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Japan Patent Office

Japan Patent Office. Uchida Samejima Law Firm. WIPO ASIA SUB-REGIONAL WORKSHOP. Support to Establish IP Strategy of SMEs -Efforts of the SME Support Institutions-. June 5, 2007. Lawyer, Patent Attorney Masahiro Samejima Supported by PPI.

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Japan Patent Office

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  1. Japan Patent Office Uchida SamejimaLaw Firm WIPO ASIA SUB-REGIONAL WORKSHOP Support to Establish IP Strategy of SMEs -Efforts of the SME Support Institutions- June 5, 2007 Lawyer, Patent AttorneyMasahiro SamejimaSupported by PPI

  2. Part.01 Intellectual Property Strategy and Business Competitiveness

  3. IP Strategy and Business Competitiveness ▼ Strategic utilization of IP rights (patent rights, trademark rights, etc.) will strengthen business competitiveness. IP strategy and process of business growth Enhancement of business competitiveness Market control Technology development (1) Utilization (3) High-grade human resources Invention/patent IP strategy (2) (Source: “IP Strategy Manual for SMEs and Venture Businesses 2006” published by the JPO.)

  4. Company A - R&D investment costs for competing companies will increase due to indirect technology development. Patent owned by Company A Product supply Competing Company D Competing Company B Market Competing Company E Competing Company C - Patents will act as barriers to the entry of other companies, which will result in no price competitions and ensure high profit margins. IP Strategy and Market Control ▼ Utilization of IP rights will ensure large market shares and high profit margins. Market control through the use of IP rights (example of a case with patent rights) (Source: “IP Strategy Manual for SMEs and Venture Businesses 2006” published by the JPO.)

  5. Part.02 Japanese SMEs and IP Strategy

  6. IP Management in Japanese SMEs ▼ 99% companies in Japan are SMEs with employees of 300 or less, accounting for 88% of total employment in Japan. ▼ Many of them possess valuable technology, of which at least 550 companies account for the largest share of the Japanese market and approximately 100 are world leaders. ▼ Under present circumstances, due to limits to management resources, many of them have not established appropriate IP management. Whether or not companies own IP rights or have ever filed IP applications ■ Large-scale companies (with over 300 employees) ■ ■ SMEs (with fewer than 300 employees) ■ * Figures are based on the results of a questionnaire survey conducted in Aichi Prefecture, which represents one of the biggest concentrations of small-and-medium-sized manufacturing businesses. (Source: “Questionnaire Survey Concerning Efforts for IP” conducted by Aichi Prefecture in 2003, “World’s Top SMEs” by Makoto Kurosaki, published by Kodansha Ltd. in 2003)

  7. Part.03 IP Strategy Undertaken by the Japanese Government

  8. Government Efforts Towards Establishing an Intellectual Property-Based Nation ▼ Through development of legal systems and financial support, the government is promoting Japanese companies’ IP strategy and thus encouraging their growth. Government efforts towards establishing an intellectual property-based nation (3) These efforts will enhance industrial competitiveness throughout the whole country Growth R&D Turning profits IP Strategy Growth R&D Turning profits Japanese government IP Strategy (1) Improvement in the legal systems, financial support, etc. (2) Strengthening of business competitiveness through the implementation of IP strategies

  9. Institutional Reform Towards the Realization of an Intellectual Property-Based Nation ▼ Former Prime Minister Junichiro Koizumi, during his time of office in 2002, advocated the establishment of “an intellectual property-based nation,” a notion that rapidly gained ground through institutional reform beginning in 2003. Institutional reform by the government toward the realization of intellectual property-based nation (1) Revisions were also made in 2004, 2005 and 2006: “Introduction of a system for notifying concerned parties of the names of importers/exporters” etc. (2) Revisions were also made in 2005: “Punishment for those who committed crimes outside Japan,” “Increased penalties” etc. (3) Revisions were also made in 2005 and 2006: “Acceleration of examination procedures,” “Further reduction of examination request fee,” etc. (4) Revisions were also made in 2005: “Introduction of music CD flowback prevention measures” etc. (Source: “IP Strategy Manual for SMEs and Venture Businesses 2006” published by the JPO, the chart on the previous page as well)

  10. Support Measures for Promotion of SMEs’ IP Strategy (1) ▼ In order to encourage SMEs, which generally have less management resources than large-scale businesses, the government implements various support systems, such as the provision of a consultation services and annual patent fee reductions/exemptions. Major supportive measures implemented by the government (1) (Source: “2007 Guide to Supportive Measures Implemented by the Small and Medium Enterprise Agency - How to Utilize IP Rights-” published by the Small and Medium Enterprise Agency, JST website, etc.)

