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"How a Company Develops its Business Strategy by Improvement of Patent Productivity“

201 １ Patent Information Annual Conference of China September 5, 2011. "How a Company Develops its Business Strategy by Improvement of Patent Productivity“. Kazuo TANAMI Dean & Professor Graduate School of Intellectual Property Former Head of Contracts and Licensing Center,

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"How a Company Develops its Business Strategy by Improvement of Patent Productivity“

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  1. 201１ Patent Information Annual Conference of China September 5, 2011 "How a Company Develops its Business Strategy by Improvement of Patent Productivity“ Kazuo TANAMI Dean & Professor Graduate School of Intellectual Property Former Head of Contracts and Licensing Center, Corporate IP And Legal Headquarters, CANON INC.

  2. Corporation’s Business Strategy Patent Productivity IP Strong Top Ranked Co. Marketing Strong Marketing Weak Dying Co. IP Weak Prof. Kazuo Tanami, OIT, Japan

  3. Patent Productivity: Key Factors 1st Step: Securing pioneer patents in an earliest stage of R&D 2nd Step: Building patent portfolio to protect your own products 3rd Step: Acquiring patents in the peripheral Areas surrounding your products 4th Step: Excluding competitors patenting Prof. Kazuo Tanami, OIT, Japan

  4. 1st Step: Securing pioneer patents in an earliest stage of R&D Example: Canon’s Ink jet technology Business Technology Time Business started 1985 Pat. filed for products features １９７０s Patent search Pioneer pat. filed 1977 Prof. Kazuo Tanami, OIT, Japan

  5. 2nd Step: Building patent portfolio to protect your own products Example: Canon’s Ink jet technology Business Technology Time Business started 1985 Pat. filed for products features １９７０s Patent search Pioneer pat. filed 1977 Prof. Kazuo Tanami, OIT, Japan

  6. 3rd Step: Acquiring patents in the peripheral Areas surrounding your products Example: Canon’s Ink jet technology Business Technology Time Business started 1985 Pat. filed for products features １９７０s Patent search Pioneer pat. filed 1977 Prof. Kazuo Tanami, OIT, Japan

  7. 4th Step: Excluding competitors patenting Example: Canon’s Ink jet technology Business Technology Time Business started 1985 Pat. filed for products features １９７０s Patent search Pioneer pat. filed 1977 Prof. Kazuo Tanami, OIT, Japan

  8. JPapplications ■：filed ■：granted 1985 Release of First Product 1977 Pioneer Patent Inventors Canon’s Ink Jet Patent Applicationssource: Canon Corporate IP & Legal Headquarters Prof. Kazuo Tanami, OIT, Japan

  9. Canon Group Profile Europe Net sales $14,475million Employees 23,434 Asia & Oceania Net sales $18,656million Employees 153,770 Americas Net sales $12,633million Employees 20,182 Net sales $45,764million Net income $3,044million Employees 197,386 Consolidated subsidiaries 294 (As of December 31, 2010) Consumer 38% Office 54% Industry and Others 12% (Sales ratios do not total 100% due to sales between segments of 4%) Prof. Kazuo Tanami, OIT, Japan

  10. Canon’s Management Philosophy 1937Started camera business ＝ Management philosophy ＝ “Respect for human being” “Competing by original technology” World No. 1 share products Digital SLR Camera Laser Beam PrinterPhotolithography apparatus (45%) (45%) (50％) ※World No. 2: Copier（17%）、IJ printer（22%） (Canon’s estimation as of 2010) Prof. Kazuo Tanami, OIT, Japan

  11. LBP-10 NP-1100 KWANON 1940 1970 1980 1990 2000 Canon’sProducts photo: Canon HP 1996Digital cameras 1985 IJ Printers 1981 Video cameras 1976Facsimile 1975 Laser Beam Printers 1967 Copiers 1967 Semiconductor manufacturing apparatus 1941 Medical equipment / 1958 TV cameras 1937 Cameras Prof. Kazuo Tanami, OIT, Japan

