JPO Annual Report 2021: Smaller Enterprises’ IP and Helpful Robots

The Japan Patent Office Annual Report (特許行政年次報告書) of 2021, with a wealth of data of intellectual property trends in Japan and worldwide, came out with much we can expect from Japan: fast examination results, continuing declines in patent filings domestically (2020: about 288,500),[1, p. 2] and so forth. A couple of other things came to our attention this time, related to Japanese concerns for small businesses and the pressures of modern life.

Small- and Mid- sized Enterprise Involvement

There seems to be a gradual increase of patent and other IP filings by members of small- and mid-sized enterprises (SMEs, defined in Japanese law, a maximum number of employees of 50-300 or maximum capital value of 50 to 300 million yen, depending on the industry[1]). SMEs account for 99.7% of Japanese enterprises and receive various benefits from the government, but of course the larger enterprises such at Toyota and Panasonic filed 82.5% of the patent applications filed domestically in 2020. A LNikkan Kogyo Shimbun, article suggests that this comes from the JPO’s simplifying and financial incentives of filing for intellectual property extended to these SMEs since 2019, and successes of long-term investment by the SMEs themselves in IP.[2]

– The SMEs filed just under 40,000 patent applications in 2020, barely higher than in 2016 but an overall larger share of the overall filings (17.5% of domestic filings overall), given the slight decline year after year in Japan by Japanese filers.[1, p. 54]
– In PCT international applications, the growth of filings by SMEs between 2016 and 2020 increased by about 30% [1, p. 56].
– Combining PCT and other Paris Convention applications, a total of over 7,000 were filed by SMEs in 2019. [1, p. 57].

There may be a Japanese sensitivity and nostalgia for the “little guys,” even though many young people seem to aspire to the big corporations and the larger cities, that made a point of the SMEs’ increasing patent focus.

Dancing with Robots

Japan’s history with robots and cyborgs is well-established, and this year the JPO took as its featured introduction a few examples of robotic and AI patent applications that it could tie to the post-Covid era as ways to make real value and well-being. The JPO reports how it has been supporting businesses trying to increase emotion-learning robots (“Lovot”), AI-grounded tutoring for Japan’s students slogging toward school entrance exams (atama+), and automated driving food delivery vehicles helping the elderly or promoting distancing during Covid-19 (DeliRo). [1, preface]

The dance with AI and robotics, as a highlight for the Japan Patent Office, takes on the dimensions of a national concern with lost human interaction, difficulties of school and society life, convenience, and safety. Japan’s aging and shrinking population, as well as social pressures and expectations, have gripped public imagination for a while, and will for some time to come. Thoughtful, humane, contextualized innovations will be welcome.

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Contact: Taro Yaguchi

Sources

[1] Japan Patent Office. 特許行政年次報告書 [Japan Patent Office Annual Report] 2021. Updated July 14, 2021. Accessed July 23, 2021.
[2] The Small and Medium Enterprise Agency. “中小企業・小規模企業者の定義 [Definition of small and medium enterprises or small-scale business entities].” https://www.chusho.meti.go.jp/soshiki/teigi.html
[3] Nikkan Kogyo Shimbun https://newswitch.jp/p/28034 Newswitch. July 14, 2021. Accessed July 23, 2021. Also, NHK (Japan Broadcasting Corporation) noted this, July 23, 2021 (https://www3.nhk.or.jp/news/html/20210723/k10013154721000.html).

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