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2010/IPEG/SYM/005

Intellectual Property Commercialization in Japan

Submitted by: Japan

 

Innovating Intellectual Property Exploitation Symposium

Sendai, Japan9 September 2010

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APEC IP SYMPOSIUM APEC IP SYMPOSIUM –– September 9, 2010@SendaiSeptember 9, 2010@Sendai

Session 3: Commercialization of IPSession 3: Commercialization of IP

IP Commercialization in JapanIP Commercialization in Japan

T k hi U

p , @p , @-- Innovating IP Exploitation Innovating IP Exploitation --

Takeshi Ueno

Vice President

Japan Intellectual Property Association

Creating IP Vision For the World

Non-Profit, Non-Governmental and the World’s Largest IPR Industry Organization, established in 1938

Japan Intellectual Property Association (JIPA)

g y g ,Regular Members (Industrial Corporations): 902Associate Members (Patent Firms, etc.): 2897 Policy & Strategy Project Teams20 Standing Committees (713 Committee Members)More than 90 Training Courses offered to MembersPublications: Monthly Bulletin (3 850 Circulations)

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Publications: Monthly Bulletin (3,850 Circulations), Many Study Reports from Committees

2

JIPA Membership

◆ About 75% of Japanese patent applications are filed by JIPA members.

◆ JIPA members are from various industries in Japan

JIPA represents the opinion of Japanese Industries.

898 902

749801

508

609

845875 902

500600700800900

1000 Regular Members

Associate Members

Membership

◆ JIPA members are from various industries in Japan.

Metal/Machinery - 22%

Construction/Trading - 6%

Industries

2

280 289

10 30109

315

41129

177221

266

0100200300400

1938 '5

0'6

0'7

0'8

0'9

020

0020

0220

0420

0620

0820

0920

10

F/Year(As of April 1, 2010)(As of April 1, 2010)

RegularMembers

902

Chemical - 40%

Electric/Electronics/IT - 32%

Intellectual Creation Cycle

Protection IP RightsInvention/Creation

UtilizationCreation

Creation

3

Income

3

Japanese version of Bayh-Dole act1999 Special Measure Law for Reviving Industrial Vitality1998 TLO (Technology Licensing Organization)

United States1980 Bayh-Dole Act

• OTT (Office of Technology Transfer)

• Amended Patent Act

Toward “Nation Built on Intellectual Property”

Announcement of Intellectual Property Policy Outline in 2002Enactment of Intellectual PropertyBasic Act in 2003Establishment of

Intellectual Property Strategic Headquarters in 2003Intellectual Property High Court in 2005

1982 United States Court of Appeals for the Federal Circuit (CAFC)

4

2002 Enhancement of competitiveness of industry by government (Nihon Keirendan’s 2002 Report)

2003 Customs Tariff Law(Countermeasures-on-beach)

1985 Young Report

1988 Omnibus Trade Competition Act

1. Promotion of Intellectual Property CreationUniversity’s intellectual property creationCorporation’s strategic intellectual property creation, acquisition, and managementE h t f d ti d h d l t f f t i

Intellectual Property Policy Outline

Enhancement of education and human resource development for fostering creativity

2. Enhanced Protection of Intellectual PropertyPrompt and reliable patent examinationCreation of a substantial “Patent Court” functionEnhancement of countermeasure against counterfeit and pirated goodsPromoting international harmonization and cooperationReinforced protection of trade secretsProtection of intellectual property in new fields

3 Encouragement for Utilizing Intellectual Property

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3. Encouragement for Utilizing Intellectual PropertyPromoting technology transfer from universitiesEvaluation and utilization of intellectual property

4. Basic Human InfrastructureTraining of expertsRaising peoples’ awareness of intellectual property

Source: http://www.kantei.go.jp/jp/singi/titeki/kettei/020703gaiyou.htmlhttp://www.kantei.go.jp/foreign/policy/titeki/kettei/020703taikou_e.html

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IP Strategic Headquarters (IPSH)

Former Prime Minister Koizumi established IPSH in 2003.IPSH is headed by Prime Minister.All the ministers are the members of IPSH.

Formulate Fundamental Policy 1st Phase (2003-2005): Patent Protection• Establishment of IP High Court, Establishment of IP departments in

universities, Patent Exam Expediting Law, Amendment of Inventors Remuneration Clause

2nd Phase (2006 2008): Global Patent Protection

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2nd Phase (2006-2008): Global Patent Protection• Patent Prosecution Highway, Int’l Standards Strategy, etc.

