Osaka Institute of Technology

"How a Company Develops its Business "How a Company Develops its Business Strategy by Improvement of Patent Strategy by Improvement of Patent

Productivity“ Productivity“

Kazuo TANAMIKazuo TANAMI Dean & ProfessorDean & Professor

Graduate School of Intellectual PropertyGraduate School of Intellectual Property

Former Head of Contracts and Licensing Center, Former Head of Contracts and Licensing Center, Corporate IP And Legal Headquarters, CANON INC.Corporate IP And Legal Headquarters, CANON INC.

201201 １１ Patent Information Patent Information Annual Conference of Annual Conference of

ChinaChinaSeptember 5, 2011September 5, 2011

Corporation’s Business Strategy Corporation’s Business Strategy Patent Productivity Patent Productivity 　　　　　　　　

Prof. Kazuo Tanami, OIT, Japan　

2

IP Strong

IP Weak

Dying Co.

Top Ranked Co.

Marketing Strong Marketing Weak

Patent Productivity: Key Factors Patent Productivity: Key Factors

3

2nd Step: Building patent portfolio to protect your own products

2nd Step: Building patent portfolio to protect your own products

4th Step: Excluding competitors patenting

1st Step: Securing pioneer patents in an earliest stage of R&D

3rd Step: Acquiring patents in the peripheral Areas surrounding your products

3rd Step: Acquiring patents in the peripheral Areas surrounding your products

Prof. Kazuo Tanami, OIT, Japan 　

11stst Step: Step: Securing pioneer patents in Securing pioneer patents in an earliest stage of R&Dan earliest stage of R&D

4

Business started

1985 　

１９７０ sPatent search

Pioneer pat. filed 1977

　

Pat. filed for products features

BusinessBusinessTechnologyTechnology

Time

Example: Canon’s Ink jet technology

Prof. Kazuo Tanami, OIT, Japan 　

22ndnd Step: Step: Building patent portfolio Building patent portfolio to protect your own productsto protect your own products

5

Business started

1985 　

１９７０ sPatent search

Pioneer pat. filed 1977

　

Pat. filed for products features

BusinessBusinessTechnologyTechnology

Time

Example: Canon’s Ink jet technology

Prof. Kazuo Tanami, OIT, Japan 　

33rdrd Step: Step: Acquiring patents in the peripheral Acquiring patents in the peripheral Areas surrounding your productsAreas surrounding your products

6

Business started

1985 　

１９７０ sPatent search

Pioneer pat. filed 1977

　

Pat. filed for products features

BusinessBusinessTechnologyTechnology

Time

Example: Canon’s Ink jet technology

Prof. Kazuo Tanami, OIT, Japan 　

44thth Step: Step: Excluding competitors patenting Excluding competitors patenting

7

Business started

1985 　

１９７０ sPatent search

Pioneer pat. filed 1977

　

Pat. filed for products features

BusinessBusinessTechnologyTechnology

Time

Example: Canon’s Ink jet technology

Prof. Kazuo Tanami, OIT, Japan 　

8

0

500

1000

1500

2000

2500

75 80 85 90 95 00 05 08

0

200

400

600

800

1000

1200

75 80 85 90 95 00 05 08

JP applications

1977Pioneer Patent

1985Release of

First Product

■ ： filed■ ： granted

Inventors

CanonCanon’s Ink Jet Patent Applications’s Ink Jet Patent Applications source: Canon Corporate IP & Legal Headquarterssource: Canon Corporate IP & Legal Headquarters

Prof. Kazuo Tanami, OIT, Japan 　

CanonCanon Group Profile Group Profile

9

Net sales $45,764million

Net income $3,044million

Employees 197,386

Consolidated subsidiaries 294

AmericasNet sales

$12,633millionEmployees

20,182

Asia & OceaniaNet sales

$18,656millionEmployees 153,770

EuropeNet sales

$14,475millionEmployees 23,434

Consumer

38%Office

54%Industry and

Others

12%(Sales ratios do not total 100% due to sales between segments of 4%)

(As of December 31, 2010)

Prof. Kazuo Tanami, OIT, Japan 　

※World No. 2: Copier （ 17% ）、 IJ printer （ 22% ） (Canon’s estimation as of 2010)

Digital SLR Camera Laser Beam Printer Photolithography apparatus

(45%) (45%) (50 ％ )

World No. 1 share products

＝ Management philosophy ＝“Respect for human being”

“Competing by original technology”

1937 Started camera business 　

CanonCanon’s Management Philosophy’s Management Philosophy

10Prof. Kazuo Tanami, OIT, Japan 　

CanonCanon’s’s Products Products photo: Canon HPphoto: Canon HP

11

1937 Cameras1941 Medical equipment / 1958 TV cameras

1967 Semiconductor manufacturing apparatus

1967 Copiers

1985 IJ Printers

1981 Video cameras

1976 Facsimile

1975 Laser Beam Printers

1940 1970 1980 1990 2000

1996 Digital cameras

KWANON

NP-1100

LBP-10

Prof. Kazuo Tanami, OIT, Japan 　

CanonCanon’s’s Sales and R&D 2010Sales and R&D 2010 http://www.canon.com/about/library/pdf/canon_factbook.pdf

12Prof. Kazuo Tanami, OIT, Japan 　

13

Canon Inc.Canon Inc.’s R&D Expenditure ’s R&D Expenditure (source: Canon)

Prof. Kazuo Tanami, OIT, Japan 　

Prof. Kazuo Tanami, OIT, Japan 　

14

Copier Business in 1960’s

Canon Started Copier Business with Original Technologies 　

　　

　 Copier Giant Xerox With Huge Patent Portfolio

　　　　

With With CanonCanon’s Original Technology’s Original Technology and Patents and Patents

　　　

Canon Canon ChallengesChallenges

Canon Canon recognized the importance of patents.recognized the importance of patents.

