S&I International Bangkok Office Company Ltd. http://www.s-i-asia.com IP News No. 152, January 2018 Editorial In the midst of Japanese economy recovery from deflation, the government is making greater efforts to attract companies from overseas by creating a more open market and facilitating business expansion. The support includes effective corporate tax rate declining, world-class research funding, number of researchers, and highly skilled human resources which is an ideal environment for innovation hub. The statistic from World Economic Forum report in 2016 shows that Japan is the highest number of international patent Applications (based on PCT applications) per 1 million people. Japan Patent Office annual report 2016 also ranks Japan as the 1st among OECD members with 297,000 applications (PCT international application and direct application) followed by the US and China. Not only filing a large number of patents, but also many of which have high universal validity. As Japan is currently one of the leading economic partners of Vietnam, Japan External Trade Organization (JETRO) offers a program to support Vietnamese investors via Invest Japan Business Support Center (IBSC) which is a one-stop center for establishing and expanding their business base in Japan providing information, consultation, and providing temporary office for free of charge (Japan lures Vietnam investors with free support, The Nation, December 8, 2017). However, most of Vietnamese companies which have successfully opened firms in Japan are large companies such as Vietnam s largest information technology service company FPT and CMC Corporation. According to a representative of Jetro Hanoi, the obstacle of Vietnamese firms when investing into Japan is financial issues. The costs of leasing working places, operating firms and hiring employees in Japan are quite high. However, with a growing economy of Japan and sophisticated market, the country is become attractive for foreign investors than ever before. Japan External Trade Organization (Jetro) by its regional representatives have introduced investment support program to investor in this region. Opportunistic investors who see the best condition offered by the program must heavily consider the valuable investment in this island nation. Apapan Seeherunwong Patent Attorney
1. Japan lures Vietnam investor with free support (From Viet Nam News, Asia News Network, Vietnam, December 8, 2017) Hanoi Apart from investment promotion from Japan to Vietnam, Jetro offers a program to support Vietnamese business when investing to Japan, according to Mr. Hironobu Kitagawa, chief representative of Japan External Trade Organization (Jetro), Hanoi. Facilities will be offered to Vietnamese enterprise, such as temporary office space, internet, telephone, fax and photocopying services within 50 working days at the Invest Business Support Centre (IBSC) located in six cities in Japan. Several Vietnamese companies have successfully opened firms in Japan by Jetro support such as Vietnam s largest information technology service company FPT (opened in 2005) and CMC corporation (opened October 2017). 2. Lego wins copyright case against Chinese imitators (From Bangkok Post, Thailand, December 9, 2017) Copenhagen Lego has won a landmark case in China against two companies that manufactured and sold toy almost identical to its LEGO Friends range branded Bela. The Beijing Higher Court passed a ruling that recognized the Lego logo and name in Chinese as well-known trademarks in China and then the China Shantou Intermediate People s Court had ruled that certain Bela products infringed upon the copyrights of the Lego Group and that manufacturing and selling of those products constituted acts of unfair competition. The court also decided that Lego is protected under Chinese anti-unfair competition law for the distinctive and unique appearance of certain decorative aspects of its packaging across particular product lines (in this case, LEGO Friends). 3. 200% tax exemption to spur SME software spending (From Bangkok Post, Bangkok, Thailand, December 13, 2017) Bangkok Small and medium-sized enterprises (SMEs) can get a 200% tax exemption on software purchases from now to 2019 under a measure announced by the Digital Economy Promotion Agency (Depa). Executive vice-president Pondchai Homcheen said the 200% tax exemption not only provides software developers with an opportunity to enhance their business capability, but also helps SMEs who buy software programs with a double corporate tax exemption for spending of up to 100,000 baht in compliance with regulatory requirements specified by the Revenue Department. 150-200 local software companies are registered with Depa, and the number is expected to reach 1,000 next year.