3rd Phase (2009-2013): ExploitationPublicize IP Strategic Program (IPSP) annually

-Triune strategy of business, R&D, and Intellectual Property

Quality Improvement

Japanese Corporations’ IP Activity Changes

Business Strategy

R&D Strategy

Triune Strategy

1. Defensive application 1. Utilizable patents

2. Excessive emphases on 2. International applications

-Quality Improvement(Enhancement of Searches)

- Effective utilization of patents

IP Strategy

7

pdomestic filings

3. Focusing on the number of patent applications

3. Focusing on strategic obtaining of patent rights

5

1000000

120000090%

100%

IP Utilization in Japan - Patents

0

200000

400000

600000

800000

1000000

Ac

tive

Pat

en

ts

0%10%

20%30%40%50%

60%70%80%

Uti

lizati

on R

ati

o Unused Patents(Others)

Unused Patents(Defensive)

Used Patents

8

2006 2007 2008

Fiscal Year

2006 2007 2008

Fiscal Year

Source: Summary of Results on IP Activity Survey 2009 (JPO)http://www.jpo.go.jp/shiryou/toukei/pdf/h20_tizai_katudou/kekka.pdf

IP Utilization in Japan – Patents (by industry)

0 100000 200000

Construction

Foods

Number of Patents owned by Industry

0% 20% 40% 60% 80% 100%

Construction

Foods

Utilization Ratio by Industry

Foods

Fiber etc.

Pharma

Chemicals

Oil etc.

Steel

Metal

Machinery

Electronics

Trasnporter

Biz machine

Fiber etc.

Pharma

Chemicals

Oil etc.

Steel

Metal

Machinery

Electronics

Trasnporter

Biz machine

9

Biz machine

Others

Info Comm.

Retail

Non mfg

Edu.TLO etc.

Used Patents Unused Patents Source: Summary of Results on IP Activity Survey 2009 (JPO)http://www.jpo.go.jp/shiryou/toukei/pdf/h20_tizai_katudou/kekka.pdf

Others

Info Comm.

Retail

Non mfg

Edu.TLO etc.

6

80%90%

100%

IP Utilization in Japan – Design Patents

250000

300000

ts

0%

10%20%

30%40%

50%

60%70%

80%

Util

izat

ion

Rat

io

Unused DesignPatents (Others)

Unused DesignPatents (Defensive)

Used Design Patents

0

50000

100000

150000

200000

250000

Ac

tive

De

sign

Pat

en

10

2006 2007 2008

Fiscal Year

2006 2007 2008

Fiscal Year

Source: Summary of Results on IP Activity Survey 2009 (JPO)http://www.jpo.go.jp/shiryou/toukei/pdf/h20_tizai_katudou/kekka.pdf

IP Utilization in Japan - Trademarks

16000001800000

s

90%100%

0200000400000600000800000

100000012000001400000

Ac

tive

Tra

dem

arks

0%10%20%30%40%50%60%70%80%

2006 2007 2008

Active T

radem

ark

s

UnusedTrademarks

UsedTrademkars

11

2006 2007 2008

Fiscal Year

2006 2007 2008

Fiscal Year

Source: Summary of Results on IP Activity Survey 2009 (JPO)http://www.jpo.go.jp/shiryou/toukei/pdf/h20_tizai_katudou/kekka.pdf

7

7000

8000

9000

y

Number of Registered Japanese Patent Attorneys

2000

3000

4000

5000

6000

Regi

stere

d Pat

ent Att

orn

ey

12

0

1000

2000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

YearSource: http://www.jpo.go.jp/shiryou/toushin/nenji/nenpou2010/toukei/6-3-1.pdf

Japanese Companies’ Patent Filings

400000

5)

100000

ea

Domestic

100000

200000

300000

Dom

esti

c/Fore

ign (IP

5

25000

50000

75000

US

/C

hin

a/E

PO

/K

ore

Foreign

(IP5)

US

China

EPO

13

４

0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Year

0Korea

Prepared from data in JPO Patent Administration Annual Reports 2006, 2010

8

600

800

1000

Japan’s Balance of Royalties and License Fees

-200

0

200

400

600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 200910

0 M

illio

n Y

en

(M U

SD

@1

00

yen

/US

D)

Worldwide

Asia Pacific

America

Europe

14

-600

-400

Year

Prepared from data at the following Bank of Japan websiteshttp://www.mof.go.jp/bpoffice/ebpnet.htmhttp://www.mof.go.jp/bpoffice/ebparea.htm

Amount awarded by Courts in Japan (Patents)

Amount [*100 yen]

Decision Date

Plaintiff Invention Memo

1 74,166,800 3/19/2002 Aruze Slot machine Later invalidated by JPO

2 30,593,600 10/12/1998 Smith Kline Cimetidine

3 17 862 040 2/26/2010 Bridgestone Golf ball3 17,862,040 2/26/2010 Bridgestone Golf ball

