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Meet the Asia IP Elite

which helped us to identify those Asian After an in-depth research process to companies that are filing the most identify companies in the Asia-Pacific applications with the US and region with world-class IP functions Trademark Office, the Japan Patent Office and the European Patent Office, and are and strategies, IAM reveals those thus truly global IP players. The research that lead the field and takes a closer also used court activity as a metric to look at their operations determine companies’ commitment to asserting their IP rights – albeit that By Seher Hussain, Justin Kung and plaintiff and defendant positions can, of Virna Chung course, suggest different things when it comes to assessing whether companies are Asia has become an undisputed global engaging in constructive, sustainable use of innovation hub. From emerging domestic intellectual property. We also looked at the enterprises to established household names, outside advisers that companies use: those Asian companies are taking centre stage prepared to invest money in hiring top-tier as the balance of economic power shifts domestic and international players were eastwards. As they stake their claims in the considered to have consciously prioritised global marketplace, ensuring that they have quality of work above pricing issues. To us, the necessary expertise to create, manage, this signalled recognition of intellectual commercialise and drive strategic value property as an asset of primary importance. from their intellectual property will be vital Globally recognised brand rankings and to their continued success. brand value/equity listings were additionally Last year, the IAM editorial team factored into the research process. revealed the China IP Elite – those Chinese The qualitative side of the research companies that have made the greatest took into account the combined experience strides in developing their IP assets and of Asia-based IP professionals and the strategies. This year, in the lead-up to global IP community. By interviewing the inaugural IP Business Congress Asia, local chief IP officers, general counsel, taking place in Singapore this November, private practitioners, investors, patent the project has been extended to identify brokers, aggregators and valuation experts, companies HQed in the Asia-Pacific region we were able to drill down into specific with the very best strategies for maximising examples of IP best practice and obtain the value of the intellectual property that recommendations of companies whose they own. To the best of our knowledge, strategies merited further exploration. this is the first time that such research has Candidates identified through the been undertaken. quantitative research were discussed further in interviews with research participants, in Research and selection process order to verify the calibre of the work being The IAM editorial team researched the Asia done by, and capabilities of, their respective IP Elite intensively over a two-month period IP teams. Meanwhile, by speaking to IP from both a qualitative and quantitative professionals outside of Asia, we were able perspective. The latter was assessed with to gain greater insight into the activities of the assistance of data provider Inovia, Asian companies that have established an

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Acer Honda Motor Company Samsung Group Headquarters: Xizhi, New Taipei, Taiwan Headquarters: Tokyo, Japan Headquarters: Seoul, South Korea Industry: Computer hardware Industry: Automotive, engineering Industry: Electronics, information technology, semiconductors Agency for Science, Technology and Huawei Technologies Research (A*STAR) Headquarters: Shenzhen, China Seiko Epson Corporation Headquarters: Singapore Industry: Telecommunications Headquarters: Suwa, Nagano, Japan Industry: R&D Industry: Electronics, imaging Hyundai Motor Group Alibaba Group Headquarters: Seoul, South Korea SK Group Headquarters: Hangzhou, China Industry: Automotive Headquarters: Seoul, South Korea Industry: Internet, e-commerce Industry: Energy, telecommunications, Industrial Technology Research Institute semiconductors ASUSTeK Computer (ITRI) Headquarters: Taipei, Taiwan Headquarters: Hsinchu, Taiwan Sony Corporation Industry: Computer hardware Industry: R&D institute Headquarters: Tokyo, Japan Industry: Electronics, media & Baidu entertainment, semiconductors Headquarters: Beijing, China Headquarters: Tokyo, Japan Industry: Internet Industry: , chemicals Taiwan Semiconductor Manufacturing Company Canon Lenovo Group Headquarters: Hsinchu, Taiwan Headquarters: Tokyo, Japan Headquarters: Beijing, China; Morrisville, Industry: Semiconductors Industry: Electronics, imaging United States Industry: Computer hardware Takeda Pharmaceutical Casio Computer Headquarters: Osaka, Japan Headquarters: Tokyo, Japan LG Corporation Industry: Pharmaceuticals Industry: Electronics Headquarters: Seoul, South Korea Industry: Electronics, chemicals, Tata Technologies Cochlear telecommunications Headquarters: Mumbai, India Headquarters: Sydney, Australia Industry: Information technology Industry: Biomedical MediaTek Headquarters: Hsinchu, Taiwan Tencent Commonwealth Scientific and Industrial Industry: Semiconductors Headquarters: Shenzhen, China Research Organisation (CSIRO) Industry: Internet Headquarters: Canberra, Australia Mitsubishi Electric Corporation Industry: R&D institute Headquarters: Tokyo, Japan Toshiba Corporation Industry: Electrical equipment, electronics Headquarters: Tokyo, Japan Creative Technology Industry: Electronics, semiconductors Headquarters: Singapore NEC Corporation Industry: Electronics Headquarters: Tokyo, Japan Toyota Motor Corporation Industry: Information technology, electronics Headquarters: Toyota, Japan CSL Industry: Automotive Headquarters: Melbourne, Australia New Zealand Rugby Union Industry: Biotechnology Headquarters: Wellington, New Zealand Treasury Wine Estates Industry: Sport Headquarters: Melbourne, Australia Electronics and Telecommunications Industry: Winemaking Research Institute (ETRI) Nikon Corporation Headquarters: Daejeon, South Korea Headquarters: Tokyo, Japan Tsinghua University Industry: R&D Institute Industry: Electronics, imaging Headquarters: Beijing, China Industry: R&D institute Fujifilm Nintendo Headquarters: Tokyo, Japan Headquarters: Kyoto, Japan Uniqlo Industry: Electronics, imaging Industry: Video games, consumer Headquarters: Tokyo, Japan electronics Industry: Fashion, retail Fujitsu Headquarters: Tokyo, Japan Panasonic Corporation United Microelectronics Corporation Industry: Computer hardware, computer Headquarters: Osaka, Japan Headquarters: Hsinchu, Taiwan software Industry: Electronics, semiconductors, Industry: Semiconductors home appliances Haier Group Wipro Headquarters: Qingdao, China Renesas Electronics Corporation Headquarters: Bangalore, India Industry: Household Headquarters: Tokyo, Japan Industry: Information technology appliances Industry: Semiconductors ZTE Corporation Hitachi Group ResMed Headquarters: Shenzhen, China Headquarters: Tokyo, Japan Headquarters: San Diego, United States Industry: Telecommunications Industry: Electronics Industry: Medical equipment

