1. Suitable Measures for Innovation September, 2014 0

2. 1 Toyota Case (Patent Assignment) Expansion of Business Patent Assignment Company’s Roots Entry into a New Business Area FactoryAutomatic Loom Capital: $3.7 billion Annual sales: $210 billion Today Source: http://www.toyota-global.com/ in 1929 in 1924 Sakichi Toyoda

3. 2 Gradually expanded operations The company started by making minor improvements to wiring equipment ・・・ Company’s Roots Workplace The first product Today Capital: $2.4 billion Annual sales: $70 billion Source: http://panasonic.net/ in 1918 Kounosuke Matsushita Panasonic Case (Creation and Protection)

4. 3 Ajinomoto Case (Industry-University Cooperation) Commercialize inventions! Expand our business using the new product! We lack R&D capabilities … We don’t know how to apply our research results … Company commercialize s university’s research results Fill the gaps in each other’s weak areas “Umami” seasoning by Prof. Kikunae Ikeda (Tokyo University) in 1907

5. 4 Changes in Business Environment (Globalization) （ No. of Applns.) Changes in No. of PCT applns. filed in Japan Acceleration of Innovation along with the Growth of GDP Business expansion overseas Increase in the number of patent applications filed overseas Global Application Rate of Japanese, U.S. and European Applicants Global application rate means the number of applications filed both at one's own country and at other countries, divided by the total number of applications filed at one's own country. 6,000 5,000 4,000 3,000 2,000 1,000

6. Source: Created based on Science and Technology Research Report Trends in Technical trade balance of Japan A surplus in the technical trade balance of Japan has increased because of Japan’s technological advantages. It is more than 20 billion dollars annually. Billion dollars FY 5 30 25 20 15 10 5 0

7. 6 Acceleration of Global Innovation Cycle ③Aggressive exertion of rights against infringements Exerting rights against infringements is necessary in order to (1) prevent the market share of genuine articles from falling and (2) obtain appropriate license income. ②IP utilization through licensing Speedy international development of emerging industries and acquisition of license income are possible by conducting strategic licensing activities. ①Granting IP rights / Creating relevant know-how Acquisition of IP rights by taking into consideration business development / Protection by creating relevant know-how It is necessary to strategically “utilize” intellectual property in global markets. Japan accelerates the global innovation cycle by returning profits, which are generated from utilizing IP, to the country and by reinvesting the profits in further innovation. Promotion of Innovation in Japan Reinvestment in R&D Strategic IP Utilization Global Development of Businesses Expansion of Technological Trade Surplus

8. “Basic Policy Concerning Intellectual Property Policy”  Based on the strategies approved by the Japanese cabinet, and the needs of Japanese companies, Japan is set to establish the best “IP-based nation” in the world. The first major issue is to substantiate the strategies and “implement” the specific details. Intellectual Property Policy …Looking squarely at the current situation, and aiming to become the most advanced nation in the area of intellectual property in the next decade, Japan must create intellectual property policy with a sense of urgency, targeting the following three goals. ・ Without simply aiming to catch up with other countries in the manner of previous intellectual property policy, nor with the goal of making up for lost ground, Japan will build up the most advanced intellectual property system in the world, which will attract companies and people from Japan and overseas. ・ Japan will actively support emerging countries including countries in Asia to build their intellectual property systems, and will take measures to make Japan’s world-leading intellectual property system sufficiently well known to become the world standard. ・ Japan will continue to produce human resources endowed with creativity and strategic capability who can play an important role in the knowledge generated through the world’s most advanced intellectual property system. 7 『 Japan Revitalization Strategy Revised in 2014 -Japan’s challenge for the future - 』 (Realizing a national system of innovation and the world’s most excellent intellectual property-based nation) …We will continuously try to make Japan the world’s most excellent intellectual property-based nation by appropriately addressing the current situation in which international disputes over intellectual property including trade secrets and competition for acquisition of international standards are growing fiercer in line with the globalization of corporate operations and the deepening of open innovation. Key Policy Measures in the Revised Strategy Key Policy Measures in the Revised Strategy Cabinet decision June 24 th 2014 Cabinet decision June 7 th 2013

