intellectual property commercialization in...
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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
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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
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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
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, ,
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