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November 2023
Contents
News about Sonoda & Kobayashi
1. Sonoda & Kobayashi attended the IP Law & Management Institute 2023 in

Florida2. Sonoda & Kobayashi attended IP Service World 2023 in Munich
JPO and CNIPA News
1. JPO updates its report on the filing of AI-related inventions
2. JPO releases the results of its 2023 user satisfaction survey
3. CNIPA passes Regulations for the Implementation of the Patent Law (Draft)
4. World Intellectual Property Indicators Report: Record Number of Patent

Applications Filed by China in 2022
Latest IP News in Japan
1. Inventions assisted by AI considered to be human inventions in Japan
2. Nobel Pharma insists it will protect IP against Sawai Pharmaceutical

Latest IP News in China
1. Top Chinese chipmaker YMTC sues Micron for alleged patent infringement
2. Chipmaker giant ASML former employee accused of stealing company secrets

for Huawei
IP Law Updates in Japan: Insights from Sonoda & Kobayashi

1. The pitfalls of English to Japanese translation: “Vertical” and “Perpendicular”- News about Sonoda & Kobayashi 1. Sonoda & Kobayashi attended the IP Law & Management Institute 2023 in Florida
Sonoda & Kobayashi attended the IP Law & Management Institute in Bonita Springs,
Florida from October 15th to 17th. The event was attended by people from over 50 different
companies. Dr Yoshitaka Sonoda (Co-founder, Managing Partner), Mr. Jeroen van der
Donck (Deputy Manager, International Affairs), and Ms. Sukanya Hummel (U.S. Lawyer,
International Affairs) represented our firm at a booth in the exhibitor rooms. We extend ourthanks to those who interacted with us during this event.
2. Sonoda & Kobayashi attended IP Service World 2023 in Munich
Sonoda & Kobayashi attended IP Service World, Europe’s largest IP convention and tradefair, in Munich, Germany on the 25th and 26th of November. There were over 700 attendees
from 55 different countries present. Ms. Yanhui Wang (Partner, Chief Chinese Attorney),
Ms. Rie Takahashi (Patent Attorney) Mr. Jeroen van der Donck (Deputy Manager,
International Affairs), and Ms. Debora Cheng (New Zealand Lawyer, International Affairs)
represented our firm at a booth and presented a round table discussion on the topic of“Strategies for cost-effective patent filing in Japan and China.” We would like to thankeveryone who participated in our discussion, visited our booth, and chatted with us during
the event.

- JPO and CNIPA News 1. JPO updates its report on the filing of AI-related inventions
Since 2019, the JPO has been reporting on an annual basis on the filing situation of AIrelated inventions in Japan. In October of this year it has added the latest update, now
containing information on filing up to the year 2021.
AI-related inventions include core AI inventions (FI code: G06N) as well as inventions
where artificial intelligence is applied to various technical fields.
The JPO’s study shows that the AI boom, starting in 2014, has continued for applications
filed in 2021. Across that period, the number of applications of AI-related inventions
skyrocketed from barely reaching 1000, to more than 9000 per year.
The number of applications of new core AI-related inventions in 2021 reached almost
2700, compared to a mere 220 in 2014. However, the speed of the growth seems to be
slowing down in recent years.
Further information and graphs can be found here. (Japanese)
2. JPO releases the results of its 2023 user satisfaction survey
On October 2nd, the JPO published the results of the user satisfaction surveys on

examination quality of the financial year 2023. The JPO conducts an annual survey andpublishes these results to keep track of IP users’ opinions of its examinations, and reflect
them in quality management initiatives.
In this year’s survey, 96.6% of respondents evaluated the overall quality of patentexaminations as “Neutral” or higher. This is a slight increase of 0.9% percentage points
compared to 2022.
The graph below shows further detailed changes in satisfaction level on the quality ofpatent examination on national applications.

Further information on IP users’ opinions on the quality of examination of patents, designs,
trademarks and more can be found here. (Japanese)
3. CNIPA passes Regulations for the Implementation of the Patent Law (Draft)
On November 3, 2023, the State Council deliberated and passed the Regulations for the
Implementation of the Patent Law of China (Draft).
As an important supporting administrative regulation to ensure the effective
implementation of the Patent Law, the revision of the Implementing Rules of the Patent
Law has attracted much attention in the industry since its inception. On October 17, 2020,the 22nd Session of the Standing Committee of the 13th National People's Congress voted
and passed the Decision on Amending the Patent Law. Subsequently, the State Intellectual
Property Office immediately started the revision of the Regulations for the implementationof the Patent Law, formed a draft of the amendment proposal, and released it to the public
for comments from November 2020 to January 2021.
The Regulations for the Implementation of the Patent Law as amended by the Patent Law
provide detailed provisions on the application procedures, conditions, and views to besubmitted for partial design patents and domestic design priority. It clarifies the content of
the patent open license statement, the circumstances of non-publication, withdrawal, filingand other matters; It clarifies the submission of a request for compensation for the term of
the patent right, the unreasonable delay caused by the applicant, and the specific details of
the compensation system for the term of the patent right for drugs. It stipulates that thepatent administration department of the State Council shall establish a public service
platform for patent information, improve the national patent information service network,
provide basic data on patent information, and cultivate patent information talents.