  12. Canon’sSales and R&D 2010 http://www.canon.com/about/library/pdf/canon_factbook.pdf Prof. Kazuo Tanami, OIT, Japan

  13. Canon Inc.’s R&D Expenditure (source: Canon) Prof. Kazuo Tanami, OIT, Japan

  14. Canon’s Pro-IP Activities CanonStarted Copier Business with Original Technologies Copier Business in 1960’s Copier Giant Xerox With Huge Patent Portfolio With Canon’s Original Technology and Patents Canon Challenges Canon recognized the importance of patents. Prof. Kazuo Tanami, OIT, Japan

  15. Canon’s IP Strategy Basic Policy • IP activities are vital to protect Canon’s business operations. • The fruits of R&D are products and IPRs. • Other parties’ IPRs should be respected. Prof. Kazuo Tanami, OIT, Japan

  16. Canon with a Gene Inherited • All the Researchers/Engineers • Write a patent earlier than • a technical report! • Read patents more than • technical reports! Prof. Kazuo Tanami, OIT, Japan

  17. Canon’sSales and Patentssource: Canon IP & Legal Headquarters Patents are Tools to Protect Your Business ■ Consolidated Sales ◆ US Patents Patent Issues／year Sales（M\） Prof. Kazuo Tanami, OIT, Japan

  18. Source: USPTO Canon Panasonic Toshiba Sonny LG Electronics ＨＰ Microsoft Intel ＩＢＭ Samsung Electronics U. S. Patents Ranking 2010 5879 Prof. Kazuo Tanami, OIT, Japan

  19. Canon’s Patents in the World(http://www.canon.com/environment/report/ma12.html) Prof. Kazuo Tanami, OIT, Japan

  20. Canon in Asia source: Canon IP & Legal Headquarters Major Production & Software Development Sites Overseas Production Ratio Dalian (1989) (LBP,CRG) Beijing (1998) software development Tianjin (1997) (photocopiers) South Korea (1985) (photocopiers) Suzhou (2001) (photocopiers) New Delhi (1999) software development Shenzhen (1993) (photocopiers) Zhongshan (2001) (LBP) Taiwan (1970) (cameras) Zhuhai (1990) (cameras & LBP) Thailand (1990) (IJP) Vietnam (2001) (IJP) Manila (1991) Software development Malaysia (1988) (cameras & lenses) Major Production Site Major Software Development Site Prof. Kazuo Tanami, OIT, Japan

  21. Importance Business in Asia (consolidated) 3 times Asia & Oceania Asia & Oceania Japan 21% 8% Japan 19% Europe 28% 1999 2010 Europe 29% Americas 32% Americas 34% 28% 1.5 times 3.60 trillion yen 2.53 trillion yen Prof. Kazuo Tanami, OIT, Japan

  22. Patents in China Prof. Kazuo Tanami, OIT, Japan

  23. Four-Step Patent Productivity ActionsStarting with PGA(patent grade-up) Activity Patent Grade-up ActivityPatent Group Assessment PGA= Invention Invention Evaluation Researchers Engineers Idea sheet Business-oriented PGA Specification Invention disclosure R&D Manager IP Manager Engineer IP staff Prof. Kazuo Tanami, OIT, Japan

  24. Patent Information for Search & Management JPO, USPTO,etc Management In-house IP Management System Search In-house Pat. Info. Retrieval System Pat. Info. All IP proposals All Pat. ＤＢ Connected ＤＢ DB⇒JP, USP, EP, CN, etc. All Researchers must use ⇒Available to All Researchers Prof. Kazuo Tanami, OIT, Japan

  25. 2011 Patent Information Annual Conference of China Thank You for Your Attention! Kazuo TANAMI Dean & Professor Graduate School of Intellectual Property Osaka Institute of Technology Japan Prof. Kazuo Tanami, OIT, Japan

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