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At-a-glance: Japan Patent Office 3-4-3 Kasumigaseki, Chiyoda-ku, Tokyo 100-8915, Japan Fax: +81 3 3581 0762 Email: PA0842@jpo.go.jp Website: www.jpo.go.jp The number of patent applications filed in Japan has been on a decline since 2006, with... [more]

The number of patent applications filed in Japan has been on a decline since 2006, with a sharp drop in 2009. Despite the slow recovery from the Great East Japan Earthquake in March 2011, the number of patent applications filed in Japan for the whole of 2011 was 342,610, just short of the 344,598 filed in 2010. On the other hand, the number of international patent applications has been rapidly increasing year by year.

Although the economic recession is one reason behind the decline, applicants are also becoming more selective in their filing. Instead of filing a large number of patent applications, they are now filing higher quality applications and trying to reduce application costs due to the continuing appreciation of the yen. Trade mark registrations statistics show a similar trend.

One of the most notable changes has been the court's approach to IP-related issues. One leading practitioner notes: "We are seeing the courts becoming more pro-patent and as a result the standard of patent applications has increased. There is more of a focus on motivating and studying of patents in general." This follows heavy criticism from corporations saying courts were too unfriendly towards intellectual property.

Patent litigation is slowly increasing, despite of a history Japanese companies respecting IP and avoiding the courts. This may be taken as a sign that Japanese companies are more willing to defend their IP rights and are looking to preserve their assets during this downturn. One lawyer explains: "This is a good time to enforce IP rights as the economy slows down."

This change can be seen in the electronics, mechanical, telecommunications and pharmaceutical industry with a marked increase in both domestic and cross-border patent litigation. Japanese electronics companies are facing increased competition from South Korea, China and Taiwan, with Samsung Electronics providing the biggest threat. Coupled with the financial difficulty in several of Japan's leading electronics corporations, protecting assets has become paramount to survival.

In April 2012 the amended Japanese Patent Law became effective with major amendments enhancing protection of licences, remedies introduced for patents obtained by a third party, speeding up invalidation trials, and the adoption of a grace period for patent applications.

Starting October 1 2012, illegal downloading of copyright material is a criminal offence with punishment of up to two years in prison or up to ¥2 million ($322,000) in fines. Although illegal downloading carries no penalties, uploading copyrighted material is punishable by up to 10 years in prison or ¥10 million ($1.61 million).

In line with amendments to the Patent and Copyright Law, one lawyer expects changes to the trade mark law in 2013: "The IP reform will likely incorporate sound, colour and movement; Japan is behind other countries in these areas."