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international reputation for their strategic new revenue streams. Their respect for use of intellectual property. intellectual property is beginning to In identifying the Asia IP Elite, we have translate into a zero-tolerance approach to focused not on the IP assets that these infringement – whether of their own rights companies own, but rather on how those or, in the case of China’s leading online assets are used and integrated into overall platforms, the rights of others. business strategy. To be a member of the Hot on the PRC’s heels come Taiwan Asia IP Elite, a company must: and South Korea. The former is enjoying • Place IP strategy at the centre of its something of an IP renaissance as its business. original equipment manufacturers • Obtain demonstrable, significant and shift their focus to developing their ongoing value from intellectual property own proprietary technologies and as a direct result of the strategies that it commercialising own-branded products. employs. Meanwhile, South Korea’s sprawling • Ensure that there is a direct line from conglomerates have fast become the new the IP function to senior management. pretenders to the tech throne, building up • Have a senior management that formidable portfolios to rival those of the understands the operational and industry incumbents. This has inevitably strategic importance of and potential in made them a target for litigation, but they intellectual property. are proving shrewd opponents. • Constantly reappraise and improve on By contrast, Indian companies are just its IP strategy in order to take advantage beginning to wake up to the importance of of market developments. intellectual property and are thus notable largely for their absence from the tables Conclusions – although the two players which made The Asia IP Elite comprises 48 companies the cut are at the very top of their game and other entities. While we came across and can compete on an international scale. many organisations in the region with a Australia is another country with fewer strong commitment to intellectual property representatives than perhaps would be and well-developed strategies for its expected: as IP value creation has not yet management and exploitation, these 48 made it onto boardroom agendas, it still are in our opinion the best of the best. The lags behind other developed economies in members of the Asia IP Elite thus serve as this regard. However, a handful of outfits in a shining example for Asian businesses to niche sectors have nonetheless established follow as they look to take their places on themselves as leaders in their fields the global stage. through astute development and use of With the most sophisticated IP their IP assets. framework in the region, it is unsurprising While may dominate the IP that Japan dominates the list. Years of debate and thus feature prominently in economic stagnation and falling consumer the portfolios of the Asia IP Elite, brands demand have prompted many Japanese are also potent catalysts for growth which companies to become more creative in should not be overlooked in any IP strategy. their IP strategies. Some have sought new Several members of the Elite own some of ways to utilise core patents in previously most valuable marques in their industries untapped industries; others have rolled out across the region, or even worldwide; while their brands in emerging economies; still others have carved out strong niches on others have made significant investments the back of clever branding strategies. They in cutting-edge technologies such as serve as a reminder that successful IP value artificial intelligence and green tech, in a creation involves much more than straight bid to capture these nascent markets. In IP rights, and should also encompass other the drive to extract maximum value from key intangibles such as goodwill, reputation their IP assets, Japan’s IP leaders have also and intellectual capital. abandoned their traditional reluctance to Finally, we also recognise the efforts litigate and are asserting their rights with of several government agencies, research greater vigour in forums around the world. institutes and universities which have China is next on the leader board, with done much to promote IP awareness and eight of the Asia IP Elite headquartered in encourage innovation across the Asia- the PRC. Its increasingly outward-looking Pacific region. Some have focused on domestic enterprises have been expanding developing new technologies themselves; overseas, snapping up competitors and others are building up patent arsenals which inking in, out and cross-licensing deals domestic companies can use in litigation to strengthen their offerings and generate against their foreign competitors; while

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others still are opening up new routes to a position to counter-assert both its own commercialise promising new R&D. patents and rights acquired from Taiwan’s Having said all this, IAM is pleased Industrial Technology Research Institute; to present the members of the Asia IP this strong defensive position gave it the Elite 2013. We will be reporting on their leverage to reach a settlement within a year. progress in the coming months by providing Meanwhile, strategic acquisitions of US comprehensive analysis of their successful rival Gateway and European Packard Bell IP strategies, as well as interviews with the have strengthened its product lines and key executives responsible for designing cemented its presence in western markets. them. In the meantime, the overviews that Thanks to this increased geographical follow provide a preview of the dynamic and footprint, Acer is now the fourth largest PC diverse stories being played out in the Asian vendor in the world. IP marketplace today. Agency for Science, Technology and Acer Research (A*STAR) Headquarters: Xizhi, New Taipei, Taiwan Headquarters: Singapore Industry sector: Computer hardware Industry: R&D institute Leading computer hardware producer Acer Singapore’s Agency for Science, Technology discovered the importance of intellectual and Research (A*STAR) is tasked with property the hard way. A copyright promoting innovation and nurturing talent infringement spat with IBM almost three in the biomedical, physical sciences and decades ago, which ended up in a US$9 engineering sectors. Operating under the million damages award against it, taught it a Ministry of Trade and Industry, it oversees salutary lesson and it began to make serious 14 research institutes and six investments in its IP capacity as a result. By located in the R&D hubs of Biopolis the time HP sued Acer in the United States and Fusionopolis. A focus on small and for in 2007, it was in medium-sized enterprises distinguishes it

Huawei – a sophisticated approach to IP approach to its intellectual property and has the Chinese giant does not shy away from When people talk about IP pioneers in become adept at exploiting monetisation the challenges of enforcement. Its most China, Huawei is often the first name on opportunities. With over 400 patents prominent litigation to date was a 2011 their lips. This should come as no surprise granted in the LTE space – more than dispute with Motorola over the sale of the to those familiar with the IP might of this 15% of the core patents in the area – the latter’s wireless networking business to telecoms equipment powerhouse: it company has started to generate significant Nokia Siemens. As Huawei had partnered boasts over 30,000 granted patents, an revenues through out-licensing this with Motorola on the development of IP department some 230 strong, 16 R&D technology; a cross-licensing deal signed wireless network technology, the deal had centres across China, Europe and the United with Spain’s Teltronic in March this year is the potential to compromise Huawei’s States, and year-on-year R&D investment the most recent example. The company has . Huawei sued Motorola in of at least 10% of annual revenues (US$4.8 also brokered agreements with rivals such the United States and the two eventually billion in 2012 alone). Impressive statistics for as Qualcomm, Ericsson and Nokia in order reached a truce that represented a major a company that was only founded in 1987. to reduce the cost of in-licensing. victory for the Chinese company. Not only Huawei takes a sophisticated When it comes to protecting its rights, did Huawei receive a one-time fee for use of its technology, but Motorola also agreed to drop its charges that Huawei had stolen its intellectual property. While telecoms infrastructure is the cornerstone of Huawei’s global business, it is fast expanding into related fields such as smartphones, tablets and cloud computing, where a solid branding strategy has been key to its success. It hired IBM in 2011 to advise it on brand management best practice and this year has ring fenced 2% of its revenue for brand promotion. It will be interesting to see whether Huawei can repeat the feat of overtaking Ericsson to become the world’s largest telecoms equipment manufacturer Huawei IP team at corporate HQ and create similar waves in the crowded Dedication to R&D and IP make the company a global telecoms powerhouse consumer electronics market.

