IP in Japan
The strategy: Patents are a necessary asset
For the biotech companies Terrie Lloyd represents, patenting is vital. But patenting is not just about protection when doing business in Japan:
'Companies wanting to do business with Japanese firms want some sort of patenting in place because it's a valuable commercial asset when you're going in and negotiating terms'.
He has found that Japanese companies' don't want to have anything to do with someone that doesn't have any patents over its technology'.
The patent process
Because he works closely with a Japanese patent attorney firm, Terrie finds that registering patents for clients in Japan is pretty simple, although he admits it can be expensive. 'We tell the patent attorney what we want to do, they ask us for a more complete description of the product, they look after all the searches - including global searches if we want them', he says.
Because of the expense, Terrie suggests that businesses looking to register patents in Japan first consider the commercial viability of the product, and ask whether it's worth the expense.
If you do take out a patent, make sure it's a strong one: 'Obviously Japanese companies are very competitive, so if you have a weak patent, they will exploit it. You need to be fairly careful and make sure that you’ve got some strength in your IP'.
Expert support
Terrie Lloyd does not consider language a barrier when seeking IP support from Japanese experts:
'There are IP lawyers, and as long as you can get the general gist of what you want to achieve - and often you can supply this in English - they'll be able to read it and convert it into appropriate Japanese'.
To secure trade marks in Japan, Terrie suggests hiring a trade mark attorney to take you through all the options to search and register your trade mark.
Confidential information
As a market entry specialist, Terrie Lloyd's database makes up a large part of his IP. This type of IP can be a little harder to secure in Japan:
'Japan's employment laws are such that a person can leave your company and unless you can prove that they took your client information - if it resides in their heads - there's nothing you can do about it. It's not legal to sign a non-compete agreement, for example, with an employee'.
He therefore includes very clear non-disclosure and confidentiality of information clauses in employee agreements. 'And we will go after them legally if they do go off with data', he says.
Last Updated: 24/12/2012