4 17,031,548 6/30/2010 Sammy et al Slot machine

5 15,474,431 3/26/2003 Toshiba Tech Massage chair Amount reduced <1/100 by IPHC

6 14,984,791 1/28/2010 Ishida Weigher

7 12,744,000 6/27/2002 Shinwa Foreign object remover

8 11,968,995 5/27/2004 Tomita Pharma Perfusion material

9 9,887,000 3/19/2002 Aruze Slot machine

10 9,360,000 8/27/2009 Kureha Kremezin

15

, ,

7,288,136 3/25/1994 Res Institute for Med and Chem

Vitamine D Later invalidated by JPO

2,402,920 7/24/1968 Yokoyama Industry et al

Hard material crusher

Prepared from the following sources•1960-1995 1995 Report on Research as to the proper civil remedies for IP infringement: Patents and Utility Models (Institute of Intellectual Property: IIP)•1996-2005.6 http://www.jpo.go.jp/shiryou/toushin/chousa/pdf/zaisanken/17funsou.pdf•2005.7- IP Case Law Search System at http://www.courts.go.jp/search/jhsp0010?action_id=first&hanreiSrchKbn=07•2002-2009 http://www.fujino-po.com/d_lst/decision_list.htm

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Patent Infringement Lawsuits in District Courts

250

ons

Patent Lawsuits in Japan

50

100

150

200

um

be

r o

f Co

mp

lain

ts/D

eci

sio

Win

Loss (valid)

Loss (invalid)

Filed

16

0

2000 2001 2002 2003 2004 2005 2006 2007

Line Graph - Year of ComplaintBar Graph - Year of Decision

Nu

Source: http://www.rieti.go.jp/en/columns/a01_0242.html

Recent Government Discussions on IP Policy

Industrial Structure Council, IP Policy Meeting in March 2010http://www.jpo.go.jp/shiryou/toushin/shingikai/pdf/tizai_bukai_13_paper/siryou_01.pdf

Change of environment surrounding IP Policy• Advancement of Open Innovation• Active oversees deployment by Corporations• Active oversees deployment by Corporations• Effect of economical crisis• Expansion of the players base for innovation

Direction of IP Policy• Promotion of Patent Utilization• International harmonization• Enhancing the user friendliness for SMBs• Revision of Patent Fees

Intellectual Property Strategic Program 2010 in June 2010

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Intellectual Property Strategic Program 2010 in June 2010http://www.kantei.go.jp/jp/singi/titeki2/2010chizaisuisin_plan.pdf

Strengthening competitiveness through obtaining international standards in particular strategic areas.Promotion of Growth Strategy which centers on strengthening contents businessReinforcing IP activities across industries

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From Roundtable discussions on Triune Management• JIPA IP MANAGEMENT, VOL.61 NO.3(NO.711), March 2010

Discussions• Triune Operations, Circulating Intellectual Creation Cycle, Pro innovation

Examples of IP Commercialization (1)

Asteras PharmaCritical importance of exclusivityFierce competition with generic drugs near the expiration of patentsDeliberate review for assessing license-in patentsOpen innovation also becomes important due to “Year 2010 problem”

BridgestoneEmploys Strategic Business Units

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Securing business freedom is top priority, esp. for top share products• Catching-up emerging countries and counterfeit goods are at issue.

Also strategic usages in licensing, enforcement, and standardizationIP Design Review

• Establishing patent portfolio to maintain competitive edge• Mitigating risks for third party IPs

IBMOpen innovation due to the changing nature of innovation

• Patent Commons to grow businessSmarter Planet initiative

Add i i t l i th h IT

Examples of IP Commercialization (2)

• Addressing societal issues through ITGlobal IP management

NissanAlliance with Renault through patent licensing and joint developmentUniqueness of auto industry

• Consider customers preferences even where third party patents exist.• Can not be competitive in all areas due to an enormous number of parts

Nissan IP Way – contributing to business in 3 ways• 1) Differentiation, 2) Cross Licensing for business freedom,

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) ) g3) Licensing for reducing parts cost and earning IP income

SMB (represented by Mr. Habu, a private practice attorney)For SMBs:

• Utilization of IP is defined as “the status that IP operations are essential part of the company’s activity.

• IP Cycle is Top management’s will --> Investment --> Creation + Protection (as opposed to Creation --> Protection --> Utilization)

Understanding the substantive merits from IP is essential.

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Summary

Strong government initiative to realize “Nation Built on Intellectual Property” and responsive efforts by corporations have produced successful resultscorporations have produced successful results.

Triune strategy has changed corporations’ behavior to focus on value and quality of patents and the usage thereof, not just the number of patents.

Effective usage of intellectual property has become more important to support companies’ business.

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Creating IP Vision For the World