www.iam-magazine.com Intellectual Asset Management November/December 2013 73 Japan Canon Casio Computer Fujifilm Fujitsu Hitachi Group Honda Motor Company Kao Corporation Mitsubishi Electric Corporation China Taiwan NEC Corporation Alibaba Group Acer Nikon Corporation Baidu ASUSTeK Computer Nintendo Haier Group Industrial Technology Research Panasonic Corporation Huawei Technologies Institute (ITRI) Renesas Electronics Corporation Lenovo Group MediaTek Seiko Epson Corporation Tencent Taiwan Semiconductor Sony Corporation Tsinghua University Manufacturing Company Takeda Pharmaceutical ZTE Corporation United Microelectronics Toshiba Corporation Corporation Toyota Motor Corporation Uniqlo India Tata Technologies South Korea Wipro Electronics and Telecommuni- cations Research Institute (ETRI) Hyundai Motor Group Singapore LG Corporation Samsung Group Agency for Science, Technology SK Group and Research (A*STAR) Creative Technology

Asia IP Elite

2013 Australia New Zealand New Zealand Rugby Union Cochlear Commonwealth Scientific and Industrial Research Organisation (CSIRO) CSL ResMed Treasury Wine Estates

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from similar bodies in the region: it offers the US smartphone market on the back of a range of programmes aimed at enhancing its strong portfolio of 3G and 4G patents. the R&D capabilities of local companies in collaboration with its research centres. Baidu A*STAR’s IP management and technology Headquarters: Beijing, China transfer arm was established in 2002 and Industry sector: Internet has been instrumental in forging closer While Baidu is often referred to as the Japan ties between research and business; a core ‘Chinese Google’, it perhaps deserves more mandate is linking new technologies to the credit than that: its RankDex patent for Canon Casio Computer most appropriate funding channels to bring hyperlink analysis – the cornerstone of Fujifilm them to market. To date, over 270 end user the company – was developed by founder Fujitsu licences have been issued in industries as Robin Li even before Google’s Larry Page Hitachi Group diverse as medical equipment, plastics, oil had obtained his own PageRank patent. Honda Motor Company and gas, chemicals and semiconductors. This spirit of innovation continues today: Kao Corporation it recently developed new copyright Mitsubishi Electric Corporation Alibaba Group DNA identification technology which can China Taiwan NEC Corporation Headquarters: Hangzhou, China recognise and filter out potentially infringing Alibaba Group Acer Nikon Corporation Industry sector: Internet, e-commerce content from its search results. It has also Baidu ASUSTeK Computer Nintendo Alibaba’s senior management have long concluded licensing deals with leading Haier Group Industrial Technology Research Panasonic Corporation understood the value that IP rights can record labels to help prevent illegal music Huawei Technologies Institute (ITRI) Renesas Electronics Corporation bring to the bottom line, and this is directly downloads, a development which contributed Lenovo Group MediaTek Seiko Epson Corporation reflected in corporate strategy and structure. to its removal from the US official piracy list. Tencent Taiwan Semiconductor Sony Corporation While the IP function has always enjoyed The US$1.9 billion acquisition of local app Tsinghua University Manufacturing Company Takeda Pharmaceutical strong executive support, a direct link store 91 Wireless – the biggest deal to date ZTE Corporation United Microelectronics Toshiba Corporation between the IP function and the boardroom in China’s online space – has given Baidu Corporation Toyota Motor Corporation has now been established in the form of a greater access to the mobile internet sector. Uniqlo new IP rights working group headed up by This is another strategic move for the search India CEO Jonathan Lu. The e-commerce giant giant, following the release of its own low- has further demonstrated its commitment cost smartphone last year. Tata Technologies South Korea Wipro Electronics and Telecommuni- to the IP agenda through the war it is waging cations Research Institute (ETRI) against counterfeit products sold on Taobao Canon Hyundai Motor Group Marketplace, its popular Chinese online Headquarters: Tokyo, Japan Singapore LG Corporation auction site. Rumours suggest that Alibaba Industry sector: Electronics, imaging Samsung Group plans to go public in the near future; if this Founded in 1937, Canon has become a Agency for Science, Technology SK Group is true, the company can only be expected to household name for its range of cameras, and Research (A*STAR) strive even harder in its efforts to stamp out printers and camcorders. It first set up Creative Technology counterfeiting on its C2C platform in order a patent unit in 1958; the team played a to attract potential investors. vital role in the development of ground- breaking new copying technologies in the ASUSTeK Computer 1960s, which established the Japanese Headquarters: Taipei, Taiwan multinational as a global player. Today, Industry sector: Computer hardware each product division has its own patent Taiwanese computer hardware and portfolio manager, tasked with identifying electronics maker ASUSTeK Computer commercially promising R&D and deploying has transformed itself from an original underused patents in new projects. The equipment manufacturer to a producer worldwide IP function has also been of high-quality, own-branded products, streamlined, with each R&D group company thanks to a laser focus on innovation and IP reporting to a national IP division, which in protection. In recent years it has stepped up turn reports back to corporate HQ in Japan. its R&D, acquisition and licensing activities Canon’s strategy focuses on patenting Asia IP Elite to achieve this goal; it is also an active early in the development process, building participant in industry standard-setting a portfolio around the product, acquiring New Zealand organisations, ensuring that its patents have patents in peripheral areas and ultimately 2013 Australia significant strategic value. It has managed excluding competitors from the space. New Zealand Rugby Union to carve out a firm foothold in the United Cochlear These tactics have secured it a spot among Commonwealth Scientific and States, despite the best efforts of industry the top five patent filers at the USPTO for Industrial Research Organisation incumbent IBM to frustrate its ambitions – the past 27 years. (CSIRO) in a high-profile 2009 case, Big Blue failed CSL to persuade the US International Trade Casio Computer ResMed Commission (ITC) to block imports of Headquarters: Tokyo, Japan Treasury Wine Estates ASUSTek motherboards and graphics cards. Industry sector: Electronics It is now taking active steps to expand into The IP strategy of Tokyo-headquartered

