IP Actions Based on Honda Designs - Role and Strategy of Design Patent

1. IP Actions Based on Honda Designs - Role and Strategy of Design Patent November 16, 2011Honda Motor Co., Ltd. Intellectual Property Division

2. <Contents> 1. Introduction of Honda 2. Honda Design Process 3. Honda IP Activities 4. Strategy 5．Issues to be solved

3. Global Operation of Honda • Headquarters • Affiliated Companies • Employees Tokyo (Japan) Venezuela Perú 474 worldwide Brasil Chile More than 179thousand Argentina Worldwide Sales 11.4 millions of Motorcycle 3.5 millions of Automobiles 5.5 millions of Power Products As of 31/03/2011

4. Global Operation of Honda “Produce where demand exists” Power Products Automobiles Motorcycles 7 countries 16 countries 17 countries Production Point 19 points 9 points 31 points Total: 22 countries 59 points (March 2010) 20.4 million Customers Motorcycles/ATV 11.4 million units Automobiles 3.5 million units Power Products 5.5 million units (2011 fiscal year)

5. Honda Products Motorcycles Automobiles Power Products

6. Honda Fundamental Beliefs (基本理念) These are important parts of Honda Philosophy which two founders, Mr. Honda and Mr. Fujisawa left to us. To nurture and promote each person’s characteristics by respecting individual differences and trusting each other as equal partners. Respect for Individual To realize and share the Three Joys, “Joy of Buying”, “Joy of Selling” and ”Joy of Creating” with all related people. Three Joys Joy of Buying To provide each customer with not only satisfaction but also sympathy and emotion through products and services. Joy of Selling To make customers enjoy valuable products and hearty services, then strengthen thus established mutual trust. To fully exercise ability and create valuable products and services which exceed expectations of customers and sellers, then make them feel happy. Joy of Creating

7. Honda Design Identity Honda Design Identity Human Fitting Human Fitting & & Advance Advance & & Fit(2007) Fit(2007) Emotional Emotional Design Design CR-V(2006) CR-V(2006) FCX Clarity(2007) FCX Clarity(2007) Design Process デザイン開発ストーリー Design development Story ※ＥＸＴＥＲＩＯＲの手のひら検討モデル

8. Final External Ｄｅｓｉｇｎ

9. PHILOSOPHY “Sangen”Concept ・Actual Place ・現 場 ・Actual Object ・現 物 ・Actual Situation ・現 実 Attitude towards Making Products To base on own experience and reality

10. Original Design Effectiveness Example: Odyssey in China New Odyssey launched in March 2005 in China caught large popularity due to sporty and creative design with unique law floor & gravity center, Increased the sales Into nearly double. → Creation of original design will bring bigger sale ３ｒｄ Odyssey (launched in Mar, 2005) Planned sale: 20 thousand units/year ２nd Odyssey (launched in Apr. 2002) Planned sale: 14 thousand units/year

11. Original Design Effectiveness Example: Scooter in Thailand In 2004, Yamaha launched a new scooter into Thai market then almost monopolized by under-bone motorcycle, which captured women and young people popularity. Then Honda launched a new designed scooter which broadened the market further. Sale Unit No. Scooter Market Honda Click Honda Yamaha Mio Yamaha ヤマハ ミオ 写真出典http://www.yamaha-motor.co.jp/global/news/2007/08/09/ymph.html

12. Application of Design (1) Worldwide Application No. 件 Japan １７３７ １４７５ ２６２

13. Application of Design (2) Application for South America Application for South America by country ２１９ Valid registered designs in South America countries 1301

14. Purpose of Anti-Counterfeiting Activities １．Protection of Customers → To eliminate risks of misunderstanding fake to be genuine ２．Protection of Honda Brand →　To show up Honda’s difference from others Honda logo, Product name　 ←　Trademarks Product designs 　　 ←　Design Patents Original Technology ←Invention Patents

15. Number of Honda Action against Copies Parts Power Product Car Motorcycle Worldwide Total No. Design Patent : 243 (11.9%) 2,043 2,162 ２０００ Warning316 898 1,727 917 1,412 1223 1174 548 215 215 910 425 １０００ 591 57 634 162 258 252 452 951 190 6 692 7 667 545 489 　　０ 2002 2003 2007 2010 2004 2005 2006 2008 2009 2043 cases in 2010, including 89 lawsuits Lawsuits: Middle&South America 37, Asia&Oceania 16, China 11, Europe 23, Middle&East Africa 2

16. Example of Counterfeit Case ■ Automobiles　（In China) Honda “CR-V” Counterfeit

17. Example of Counterfeit Case ■ Motorcycle（In Chile) counterfeit motorcycle Honda BIZ

18. Strategy 1 - Filing Aspect ■ Design Patents for Parts Front Light Automobiles ＋ Reg. No: 5.577 Rear Light Reg. No: 5.575 Parts design patents are useful for dealing withhybrid design copyandspare parts copy Reg. No: 5.578

19. Strategy 2 - Enforcing Aspect ■ Publication of Enforcement Apology Statement　（Argentina) Raid Action (China) Newspaper “京華時報” 19 June, 2010 Newspaper “Clarín” 27 July, 2010

20. Strategy 2 - Enforcing Aspect ■ Publication of Enlightenment（In Chili)

21. Problems to have to be solved (Chile) • Design patent applications are only with drawings, prohibits photos. • Marks or Indications “Diseño Industrial” or “D.I.” and the registration No. as a condition of enforcing the design patent. • 3) The criminal  sanctions for design infringement, are just  pecuniary fines,Imprisonment is not available. Not enough so as to give refraining effect. • 4) The customs do not have authority to judge design infringement. Lawsuit is always necessary. • 5) Precautionary measures (injunctions) are very seldom granted by the Courts.

22. Closing Remarks Each customer and each brand can enjoy legal protection only when IP systems including design patent are appropriately legislated and operated. Such protection will bring industrial development and country prosperity with customers’ happiness.