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The ‘‘Japanese Model’’The ‘‘Japanese Model’’Japan’s Initiatives for Meeting the FutureJapan’s Initiatives for Meeting the Future

May 14, 2009

Copenhagen, Denmark

Takashi SUZUKI

Commissioner

Japan Patent Office

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What is the ideal IP System in 2020?

IP System for Pro-Innovation

Challenge

◆　 Cleaning up the Backlog

◆　 Change in the Environment of Innovation

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Topics

1. Current patent system and related issues1. Current patent system and related issues

2-1. PPH – eliminating the backlog2-1. PPH – eliminating the backlog

2-2. Patent system for pro-innovation2-2. Patent system for pro-innovation

2. JPO efforts to solve issues and establish IP system suitable for 20202. JPO efforts to solve issues and establish IP system suitable for 2020

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Progress of Economy

Promotion of Invention

Patent

1. Current Patent System and Related Issues 1. Current Patent System and Related Issues

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◆　 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 1. Current Patent System and Related Issues

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Applications byApplications by Non-residents: Non-residents:

Approx. Approx.

700,000700,000

1.76 million1.76 million

0

0.4

0.8

1.2

1.6

2.0

1996 2001 2006

(Million)

Applications by residents

Rapid increase in the number of Patent Rapid increase in the number of Patent Applications throughout the worldApplications throughout the world

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

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Increasing “Pendency Period” Increasing “Pendency Period”

(Months)

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

USPTOEPOJPO

10

20

30

40

50

60

1999 2001 2003 2005 2007

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PPH - Patent Prosecution HighwayPPH - Patent Prosecution Highway

OFF

OSF

Examination

Application

Application

Patent

Request for PPH

Accelerated Examination

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

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Application Patent

FA 2-3 FA 2-3 monthsmonths

Without PPH

With PPH

◆ Case of JP <=> US

Expeditious Expeditious ExaminationExamination

FA 25-27 months

Period from Request to First Action 　

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

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Overall 44%

PPH 95%

Improvement of Quality

49%

64%

JP=>USUS=>JP

Grant rate (transitional) in JP-US PPH

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

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2-1. PPH – Eliminating the Backlog 2-1. 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

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Expanding PPH NetworkExpanding PPH Network

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

DPMA

IP Australia

Mar. 2008

DKPTO

JPO

UKIPO

KIPO

CIPO

EPOSep. 2008

ROSPatent

IPOS

NBPR

: Under consideration

: Full implementation

: Pilot implementation

APO

Apr. 20

08

Sep. 2007

Jan. 2008

Jan. 2

008

Mar. 2009

Ap

r. 2007

Jul.

2007Nov. 2008

Jul. 2008

Jul. 2006

USPTO

Feb

. 20

09

Apr. 2009

May. 2009

Apr. 2009

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Plurilateral PPH FrameworkPlurilateral PPH Framework

StandardizedStandardizedRequirementsRequirements

JPOJPO

Office ARequestRequestfor PPHfor PPH

Office B Office C

USPTOUSPTO

2-1. PPH – Eliminating the Backlog 2-1. PPH – Eliminating the Backlog

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Company ACompany A(Fuel Cell)

Company BCompany B(Body of vehicle）

Progress through Open InnovationProgress through Open Innovation

Fuel Cell Vehicle

Open InnovationOpen Innovation

2-2. Patent System for Pro-Innovation2-2. Patent System for Pro-Innovation

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1,000 Patents for 1 Product

Injunction

Infringement against JUST 1 Patent

STOP!

1 Patent

2-2. Patent System for Pro-Innovation2-2. Patent System for Pro-Innovation

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Injunction

Patent TrollPatent Troll

Patent Troll

Companies

Extortionate Fee

Patent

2-2. Patent System for Pro-Innovation2-2. Patent System for Pro-Innovation

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- 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-Innovation2-2. Patent System for Pro-Innovation

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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-Innovation2-2. Patent System for Pro-Innovation

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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-Innovation2-2. Patent System for Pro-Innovation

2020

Exceptions to the Effects of Patent Rights

[Experimental or Research Purposes]

1. Research for Patentability2. Research to Determine Operability

3. Examination for Future Progress

2-2. Patent System for Pro-Innovation2-2. Patent System for Pro-Innovation

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PatentCountry A

Country B

Exploring ”Mutual Recognition”

Examination

Application

Application

2-2. Patent System for Pro-Innovation2-2. Patent System for Pro-Innovation

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Thank you Thank you