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Casio has three core objectives: maintaining institutions and the private sector to the company’s position as a leader in the roll out new technologies both at home electronics space; improving the balance and internationally. Although a public of income and expenditure on intellectual agency, CSIRO is known for its assertive, property; and promoting IP awareness at commercially driven approach when it all levels of the organisation. To encourage comes to intellectual property. In particular, innovation and the cross-pollination of it has the resolve and tenacity to pursue technologies, Casio has held an annual infringers to the bitter end: it made Techno Power exhibition since 1992, headlines last year by securing a US$220 at which engineers can present their million settlement in the US courts in a inventions directly to senior management. protracted patent dispute over wireless Their robust R&D output is reflected LAN technologies dating back to the 1990s. in Casio’s diverse product offering, The verdict brought CSIRO worldwide encompassing everything from cameras recognition and an overdue financial reward to musical instruments, calculators and – for its ground-breaking work in developing most famously – watches. It also ensures patents that today underpin almost 3 that Casio can keep pace with market billon wifi-related devices. The institution trends: the company’s latest innovation is has now turned its focus to platform a Bluetooth-enabled G-Shock watch which technologies with multiple applications connects with the wearer’s smartphone to – a challenge for the IP department in display call notifications and emails. With an organisation comprising more than branding a key focus – other popular lines 13 separate research divisions, as well as include its Oceanus and Pro-Tek models myriad international collaborations. – Casio has registered close to 2,000 trademarks in 187 countries worldwide. Creative Technology Headquarters: Singapore Cochlear Industry sector: Electronics Headquarters: Sydney, Australia While Creative Technology has withstood Industry sector: Biomedical considerable swings of fortune over the Global hearing solutions provider Cochlear past 20 years, its commitment to IP value overhauled its IP department four years creation has not wavered. The company ago in order to better align its corporate played a pivotal role in the development of and IP strategies. Its forward-thinking the MP3 standard in the early 2000s and board realised that the company’s remains a dominant player in the PC sound ambitions demanded international IP card industry. The financial crisis prompted expertise, and thus prioritised filling senior a rethink as it shed non-core businesses and management roles with experienced hires pared back its global workforce from a peak from outside Australia. An extensive IP of 5,000 to a current staff of over 1,000 – landscaping exercise followed, which laid a move which has only been of benefit to the foundations for an IP strategy focused the IP team. In the past, as the company on identifying product gaps and exploring pursued growth opportunities in new licensing opportunities on the market. markets such as China, communications On the back of this approach, Cochlear between these new outposts and its has expanded its international footprint, Singapore global headquarters were sporadic winning a US$100 million contract with and there were no coordinated R&D or the Chinese government to provide a suite filing strategies. Today the IP function has of iPad applications to help adults learn been centralised, with a coherent reporting to hear with implants, as well as wider structure and a joined-up approach auditory solution initiatives. The company to intellectual property from product also recently received US Food and Drug conception to launch. Administration approval for a unique underwater hearing device – the first of its CSL kind to be sold anywhere in the world. Headquarters: Melbourne, Australia Industry sector: Biotechnology Commonwealth Scientific and Industrial Australia’s CSL made its name through its Research Organisation specialty blood plasma therapies, but also Headquarters: Canberra, Australia manufactures related medical products such Industry sector: R&D institute as vaccines and anti-venoms. While the IP Australia’s Commonwealth Scientific and department is formally a sub-division of Industrial Research Organisation (CSIRO) legal, it collaborates with the R&D team on enters into large-scale multidisciplinary a daily basis in developing new products and partnerships with universities, research exploring new commercial opportunities

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for existing ones. A shrewd approach to agencies that are currently operating in monetisation has paid dividends in recent the IP arena. It has built up a strong patent years: in one notable success, it secured portfolio in the United States as well as licensing revenues from Merck’s global sales its native South Korea, and has also gained of the HPV vaccine Gardasil, for which CSL experience filing patent infringement suits holds important patents. A niche in the against foreign companies in the US courts. complex biopharmaceuticals space affords a With an army of approximately 2,000 natural advantage in today’s crowded global research professionals, this prolific filer pharmaceutical sector, where its specialised wins plaudits for its commitment not only technology and industry know-how serve to increasing the volume of patents being as natural defences to competition. CSL is filed, but also to enhancing the quality of also in-licensing to improve its offering those patents and the sophistication of and consolidate its market position: a the technologies under development. The recent deal with Xencor gave it access to institute recently signed up to the RFID engineering methods that have boosted the and its joint patent licensing efficacy and potency of its antibodies and programme for the ultra-high frequency related products. radio-frequency identification standard; other patent owners in this group include Electonics and Telecommunications telecoms heavyweights such as 3M, France Research Institute Telecom, HP, LG Electronics and Motorola. Headquarters: Daejeon, South Korea Industry sector: R&D institute Fujifilm The Electronics and Telecommunications Headquarters: Tokyo, Japan Research Institute (ETRI) is hailed as one of Industry sector: Electronics, imaging the top global players among those research Photo film manufacturer Fujifilm has centres, universities and government successfully transitioned into the digital

Samsung Group – a growing focus on the world’s largest LCD manufacturer when it has attracted the attentions of many of assertion was hived off last year. its rivals and it is currently embroiled in South Korean Samsung While Samsung may traditionally have some 90 active suits around the world Group has risen to global dominance in viewed its intellectual property as more as a result. the past few years, thanks to its market- shield than sword, a brief look at its recent The IP team has risen admirably to the leading product lines and robust approach litigation record reveals a more aggressive challenges of this demanding caseload, to defending its intellectual property. It has stance as it focuses on asserting its rights thanks in large part to a restructure which amassed a formidable war chest of patents: in jurisdictions where competitors may be has positioned it at the very heart of the recent research on the leading patent weaker, such as Japan, Germany and its business. Three years ago, a dedicated holders in the United States puts Samsung home turf, South Korea. The smartphone centre was established to house a at the top of the leader board, ahead of US battles with a certain California-based centralised IP function for the entire group tech giants such as IBM and Microsoft. Its company are the main attraction as far as at HQ in Samsung Town, an office park tactical management of this vast portfolio the media is concerned, but they are by in Seoul which serves as the group’s IT has seen it spin out various subsidiaries no means the end of the story: Samsung’s and electronics nerve centre. This close such as Samsung Display, which became meteoric ascent on the international stage proximity means that the legal and IP people can interact daily with all levels of the organisation, from the lab to the boardroom, to ensure that IP informs all business decisions. Meanwhile, uniting the previously separate functions of licensing, monetisation and litigation under one roof has facilitated the design and implementation of a coherent, coordinated IP strategy, allowing each unit to support and advance the goals of the others. As one example, the licensing unit has helped to strengthen Samsung’s hand in litigation through a string of deals with heavyweight patent holders such as Microsoft, Intellectual Ventures and IBM, which will assist it in defending potential The Samsung Display IP team suits or launching countersuits, and give it At the heart of the company’s business greater freedom to operate.

