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1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare, Zimbabwe, Creating IP Vision for the World Toshihiko Nakazawa Managing Director Japan Intellectual Property Association Adviser Corporate IP and Legal Headquarters CANON INC. Japan Small & Medium Enterprise Consultant

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Page 1: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

1

Use of the IP System for Business

Case Study of Success Stories in Japan

June 25, 2015@Harare, Zimbabwe,

Creating IP Vision for the World

Toshihiko Nakazawa

Managing Director

Japan Intellectual Property Association

Adviser

Corporate IP and Legal Headquarters

CANON INC.

Japan Small & Medium Enterprise Consultant

Page 2: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

2

Index

1. Introduction of JIPA

2. CANON and its IP

3. Current Cases at Japanese SMEs

4. Key-points to develop the Market with IP

Creating IP Vision for the World

Page 3: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

10 30

109

315

508

609

767816

867887 898

905 902 916 928 933

97145

192231

266 299 302 325 328 333

0

100

200

300

400

500

600

700

800

900

1000Regular Members

Associate Members

JIPA = Japan Intellectual Property Association

Established in 1938 (76 years old)

Members: more than 930 Japanese companies - non profit & non governmental organization-

Chemistry: 41%

Electric/Electronics: 32%

Metal/Machinery: 22%

Construction,Trading,etc.:5%

Business Field

Creating IP Vision for the World

1. Introduction of JIPA

3

Page 4: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Project Committee

(*) The authorities include Ministries, Japan Patent Office, Supreme court, Political parties, etc.

Policy Making

WIPO Green Support,

IP Symposium

(2014: EPA, 2015:Competition & Collaboration)

IP relation to Asian Region.etc.

International Patent

Industrial Design

Trademark Copyright Fair-trade Information system, etc.

Study & Research

716 people enrolled

Submitting suggestions/comments to Authorities (*)

(39 suggestions/comments in 2014)

Creating IP Vision for the World

Activities of JIPA

4

Page 5: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Seoul

Shanghai★

Beijing★

★Taipai

★Jakarta

Kuala Lumpur★

Taejon★

Guangzhou

Singapore

Bangkok★

Tangerang

Delhi

Bangalore

Mumbai

Colombo★

Abu Dhabi

Dubai

Hague

Hamburg

★Munich

★Warsaw Brussels★

Paris★

★Moscow

Barcelona

Geneva★

Edinburgh★

★Corsica

Washington, D.C★ ★Alexandria

Mexico City★

★New YorkPalo Alto★

★Tokyo

Nairobi

Pune★

★Bologna

★Sydney

San Jose★ Casablanca

★Cape Town

★Harare

5

JIPA's Global Activities (past 10 years)

Audio Conference with WIPO

Delegation to Eurasian Patent

Organization

Overseas IP seminar

JIPA Green Award

Domestic Activities

IP Symposium

General Meeting

IP Training

Committees &

Projects

Delegation to IMPI

Industrial Users Meeting

Delegation to EPO

Meeting with IP Office

Meeting with Customs

Meeting with IP Users

WIPO GREEN Workshop

Design Meeting with IPO

UN Global Compact

Leaders Summit

Meeting with Customs

Meeting with IP Office

ARIPO Meeting

Seminar for Judges

Regional Seminar

★Cities which JIPA sent Delegations or Speakers

Countries which JIPA sent Opinions/Petitions

JIPA’s Global IP & Activities

Pretoria

Page 6: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

6

Net sales $34,390million

Net income $ 2,114 million

Employees 191,889

Consolidated subsidiaries 261

Americas Net sales $8,637million

Asia & Oceania Net sales $13,333million

Including China, Japan

Europe Net sales $9,037million

Including Africa

Business segments

Consumer

36.0% Office

55.8%

Industry and Others

10.7% (Sales ratios do not total 100% due to sales between segments of 2.5%)

(As of December 31, 2014) ( Exchange Rate: 120yen/$1 )

2. Canon and its IP

Creating IP Vision for the World

Page 7: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

R&D Locations (Japan/Overseas)

7

★ ★ ★

★ ★

Utsunomiya Plant

Kamisato Office

Fuji-Susono Research Park

Toride Plant

Yako Office

Kawasaki Office

Kosugi Office

★ ★ ★ ★ ★

★ ★

Headquarters

Maryland, U.S. Rennes, France

Venlo, NL

Zawiercie, Poland

Bangalore, India

Sydney, Australia

Quezon City, PH

Beijing, China

Chiangsu, China

Creating IP Vision for the World

Page 8: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

History of Canon 1/2

In Early 1930s, Several People started to develop Japanese high quality camera.

Their slogan was, “ Catch up Leica and Surpass it.”

