0 The ‘‘Japanese Model’’ Japan’s Initiatives for Meeting the Future May 14, 2009 Copenhagen, Denmark Takashi SUZUKI Commissioner Japan Patent Office

1 What is the ideal IP System in 2020? IP System for Pro-Innovation Challenge ◆ Cleaning up the Backlog ◆ Change in the Environment of Innovation

2 Topics 1. Current patent system and related issues 2-1. PPH – eliminating the backlog 2-2. Patent system for pro-innovation 2. JPO efforts to solve issues and establish IP system suitable for 2020

33 Progress of Economy Promotion of Invention Patent 1. Current Patent System and Related Issues

4 ◆ Change in the Environment of Innovation ◆ Eliminating the Backlog - Rapid increase of Patent Applications throughout the world - Increasing “Pendency Period” - Change of the Role of the Patent - Change in the Obstacle to Promoting Innovation 1. Current Patent System and Related Issues

5 Applications by Non-residents: Approx. 700,000 Approx. 700, million (Million) Applications by residents Rapid increase in the number of Patent Applications throughout the world 2-1. PPH – Eliminating the Backlog

6 Increasing “Pendency Period” (Months) 2-1. PPH – Eliminating the Backlog

7 PPH - Patent Prosecution Highway OFF OSF Examination Application Patent Request for PPH Accelerated Examination 2-1. PPH – Eliminating the Backlog

8 Application Patent FA 2-3 months Without PPH With PPH ◆ Case of JP US Expeditious Examination FA months Period from Request to First Action 2-1. PPH – Eliminating the Backlog

9 Overall 44% PPH 95% Improvement of Quality 49% 64% JP=>US US=>JP Grant rate (transitional) in JP-US PPH 2-1. PPH – Eliminating the Backlog

PPH – Eliminating the Backlog Applications by Non-residents PPH Accelerated Examination Complementary Interaction between PCT & PPH PCT Applications: Approx. 340,000 Paris Route Applications: Approx. 360,000

11 Expanding PPH Network 2-1. PPH – Eliminating the Backlog DPMA IP Australia Mar DKPTO JPO UKIPO KIPO CIPO EPO Sep ROSPatent IPOS NBPR : Under consideration : Full implementation : Pilot implementation APO Apr Sep Jan Mar Apr Jul Nov Jul Jul USPTO Feb Apr May Apr. 2009

12 Plurilateral PPH Framework StandardizedRequirements JPO Office A Request for PPH Office B Office C USPTO 2-1. PPH – Eliminating the Backlog

13 Company A Company A (Fuel Cell) Company B Company B (Body of vehicle ） Progress through Open Innovation Fuel Cell Vehicle Open Innovation 2-2. Patent System for Pro-Innovation

14 1,000 Patents for 1 Product Injunction Infringement against JUST 1 Patent STOP! 1 Patent 2-2. Patent System for Pro-Innovation

15 Injunction Patent Troll Companies Extortionate Fee Patent 2-2. Patent System for Pro-Innovation

16 - Patent system for accelerating innovation - Strong patent right supported by patent offices and courts - International harmonization for granting a patent right quickly ◆ Three important purposes 2-2. Patent System for Pro-Innovation

17 1. Injunction Right 2. Exceptions to the Effects of Patent Rights (Experimental or Research Purposes) 3. Modified ”Mutual Recognition” 2-2. Patent System for Pro-Innovation

18 Injunction Right Four-factor test The plaintiff has suffered an irreparable injury. Remedies available at law, such as monetary damages, are inadequate to compensate for that injury. Considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted. The public interest would not be disserved by a permanent injunction. eBay Case 2-2. Patent System for Pro-Innovation

19 Exceptions to the Effects of Patent Rights [Experimental or Research Purposes] 1. Research for Patentability 2. Research to Determine Operability 3. Examination for Future Progress 2-2. Patent System for Pro-Innovation

20 Patent Country A Country B Exploring ”Mutual Recognition” Examination Application 2-2. Patent System for Pro-Innovation

21 Thank you