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age, expanding its offering to encompass achievement that few of its Chinese digital equipment and imaging products contemporaries have managed. An through both internal innovation and ambitious expansion plan saw it move strategic deals. The 2011 acquisition of first into neighbouring Asian markets and ultrasound technology expert Sonosite then to the United States; more recently, significantly enhanced its imaging emerging economies have been a focus and technology capabilities, particularly in it has brokered deals with several Latin the healthcare space. It has also become American governments to bring its products more proactive in asserting its patents, to their people at affordable prices. With as demonstrated by an infringement suit an IP team that was set up as early as 1992 filed in the California District Court in – another pioneering move for a Chinese July 2012 against Motorola Mobility – a company – intellectual property has subsidiary of Google – over four patents long been an integral part of its corporate relating to camera and phone technology. strategy. Reporting directly to management, Fujifilm is equally savvy in its approach the IP function has veto power over many to monetisation: that same month it strategic decisions, especially those relating also sold off its worldwide organic LED to overseas operations. The acquisitions patent portfolio to Universal Display of Panasonic’s Sanyo Electric units in 2011 in a transaction worth some US$105 and Fisher & Paykel in 2012 have further million. This considered approach to how enhanced Haier’s IP and technology to utilise its intellectual property most portfolio, and its 8,000-plus patent arsenal effectively has translated into convincing continues to grow. business performance amid ongoing economic gloom. Hitachi Group Headquarters: Tokyo, Japan Fujitsu Industry sector: Electronics Headquarters: Tokyo, Japan Electronics conglomerate Hitachi has had Industry sector: Computer hardware, an IP function since 1921. It won global software renown on the strength of its intellectual Fujitsu’s product range spans computing, property in the semiconductor, LCD telecommunications and microelectronics. and hard disk drive spaces, but is now A centralised IP function is supported by a concentrating on developing technologies team of IP strategy supervisors embedded for its Social Innovation Business, in each division of the business, facilitating which includes infrastructure systems, close working relationships between information and communication systems, engineers and strategists. A strict policy of power systems and construction machinery. developing only those innovations offering It recently inked a £1.2 billion deal to true commercial potential most recently replace the fleet of British rail operator bore fruit in the form of the world’s most East Coast Main Line with its own Class accurate handwritten character recognition 800 series trains, and has entered into a technology, which employs artificial Y37 billion contract to build Vietnam’s first intelligence to mimic the workings of the urban railway in Ho Chi Minh City. The human brain. Energy efficiency is another geographical focus of its IP strategy is also focus: in 2011 Fujitsu began collaborating shifting to Asia and Latin America – with Silicon Valley-based start-up SuVolta a trend reflected in its patent application to help develop its PowerShrink technology statistics and in the new R&D centres for the manufacture of low-power chips, it has opened up in Shanghai and Sao and it is now manufacturing its own image Paulo, which will partner with universities processing chips using that technology on and other local institutions to develop the back of a licensing deal with SuVolta. technologies that best meet regional Its collaborative approach towards working infrastructure needs. with SMEs won it the 2013 Intellectual Property Achievement Award from Japan’s Honda Motor Company Ministry of Trade, Economy and Industry Headquarters: Tokyo, Japan and the Japan Patent Office. Industry sector: Automotive Best known as the world’s largest motorcycle Haier Group manufacturer, Honda also produces Headquarters: Qingdao, China automobiles, power equipment, solar cells Industry sector: Household appliances and aircraft. It is also a pioneer in artificial In the competitive household appliance intelligence – its ASIMO is the world’s sector, Haier is a brand that stands on most advanced humanoid robot, designed par with the global market leaders – an to assist the motor impaired. When it

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comes to intellectual property, the Japanese of its former Hyundai Group constituents multinational wins special plaudits for its and made it a convincing contender in the dynamic and aggressive anti-counterfeiting electric vehicle market: HEC’s engineering strategy. As the fake spare parts market capabilities will provide invaluable support booms, Honda is working tirelessly across in building the infrastructure for the mass Asia to shut down factories and dealerships roll-out of electric cars. Hyundai is also at that manufacture or sell counterfeit the forefront of developments in fuel-cell products. In Australia, it set up www. technology: in March it filed a US patent hondaserialoffenders.com.au to encourage application for the use of graphene in fuel consumers to check the serial number of cells and it is on track to launch a hydrogen Honda engines before purchase and report model by 2015. With China now its biggest discoveries of engines with defaced serial market, Hyundai has also set up a dedicated numbers; while in India, it has introduced R&D centre in Beijing to better understand high-tech security labelling for its spare and meet the demands of this growing parts. It has additionally made replication customer base. of its products difficult through prominent branding of parts such as batteries, horns, Industrial Technology Research cables, speedometers and headlights. Institute Headquarters: Hsinchu, Taiwan Huawei Technologies Industry sector: R&D institute Headquarters: Shenzhen, China The Industrial Technology Research Industry sector: Telecommunications Institute (ITRI) is the cradle of Taiwan’s See box on page 73. high-technology industry – many enterprises can trace their back Hyundai Motor Group to ITRI, with Taiwan Semiconductor Headquarters: Seoul, South Korea Manufacturing Company and United Industry sector: Automotive Microelectronics Corporation two of Hyundai Motor Group – South Korea’s its most successful offspring. Over the largest auto manufacturer – has an years ITRI has continued to evolve to impressive global IP portfolio and is a top reflect market needs: from supporting 200 patent holder in the United States. industries at the R&D level in the past, it It emerged in its current form when the now adopts a market-driven approach to Hyundai Group was restructured during identify and develop commercially viable the 1997 Asian financial crisis. The 2011 new technologies before transferring them acquisition of Hyundai Engineering & to companies. Prodigious R&D activity Construction (HEC) reunited it with some produces about five patents per day, on

Sony – a knack for spotting cinematic experience. It is also a leading remain a focus to this day: earlier this year opportunities contender in the smartwatch race – as Taiwan’s Fair Trade Commission approved Founded in the 1940s on the back of Samsung, Apple and Microsoft prepare to a new DVD patent pool that Sony a single patent for a tape recorder, launch their own versions of these devices, established in tandem with LG, Pioneer Sony has a grand tradition of invention. Sony is already on its second iteration. and Philips. Direct licensing is another Since its inception, it has devoted itself This knack for spotting opportunities pillar of the company’s IP strategy – a to creating products that break new in the market is reflected in its IP strategy. recent agreement has granted Technicolor ground to revolutionise the consumer It made history in 2011 when it jointly access to its smartphone and tablet market. Its disruptive innovations acquired Nortel’s 6,000-strong patent technologies. include the world’s first portable music portfolio for the record-breaking sum of Meanwhile, Sony is continually system (its iconic Walkman cassette US$4.5 billion. Teaming up with Apple, fine tuning its internal structures to player), the CD and the once-ubiquitous Microsoft, Research In Motion (as was), maintain its lead in the global electronics, 3.5-inch floppy disk. Ericsson and EMC Corporation, Sony was games and entertainment sectors. In Sony remains at the cutting edge of the only Asian company in the Rockstar September 2013 it established a third- technology and recently filed a continuation Consortium. It was also one of the first party production team for its PlayStation patent application in the United States Asian companies to invest in patent business division in order to bring for its own model of augmented reality aggregator Intellectual Ventures, in an existing intellectual property – such as glasses. The company is well placed to astute move aimed at strengthening its titles developed by other gaming houses take on Google in this nascent market, defensive position. – to its platforms. Sony’s willingness to given its facility with head-mounted Sony was also a driving force behind partner with smaller outfits in order to devices: other pioneering products include early patent pools, collaborating with other enhance the content of the PlayStation the new HMZ-T3W headset, which mimics industry players to set up pools for CD platform is one that market competitors a 750-inch screen for an immersive technology as far back as the 1980s. They would perhaps do well to take note of.