The amendment further improves the patent application and examination system toimprove quality and efficiency. In response to the development and application of newtechnologies, the definition of "written form" for filing a patent application has been
expanded to include both electronic form and paper form, and the filing date of theapplication in electronic form has been clarified. This results in improving and simplifying
the filing of patent application documents and improving the patent evaluation reportsystem and the patent invalidation system.
CNIPA stated that the next step will be to complete the revision of the "Patent Examination
Guidelines" and other relevant supporting departmental rules and normative documents assoon as possible, so as to effectively ensure the smooth implementation of the detailed
rules for the implementation of the Patent Law.
Further information can be found here. (Chinese)
4. World Intellectual Property Indicators Report: Record Number of Patent Applications
Filed by China in 2022
Global patenting activity soared to new records in 2022, fueled by Indian and Chinese
innovators, but an uncertain economic outlook is casting doubt on further growth.
Even as global filings for trademarks and designs dropped, innovators from around theworld submitted 3.46 million patent applications in 2022, marking a third consecutive yearof growth, according to WIPO’s annual World Intellectual Property Indicators (WIPI) report.
China, the US, Japan, the Republic of Korea, and Germany were the countries with thehighest numbers of patent filings in 2022. While innovators from China continue to filenearly half of all global patent applications, the country’s growth rate dipped for a second
consecutive year from 6.8% in 2021 to 3.1% in 2022. Meantime, patent applications byresidents of India grew by 31.6% in 2022, extending an 11-year run of growth unmatched byany other country among the top 10 filers.
In releasing the report, WIPO Director General Daren Tang warned that geopoliticalinstability and an uncertain economic outlook could threaten the global intellectual
property (IP) ecosystem.
In this regard, Chinese Foreign Ministry spokesman Wang Wenbin said, at a regular press
conference on the 8th of November, that China will continue to improve the quality andefficiency of intellectual property rights, continue to optimize the environment for
intellectual property protection, and accelerate the release of innovation and creativity insociety as a whole.
Wang Wenbin said: The Chinese side has taken note of the reports. According to the report,
in 2022, China filed about 1.6 million patent applications, ranking first in the world.
According to statistics, as of June this year, the cumulative number of effective invention
patents in China has reached 4.568 million, ranking first in the world. China ranks 12th in
the Global Innovation Index 2023, with six indicators ranking first in the world. These are atestament to China's remarkable achievements in the field of intellectual property.
Further information can be found here. (Chinese)- Latest IP News in Japan 1. Inventions assisted by AI considered to be human inventions in JapanThe Nikkei, November 7th, 2023
On the 7th of November, Nikkei Asia reported on the issue of whether new products thatutilize AI can be considered “human inventions” in Japan.
With the increase in development of AI, the Japanese government held an online review
meeting to discuss how to handle intellectual property rights stemming from inventions
that were created with the assistance of AI. Because humans are involved to a certain
extent, the Japan Patent Office considers such AI-assisted inventions to be “humaninventions”. This is because, at this point in time, it is humans who select the data the AI
can learn from. And AI-assisted inventions being considered “human inventions” isimportant, because current patent law only gives intellectual property rights to humancreations.
One problem that may be faced in the future is the question of an unprecedented inventive
step. If AI becomes widespread and accessible to all and anyone can use it to make a“human creation”, the JPO may change the examination standards for determining what is
considered an inventive step.
The Japan Newspaper Association has even gotten involved, and asked for revisions to the
copyright law. As a result, in October a study committee was launched by the Cabinet
