Report of FY2016 Research on SME Assistance Programs Centered on Patent Fee
Reduction/Exemption SystemI. Purpose of This ResearchThis research aimed to collect information on the positioning of the patent fee
reduction/exemption system among the SME assistance programs as a whole and theeffects thereof through a hearing survey of SMEs, etc. that have utilized the system,compile and analyze obtained information, and verify the political efficacy of thesystem, thereby preparing basic reference materials for evaluating the current systemand considering future improvements thereto.
II. Contents of This Research
1. Hearing Survey Method
100 SMEs were selected from among those that utilized the reduction/exemption
system upon paying patent fees from FY2010 to FY2014, in consideration of regionalbalance, and a hearing was conducted at each of those SMEs.
2. Survey Results(1) Utilization of the System
Figure II-1 shows the utilization of the system by the surveyed SMEs depending on
the Acts under which applications were filed. The number of companies is the totalcount.
[Figure II-1] Utilization of the patent fee reduction/exemption system

全国：Nationwide
産業技術力強化法：Industrial Technology Enhancement Act
特許法：Patent Act
産業競争力強化法：Industrial Competitiveness Enhancement Act
中小ものづくり高度化法：Act on Enhancement of Small and Medium Sized Enterprises' Core
Manufacturing Technology

The survey revealed that applications under the Industrial Technology Enhancement
Act account for the majority at 80%. The system covers applications filed by SMEs
whose ratio of test and research expenses, etc. exceeds three percent of earnings in therelevant business year under the Industrial Technology Enhancement Act. The survey
results show that a large percentage of companies expend a considerable amount on
R&D activities.
On the other hand, eligible companies are limited under the Patent Act and the Act on
Enhancement of Small and Medium Sized Enterprises' Core Manufacturing Technology
and the number of companies utilizing the system under these Acts is small.
(2) Effects of the System
With the aim of ascertaining whether the patent fee reduction/exemption system iscontributing to promoting the establishment of patent rights, (i) its effects on theacquisition of patent rights and (ii) its effects on other aspects were surveyed. In
particular, for the latter, effects were evaluated separately (a) on the economic andfinancial aspects and (b) on the non-economic and non-financial aspects.

(i) Effects on the acquisition of rights(a) Effects on applications[Figure II-2] Changes in the number of applications(b) Effects on requests for examination[Figure II-3] Changes in the number of requests(c) Effects on acquisition of patents[Figure II-4] Changes in the number of acquired patents

増えた：Increased；増えたと思う：Considers to have increased；変わらない：Unchanged・Those responding that the number of applications is unchanged are large in number,accounting for 83% of the total.
・Percentages of responses "Increased" and "Considers to have increased" altogether
show a gradual increase as follows:
Number of applications: 17%
Number or requests for examination: 25%
Number of acquired patents: 35%
Most companies responded that the number of applications is affected by factors
other than costs for patent acquisition, such as their policies of filing applications only

for necessary patents.
Responses "Increased" and "Considers to have increased" to the question regarding
the changes in the number of applications through the use of the system accounted for
17% in total, while the percentages of the same responses regarding the number ofrequests for examination and the number of acquired patents were 25% and 35%,respectively. This gradual increase in the percentages suggests that the system exerts
larger impacts in terms of costs at these subsequent stages for companies that file alarger number of applications and hold a larger number of patents.
(ii) Effects on other aspects
Next, effects achieved through the establishment of patent rights using the systemwere evaluated separately (a) on the economic and financial aspects and (b) on thenon-economic and non-financial aspects.
(i) Effects on economic and financial aspects[Figure II-7] Economic and financial aspects(ii) Effects on non-economic and non-financial aspects[Figure II-8] Non-economic and non-financial aspects

効果があった：There were effects；効果がなかった：No effects

As the system grants reduction of or exemption from fees, many companies directly
recognize economic and financial benefits.
As economic and financial benefits through the acquisition of patent rights, improved
creditworthiness and resulting enhancement of bargaining power are cited and this point
will be of reference to companies considering acquiring patents.
III. Summary

1. Effects of the System in Promoting Acquisition of Rights
It was found that the system does not affect 83% of the surveyed companies, which
responded that the system has not increased the number of applications throughaffecting decisions on whether or not to file patent applications. Many of them
responded that they file applications for only necessary patents or that the number ofapplications rather depends on other factors.
Therefore, the system seems to be not necessarily effective in motivating applications.
However, smaller-scale companies and companies filing a smaller number of patentapplications are apt to show an increase in applications through the use of the system.
Furthermore, at subsequent stages of requesting examination and deciding whether or
not to keep patents, the system exerts larger influence on companies' decisions
compared with the stage of filing applications.
2. Effects of the System on the Economic and Financial Aspects
Regarding effects of the system on the economic and financial aspects, 93% of thesurveyed companies responded that there were effects. Additionally, among theassistance programs as a whole, 92% are highly satisfied with the system, which grants
reduction of or exception from patent fees, and 77% consider the system to be one of
the top priorities of the assistance programs, while citing its effects on the economic andfinancial aspects.
Given these, it was confirmed that effects of the system on the economic andfinancial aspects are widely recognized by users.
3. Need of Diverse Measures to Increase Companies that Fully Utilize IntellectualProperty
The hearing survey revealed that SMEs have diverse needs and it is difficult todrastically increase their utilization of intellectual property only through specificmeasures. The patent fee reduction/exemption system has only limited effects inincreasing patent applications and it is not that companies are encouraged by the system
to file patent applications but that many of them just use the system available upon
filing patent applications. Therefore, costs required for the operation of the systemshould also be taken into account.
Multi-layered measures, including the holding of IP-related lectures and enhancementof consultation services, will be required for effectively increasing companies that fully
utilize intellectual property.