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average. As the patent wars in the tech LG Corporation space intensify, ITRI also helps domestic Headquarters: Seoul, South Korea companies facing infringement suits Industry sector: Electronics, chemicals, overseas by transferring relevant patents to telecommunications them to assert. With a patent arsenal that South Korean conglomerate LG Corp has currently stands some 19,000 strong, it built up a sprawling corporate empire is also promoting the establishment of an through a series of successful partnerships. IP fund that would acquire further useful Leading LCD panel manufacturer LG patents for defensive use. Display was spawned from a joint venture with Dutch electronics power Philips, Kao Corporation while an eight-year alliance with IBM Headquarters: Tokyo, Japan helped it break into the PC market. It has Industry sector: Personal care, chemicals an impressive patent portfolio of its own, and chemicals producer Kao has with particular strength in the LTE space, been manufacturing skincare, hair styling and is consolidating this position through and colouring products for over a century. further collaboration: an Android patent deal Originally developing products for the was signed with Microsoft last year, while Japanese market, it now counts internationally a May 2013 agreement with Global OLED renowned brands such as John Frieda, Jergens, Technology gave it access to patents covering Biore and Molton Brown among its portfolio. AMOLED display technology. With a long The IP function can coordinate with dedicated history of enforcement, LG is a sophisticated patent liaison officers working within the opponent. While cases previously tended to laboratories of each business unit, ensuring play out with domestic rivals, its expanding that both sides have detailed knowledge of geographical footprint means that cross- new products coming down the pipeline and border suits with international competitors the processes involved in protecting and are on the rise. LG has responded to this commercialising them. Kao’s IP strategy is threat by beefing up its IP team, in particular focused on integrating the scientific, technical by adding more foreign-qualified attorneys. and business know-how amassed over the company’s lifetime and applying it to the MediaTek development and launch of fresh products. Headquarters: Hsinchu, Taiwan One such example was the recent unveiling Industry sector: Semiconductors of the Megurism Steam Thermo Power Pad The mission statement of Taiwan fabless to alleviate muscle stiffness – a product semiconductor company MediaTek is simple: that brings together technologies that Kao to make technology cheaper and simpler developed over 20 years across various brands. to use. The strategy is paying handsome dividends for this disruptive player: the Lenovo Group number of smartphones incorporating its Headquarters: Beijing, China; Morrisville, chips soared from 10 million in 2011 to 110 United States million the following year. With over 5,000 Industry sector: Computer hardware patents to its name, it is known for its savvy Lenovo’s IP strategy has been predicated on approach to IP management. One notable a string of strategic acquisitions that have example is a royalty-free patent agreement enabled the business to expand its product inked with Qualcomm in 2009 for the use offering and gain access to new markets of 3G technology – analysts suggested that at lightning speed. The standout deal to MediaTek’s strong position in TD-SCDMA date was its purchase of IBM’s PC business chips gained it traction in the negotiations. in 2005 – a coup which won the Chinese The company has equally proved a shrewd computer hardware manufacturer IBM’s tactician in litigation: after careful analysis, formidable patent portfolio, its ThinkPad it determined to fight back when Freescale trademark and key global resources. Lenovo Semiconductor sued it for infringement in has since garnered praise for its ability 2011, asserting the same patent that had to integrate and manage these assets secured the Texas-based company favourable with its own systems, to great effect. The results against other rivals. MediaTek was company’s respect for IP rights has also correct in its assessment and was ultimately earned it plaudits: in March 2013 it became vindicated in the ITC. one of the first Chinese PC manufacturers to sign an agreement with Microsoft to Mitsubishi Electric Corporation ensure that the Windows operating system Headquarters: Tokyo, Japan is pre-installed on all of its computers Industry sector: Electrical equipment, made in China, in a bid to crack down on electronics software piracy. Mitsubishi Electric Corporation produces

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a wide range of home appliances and refrigerators for the PRC market. Other energy, automotive and building systems. green innovations include a regenerative A centralised IP department, headed by converter that feeds power generated by president Osamu Masuko, designs tailored moving elevators back into the building’s strategies for the entire Mitsubishi electricity network. Mitubishi Electric Group. Emerging markets have become has long been alive to the commercial a key focus as demand increases among potential of licensing, with well- the burgeoning middle classes of Asia established revenue streams from the and Latin America: filing activity has MPEG and Blu-ray Disc patent pools. It been ramped up in countries such as is also willing to enforce those patents India and Brazil, and a joint venture – as most recently illustrated by four has been established with Chinese infringement suits filed in Florida against manufacturer Hefei Kinghome Electrical rival television manufacturers over the to develop energy-saving, high-capacity MPEG-2 pool.

Taiwan Semiconductor Manufacturing TSMC, as senior vice president and general scope to seek damages. Company – a company built on IP counsel Richard Thurston explains. “This is an Patent filing and portfolio management The world’s first dedicated entire company built on innovation and IP,” he is another central focus. “When I joined semiconductor foundry, Taiwan says. “We don’t have a branded end product in 2002, we had about 2,000 US patents. Semiconductor Manufacturing Company like most companies that sell consumer Now – taking into account the patents (TSMC) is the manufacturer of choice electronics; our manufacturing processes and we have acquired over the years – we for industry heavyweights such as related technologies are our most valuable expect to have nearly 9,000 US patents Qualcomm and Broadcom, thanks to resources.” by the end of 2013,” says Thurston. Its its sophisticated proprietary production In protecting these resources, the filing strategy is predicated on the twin technologies. Collaboration has been its IP team makes full use of all available principles of quality and commercial and calling card since its inception: it was weapons in their arsenal, with a special technical relevance. While external law established in 1987 as a joint venture focus on trade secrets. “If I had to point firm providers are important partners in with Philips, on the back of technology to a key difference between this company the patenting process, a majority of its provided by R&D organisation Industrial and competitors, it would be our early and core patent applications are painstakingly Technology Research Institute. In a determined emphasis on trade secrets and drafted in-house. “We take special care recent announcement, the company’s the importance of this area of protection,” with these would-be ‘golden patents’,” chairman and CEO discussed the reveals Thurston. Among other things, this Thurston confirms. “Grand Alliance” that TSMC has forged has involved establishing solid firewalls Going forward, TSMC’s objective is to with IP, software IP, systems software and setting up a dedicated trade secret anticipate technology trends in the highly and design service providers; key unit to handle proprietary information competitive semiconductor sector. To partners that help to bridge the process protection. TSMC was also a key member position itself to achieve this, it acquired a from design to production, testing and of a consortium of Taiwanese technology 5% stake in key equipment supplier ASML packaging include ARM, Imagination companies which lobbied for legislative in 2012 and has ring fenced US$334 and Cadence. reforms that would increase the penalties for million for R&D into next-generation Intellectual property is the lifeblood of trade secret violations and provide greater manufacturing technologies.

