The Importance of IP in Innovation, Promotion and its Exploitation; Japan s Case
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1 The Importance of IP in Innovation, Promotion and its Exploitation; Japan s Case Toshihiro KOSE Director-General, Trademark, Design and Administrative Affairs Department Japan Patent Office March 12,
2 Contents 1. History of Intellectual Property (IP) System and Innovations in Japan 2. Cases of Japanese Companies Innovation 3. Japanese Government s Policies for Promoting Innovations 1
3 History of JPO and the Industrial Property Rights System (1) Establishment of the IPR System in Japan 1884 Enactment of Trademark Act 1885 Enactment of Patent Act and establishment of the Japan Patent Office (JPO) 1889 Enactment of Design Act Original JPO Bldg. (Established in 1885) Korekiyo Takahashi (First JPO Commissioner, who became a prime minister later) Modern industrialization 1896 Beginning of Foreign Applications 1899 Accession to Paris Convention 1905 Enactment of Utility Model Law Panels of ten great Japanese inventors (100th Anniversary Project) 2
4 History of JPO and the Industrial Property Rights System (2) Period of Economic Growth 1959 Revision of IP Laws (Patent, Utility Model, Trademark, Design) 1975 Accession to World Intellectual Property Organization (WIPO) 1978 Accession to Patent Cooperation Treaty (PCT) 1990 Introduction of Electronic applications Period of Economic Globalization ation 2000 Accession to Madrid Protocol 2002 Enactment of Intellectual Property Basic Act 2005 Establishment of IP High Court 2006 Start of Patent Prosecution Highway (PPH) th Anniversary of IPR system in Japan Present JPO Bldg. (completed in 1989) 3
5 Number of Patent Applications and Trend in GDP Innovation has been accelerating according to economic growth, followed by the increasing number of patent applications. billion yen 600, , , , , ,000 No. of Patent Applications and Trend in GDP (Japan) Gr oss Domest i c Pr oduct Number of Pat ent Appl i cat i ons year Number of Patent Applications 500, , , , , , , , ,000 50,000 [Source] IMF,WIPO IP Statistics 4
6 Number of Patent Applications and R&D Expenditure In Japan, compared to other foreign countries, a larger amount of money has been spent on R&D activities, all while a significant number of patent applications have been filed. Resident Patent Applications per R&D Expenditure, Log Resident Patent Applications Log R&D Expenditure [Source] World Intellectual Property Indicators
7 Changes in the Number of Overseas Applications Filed by Japanese Companies Number of PCT Applications from Japan (Number) 50,000 Number of Design Applications Filed in Foreign Countries by Japanese Applicants (Number) 20,000 40,000 15,000 30,000 20,000 10,000 10,000 5, (year) Number of Trademark Applications for International Registration from Japan (Number) 3,000 (year) 2,500 2,000 1,500 1,000 With corporate activities becoming more globalized, Japanese companies have increased the number of applications that they filed in foreign countries for patents, designs, and trademarks (year) [Source] Patents and trademarks: JPO statistics Design: WIPO IP Statistics 6
8 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. (billion\) Export (amount received) 貿易収支パワポ Import (amount paid) Balance (exports - imports) Based on the Report of the Survey on Science and Technology. (Fiscal year) 7
9 Contents 1. History of Intellectual Property (IP) System and Innovations in Japan 2. Cases of Japanese Companies Innovation 3. Japanese Government s Policies for Promoting Innovations 8
10 Toyota Case(Utilization of Patent,Design,TM) Company s Roots in 1924 Entry into a New Business Area Patent Design Today Trademark Capital: $5 billion, Annual sales: $240 billion Source: 9
11 Panasonic Case (Creation and Protection) Company s Roots Workplace The first product Gradually expanded operations in 1918 The company started by making minor improvements to wiring equipment Today Capital: $3 billion Annual sales: $110 billion Source: 10
12 Sumitomo Chemical Case Contributions to Africa through Japanese Innovations Synthetic chemical company R&D with the effective use of IP such as patents. Olyset Net (Registered Trademark) The company developed mosquito nets containing insecticides in their threads. (The repellent lasts more than 5 years) WHO recommends using them. Local production in Tanzania Granted manufacturing technology without any charge to local companies Set up a joint venture with local companies providing under the Trademark of Olyset Net in the world, focused on Africa. Approx. 29 million are produced per year Approx. 7,000 jobs were created (as of August 2010) Source: 11