  11. Support Measures for the Promotion of SMEs’ IP Strategy (2) ▼ The government, led by METI (the JPO and the Small and Medium Enterprise Agency) and MEXT, is implementing various supportive measures for businesses and universities. Major supportive measures implemented by the government (2) (Source: “2007 Guide to Supportive Measures Implemented by the Small and Medium Enterprise Agency - How to Utilize IP Rights-” published by the Small and Medium Enterprise Agency, JST website, etc.)

  12. Selection of businesses subject to support Support Selection/Payment IP consulting companies SMEs Government/JPO Reports Consultation ▼ The consulting companies report the outcome of their provision of support to the government, which also files information regarding methods of support. ▼This program also helps growth of private IP consulting companies supporting SMEs. Examples of Measures: Regional SMEs’ IP Strategy Support Program ▼ This Support Program was implemented over a three-year period starting in 2004, aimed at helping SMEs introduce and promote IP strategy ▼ The government/JPO outsourced support services to private IP consulting companies. ▼ The IP consulting companies provided SMEs selected by the government with various support systems, such as “review of patent strategy,” “improvement of IP management system” and “development of IP human resources,” and reported the outcomes thereof to the government. Structure of the Regional SMEs’ IP Strategy Support Program

  13. [Reference] Desired Support Systems for SMEs’ IP Strategy Development ▼ Method and process of providing support for SMEs modeled on the Regional SMEs’ IP Strategy Support Program Method and process of providing support for SMEs’ IP strategy development Step 1 “Analysis and grasp of current conditions” Effectiveness of mapping 1. Grasp of the company’s condition - It is highly effective for the IT, materials, and mechatronics industries. “Business hearings,” “review of IP rights,” etc. - For the pharmaceutical and biotechnology industries, mapping requires innovative ideas because the acquisition of only a small number of basic patents will determine the success of a company. “Analysis/mapping” 2. Research on other companies’ conditions “Prior art searches,” etc. Step 2 “Review of business/technology development strategies” Company size and IP consultation “Direction of R&D” “Business development policies” - It should be noted that depending on the size and growth stage of an organization, different systems are required. Step 3 “Formulation of IP strategies” - Companies with larger number of employees engaged in R&D and IP management are more likely to require system development. “Study of IP management strategies’ compliance with business policies” Step 4 “System development for IP management” “Plan formulation area” “Human resources area” “System area” (Source: “IP Strategy Manual for SMEs and Venture Businesses 2006” published by the JPO.) - Improvement of regulations - Allocation of budget/human resources - R&D planning - Creation of manuals - Holding of training programs, etc.

  14. Part.04 IP Strategy Undertaken by Local Governments

  15. Local Governments’ Efforts Towards Realization of Intellectual Property-Based Nation (1) ▼ Currently, 26 prefectures have already formulated IP strategies and 11 prefectures have begun steps toward the formulation thereof. Prefectures that has formulated IP strategy/policy plan (Source: Website of Intellectual Property Strategy Headquarters, Cabinet Secretariat as of May 4, 2007)

  16. Local Governments’ Efforts for Intellectual Property-based Nation (2) ▼ In order to support local businesses, cities that have large populations and industrial concentrations are implementing various unique measures. Efforts for IP strategy observed in some major cities Nagoya Kyoto Osaka Yokohama (Source: Websites of Kanto Intellectual Property Strategy Headquarters, Nagoya City, and Kansai Intellectual Property Strategy Headquarters)

  17. Examples of Measures: Yokohama IP Strategy Support Program ▼ Yokohama is one of the biggest harbor cities in Japan, with a population of 3.6 million and a vast number of commercial and industrial businesses ▼The city established an IP consulting company, IPMAX, through a joint capital investment with the private sector. ▼ The reasons that the city made it a joint stock company are as follows: (1) The company is scheduled for full privatization after a certain period so as to keep its administrative costs low; (2) The city is considering providing financial support, including IP trust, in the future; (3) This will allow it to provide support utilizing the know-how of private IP consulting companies. Yokohama City established a joint IP management support company with private sectors ▼Yokohama City is implementing the SMEs’ IP Strategy Support Program.The city will outsource support services to IPMAX, and support the management of IPMAX for a certain period following its establishment. Yokohama City Support SMEs IPMAX (supporting company) ▼IP professionals are supporting SMEs. Human resources from the private sector are in charge of practical business. ▼Implementation of prior art search support and Holding of IP seminars, etc. IP consulting companies and other private sectors

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