Richard ‘Dick’ Thurston, senior vice TSMC IP team members stand shoulder to shoulder president and general counsel Making full use of all weapons in their arsenal “This is an entire company built on innovation and IP”

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NEC camera manufacturer Nikon has more Headquarters: Tokyo, Japan recently leveraged its expertise in optical Industry sector: Information technology, equipment and instruments to branch electronics out into related fields such as precision Headquartered in Tokyo, NEC is a leading equipment, sports optics and measuring/ provider of IT solutions, network solutions imaging instruments. As technologies and electronic devices. It is committed evolve and consumer behaviours to the continued development and change, the company has demonstrated improvement of its products: one such commendable versatility and flexibility in success story is its fingerprint technology, its approach to its intellectual property and which was first commercialised in 1982 and overall corporate strategy. A February 2013 has since been consistently fine tuned to patent licensing agreement brokered with become a security system of choice for both Microsoft for access to the software giant’s law enforcement and identity management Android technology reflects its recognition in North America, Europe and Asia. A of the growing need for cross-collaboration collaborative approach to R&D has seen it in today’s intensely competitive consumer further the advancement of the OpenFlow electronics market. Its commitment to systems that support the operations of improving and developing its products is complex data networks; it has also teamed further borne out by its latest innovation: up with Panasonic, NTT Docomo and patented password technology designed to Fujitsu to launch large-scale integration protect the use of its camera lens, with the chips for modems in mobile devices. NEC aim of discouraging theft and the resale of has a flair for extracting maximum value stolen equipment. from its 64,000-strong patent portfolio and has been strategically selling off Nintendo underutilised assets: most recently, it sold Headquarters: Kyoto, Japan US$122 million’s worth of display-panel Industry sector: Video games, consumer related patents to Taiwanese electronics electronics outfit Hon Hai. As the creator of the iconic Mario, Zelda and Donkey Kong franchises, as well as New Zealand Rugby Union ground-breaking gaming systems such Headquarters: Wellington, New Zealand as the Wii and 3DS, Nintendo boasts a Industry sector: Sport formidable IP portfolio. The Japanese The New Zealand Rugby Union’s (NZRU) company has come under fire from analysts astute approach to intellectual property for refusing to license its titles to other is best exemplified by its intelligent platforms, but the decision reflects the development of the rights surrounding the company’s determination to retain full country’s national team. The organisation control over both its software and hardware. has engaged an extensive network of In another controversial gambit, Nintendo specialist service providers to optimise the recently issued content IP claims over value of its iconic All Blacks brand. Tight videos posted by gamers on YouTube’s Let’s control means that each detail of the team’s Play channel, demanding that any associated identity is carefully selected and protected, ad revenues be directed to its coffers. The with even the typeface of official materials move highlighted Nintendo’s enthusiasm designed and trademarked. The NZRU has for asserting its IP rights, which is further strived to ensure that the brand can thrive borne out by its litigation record – it won in today’s increasingly global marketplace, at least three cases against patent trolls in taking some tough but judicious decisions 2012. More recently, however, it seems to along the way, such as dropping the words have relaxed its position towards the Let’s ‘New Zealand’ from the team’s name. The Play community, perhaps in recognition of All Blacks bring in vital revenue to the the unique value of fan videos in promoting national rugby scene through lucrative its titles to a receptive audience. sponsorship and licensing opportunities, with heavyweight global sponsors such Panasonic Corporation as AIG, adidas, Coca Cola and Ford lining Headquarters: Osaka, Japan up to affiliate their products with this Industry sector: Electronics, phenomenally successful squad. semiconductors, home appliances While many Japanese companies have Nikon Corporation been left reeling by the combination of Headquarters: Tokyo, Japan ongoing domestic stagnation and the global Industry sector: Electronics, imaging financial crisis, electronics giant Panasonic One of Japan’s most famous brands, has risen to the challenge by revamping its

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corporate and IP strategies in recent years. East Japan earthquake, which prompted The result has been a renewed focus on Renesas to restructure its business and core businesses, including its acclaimed realise the value locked up in its IP assets. television line, and more aggressive The result was a decision to refocus on assertion of its extensive range of IP assets. core lines and divest its wireless modem Historically known more as a defensive subsidiary, Renesas Mobile. Within three player in the courtroom, Panasonic’s months, the company had found a buyer: participation in patent pools – such as Blu- in September 2013, renowned wireless chip ray pool One Blue, LLC and digital television maker Broadcom announced a US$164 patent pool MPEG LA Advanced – has seen million deal to purchase the subsidiary and it assume the role of plaintiff in several its valuable 4G LTE assets. infringement suits filed in the United States this year. The company is also keeping ResMed pace with the latest viewing trends: a 2013 Headquarters: San Diego, United States licensing agreement to access WiLAN’s Industry sector: Medical digital television and display patent Founded in 1989 on the back on a single portfolio should ensure that its products invention, Australian medical device remain at the cutting edge. provider ResMed offers a range of market- leading solutions for the prevention and Renesas Electronics Corporation treatment of obstructive sleep apnea Headquarters: Tokyo, Japan and other sleep disorders. These include Industry sector: Semiconductors diagnostic tools, ventilators, humidifiers Renesas emerged in its current incarnation and ‘sleep diary’ data management in 2010 through the combination of NEC software. It is committed to ongoing Electronics and Renesas Technology. It is innovation and each year ring-fences 7% a leading global player in the manufacture to 8% of its revenues for R&D to ensure of microcontrollers for car information a steady pipeline of inventions. It is also systems and industrial equipment, and a staunch defender of the intellectual semiconductors for mobile phones. Its 2010 property underpinning both the hardware decision to license some of its 40,000- and software of its products: it recently plus patents to US NPE Acacia Research prevailed in an ITC suit against APEX was a bold move for a Japanese company Medical Corp over infringing masks and and illustrated its progressive approach to flow generators, securing a consent decree monetisation – a goal that became even from its Taiwanese rival. It has since more urgent in the wake of the 2011 Great taken action in the same forum against

