23/05/2019

Sonoda & Kobayashi Newsletter - May 2019
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May 2019
Contents - Latest IP News in Japan
1. Cabinet Decision on the Bill for the Act of Partial Revision of the Patent and Design Acts
2. Japan considers allowing patent litigation in English
3. Japan presses China on intellectual property safeguards
4. Toyota to allow free access to 24,000 hybrid and electric vehicle tech patents to boostmarket
5. FY2018 Collection of Case Examples of Successful Projects under the IP Acceleration
Program for Startups (IPAS) Released
6. Digital dilemma: Japan irts with overly aggressive online copyright law
7. Series of Explanatory Meetings of Intellectual Property Rights in 2019 to be Held TargetingIP Beginners
8. Japan drafting guidelines to stop technology leaks from universities working with foreignrms- News about Sonoda & Kobayashi Welcoming our newest IAD member !
Sonoda & Kobayashi is pleased to welcome a new International Affairs Department member, Ms. Alison
Santino.

Ms. Santino studied Social Sciences and Humanities in Sciences Po Paris before specializing in Business
Law during her graduate program. While an undergraduate, she engaged in an extensive Asian studies
program which included a one-year exchange in Shanghai, an experience that allowed her to signi cantly
improve her Mandarin. Her experiences in both China and Japan enabled her to develop a deep
understanding of both cultures which remains a strong asset.
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After a four-month internship in Sonoda & Kobayashi where she conducted Intellectual Property related
research, she o cially became a member of the International Affairs Department in 2019. She is currently
working on increasing her knowledge of comparative law with a focus on Japan, China and Europe.

Read Ms. Santino's full pro le here- Latest IP News in Japan 1. Cabinet Decision on the Bill for the Act of Partial Revision of the Patent and Design Acts
March 1, 2019, Ministry for Economy, Trade and Industry (METI)The Ministry of Economy, Trade and Industry (METI) has announced on its website that the Cabinet has
approved the Bill for the Act of Partial Revision of the Patent and Design Acts and that the bill will be
submitted to the ongoing 198th ordinary session of the Diet. It is likely that the bill will be passed and thatthe reformed acts will be implemented in January or April 2020.

Regarding the partial revision of the Patent Act, the bill is to create a new inspection procedure system forthe on-site inspection of suspected infringers and revises the method of calculating compensations fordamages.

Regarding the partial revision of the Design Act, the bill is to expand the scope of designs subject toprotection under the Design Act and newly cover graphic images that are not recorded or shown on
articles as well as interior and exterior designs of buildings. Also, the bill is to change the duration ofdesign rights from 20 years from the registration date to 25 years from the ling date and will enhance theRelated Design system. Also, the bill is to allow an applicant to le an application for multiple designs andto register a design similar only to the related design. Finally, the bill is to expand the provisions for direct
infringement.

Read the full article here.

2. Japan considers allowing patent litigation in English
March 15, 2019, Nikkei Asian Review
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According to the Nikkei Asian Review, the Japanese government is discussing with business leaders andlawyers steps to make the country more attractive

for intellectual-property litigation, including theestablishment of an international division within the Intellectual Property High Court where cases could beheard in English.

A group of representatives from the Justice Ministry, the Supreme Court, the Japan Federation of Bar
Associations and the private sector (including the Japan Business Federation lobby and Toyota Motor) is
considering a new system for international disputes over issues such as patents and held its rst meetingin March.

In addition to the new system, proposed revisions to Japanese patent law have been submitted toparliament, such as directions to make it easier to collect evidence in cases involving alleged intellectualproperty violations.

Read the full article here.

3. Japan presses China on intellectual property safeguards
April 3, 2019, Nikkei Asian Review

On April 2nd, Japan encouraged the Chinese government to enhance protections for intellectual property
at their inaugural dialogue on innovation, as Beijing seeks to develop economic and technologicalcooperation with Tokyo in the context of the trade war with the U.S.

Japanese companies reportedly face demands from regional governments and Chinese enterprises todisclose technology, while pirated movies, anime and other content are widely available on Chinese
websites. Beijing has made some efforts to address the concerns, such as new legislation last month tostrengthen protections for foreign intellectual property and ban forced technology transfers, but many
Japanese companies remain concerned.

