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Promotion for SMEs under Japanese Patent Policy Eiichi Yamamoto Patent Information Policy Planning Office Japan Patent Office

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2 Trend of SMEs in Japan

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3 Strategies for Patent Applications Utilization rates of patents 57.2% 42.7% SMEs carefully consider whether they should apply for patents. Once they have acquired a patent, they tend to utilize it effectively. Source: White paper on small and medium enterprises in Japan (2009)

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4 Relationship between Patents and Operating Profit Main effects of obtaining intellectual property rights An improved credit rating Help to acquire new customers Help to improve the brand Able to eliminate imitation goods and similar products Gained external appeal Source: White paper on small and medium enterprises in Japan (2009) Enterprises that possess patents generate more operating profit per employee than those that possess none. SMEs can attempt to improve business performance through the acquisition of patents. SMEs can attempt to improve business performance through the acquisition of patents.

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5 Support Measures for SMEs by JPO

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6 IP Activities in SME Business IP mindIdea IP protection and registration Product Education, Consultation Explanatory meetings on the intellectual property right system Seminars for SMEs and venture companies Support by Intellectual Property Right Specialist etc. Before applications, or requests for examination Industrial Property Digital Library (IPDL) Survey on technical trends Assistance for patent applications to foreign countries etc. Requests for examination, Examination, Appeal, Registration Accelerated examinations / appeal and trial examinations Circuit examinations (visiting interview examinations) Reduction of examination request fee and annual patent fees etc. Exploitation support Collection of licensable patent exploitation examples etc. Comprehensive Support Measures for SMEs R&D

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7 Industrial Property Digital Library (IPDL) PurposePurpose To Improve SMEs, universities and research institutes access to IP information To contribute to further facilitating R&D activities Basic informationBasic information Launched in 1999 More than 80 million documents Dating back to 1880s Covering patent, utility model, industrial design, trademark, and trials/appeals Fee free service

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8 IPDL Services B clicking patent and utility model search, each service is displayed. Search MenusSearch Menus Search service for beginners Patent and utility model search ex. Gazette DB Gazette text search Legal status information Others ex. Trademarks Designs Appeals and trials Example

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9 Source: Surveys by JPO (2006) Comparison of IPDL Utilization Companies actively access IPDL and commercial DB.Companies actively access IPDL and commercial DB. Particularly, SMEs prefer utilizing IPDL.Particularly, SMEs prefer utilizing IPDL.

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10 Purpose of IPDL Utilization The most popular purpose is search of prior arts.The most popular purpose is search of prior arts. IPDL enables users to conduct a basic survey.IPDL enables users to conduct a basic survey. Some users answers that the number of documents for prior arts pointed out by patent examiners is reduced more than ever. Some users answers that the number of documents for prior arts pointed out by patent examiners is reduced more than ever. Source: Surveys by INPIT

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11 Reason of IPDL Utilization Main reasons of support are easy accessibility on Internet and fee free service.Main reasons of support are easy accessibility on Internet and fee free service. Annual additional service and function improve user-friendliness.Annual additional service and function improve user-friendliness. Source: Surveys by INPIT

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12 Number of Searches on IPDL Right after the service launched, 12 million searches were recorded.Right after the service launched, 12 million searches were recorded. The number of searches increased to 86 million hits in 2010 due to the introduction of additional services.The number of searches increased to 86 million hits in 2010 due to the introduction of additional services. Source: JPO Annual Report (2011)

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13 IPDL in English Version Design Database with MT service Patent Databases with MT service Trademark Databases Patent Database of Patent Abstract of Japan 1. Patent Databases 2. Design Database English Databases on IPDL 3. Trademark Database DB with Machine Translation Service Patent & Utility Model Gazette DB Patent & Utility Model Concordance FI/F-term Search Human Translation Database Patent Abstracts of Japan (PAJ) DB with Machine Translation Service Design Gazette DB Database (Bibliographic Items such as Dates and Numbers) Japanese Trademark Database Japanese Figure Trademarks Japanese Well-Known Trademark List of Goods and Services

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14 Publications of unexamined patent applications Patent Databases with MT service Patent and design gazettes can be searched by document number or FI/F-term.Patent and design gazettes can be searched by document number or FI/F-term. All information (except drawings) is translated by machine translation system.All information (except drawings) is translated by machine translation system.

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15 Patent Database of Patent Abstract of Japan PAJ database provides both text search and number search in English.PAJ database provides both text search and number search in English. Text search scope covers an applicant, a title of invention and an abstract.Text search scope covers an applicant, a title of invention and an abstract.

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16 Current status of IP Information Services

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17 Foreign IP Offices Foreign JPO/INPITJPO/INPIT End-usersEnd-users Commercial Providers IPDLIPDL Standardized Data Publication via the Internet DVD/CD-ROMPublicationDVD/CD-ROMPublication High Value-added Services Via Internet Data Exchange Reasonable Price on Marginal cost basis Via Internet Reasonable Price on Marginal cost basis IP Information Dissemination Policy

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18 Public Sector (JPO/INPIT) (JPO/INPIT) End-usersEnd-users Private Sector (Commercial Providers) Add high-value so as to meet diverse needs of end-users Provide primary information in standardized form at reasonable price Provide search service for ordinary use by the public IPDL Bulk Data Online DB Services Best Mix between Public and Private Sectors

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19 Pricing on Marginal Cost Basis The price of CD-ROM publication of unexamined patent applications was dropped from JPY21,000 (USD280) to JPY5,330 (USD70) after the introduction of the marginal cost policy.

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20 Growth of Japanese IP Information Service Market After the introduction of new system in 1999, IP information service market has grown by 43%. Source: JPO survey (2011) One reason of decline in 2009 is attributed to the decreased number of patent applications.

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21 Category Market Share (%) FY2009 Expectation of Market Size* Online DB Services26+ Research and Analysis Services21++ Translation Services17+ Data Processing and Publication Services 5No Change Management Services10No Change Search Services3- Document Copying Services2- Other17 Source: JPO survey (2011) Market Share of IP Information Services by Category *The mark "+" means that more than 40% respondents expect the future market will expand. "++" means that more than 50% expect the expansion of market. "No change" means that more than 40% forecast the market size will not change. "-" means that more than 40% think the future market will shrink.

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22 Future Vision of IT Infrastructure in JPO ~System Optimization Plan~

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23 Cross-lingual search system (Chinese, Korean etc.) Cross-lingual search system (Chinese, Korean etc.) The JPOs New Search System Optimization Plan for the JPO Systems Constructing the state-of-the art IT environment, which enables the leading, speedy and accurate examination.Constructing the state-of-the art IT environment, which enables the leading, speedy and accurate examination. Establishing the environment of patent information utilization which contributes more greatly to R&D and the management strategy of companies and universities.Establishing the environment of patent information utilization which contributes more greatly to R&D and the management strategy of companies and universities.

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Thank You