IP Strategy of HITACHI
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1 IP Strategy of HITACHI *IP: Intellectual Property April 7, 2005 Hitachi, Ltd. Executive Officer, General Manager of Intellectual Property Group Yasuo Sakuta 1
2 Contents Basic Policy & Organization of Hitachi s IP Strategy Hitachi Group IP Scheme Building a World-class Patent Network Diversification of Patent Exploitation Strategy 5 Prevention of Technology Drain Amendment of The Reward System 6 7 Fostering Human Resources 8 R&D and Intellectual Property Report
3 1-1. Basic Policy & Organization of Hitachi s IP Strategy Philosophy : Creating IP Value Basic Policy : Establish IP portfolio to back up HITACHI, innovative technology company 3
4 1-2. Organization of Intellectual Property Group President & CEO [300 people] Intellectual Property Group Headquarter Staff *1 Affiliated Co. *2 Liaison Offices (USA, China) Strategic Planning, Administration IP Business Division 2 License Dept., IP protection Center IP Development & Management Division 8 Patent Dept., Operations Support (Neighborhood Support System for Invention Division) (230 people) 4
5 2 Hitachi Group IP Scheme Hitachi (1) (1) Group Company A Group Company B (1) (2) Third party (1):License to each other (2):Joint enforcement to 3 rd parties Participation companies : In principle, in-house business groups, consolidated subsidiaries (companies participated in Hitachi Group Frontier / Platform Research System). Others considered on a case-by-case basis Handling Laboratory Inventions Category Sponsored Research Hitachi Group Frontier Research Hitachi Group Platform Research Owner of Right Sponsored business group / Sponsored Group companies Hitachi Licensing Rights Hitachi holds license Group Company have free license 5
6 3-1. Building a World-class Patent Network IP Strategy integrated Business Strategy & R&D Strategy Business Strategy R&D Strategy Triune activity IP(Patent) Strategy Creation R&D Road map for developments Extraction core technology and differentiation technology Development Flagship Patent Activity Patent Portfolio Management Strategic patent activity 5FP according to rival for patent enforcement Creation of unrivaled patent portfolio both in terms of quality and quantity Mission of IP Group 5FP : Five Fighting Patents 6
7 3-2. Building a World-class Patent Network Examples of activity themes for building powerful patent portfolio Theme Storage system (SAN/NAS storage solutions, high-density HDDs) Proton beam cancer therapy systems Digital Media (Wooo) Optical topography System Business Segment Information & Telecommunication Systems Power & Industrial Systems Digital Media & Consumer Products Electronics Devices 7
8 3-3. Building a World-class Patent Network (Number) 10,000 Transition of Domestic/Foreign Patent applications 1 Shift Emphasis from Quantity to Quality Japan Foreign 2 Globalization Effect of establishing Renesas Technology Corp. Raising the share of Group company foreign patent applications 5,000 Europe ASIA (China) USA 8
9 3-4. Building a World-class Patent Network U.S.Patent ranking in 2004 Rank Company IBM Hitachi Group (total) Matsushita Electric Industrial Co., Ltd. Canon Inc. Hewlett-Packard Number of patents 3,248 1,993 1,986 1,867 1,783 *Intellectual Property Owners Association data Retain upper ranking on a consolidated basis from 2005 onward 9
10 4 Diversification of Patent Exploitation Strategy Japan as an IP Nation Continuing initiatives to strengthen IP (2) Cross Lisencing All Lisencing Not All Lisencing Bolster patent management Multi- Exploi tation (1) Royalty income Multiple exploitation corresponding to business strategy (3) Strategic Exploitation 10
11 5 Prevention of Technology Drain Activities spearheaded by the cross-organizational Trade Secret management committee (1) Formulation of a policy on the management of trade secrets, including the prevention of technology drain overseas, in accordance with policy directives of the Japanese Ministry of Economy, Trade and Industry. Now implementing the following initiatives: Formulation of a basic policy for preventing technology drain Clarification of details and scope of technology transfers, and devising of a technology transfer strategy Establishment of an in-house organizational structure Decide on a company-wide plan and verify propriety of technology transfers (clarification of roles and responsibilities) Implementation of specific initiatives to prevent technology drain Preliminary checks by experts, non-disclosure agreements, post-transfer checks, etc. (2) Dealing with the mobilization of human resources Stricter confidentiality terms in employment agreements, labor agreements and written obligations when leaving a company Sending of a warning to the new employer (necessity decided on a case-by-case basis) 11
12 6-1. Amendment of The Reward System Reward system Outline Patent Application Reward, Patent Issue Reward : fixed sum Implementation Reward : compensation based on contribution to operating results; no upper limit, Sales contribution part (every year) Licensing revenue part (including cross-licensing contributions) (every year) Recipients : Current and retired inventor employees (including their heirs) Award system Superior Patent Award Strategic Patent Award Enforcement Contribution Award Patent Acquisition Award 12
13 6-2. Review of System and Operation Goal: Lead the way in creating a framework that employees regard as an effective means of generating many outstanding inventions Formulation and operation of HOSHO regulations in compliance with the amended Patent Law In-house information meetings (180 times), agreement with labor unions Disclosure of regulations and basis for calculating the reward Self-assessment system (dialogue between inventor and business division) Establishing an arbitration committee Initiatives to encourage inventions other than items stipulated in regulations Announce internally the top 100 inventors every year. Giving the US patent certificates to the inventor 13
14 7 Fostering Human Resources Recruitment Hire new graduates Hire experienced people (Patents: patent attorneys, people experienced in patent administration) Fostering specialists Patent Specialist Training Patent Attorneys:54 (No. of patent attorneys obtaining qualifications in FY04: 7) Training of people overseas Patent technical training in law firms Studying in U.S. law schools 5 U.S. attorneys 14
15 8 R&D and Intellectual Property Report 2005 Objectives Main disclosure items Timing of disclosure Disclosure of IP strength with technical strength Disclosure of consolidated IP strength R&D (organization, strategy) Intellectual Property (Patent, Brand, Trade Secret) Status of patent acquisition in Japan and overseas Diversification of exploitation strategy for patents Recent activities (Revisions to job invention system, strengthening management of trade secrets) After the announcement of the full-year earnings release R&D and Intellectual Property Report 2004:Hitachi Website ( 15
16 まとめ ここにテキストを入力 ここがテキスト入力エリアです ここにテキストを入力 ここがテキスト入力エリアです テキストを入力してください ここにテキストを入力 ここがテキスト入力エリアです ここにテキストを入力 ここがテキスト入力エリアです テキストを入力してください ここにテキストを入力 ここがテキスト入力エリアです ここにテキストを入力 ここがテキスト入力エリアです テキストを入力してください ここにテキストを入力 ここがテキスト入力エリアです ここにテキストを入力 ここがテキスト入力エリアです テキストを入力してください All All Rights Rights Reserved Copyright 2005,Hitachi.Ltd. 2003,,Ltd. 16
IP Strategy of HITACHI
* IP Strategy of HITACHI April 7, 2004 Hitachi Ltd Executive Officer, General Manager of Intellectual Property Group Yasuo Sakuta *IP: Intellectual Property All Rights Reserved, Copyright C 2004, Hitachi,
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