collaborationcollaborationN
Y
Y
N
ISSUE 1: Business ModelISSUE 1: Business ModelSMEs use traditional business model and innovation SMEs use traditional business model and innovation method, also engaging patent attorney for IP method, also engaging patent attorney for IP mattersmatters
ISSUE 2: Start up pathISSUE 2: Start up path family-based companyfamily-based company without any assistance from governmentwithout any assistance from government using low or medium technologyusing low or medium technology
ISSUE 3: LocationISSUE 3: Location small small size companies size companies prefer to stay in prefer to stay in
residential arearesidential area medium size companies are located in medium size companies are located in
business or manufacturing areabusiness or manufacturing area
ISSUE 4: Reluctance to utilizeISSUE 4: Reluctance to utilize
Fees burden of SMEs consist of:Fees burden of SMEs consist of:application fee, preparation fee, and professional fee.
Problems :serviceability of IPDL;quality of patent examiner; this issue was arisen by two companies;patent attorney fee; andduration of examination procedure.
Advices:SMEs should avoid using subcontractors, extend their own technology;collaborate with similar core technology SME;National wide support as Kanagawa Prefecture Government current policy does;Special agent to bridge corresponding system by applicant upon office action. Deep discussion also necessary during this stage; andSome destination countries (e.g. Taiwan) join PCT so that ease market penetration.
FREQUENCYQUESTION
NO ANSWER absolutely disagree disagree moderate agree absolutely agree TOTALQ2-1 0 7 1 11 25 37 81Q2-2 0 6 3 13 24 35 81Q2-3 0 1 10 27 22 21 81Q2-4 0 3 11 30 19 18 81Q2-5 0 1 19 31 23 7 81Q3-1 0 10 9 19 21 22 81Q3-2 1 13 16 18 18 15 81Q3-3 2 12 34 18 9 6 81Q3-4 4 11 23 26 9 8 81Q4-1 0 8 14 20 23 16 81Q4-2 0 6 9 19 23 24 81Q4-3 1 7 15 31 19 8 81Q4-4 0 10 30 18 14 9 81Q4-5 2 7 12 29 20 11 81Q5-1 0 15 8 18 20 20 81Q5-2 1 17 21 26 7 9 81Q5-3 2 13 19 26 12 9 81Q5-4 2 13 16 32 9 9 81Q5-5 2 10 26 27 12 4 81Q6-1 1 11 18 29 18 4 81Q6-2 0 14 23 24 14 6 81Q6-3 1 7 23 23 20 7 81Q6-4 1 6 16 24 21 13 81
TOTAL 20 208 376 539 402 318 1863PERCENT 1.07 11.16 20.18 28.93 21.58 17.07 100.00
IP AWARENESS
IP information is not easy to
get
Respondents hesitate to
look for IP information
by their initiative
Respondents less pay
attention to new IP
information
IP is less important for
business
MEAN SCORE
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
ME
AN
SC
OR
E
MEAN SCORE 3.4 3.1 2.5 2.7 3.3 3.6 3.1 2.8 3.2 3.3 2.6 2.8 2.8 2.7
Q3-1 Q3-2 Q3-3 Q3-4 Q4-1 Q4-2 Q4-3 Q4-4 Q4-5 Q5-1 Q5-2 Q5-3 Q5-4 Q5-5
fee structure supporting unit accelerated exam.
The current IP incentives support my business
QUESTIONMEAN OF
PERCEPTION SCORE
SMEs responded that they know about available fee incentives for IP application provided by Japan Patent Office
3.44
SMEs responded that they always use such fee incentives for their IP applications
3.08
SMEs responded that the fee incentives are easy to claim (simple, shortly, and less conditions)
2.53
SMEs responded that the current fee incentives are adequate
2.74
The supporting units support my business
QUESTIONMEAN OF
PERCEPTION SCORE
SMEs responded that they know about available supporting unit for SMEs of Japan Patent Office
3.31
SMEs responded that the supporting unit is easy to access (by phone, internet, or even visit)
3.62
SMEs responded that they are convinced that such supporting unit’s capability (expert, infrastructure)
3.08
SMEs responded that they always ask such advice or assistance from supporting unit regarding their IP application
2.78
SMEs responded that the advices are useful for them
3.20
The accelerated examination process support my business
QUESTIONMEAN OF
PERCEPTION SCORE
SMEs responded that they know about available accelerated examination system for IP application provided by Japan Patent Office
3.27
SMEs responded that they always use such accelerated examination system for their IP applications
2.63
SMEs responded that the accelerated examination is easy to claim (simple, shortly, and less conditions)
2.81
SMEs responded that they can start immediately to exploit their IP using accelerated examination system
2.81
SMEs responded that they feel more secured for my business due to accelerated examination system
2.67
The current IP incentives support my business
The accelerated examination process support my business
The supporting units support my business
14
22
36
22
5 0 5
10 15 20 25 30 35 40 abs. disagree
disagree
moderateagree
abs. agree
9 28
28 25
9 0 5
10 15 20 25 30 abs. disagree
disagree
moderateagree
abs. agree
17
28
30
17
7 0 5
10 15 20 25 30 abs. disagree
disagree
moderateagree
abs. agree
Controlling Parameters vs. Perception
QUESTIONThe current IP incentives support my business
The supporting units support my business
The accelerated examination
process support my business
SMEs responded that the current IP incentives support their business
2.8 - 2.9-0.1
SMEs responded that the supporting units support their business
2.7 – 3.2-0.5
SMEs responded that the accelerated examination process support their business
2.9 – 2.80.1
Reference: Tanaka (2009)
S
WO
T
•Standardize products;•Increase company’s capacity;•IPR protection in destination country.
•overseas representative to assist in IPR;•soft loan for market expanding overseas.
•build tight cooperation amongst SMEs;•specialized product;•increase IP role within business.
•Financial assistance;•Technical assistance;•Business assistance.
collaborate more intensively with universities and big companiesutilizing IP for their business, especially for overseas marketcollaborate with other SMEs, especially which run in different field/productdifferentiate products, in term of quality
RIVALRY FACTORS
number and size of firmsindustry size and trendsdifferentiationstrategy
① Indebted System
IP application IP protection
Incentives
IP exploitation
Repay incentives
SMEs need support to start their business, get protection for business, and repay as compensation to support other SMEs. It also builds social responsibility amongst SMEs
② “Non-compulsory in engaging Patent Attorney into designation country for SME applicant”
Concordance with TRIPs: Most Favorable Nations
Reducing SMEs burden, enlarge market penetration
Favour one, favour all. Under GATS, if a country allows foreign competition in a sector, equal opportunities in that sector should be given to service providers from all other WTO members.
Main problem of government’s policy is partly Main problem of government’s policy is partly designed and affect disintegration. designed and affect disintegration.
Japan Patent Office which has special authority may Japan Patent Office which has special authority may conduct as follow:conduct as follow:modify terms and conditions to obtain IP protection;modify terms and conditions to obtain IP protection;
build more comprehensive supporting unit, which build more comprehensive supporting unit, which provide peer unit to accompany SMEs to get IP provide peer unit to accompany SMEs to get IP protection as well as exploit their IP asset;protection as well as exploit their IP asset;provide IP information by optimizing IT which is provide IP information by optimizing IT which is SMEs friendly.SMEs friendly.
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