Office, and the Agency for Cultural Affairs is also holding a copyright review meeting on
this topic. These two groups will work together to discuss how intellectual property rights
might change with the rise of AI. A further meeting on this topic will be held in December.
Further information can be found here. (Japanese)
2. Nobel Pharma insists it will protect IP against Sawai Pharmaceutica
Mix Online, November 7th, 2023
On the 7th of November, Mix Online reported on Nobel Pharma’s continuing efforts toprotect its intellectual property - in this case, from Sawai Pharmaceutical.
Nobel Pharma sells Novelzin, which is a treatment for Wilson’s Disease (where copper
absorption is inhibited) and hypozincemia. On February 15, Sawai Pharmaceutical received
approval for a generic of the Novelzin product. Nobel Pharma has adamantly opposed thisapproval, starting with filing a patent infringement suit with the Tokyo District Court in April.
Despite this, Sawai Pharmaceutical started selling the generic on August 4. As a result,
Nobel Pharma filed a new injunction on October 30 to stop manufacturing and sales. Nobel
Pharma also filed a petition for a provisional disposition order. Nobel Pharma is alleging
that Patent No. 6716464 and Patent No. 6768984 were infringed.
It is Nobel Pharma’s stance that the intellectual property (that protects their technology
and products that were made to further their mission) is of the utmost importance toprotect, and Nobel Pharma will take strict action, including legal action, to protect suchrights. Sawai Pharmaceutical has stated it will refrain from commenting until it receives
the complaint for the provisional disposition.
Further information can be found here. (Japanese)- Latest IP News in China 1. Top Chinese chipmaker YMTC sues Micron for alleged patent infringement
Reuters, November 14th, 2023
Reuters reported on November 14th, 2023, that Chinese chipmaker Yangtze Memory
Technologies Co (YMTC) has taken legal action against its U.S. rival, Micron Technology, by
filing a lawsuit alleging the infringement of eight of its patents. The lawsuit, submitted on
November 9 at the U.S. District Court for the Northern District of California, accuses Micronof utilizing YMTC's patented technology in order to thwart competition from YMTC andsecure and safeguard its market share. According to YMTC, Micron has not been
compensating them appropriately for the use of these patented inventions. This relates tothe design, manufacture, and operation of 3D NAND technology.
Micron Technology is a key player in the semiconductor industry, manufacturing DRAM
chips and NAND flash memory chips. It competes with major players such as South
Korea's Samsung Electronics and SK Hynix, as well as Japan's Kioxia (a unit of Toshiba).
YMTC, while asserting its patents against Micron, is a relatively smaller rival that faced
restrictions from the U.S. in the past, being barred from purchasing certain Americancomponents.
The backdrop of this legal dispute includes the broader context of heightened restrictions
imposed by the U.S. on exporting chipmaking technology to China due to security
concerns. In May, China indicated that Micron products did not pass a network security
review, resulting in a ban on their purchase by operators of key infrastructure. This legal
action marks another episode in the complex relationship between Micron and the Chinese
market.
In the past, Micron experienced challenges in China, once its largest market, where it
generated half of its $20 billion revenue in fiscal 2017. However, this market sharedwindled to 16% in 2022, and Micron faced setbacks, including the closure of DRAM
operations in Shanghai. Despite these challenges, Micron has reiterated its commitment to
the Chinese market. In June, the company announced a substantial investment of 4.3
billion yuan ($590 million) in the coming years for its chip-packaging plant in Xian city.
Additionally, Micron participated in a trade expo in Shanghai, marking its first appearance
at such an event.
The evolving dynamics in the semiconductor industry, intertwined with geopolitical andsecurity considerations, underscore the complexities faced by companies like Micron as
they navigate global markets and legal challenges. The outcome of the lawsuit will beclosely watched, given its potential implications for intellectual property rights,
competition, and market dynamics in the semiconductor sector.
Further information can be found here. (English)

