Intellectual Property Report

Process and mechatronics technologies used in the manufacture ofsemiconductors and flat panel displays represent Tokyo Electron’score technologies. Tokyo Electron devotes considerable resources todeveloping technologies that bolster the competitiveness of its products. As part of its efforts to drive growth, Tokyo Electron is promoting
three themes: (1) bolstering development of new technologies tocreate and expand sales of new products (2) enhancing cost competitiveness through highly efficient manufacturing, and (3) expanding operational scale by entering new businesses domains. Inpursuing these strategies, it is vital to protect the intellectual property
rights of independently developed proprietary technologies andproducts to ensure the smooth growth of businesses. The integrationof our intellectual property strategy with our technological and product strategies is thus important to realizing maximum benefits fromdevelopment efforts.
Recently, the needs of device manufacturers, our customers, havebeen diversifying, and they are also emphasizing reliable process
performance and higher productivity on products. Consequently, therole of equipment manufacturers such as Tokyo Electron in developingsemiconductor manufacturing technology is increasing. Within thiscontext, Tokyo Electron strives to bolster the protection of its intellectual property by actively filing patent applications for equipment
recipe, software technologies, process management technologies forvarious types of manufacturing equipment, and other technologies.

Policies on Acquiring and Managing Intellectual Property,Managing Trade Secrets and Preventing Technology Leakage
Tokyo Electron has a set of internal rules that define the management of its intellectual property. Under these rules, Tokyo Electron
provides compensation for employees who have invented or createdsomething new through their work within the Company. We makelump-sum payments when applications are submitted for patents,
utility model rights, designs and other property rights. Compensationis also given if such creations are implemented at Tokyo Electron or
licensed to third parties.
Management of trade secrets is rigorous, conducted according toTokyo Electron’s “Internal Rules on Managing Technology and Marketing Information” and “Manual for Managing Technology and Marketing Information.” The provisions of these measures areapproximately equivalent to those of the government’s “Policies
Regarding Managing Trade Secrets” and “Policies Regarding theNumber of Patent Applications(Applications)

1,000

Status of Intellectual Property Application
The graph in this section shows the number of patent applications
filed worldwide by Tokyo Electron as of March 31, 2009. In addition
to filing applications for core technologies vital to our strategies ineach business division, we vigorously promote the development ofpatent portfolio that encompass peripheral technologies. We are also
strengthening our patent filings outside of Japan in step with market
and competitor trends in our business fields. Most notably in South
Korea, Tokyo Electron is ranked 6th among foreign companies in thenumber of patent applications filed (434 applications from January 1
to December 21, 2008), according to results announced by theKorean Intellectual Property Office. These filings reflect South
Korea’s growing importance in our recent business strategies, as wellas our patent strategies in response to increased filings from Korean
semiconductor and FPD production equipment manufacturers.
As of March 31, 2009, Tokyo Electron held 3,336 patents in Japanand 8,544 patents overseas. As part of proper asset management, weperiodically assess the Company’s patent portfolio, relinquishing therights to any patents with limited potential for contributing to products
from Tokyo Electron or other companies.

Contribution of License-related Activities
In building and implementing our intellectual property rights strategy,
we do not view intellectual property rights acquired by filing applications and securing rights for proprietary products and developed
technologies as a source of income from licensing to other companies. Rather, we view this as a method of differentiating our own
products and bolstering our competitive advantages. Semiconductor
and FPD manufacturing technologies are becoming increasingly
advanced and sophisticated. To effectively develop new products
incorporating leading-edge technologies, and bring them to market
as quickly as possible, it is essential to utilize all available intellectualproperties. Tokyo Electron places high value on introducing cuttingedge technology, constantly enhancing the efficiency of research anddevelopment, and quickly launching new products. We also respect
the intellectual property rights of others, just as we do our own, andeffectively use them through licensing. Tokyo Electron is also exploring the feasibility of licensing or selling its proprietary technology tothird parties in other business fields and to cooperating partners.

External Recognition

80060040020000506U.S.

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Prevention of Technology Leakage” (both issued by the Ministry ofEconomy, Trade and Industry). Furthermore, to raise the effectivenessof trade secret management, Tokyo Electron runs an in-house training
program and monitors the subsequent status of trade secret handlingto ensure strict adherence to the rules.

South Korea

07
TaiwanTokyo Electron Limited  Annual Report 090908
ChinaEuropeJapanOn April 18, 2008 (Inventors’ Day in Japan), Tokyo Electron wasawarded 2008 Minister of Economy, Trade and Industry’s Award forContribution to Intellectual Property by the Japan Patent Office. Tokyo
Electron was commended particularly for its high patent approval rateand high proportion of global applications, as well as for its efforts topursue strategic intellectual property initiatives led by the Vice Chairman of the Board, who is responsible for legal and intellectual propertyrelated activities.