4. US rewards Thailand for IP progress (From Bangkok Post, Thailand, December 17, 2017) Bangkok The United States decided to lift Thailand from the Priority Watch List of intellectual property (IP) violators, however, the country still on the Watch List (WL). USTR ambassador Robert Lighthizer said the US welcome the corrective actions that Thailand has taken and look forward to work with Thailand to resolve remaining IP concerns. He added US and Thailand engagement has yielded results across a range of issues, including enforcement, pharmaceutical patent, trademarks and copyright. The USTR highlighted the establishment of an inter-agency national committee on IP policy and a subcommittee on enforcement against IP infringement. Thailand also has been taking steps to address a backlog of patent and trademark application, including increasing the number of examiners and streamlining regulations. 5. BoI sending signal with EEC perks (From Bangkok Post, Thailand, December 19, 2017) Bangkok The Board of Investment (BoI) approved the investment categories in the Eastern Economic Corridor of Innovation (EECI) and the Eastern Economic Corridor of Digital (EECD) to be entitled to its promotional privileges. The categories comprising agriculture and biotechnology; high-performance batteries and next-generation automotive; aviation; bioenergy and biochemical; automation machines, robotics and smart electronics; and medical instruments. The privileges include a corporate income tax exemption for eight years and 50% reduction in corporate income tax for an additional five years after the tax holiday, 6. Innovation agency gears up to help create major impact on economy (From The Nation, Bangkok, Thailand, December 21, 2017) Bangkok The National Innovation Agency (NIA) is developing a strategy to support radical innovation project in three areas bio economy, manufacturing and circular economy sharing, social and service economy. The agency expects to advise businesses who want to apply radical innovation to their businesses in the next couple years. It also expects to be successful in developing radical innovation in the country within five years. NIA director Pun-arj Chiaratana said the agency expects that more than 100 SMEs will apply for innovation funding and it hopes to support 50-75 SMEs with budget of around Bt500 million.
7. Japanese companies flag interest in EEC investments (From The Nation, Thailand, December 22, 2017) Bangkok Thailand has discussed with Japanese MPs and business people at government House in Bangkok yesterday. Deputy Prime Minister Somkid Jatusripitak said several Japanese firms stating their interest in investing in Thailand, especially in the Eastern Economic Corridor (EEC), he added. The Japan Bank for International Cooperation (JBIC) has also indicated its interest in developing a smart city in Chachoengsao province. The JBIC had sent a team to conduct a feasibility study on the smart city plan, which comes under the EEC region. 8. Asean-China FTA cuts tariffs on 400 more items (From Bangkok Post, Thailand, December 26, 2017) Bangkok Import tariffs on around 400 items traded between Asean and China will be cut to 0-5%, starting from Jan 1, 2018 as part of the Asean-China free trade agreement (FTA). The pact is expected to help double trade value between the two sides to US$1 trillion by 2020. After the 400 items on the sensitive list are removed, the final stage of cutting tariffs for very sensitive items can begin, said Deputy Commerce Minister Chutima Bunyapraphasara. Most of the goods on the sensitive list are agriculture products and major commodities. The Asean- Hong Kong FTA is due to begin in 2019, she added. 9. PTTGC signs surfactant deal with Japan-based producers (From Bangkok Post, Thailand, December 27, 2017) Bangkok PTT Global Chemical Plc (PTTGC) has joined Mitsui & Co and Osaka-based Nippon Shokubai Co to conduct a feasibility study on producing Softanol, a surfactant that is a raw material for cleansing products. Under the MoU, the production of Softanol and sales channels in Thailand. Softanol goods are used as materials for a wide variety of home care liquid detergents and industrial cleaning agents. PTTGC also plans to partner with existing strategic partners from Japan, the EU and the US on a high value-added (HVA) joint venture production facility. 10. Bioeconomy to give boost to agriculture (From Bangkok Post, Thailand, December 28, 2017) Bangkok The first bioeconomy development plan aimed at promoting investment in biotech-related businesses and adding value to farm products will be submitted to the cabinet,
according to Prime Minister s Office Minister Kobsak Phutrakul. A bioeconomy refers to all economic activities derived from scientific and research activity focused on biotechnology. Twenty-three organizations including state agencies, the private sector, universities signed a memorandum of understanding to drive bio-economy development. The first development will focus on tapioca and sugar cane which used as raw materials for many industries such as ethanol, bioplastics, food, bioenergy and biopharmaceuticals.