　 CanonCanon’s Pro-IP Activities’s Pro-IP Activities

Prof. Kazuo Tanami, OIT, Japan 　

15

• IP activities are vital to protect Canon’s business operations. 　

• The fruits of R&D are products and IPRs. 　

• Other parties’ IPRs should be respected.

Basic PolicyBasic Policy 　

CanonCanon’s IP Strategy’s IP Strategy

CanonCanon with a Gene Inherited with a Gene Inherited

16

All the Researchers/EngineersAll the Researchers/Engineers

• Write a patent earlier than Write a patent earlier than a technical report!a technical report!

• Read patents more than Read patents more than technical reports!technical reports!

Prof. Kazuo Tanami, OIT, Japan 　

Canon’s Sales and Patentssource: Canon IP & Legal Headquarters

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11

0

500

1,000

1,500

2,000

2,500

3,000

17

Patents are Tools to Protect Your BusinessPatents are Tools to Protect Your Business

■ Consolidated Sales

◆ US Patents

Sales

（M

\）

Patent Issues

／year

Prof. Kazuo Tanami, OIT, Japan 　

U. S. Patents Ranking 2010U. S. Patents Ranking 2010

Can

on

Source: USPTO

ＩＢ

Ｍ

Sam

su

ng

Ele

ctro

nic

s

Mic

rosoft

Inte

l

Pan

ason

ic Tosh

iba S

on

ny

LG

Ele

ctro

nic

s

ＨＰ

5879

18Prof. Kazuo Tanami, OIT, Japan 　

CanonCanon’s Patents in the World’s Patents in the World(http://www.canon.com/environment/report/ma12.html)

Prof. Kazuo Tanami, OIT, Japan 　

19

CanonCanon in Asia in Asia source: Canon IP & Legal Headquarters

20

South Korea (1985) 　(photocopiers)

Dalian (1989)(LBP,CRG)

Tianjin (1997)(photocopiers)

Suzhou (2001)(photocopiers)

Taiwan (1970)(cameras)

Shenzhen (1993)　 (photocopiers)

Zhuhai (1990) (cameras & LBP)

Zhongshan (2001) (LBP)

Vietnam (2001)(IJP)

Malaysia (1988)(cameras & lenses)

Thailand (1990)　　 (IJP)

Major Production Site

Major Software Development Site

Manila (1991)Software development

New Delhi (1999)　 software development

Beijing (1998)software development

Major Production & Software Development Sites Overseas Production Ratio 　

30%30%

35%38%

42%42%40%39%

17%19%

24%

31%

37%38%

37%37%

15%

20%

25%

30%

35%

40%

45%

50%

99 00 01 02 03 04 05 06

Overseas　production　ratio

Asian　production　ratio　(excludingJapan)

Prof. Kazuo Tanami, OIT, Japan 　

Prof. Kazuo Tanami, OIT, Japan 　

21

　 Importance Business in Asia (consolidated)Importance Business in Asia (consolidated)

Americas

3.60 trillion yen 　2.53 trillion yen 　

21%8%

32%

19%

28%

Japan

AmericasEurope

Europe

Japan28%

34%

29%

1.5 times

3 times

1999 2010

Asia & Oceania Asia & Oceania

Patents in ChinaPatents in China

Prof. Kazuo Tanami, OIT, Japan 　

22

Business-oriented PGA

Four-Step Patent Productivity ActionsFour-Step Patent Productivity ActionsStarting with PGA(patent grade-up) ActivityStarting with PGA(patent grade-up) Activity

23

ResearchersEngineers

Invention disclosure SpecificationIdea sheet

Patent Grade-up ActivityPatent Group AssessmentPGA=

IP staffEngineer

InventionEvaluation

R&DManager

IP Manager

Invention

Prof. Kazuo Tanami, OIT, Japan 　

ManagementManagementIn-house IP

Management System

JPO,USPTO,etc

JPO,USPTO,etc

Pat. Info.

Connected

ＤＢ

All IPproposals

SearchSearchIn-house Pat. Info. Retrieval System

All Pat. ＤＢ

DBDB⇒⇒ JP, USP, EP, CN, etc.JP, USP, EP, CN, etc.

All All ResearchersResearchers must use must use⇒⇒ Available to Available to

All All ResearchersResearchers

Patent Information for Search & ManagementPatent Information for Search & Management

24Prof. Kazuo Tanami, OIT, Japan 　

Osaka Institute of Technology

2011 Patent Information 2011 Patent Information Annual Conference of Annual Conference of

ChinaChina

Thank You for Your Attention!Thank You for Your Attention!

Kazuo TANAMIDean & Professor

Graduate School of Intellectual PropertyOsaka Institute of Technology

Japan

Prof. Kazuo Tanami, OIT, Japan