13 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 Before being opened, it protects vegetables. Animal rubber band After being opens, it serves as a plate. Patents were filed and protected overseas Company sought business partners overseas Outstanding designs Obtained funding based on the registered design right 12
14 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 Organic vegetables that are safe and worry-free Can be set up anywhere 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 13
15 Ajinomoto Case (Industry-University Cooperation) We don t know how to apply our research results Fill the gaps in each other s weak areas We lack R&D capabilities Umami seasoning by Prof. Kikunae Ikeda (Tokyo University) Company commercializes university s research results in 1907 Commercializ e inventions! Expand our business using the new product! 14
16 Contents 1. History of Intellectual Property (IP) System and Innovations in Japan 2. Cases of Japanese Companies Innovation 3. Japanese Government s Policies for Promoting Innovations 15
17 Intellectual Property Cycle Profit Creation (Invention) Filing applications Utilization of rights Protection (Granting of rights) Industrial property rights The ultimate goal is to make IP cycle more robust and more dynamic. 16
18 Changes in IP Strategies (Design / Brand) Image of Compound Protection of IP Rights Design of appearance Reg. No Handheld Terminal Technology of scrolling a screen using a touch screen Pat. No IP Rights Patent Trademark Design Tablet Information Terminal Device Product name, Brand name, Logotype Design of operation screen Reg. No Handheld Terminal 17
19 Government-driven Innovations (Areas of Advanced Technologies) Japanese Government has designated important eight technological areas Research expenses / supports are intensively supplied. Promotion of innovations and patent filings of the results. Environment/Energy Lithium-ion batteries LED Comparison between Japan/US/Europe Patent Applications Published in 2007 Life sciences Frontier Information & sciences Social infrastru ctures フロンティア 社会基盤 Monozukuri ものづくり Nanomaterials technology ライフサイエンス 60 (%) エネルギー Energy 情報通信 Telecommunication 環境 Envi ronm ent Life sciences Nanomaterials ナノテクノロジー 材料 technology 日本国籍 JP 米国籍 US 欧州国籍 EU ips cells Batteries are applied to a car. Street light LCD TV Professor Yamanaka 18
20 Intellectual Property Strategic Program IP Strategy Headquarters formulate the IP Strategic Program every year. Government ministries and agencies implement measures based on the programs. The IP Strategic Program 2012 was formulated on May 29th, IP Strategy Headquarters IP Strategic Program Headed Headed by: by: The The Prime Prime Minister Minister Headquarters Headquarters members: members: All All the the Ministers Ministers and and experts experts JPO Other Ministries Intellectual Property Strategic Program 2012 Companies Universities 1. Comprehensive IP Innovation Strategy 2. Comprehensive content strategies to boost Japan Extracted from the Intellectual Property Strategic Program
21 Road to Industrial Development Industrial Development Promoting the creation, protection and utilization of IPRs Subsidies for Innovations Formulating IP strategies Facilitating collaboration between industry and academia Establishing IP infrastructure Developing IP laws Environment for IPR enforcement Developing IP experts Raising awareness on the importance of IPRs 20
22 Support Activities by JPO WIPO Japan FIT for Africa & LDC Established in million CHF voluntary contribution per annum Examples of Activities for Africa About 10 seminars in a year on various themes Fellowships for Masters Degree in Intellectual Property (MIP) Supports for IP Offices digitization and TISCs activities Invitation to training programs in Tokyo, Japan JPO AIPN: Advanced Industrial Property Network Providing JPO Examination Results in English via the Internet Reduces work load of foreign examiners Free of Charge The AIPN started on 12 October 2004, now it is used in 61 IPOs all over the world. (14 African IPOs ) For registration: PA0868@jpo.go.jp IPOs J-E machine translation JPO 21
23 Thank you. 22
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