January 1, 2012
As we welcome in the New Year 2012 (Heisei 24), I would like to extend my sincere best wishes to all of you for a happy New Year.
On March 11, 2011, Japan suffered an unprecedented disaster. I would like to give my deepest condolences to the victims of the earthquake and tsunami for the hardship they suffered in the wake of the disaster, and wish them happiness in the New Year.
Due to the disaster, the number of patent applications filed during March from the five prefectures that were most affected greatly decreased. However, the number of filings recovered to the same level as that of the previous fiscal year from April onward. Although the number of patent applications filed in the whole country slightly declined in March, the number has remained at the normal level since April. I am pleased that the IP activities in Japan continue to be active in this way.
As for the trend in IP activities in Japan, the percentage of foreign applications filed by Japanese companies has doubled over the past 15 years. In 2011, the percentage of PCT applications showed a year-on-year increase of more than 20%, indicating that international applications are increasing more than ever. Further, patent royalties, which for many years Japan paid out more to foreign countries than it received, saw a turn around in 2003. Since then, Japan receives more than it pays, with the amount received continuing to increase. This is an indication that Japanese companies are making efforts to protect intellectual property abroad while continuing to conduct vigorous R&D activities. In recent years, Japanese companies, while maintaining important bases of operations within Japan, are choosing more suitable regions of the world in which to conduct R&D, production, and sales activities. In other words, the important issue for Japanese companies is how they can more globally make use of technology, designs, and brands, which are their strong points. In this way, Japanese companies’ IP strategies, especially in terms of international aspects, are becoming even more important. Thus, the Japan Patent Office (JPO) is fully aware of the need to accelerate creating a system in which companies are able to strategically and globally utilize intellectual property.
In order for Japanese companies to smoothly develop their global business operations, it is important in the field of intellectual property to create an environment that enables the companies to acquire IP rights that are “more prompt”, “stronger”, and “lower-priced.” The JPO this year will continue to strongly address these issues. As for the issue of more promptly acquiring IP rights, the JPO has set a medium-term objective of shortening the examination waiting period to 11 months by the year 2013. At present the period has been successfully shortened over time, so that the current waiting-period is in the area of 25 months. We intend to continue making efforts to further shorten the period. With regard to lower-priced IP rights, we reduced the examination request fees by 25% in August 2011. The remaining issue is stronger IP rights, which means improving the environment so that companies engaged in developing their businesses globally are able to smoothly acquire stable patent rights.
In achieving stronger IP rights, international harmonization of IP systems and practices is essential. The importance of patent harmonization was reconfirmed at the “IP5 Heads of Offices Meeting” held in Japan among the IP offices of Japan, the US, Europe, China, and Korea in June 2011. As a result of this meeting, it is expected that discussions on harmonization will be accelerated in the future. In addition, the US Patent Law was finally revised in September and the “first to invent” system that had been applied in the US, which was the largest obstacle to patent harmonization, was changed to the “first to file” system, increasing the momentum for patent harmonization. In such course of events, the JPO would like to actively lead the world in terms of patent harmonization. Furthermore, building an international patent network is important in harmonizing the practices. Last November, Japan became the first country to implement a Patent Prosecution Highway (PPH) program with China. As a result, approximately 90% of the applications that are filed for technology patented in Japan to countries overseas are now eligible to undergo accelerated examinations through simplified procedures.
With regard to relations with the ASEAN member states, which will become increasingly important in the future, it is necessary to enhance cooperation in the field of intellectual property more than ever. Therefore we are planning to hold the 1st Heads of JPO-ASEAN IP Offices Meeting in February this year.
Currently, global competition, which includes business expansions overseas, has become an unavoidable issue not only for large enterprises but also for small and medium sized enterprises (SMEs). There are approximately 4.2 million SMEs in Japan, and these account for more than 99% of all companies, so SMEs play an extremely important role in advancing innovation in Japan. However, the percentage of patent applications filed by SMEs is only a mere 11% of the total number of applications filed by companies. Although SME managers are aware that the utilization of intellectual property is the next most important issue after financing and management in general, it has been pointed out that they cannot properly utilize intellectual property due to lack of funds, shortage of manpower, etc. In order for SMEs, therefore, to fully utilize intellectual property, the JPO provides them support. The JPO has set up Comprehensive IP Support Service Counters and subsides the filing of foreign applications and offers a fee-reduction/fee-exemption program for them. Starting April 2012, we will expand our support by extending the reduction/exemption period for patent fees from 3 years to 10 years. SMEs that have many brilliant technologies are national treasures of Japan, and therefore we will continue supporting the acquisition of rights, business expansions overseas, and other activities by SMEs.
Furthermore, in order for Japanese companies to compete globally, it will be even more critical for them to add extra value, such as adding design and brand elements to their manufactured products. Then they need to distribute them to the world and further protect them as intellectual property. For the purpose of reducing both procedural and cost burdens on Japanese companies acquiring design rights abroad, the JPO will advance its consideration of joining the “Hague Agreement on International Registration of Industrial Design.” In addition, to support the diversified brand marketing being conducted by companies, we will study the possibility of starting a registration system for new types of trademarks such as sound, movement, and color that more directly convey the product images to consumers.
As I have stated above, through the protection and utilization of intellectual property, the JPO will enhance the support it gives to activities conducted by Japanese companies including SMEs. This will be initiated from various angles such as product creation, designs, and brands. And as I conclude my New Year’s greeting, I would be grateful for your kind understanding and support of our efforts.
Yoshiyuki Iwai
Commissioner
Japan Patent Office
[Last updated 12 January 2012]
