Kenji SHIMADA Director for Intellectual Property, JETRO Duesseldolf

1. The Importance of IP in Innovation, Promotion and its Exploitation; Japan’s Case Kenji SHIMADA Director for Intellectual Property, JETRO Duesseldolf May 6, 2013 0

2. Contents • History of Intellectual Property (IP) System and IP Strategic Program in Japan • Importance of Improvement of their own IP systems • Cases of JapaneseCompanies’ Innovation • Summary

3. History of the Intellectual Property System in Japan • Enactment of Patent Law and establishment of the Patent Office with Korekiyo Takahashi as the first Commissioner • Enactment of Design Law 1896 Beginning of Foreign Applications • Accession to Paris Convention 1905 Enactment of Utility Model Law • Revision of Current IP Laws 1975 Accession to World Intellectual Property Organization (WIPO) 1978 Accession to Patent Cooperation Treaty (PCT) 1990 Acceptance of electronic applications (global first) 1997 Accession to Trademark Law Treaty • Accession to Madrid Protocol 2005 Establishment of IP High Court • Start of Patent Prosecution Highway (PPH) between Japan and the United States (global first) • 125th Anniversary of the IPRs System in Japan 2013 Present Stimulation of Entrepreneurs Leading to Industrial Development Utilization of Foreigner’s Patents Competition and Innovation

4. Number of Patent Applications and Trend in GDP • Innovation has been accelerating according to economic growth, followed by the increasing number of patent applications. [Source] IMF,WIPO IP Statistics

5. Trends in Japan’s Balance of Trade in Terms of Technology • Based on the technological precedence of Japanese companies, Japan’s technological trade surplus has grown to 2 trillion yen per year. 貿易収支パワポ Based on the “Report of the Survey on Science and Technology.

6. Intellectual Property Cycle Creation (Invention) Filing applications Profit Protection (Granting of rights) Utilization of rights Industrial property rights The ultimate goal is to make IP cycle more robust and more dynamic. 5

7. Intellectual Property Strategic Program • IP Strategy Headquarters formulate the “IP Strategic Program” every year. Government ministries and agencies implement measures based on the programs. IP Strategic Program IP Strategy Headquarters Headed by: The Prime Minister Headquarters members: All the Ministers and 10 experts Ministries Companies Universities Major Achievement • Established Intellectual Property High Court (April , 2005) • Increased the number of patent examiners to expedite patent examination (approx. 500 examiners added the past 5 years) • Formulated “Comprehensive Strategy for the Development of Human Resources related to IP in Japan” (January, 2006) • Construction of business-friendly IP system for SMEs 6

8. Ensuring fair competition free from free-riding activities, including counterfeiting and piracy Allowing both worldwide players and their local partners to work on a level playing field of business for global business collaboration Need for Global Infrastructure of IP Systems • Achievement of economic development through the utilization of IP systems based on creative activities, improvement of their own IP systems is essential. Improvement of own IP systems and the effective enforcement of IP laws in developing country Promote self - sustained economic development, direct investment and technology transfer

9. Examples of Familiar Innovations • Innovations are not always created based on advanced technologies. Some were based on excellent ideas and concepts developed by SMEs and individuals. 【Packing Container】 【Animal rubber band】 Before being opened, it protects vegetables. ・Outstanding designs ・Obtained funding based on the registered design right After being opens, it serves as a plate. ・Patents were filed and protected overseas ・Company sought business partners overseas 8

10. Innovation from Agriculture • “Plant Factory” as a new style of agriculture. • Computerized control of environmental items including light, water, temperature, and humidity. • Stable and efficient production of delicious, safe and worry-free, and nutritious vegetables throughout the year. • Can be set up in sites other than farmlands since it can be set up anywhere. Blocks out the outer world to prevent pests and diseases Can be set up anywhere × Organic vegetables that are safe and worry-free Utilize unused land Computerized environmental control Control nutrition and light wavelength High productivity throughout the year Nutritious vegetables Controls light, temperature, carbon dioxide level, moisture content, and nutrition

11. Obtained Trademark Rights • By obtaining trademark rights, counterfeit products can be completely eliminated • By strictly controlling business secrets about parent species information, as well as quality, companies can uphold their brand images Eliminating counterfeit goods by acquiring trademark rights Establishing/ maintaining premium brands Upholding brands by strictly controlling business secrets and quality Develop new species “Yubari Melon” Agricultural society A

12. VS IP Advantage －Case studies on Intellectual Property • The IP Advantage database provides a one-stop gateway to case studies that chronicle the IP experiences from across the globe. • Can search successful cases linking IP to business in the World Search here ! http://www.wipo.int/ipadvantage/en/

13. Summary~Road to IndustrialDevelopment~ Industrial Development • Subsidies for Innovations • Formulating IP strategies • Facilitating collaboration between industry and academia Promoting the creation, protection and utilization of IPRs • Developing IP laws • Environment for IPR enforcement • Developing IP experts • Raising awareness on the importance of IPRs Establishing IP infrastructure

14. Thank you. 13