TOKYO ELECTRON ANNUAL REPORT 2013

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CONTENTSCONTENTS

Financial Highlights

Business Overview

Top Message

Special Feature

Review of Operations
and Business Outlook

Corporate GovernanceCorporate Citizenship

Financial Section

Intellectual Property

Corporate DataIntellectual Property

Intellectual Property
nPolicy for Intellectual Property Activities

our R&D achievements, it is necessary to protect these by steadi-

A fundamental tenet of the Tokyo Electron policy for intellectual prop-ly obtaining IP rights. To facilitate this process, we cooperateerty (IP) is to protect the Company’s intellectual assets and helpclosely with our R&D operations, and we locate IP personnel

increase corporate revenue by supporting Tokyo Electron’s businessnearby and often within our product development centers andactivities in both existing and new market sectors. To do this, our IP

manufacturing facilities. Furthermore, we have IP personnel based

strategy must be closely integrated with our technological and prod-

overseas in the U.S. and other countries to address our increas-

uct strategies. Our IP strategy must also prioritize the differentiation ofing global R&D activities.

Tokyo Electron’s products and bolster the Company’s competitive

Flexibly responding to dramatically changing markets and tech-advantage with strong IP rights. In addition, the evolution of a strong,nological trends is essential for effective IP activities. To ensure thediverse IP portfolio generates income from licensing.

rapid exchange of information on market and technological trends,

The advancing technological complexity of our business sectors

our IP personnel in charge of monitoring and external affairs are

significantly increases the risk of becoming involved in IP disputes

assigned to corporate headquarters, where they are near the sales

during the development of new products. Given the increasingly

and marketing divisions. In addition, we periodically convene IP

competitive environment, we strive to minimize the risk of potentialcommittees for each business/R&D area in order to make informed

disputes by actively monitoring IP developments, fully respecting thedecisions based upon market and technological trends. These

IP of other companies, and taking appropriate measures, such ascommittees are comprised of IP personnel, sales/marketing man-licensing, when necessary.

agement, and R&D management who are tasked with assessing IP,

nGrowth of Intellectual Property Portfolio

grow IP. As noted previously, Tokyo Electron acquired several com-With the aim of growing our businesses and increasing revenue,

panies in fiscal 2013. IP personnel are advancing the integration ofTokyo Electron aggressively pursued new technologies in fiscal

these new members of the Tokyo Electron community and estab-

2013, including the acquisition through M&A of:lishing consistent policies/procedures for IP activities, including IP

discussing IP strategy, and deciding upon cost-effective avenues to• TEL NEXX, Inc., which provides opportunities in theadvanced packaging market, in May 2012.

committees, in all of the acquired companies.

• TEL FSI, Inc., which expands opportunities in single wafer

nStatus of Intellectual Property Rights

cleaning systems, in October 2012.

To establish an elevated entry barrier around our business, Tokyo• TEL Solar AG, which provides entry into the thin film silicon

Electron vigorously constructs an IP portfolio encompassing our core

photovoltaic (PV) market, in November 2012.

technologies, and protects our future technological growth. The• TEL Magnetic Solutions Ltd., which offers entry into magnetic

graphs in this section show the number of patent applications*1 andannealing technology including MRAM device fabrication, in

patents*2 of Tokyo Electron in each region. During fiscal 2013, theDecember 2012.

patents we acquired through M&A strengthened our IP portfolio.		 Note: Post-acquisition names of the rebranded companies are used above.

With these acquisitions, we are working to fulfill our responsi-

The IP committees periodically revise policies for filing and holding
patents in light of evolving perspectives including technological trends,

bility of absorbing each respective IP portfolio and integrating

market conditions, competition and cost-effectiveness. We have main-these new members of the Tokyo Electron community in accor-

tained a global application ratio of approximately 70%*3 in recent years

dance with our aforementioned principles.

while strategically adjusting the regional distribution of these.

nOperation of Intellectual Property Activities
Tokyo Electron continues aggressive R&D activities to satisfy andexceed the requests of our customers, and further enable newmarket opportunities. In order to maintain the competitiveness of*1 Applications of acquired companies are included only after acquisition.
*2 Includes all patents of acquired companies. By region, these acquired patents consisted of Japan (38), the U.S. (132), Europe (102), South Korea (30), Taiwan (18)and China (38).
*3 The percentage of our patents filed with the Japan Patent Office that were also filedoverseas. The average among Japanese companies is about 25%.

Number of Patent Applications

Number of Patent Held

1,000

5,000

800

4,000600

3,000400

2,000200

1,000

0009JapanU.S.

10Europe

111213South KoreaTaiwan

China

09(Fiscal year)

Japan

U.S.

10Europe

11

12

South Korea

Taiwan13
China (Fiscal year end)