Read the full article here.

4. Toyota to allow free access to 24,000 hybrid and electric vehicle tech patents to boost market
April 3, 2019, The Japan Times

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Toyota Motor Corp. announced that it will allow royalty-free access to its nearly 24,000 patents for hybrid
and other vehicles using electri cation technology in order to increase competition in the market, as theindustry adopts stricter emissions regulations.

Instead of excluding competitors, Toyota expects that making its motor and battery technology accessible
to other companies will expand the market, speci cally for hybrids, a eld in which the carmaker is aleader with its Prius vehicles.

Read the full ar cle here.

5. FY2018 Collection of Case Examples of Succesful Projects under the IP Acceleration Progam forStartups (IPAS) Released
April 5, 2019, Ministry for Economics, Trade and Industry (METI)The Japan Patent O ce compiled the FY2018 Collection of Case Examples of Successful Projects underthe IP Acceleration Program for Startups (IPAS), an initiative for supporting startups building customized
IP and business strategies. The collection of case examples re ects the achievements and knowledge
that the selected startups attained through the program and aims to inform other startups of suchachievements and inspire them to make use of the strategies presented in the management of their ownIP.

The collection is focused on the case examples uncovered in the FY2018 program and presents the nine
IP-related challenges faced by businesses and solutions to those problems, but also key points of support
measures that may be useful not only for startups but also for their supporters from both business and IP
perspectives.

Read the full article here.

6. Digital dilemma : Japan flirts with overly aggressive online copyright law
April 15, 2019, Japan Today

According to Japan Today, the Japan’s Agency for Cultural Affairs (JACA) is considering signi cantchanges in Japanese copyright’s law based on proposals that were initially presented in a bill on February
13th. If those changes are adopted, sharing song lyrics on social media accounts and other common
activities such as downloading a photo or taking a screenshot could give rise to criminal liability andhttps://mailchi.mp/406bc9b505d4/sonoda-kobayashi-newsletter-may-2019?e=76ba65459e

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people found responsible for such actions could be subject to imprisonment for up to two years and amaximum ne of ¥2 million

The proposed changes are intended to combat the piracy of works such as manga, and the loss ofrevenue for manga artists and publishers that results from such piracy. Also, according to Tatsuhiro Ueno,
professor of law at Waseda University, those changes are an attempt to remedy the impact that mangapiracy has on the Japanese economy.

The bill in its current state has raised concerns as it could affect the online behavior of millions of citizens
and jeopardize free expression. Due to such concerns, Japan’s ruling Liberal Democratic Party (LDP)
decided on March 13 to postpone a vote on the bill.

Read the full article here.

7. Series of Explanatory Meetings of Intellectual Property Rights in 2019 to be Held Targeting IPBeginners
April 23, 2019, Ministry for Economics, Trade and Industry (METI)The Japan Patent O ce and the National Center for Industrial Property Information and Training (INPIT)
will hold a series of free explanatory meetings concerning the intellectual property rights systems, such as
patent rights, in all 47 prefectures across Japan. These meetings will explain basic knowledge on IP
rights, measures for supporting SMEs provided by the JPO and the INPIT and other information.

Read the full article here.

8. Japan drafting guidelines to stop technology leaks from universities working with foreign rms
April 24, 2019, The Japan Times

According to an article published by the Japan Times, the Japanese government will set guidelines by theend of March 2020 for preventing technology leaks from universities that conduct research with foreignrms, as reported by sources close to the issue.

This initiative comes as a result of the United States and China being cautious about advanced

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technologies such as arti cial intelligence being converted for military use.
Concerns were raised by experts about the risk of information leaks as university laboratories have been
managing irregular agreements on their own, though Japan already regulates the disclosure of sensitivetechnologies and products by the nation’s state organizations and companies to overseas rms under aforeign exchange and foreign trade law.

The intended guidelines would require universities and other research institutions to set regulations on
joint projects involving foreign entities and they will be based on the inclusive innovation strategy adopted
by the Cabinet in 2018 designed to stimulate university research on Arti cial Intelligence, biotechnology
and other leading technologies.

Read the full article here.

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