In 1934 August, 1st Utility Model application

In 1935 June, 2nd Utility Model application which was thought up to work around Leica and Contax patents

In Late 1934, Canon and Nikon agreed to develop camera lens together

In 1935 June, Trade Mark “ Canon “ filed, and in September registered

In 1937 August, Canon Corporation established -Number of Employees 35

In 1938, Exhibited camera at Montreal International trade show

1930

1940

8 Creating IP Vision for the World

Page 9: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Early Date Camera using Utility Model

9 Creating IP Vision for the World

Figure 1 of 2nd Utility Model

Canon Camera using 2nd Utility Model

Page 10: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

History of Canon 2/2

In 1950, First US patent Application filed

In 1958, Patent Section established

In 1959, 1st design was filed

In 1960, internal rule “ Rules on Treating Inventions, Devices and Designs “was issued to promote R&D engineers

1945

1950

1960

CTO Thought 2 key points for growth

“ Invention ” and “ Industrial Design “

In August ,World War ll End

In 1945 October, Canon Restarted

10 Creating IP Vision for the World

Page 11: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Copying machine business in 1960’s = Xerox’s monopoly=

Carlson process thoroughly covered by patents

⇒ Complete domination by patents

Development of new plain paper copier technology

that does not infringe Xerox patents

Introduction of NP process

Challenge

Change of role of intellectual property From mere “protection of own technology/product”

To “weapon for business strategy”

Lesson from Challenge to Xerox

11 Creating IP Vision for the World

Page 12: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

History of Differentiating Technologies

12

70 75 80 85 90 95 00 05 Patent application filing year

NP process

Black and white digital copying machine

J development method

Process cartridge

Color digital copying machine

Network system solution

Creation of new core technologies from applied technologies Creating IP Vision for the World

Page 13: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Canon Consolidated Sales and US Patents C

onsolid

ate

d s

ale

s in r

ed

(1 m

illio

n d

olla

r)

Num

ber o

f US

issued

pate

nts

per y

ear in

blu

e

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0

5000

10000

15000

20000

25000

300001963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

13 Creating IP Vision for the World

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Basic Principles on Intellectual Property

14

・ IP activities are vital to support business operations.

・ The Fruits of R&D are products and IPRs.

・ Other parties’ IPRs should be respected

and attended properly.

Creating IP Vision for the World

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Evaluation of invention

Promotion of Invention Creation (PGA Activity)

15

Engineer Invention disclosure (in specification form)

Specification

Organize idea

Idea sheet

Patent Grade-up Activity Patent Group Assessment

PGA=

Study and discuss from various viewpoints from one invention as a starting point

IP staff Engineer

Invention

New invention

Decision on patent application policy (country, etc)

Manager Manager

Invention

Invention

Creating IP Vision for the World

Page 16: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Must avoid third party rights

16

Never use Third-party patents

New product Function A

Function A Third-party right

Action towards third-party, based on patent assessment

Invalidation Work

around License

Early discovery and treatment of third party patents are important

Creating IP Vision for the World

Page 17: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

3. Current Cases at Japanese SMEs

17 Creating IP Vision for the World

Action Grip Driver Impact Driver

Anex Manufacturing Company

Products: Various kinds of hand tools

# of Employees: 90

Capital Stock: $250k

1. To make IP much stronger by using both design

rights and patents or utility models.

2. Brand “ANEX” is supported by good design and

patented technology.

Point:

Utility Model App. : 36

Patent App. : 46

Design Right :142

Case 1 From: Collection 2014 of Enterprises Utilizing IP, METI & JPO

Japanese Design

Publication

Page 18: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

18 Creating IP Vision for the World

TOKUTAKE Industry Co.

Products: Care Shoes for Aged People

# of Employees: 60

Capital Stock: $83k

1. Listened to User’s voice about their shoes

problems. Solved their problems by

developing new products.

2. Getting Patents/Utility Models and Design

Rights encourage company and its

employees.

3. Outside good patent attorney .

Point

Utility Model App. : 1

Patent App. : 29

Design Right : 19

Case 2 From: Collection 2014 of Enterprises Utilizing IP, METI & JPO

Current Cases at Japanese SMEs

Japanese Patemt

Publication Care Shoes

Page 19: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

4. Key-points to develop the Market with IP

19 Creating IP Vision for the World

1. Visualize or Recognize What is New and Useful for Your

Company.

2. Put What is New and Useful for Your Company into IP.

3. Promote Engineers and Designers to Make Useful Inventions

and Good Designs.

4. Think a Great Deal of Useful IP.

5. Respect Other Parties’ IP and Attend Them Properly.

6. Find out Reliable IP Professional to Discuss about IP and

Business.

IP Activity is not for IP Itself, but for Business.

You have to get IP and to use IP for Business.

Page 20: Use of the IP System for Business Case Study of Success Stories … · 2015-07-02 · 1 Use of the IP System for Business Case Study of Success Stories in Japan June 25, 2015@Harare,

Creating IP Vision for the World

Thank you for your attention.