Public Awareness ofPatent System in Japan
A patent attorney’s perspective
Dr. Shoichi Okuyama
Okuyama & Sasajima, Tokyo, JapanMarch 2018
In Kuala Lumpur

What I want to say today• History and current situation in Japan• It is important to have a sound patent attorney system• Patent attorney qualification supports the patent system• Helpful for the development of local industries and research• Look at reality!
• Patents are important for startups and SMEs
• It is important to help SMEs realize the importance of IP

Beginning, more than 130 years ago• First substantive patent act in 1885
▫ By Mr. Korekiyo Takahashi▫ 425 patent applications in 1885
▫ First trademark act in 1884 also by Mr. Takahashi• Mr. Takahashi traveled to the U.S. and Europe to study patent systems for
one year▫ November 1885 through November 1886
▫ He was impressed by a US patent attorney• First “patent attorneys” in Japan appeared in 1890
▫ Tokkyo Daigen Sha (literally “Patent Attorney Co.”) opened two offices in Tokyo▫ Former examiners at the suggestion of Mr. Takahashi

So Mr. Takahashi, around 1985-90, • Created patent system and trademark system in Japan• Created copyright system• Created the Patent Office for examination• Built a building for the Patent Office• and•Created patent attorney profession• Sowed seed for special patent account for JPO fees
• He moved on to become Finance Minister three times, Prime Minister, and thenFM for fourth-sixth times• He was assassinated by soldiers in 1936

First Patent Attorney System (1899)• First regulations on the registration of patent attorneys appeared in1899▫ Took effect on July 1, 1899

• Patent Act in 1909 stipulates that only patent attorneys have powerof representation before the Patent Office• “Japan Patent Attorneys Association” (JPAA) was established in 1915
– 103 years ago• First Patent Attorney Act was promulgated in 1921
▫ The number of registered patent attorneys reached 1,350 in 1921
▫ 39,064 patent and utility model applications, and 36,809 trade markapplications filed in 1921.

JPAA• JPAA was established in 1915 in Tokyo• 9 branch offices including one in Tokyo• All patent attorneys have to belong to JPAA
• Compulsory membership• Monthly fee is JPY15,000 or about US$140• The budget is about US$ 20 million• JPAA has staff of 90 including 27 part timers

What Patent Attorneys Can Do?
• Patent Attorney Act stipulates what we can do:▫ Articles 4 through 6bis:

 Representation before the Japan Patent Office for fees (exclusive) Opinions, customs procedures, ADR
 Representation before the IP High Court for appeals from decisions of Appeal
Department of JPO
 Assistant to lawyers in infringement litigation
 Representation with a lawyer before infringement courts for specific types oflitigation with additional qualification

Trends surrounding JP patent attorneys• Increasing number of patent attorneys• More than 11,000 patent attorneys in Japan• Dwindling domestic filings• Increasing foreign filings by Japanese companies

We have 11,000 patent attorneys in Japan

Filings in Japan – Pat, UM, Design, TM
Annual filings in Japan - Patent, UM, Design + TM

500,000

Peak in 2001
440,000 applications

450,000

Patent400,000

350,000

Service Marks became
registrable

UM Actamended

300,000

About 320,ooo a year

250,000

200,000

Trademark150,000

100,000

Utility Model
Design50,000

2017

2016

201520142013

2012

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Education is JPAA’s top priority!!
• “Educational Institute” of JPAA

• 110 attorney members (volunteers) + administrative staff of 10 or so• More than 400 classes per year
• About 250 e-learning programs• Branch offices (9) are active providers as well
• Education budget - Expenditure - 4 million US dollars in total• E-learning and many lectures are free of charge to members• A bit less than US$380 per attorney• Fees may be required for a number of courses• Fee income is about 1.0 million US dollars

Look at reality!
• Patens are important for SMEs and startups• Patents protect SMEs from competition• Patents and business are directly connected• Large corporations filed patents for a variety of reasons• Cross licensing• Standardization• Protecting investments• Global business environment• Competition and protection for businessSMEs account for 12% of dom. applications• Comparable figure in US: 25%

What do we do?
• JPAA• More public seminars in variety of forms• No simple seminars• corroboration with local governments• Tie-ups with universities and tech high schools• Consultation• At the cost of JPAA, attorneys visit SMEs for general consultation• JPO• Will cut official fees in half for ALL SMEs w/o any qualification• One-stop service for consultation of all IP and business issues• Local governments• Subsidizes a half of foreign filing costsToday’s messages• It is important to have a sound patent attorney system• Patent attorney qualification supports the patent system• Helpful for the development of local industries and research• Look at reality!
• Patents are important for startups and SMEs
• It is important to help SMEs realize the importance of IP

Thank you
okuyama@quon-ip.jp