9. JPO’s Initiatives for “Accelerated Examination Procedure” Changes in the Number of Examiners at the JPO  In order to reduce the pendency for patent examinations, since fiscal 2004, the JPO has increased the number of fixed-term patent examiners to a total of 490, and reinforced its examination system.  Although the number of examiners at the JPO is less than that at the U.S. or Europe, Japan has established an efficient and effective examination system by taking advantage of outsourcing such as placing orders for search activities. Number of Outsourced Prior Art Searches FY 8 (Unit: 1,000)

10. Request for examination First ActionGranting patent rights The period from the time a request for examination 【 Previous goal 】 11 months Source: JPO More “ Prompt Examination” and “Enhancing Examination Quality ” More “ Prompt Examination” and “Enhancing Examination Quality ”  The previous goal concerning patent examination procedures was to shorten the period from the time a request for examination is made, up to when the first notice of examination results (first action (FA)) is set to 11 months or less (FA11) by the end of FY2013, which has been met as scheduled.  The JPO set new goals to be achieved in the next decade (by FY2023). That is to say, the examination period required for granting patent rights should be 14 months or less, and “the period from the time a request for examination” is made, up to when the first notice of examination results is sent” should be 10 months or less.  Aiming to further enhance the quality of examination, the JPO decided to create a new committee consisting of external experts and make them review the current situations and systems underway concerning quality management of the examination procedures. Changes in FA pendency * “The examination period required for granting patent rights” excludes such cases where the JPO requests an applicant to respond to the second notification of reasons for refusal and other actions by submitting an amendment and other documents within a period stipulated under the law. The examination period required for granting patent rights 【 The period from the time a request for examination and the examination period required for granting patent rights in JPO 】 9

11. materials device control vehicle structure software technology company application contents Collective Examination Entire project battery manufacturing technology electric vehicle motor material device control vehicle structure software technology battery manufacturing technology motor In line with corporate business activities, examiners will collaboratively conduct examinations. JPO IP networks to be used for effectively expanding global business activities (building an IP portfolio) Team examiners in each specific technology field business strategies applications  In order to support smooth and strategic development of global activities by companies through establishing “IP networks,” the JPO has introduced a system of “collective examinations for IP portfolios” on a trial basis. Under this system, examiners conduct examinations collaboratively on a cross-sectional basis in order to grant multiple intellectual property rights in a variety of fields. The system is expected to be operated as standard procedure at a later date. electric vehicle Collective Examination for IP portfolios 10

12. Improving the operations of the Patent Prosecution Highway (PPH)  In order to enable patent system users to achieve earlier acquisition of patent rights overseas with less procedural effort at lower cost, the JPO, based on bilateral and multilateral discussions, will advance efforts to improve operability and user-friendliness of the PPH procedures. Such efforts involve simplifying required documents and standardizing requirements for PPH applications. 11 As of Sep. 1, 2014, 32 offices participate in the PPH. (Japan implements the PPH with 29 offices.) The accumulated total number of requests for PPH filed worldwide is about 61,000 as of the end of June 2014. As of Sep. 1, 2014, 32 offices participate in the PPH. (Japan implements the PPH with 29 offices.) The accumulated total number of requests for PPH filed worldwide is about 61,000 as of the end of June 2014. As of September 1, 2014 DPMA (Germany)

13. The Tegernsee meeting was held among the Trilateral Patent Offices (EPO, JPO and USPTO), and patent offices of some European counties (United Kingdom, Germany, France, Denmark). It is a meeting to discuss harmonization with the EPO and patent offices of some European countries that have the authority to amend the European Patent Convention. At the meeting, the participants discuss 4 key issues for the harmonization (Grace period, 18- month publication, Prior use rights, and Conflicting applications) The Tegernsee Offices conducted User Consultation (questionnaire survey and round table) on the 4 key issues respectively, and each office made a report on the consultation. At the fifth “Tegernsee Heads” Meeting took place on April 8, 2014, the participants approved the Final Consolidated Report on the Tegernsee User Consultation consisting of a joint factual summary analyzing the results of the individual reports, including commonalities and differences in user views. The Tegernsee Offices agreed to 1) publish the Final Consolidated Report, 2) endeavor to communicate the results and provide opportunities for feedback from users, 3) meet to review progress in the light of input received from users, or other relevant discussions or developments, in due course. As for the JPO, we held a symposium for the feedback to the users on July 10, 2014, with much international participation including SMEs and Universities/research institutions in a balanced manner. 12 Discussions toward Patent Harmonization - Tegernsee Offices -

14. Thank you very much 13 Dziękuję