2. Former employee of chipmaker giant ASML accused of stealing company secrets for
HuaweiSouth China Morning Post, October 24th, 2023

On October 24th, 2023, South China Morning Post reported that a former employee of
ASML Holding, a manufacturer of advanced semiconductor-making equipment, has beenaccused of stealing trade secrets. This individual later worked for Huawei Technologies, aChinese telecommunications giant. The theft of data, related to proprietary technology,
was disclosed by ASML in its 2022 annual report. The company did not specify the natureof the stolen data but mentioned unauthorized misappropriation by a former China-based
employee. ASML reported the breach to authorities and implemented remedial measures,
stating that it believed the breach would not significantly impact its business.
According to the Dutch newspaper NRC, the accused individual went on to work for Huawei
after leaving ASML. ASML and Huawei have not yet responded to inquiries about these
allegations. Since being placed on the US Entity List in 2019, Huawei has faced restrictions
on accessing advanced chip technology using US components. This incident adds toconcerns about intellectual property theft and talent poaching between companies in thesemiconductor industry amid geopolitical tensions.
ASML, with a near-monopoly in extreme ultraviolet (EUV) lithography machines crucial foradvanced chip production, stopped exporting these machines to mainland China in 2019.
The Dutch government has further imposed export controls, preventing ASML fromshipping some less advanced lithography systems to China starting in January. This
restricted access poses a challenge to China's goals of chip self-sufficiency.
There are also previous accusations by ASML and other chip-related companies against
Chinese entities for intellectual property theft and talent poaching. It highlights a broader
context of economic tensions and investigations involving technology companies in China
and other nations.
Further information can be found here. (English)- IP Law Updates in Japan: Insights from Sonoda & Kobayashi 1. The pitfalls of English to Japanese translation: "Vertical" and "Perpendicular"
Yoko Nagatomo (Department Manager, Translation Department)
Sonoda & Kobayashi’s translation team translates approximately one million words ofEnglish specifications for filing in Japan each month. Translation is often thought of as adiscrete task of converting a document written in one language into a separate document
written in another language. However, at Sonoda & Kobayashi, we believe that the besttranslation can only be achieved through discussions between the parties involved, so we
often exchange information and opinions internally as well as with our clients.
The following is a topic presented at an internal discussion session.
Every language has words that have similar meanings, leading to misuse and confusion.
Although it is possible to understand the differences by consulting a dictionary for eachterm or looking up the definitions on websites that compare definitions of similar terms,
people are often unaware that they have a choice of different expressions. As a result,incorrect terminology becomes commonplace, and in some cases, misuse and confusion
become the norm in everyday conversation and writing.
In contrast to ordinary situations, when drafting patent specifications, we naturally pay
close attention to the definition of terms and use certain terms after strict consideration,
but the problems arise when a specification is translated into a foreign language. In somecases, the distinction between two such similar terms is so clear in the source languagethat they can be used without hesitation, while in the target language, they can easily be
confused.
In addition, the data learned by machine translation and generative AI include such
mistakes due to common misuses.
Below is an example of a case involving the translation of the term “vertical”.
The source text:“[…] a distribution pipe (106) extending essentially vertically and having a plurality ofnozzles (22)”The translation generated by AI:“本質的に垂直に延び、複数のノズル（２２）を有する、分配管（１０６）”Here, “vertically” is translated as “垂直 (Suichoku)”. It is highly likely that a JPO examiner
would issue a clarity reason for rejection, on the grounds that the recitation is unclear as towith respect to what the pipe is 垂直 (Suichoku).
Definitions of “vertical” in certain dictionaries are as follows:
Dictionary.com“being in a position or direction perpendicular to the plane of the horizon; upright; plumb”
Merriam Webster Online“1a: perpendicular to the plane of the horizon or to a primary axis”.
According to a native English speaker, “‘vertical’ is associated with the up-and-down
direction. That is, ‘perpendicular’ is at or forming a right angle to, while ‘vertical’ is along thedirection of a plumb line or along a straight line that includes the center of the Earth. The
word ‘plumb’ comes from Latin plumbum, which means ‘lead’ and has the symbol Pb.”As can be seen from the above comments, the distinction between vertical andperpendicular seems to be relatively clear for English speakers. On the other hand, inJapanese, the equivalent of vertical is “鉛直 (Enchoku)” and the equivalent of perpendicularis “ 直 角 (Chokkaku),” but the word “ 垂 直 (Suichoku)” is commonly used in both senses,
which causes the problem described above.

The third of these essentially means “vertical,” since “ 垂 ” means “to hang down”. The
dictionary “Kojien (7th edition)” also lists the following:[Suichoku] (meaning “to hang down straight”) (1) The direction of gravity. Vertical. ⇔horizontal.

However, the dictionary also lists this second meaning:(2) [Math]a) When two lines intersect each other at 90 degrees, these two lines are said to beorthogonal or Suichoku to each other. Furthermore, two lines in space are said to be
Suichoku to each other when they are orthogonal as a result of a parallel shift.
b) A line that is Suichoku to all lines in a plane is said to be Suichoku to this plane.
c) A plane that contains a line that is Suichoku to a plane is said to be Suichoku to the former
plane.

Thus, Suichoku refers not only to the direction of gravity, but also to being perpendicular tosomething. In other words, Suichoku originally means to be vertical, but it can also mean tobe perpendicular if “with respect to what” is specified. Perhaps because of thisconvenience, “perpendicular” is commonly used. Strictly speaking, however, using“Suichoku “ in the sense of “vertical” requires a reference to “with respect to what,” andsimply stating “X is perpendicular” is imprecise.

The Kojien Dictionary is an authoritative dictionary that the JPO relies on when thedefinition of terms becomes an issue in examinations and appeals, and based on its
description, the examiner would probably examine the case under the policy that the use of
the term “Suichoku “, without a reference description, is unclear.

More importantly, “Suichoku“, without the reference to “with respect to what”, can beinterpreted as “Enchoku” (the direction of gravity), so the meaning becomes narrower.
Therefore, the careful choice of words is necessary not only in terms of clarity, but also interms of the scope of rights.

References
https://en.wikipedia.org/wiki/Lead
https://www.dictionary.com/browse/verticalhttps://www.merriam-webster.com/dictionary/vertical

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