Tata Technologies – tackling lack of IP in its still-modest portfolio were filed in the discussions in the boardroom. awareness head-on last two years and many more are in the This top down, bottom up Industrial powerhouse Tata has interests pipeline. The company is also enhancing its commitment to intellectual property has in sectors as diverse as insurance, luxury know-how through strategic acquisitions become even more important as the furnishings, automotive and publishing. – it recently bought US-based engineering company seeks to break into burgeoning Tata Technologies is its engineering and services provider Cambric Corporation new markets: it recently announced plans design service provider, set up in 1994 for US$32.5 million in a deal aimed at to move into China, South Africa and to help expand the group’s international strengthening its systems engineering and Mexico. Its strategy is based on following footprint. Its primary focus is engineering design capabilities. key customers – including Jaguar, Airbus in the automotive and aviation sectors, but Tata Technologies was quick to recognise and Chrysler – into emerging jurisdictions, it also offers heavy machinery design and that one of the major problems preventing supporting their expansion with software training. One of the first Indian Indian companies from competing effectively customised software solutions. As such, companies to sell engineering software on the global market is their limited the protection of the Tata brand overseas online, it has built up a prestigious clientele understanding of intellectual property. It has is a key . While the TATA mark that includes industry heavyweights such tackled this head-on through a comprehensive is registered in over 100 countries, Tata as Ford, General Motors and Boeing. programme designed to promote IP Technologies is a much smaller company These ongoing service relationships have awareness across all strata of the organisation. with less worldwide recognition and fewer helped it to reach annual revenues of some One such initiative aimed at engineers, registrations. Its IP unit is thus focused US$376 million. scientists and other R&D employees is a on establishing the company’s identity The company’s IP function was quarterly comic strip, with storylines based on internationally while also protecting established in 2006, with a mandate to everyday IP issues that these personnel might the group mark through a licensing secure protection for key brands and encounter. At the top tier of the company, the arrangement with the Tata Group, which proprietary software codes. Patenting is head of IP regularly liaises with the C-suite allows it to undertake various direct and also a growing focus: most of the patents to keep them on message and facilitate IP indirect actions to this end.

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Chinese medical device manufacturer successfully defended an infringement suit BMC Medical and its distributors over brought by domestic rival LG Chemical in alleged infringement of masks and other the South Korean Patent Court over patents proprietary RESmart devices. for materials used in medium and large- sized rechargeable batteries. Samsung Group Headquarters: Seoul, South Korea Sony Corporation Industry sector: Electronics, information Headquarters: Tokyo, Japan technology, semiconductors Industry sector: Electronics, media and See box on page 77. entertainment, semiconductors See box on page 79. Seiko Epson Corporation Headquarters: Suwa, Japan Taiwan Semiconductor Manufacturing Industry sector: Electronics, imaging Company Seiko Epson was formed in 1985 through Headquarters: Hsinchu, Taiwan the merger of quartz-watch maker Seiko and Industry sector: Semiconductors PC and printer company Epson. It boasts an See box on page 81. impressive patent portfolio for a company of its size, with over 16,000 patents granted Takeda Pharmaceutical and more than 5,700 pending in the United Headquarters: Osaka, Japan States alone; it placed 16th in a 2013 survey Industry sector: Pharmaceuticals published jointly by IAM and MDB Capital Takeda has become the largest Group that identifies companies with pharmaceutical company in Asia, thanks over 1,000 active US patents. A master in large part to its astute approach to IP tactician when it comes to effective use of management. In 2009 it created the post its intellectual property, Seiko Epson was of chief scientific officer with a mandate to one of the first companies to join defensive oversee the global R&D and IP functions, in patent aggregator RPX and can leverage on order to ensure that both work seamlessly its IP strength to bring disputes to a swift together and facilitate dialogue between the and favourable close. In 2011 it forced a boardroom and the labs. While its best- settlement agreement with Taiwanese ink known drug – type 2 diabetes treatment cartridge manufacturer UBAR in a utility Actos – came off patent last year, a string model suit before the Taiwan courts, of strategic acquisitions have allowed it and a 2013 patent infringement dispute to survive the patent cliff and consolidate with Dynamic Cassette International was its position as a global player. In 2008 it likewise resolved before the case went to bought Massachusetts-based Millennium trial at the UK High Court. and Amgen’s Japanese unit to gain access to technology and patents in the biotechnology SK Group and oncology spaces, while the US$13.7 Headquarters: Seoul, South Korea billion acquisition of Nycomed in 2011 Industry sector: Energy, – its biggest overseas purchase to date – telecommunications, semiconductors allowed it to expand into Europe and other As one of South Korea’s largest new markets. Takeda has also rolled out a (conglomerates), SK Group has established successful licensing programme: its royalty an extensive IP portfolio across diverse income in 2012 totalled some US$455 million. sectors such as telecommunications, energy and, most recently, semiconductors. Its Tata Technologies 2012 acquisition of chip supplier Hynix Headquarters: Mumbai, India brought a ready-made industry power Industry sector: Engineering and design into the fold: the newly minted SK Hynix services has since expressed its willingness to ink See box on page 83. cross-licensing deals with competitors to minimise the risk of patent disputes, so it Tencent can focus its attentions on its core business. Headquarters: Shenzhen, China One recent such initiative is an agreement Industry sector: Internet with Samsung Electronics to share the use China’s online titan Tencent has of semiconductor technologies and patents, demonstrated a distinctly creative flair in in a joint effort to develop more advanced the exploitation of its intellectual property. ‘next-gen’ semiconductor technologies. QQ – the penguin mascot for popular Despite this collaborative approach, instant messaging service Tencent QQ – however, the group is not shy of a fight: in has become a commercial phenomenon, April 2013 chemicals arm SK Innovation and the company has set up a string of

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franchised stores around China selling its traditional core of engineering and QQ-themed merchandise such as clothing, electronics to encompass computers and, watches and toy penguins. The brand’s most recently, semiconductors, storage popularity extends across the Asia-Pacific products and social infrastructure. It is region – the Jakarta Commercial Court also exploring new ways to utilise existing confirmed that QQ should be considered know-how: a recent announcement by as a well-known mark in Indonesia in a its CEO signalled a renewed focus on recent trademark squatting case. Mobile healthcare, making particular use of its messenger service WeChat, its latest imaging technology in diagnostics and blockbuster innovation, has been a big hit treatment solutions. As a result of its ever since its release and has helped to evolving innovation strategy, Toshiba is boost Tencent’s brand value to record levels a prolific patent filer, with about 15,000 – it eclipsed that of Facebook in this year’s new applications filed around the world Brandz Top 100 rankings. A team of 50-plus each year. A key priority of its IP function dedicated IP professionals and a portfolio is thus the implementation of a rigorous of over 8,000 patents form the backbone patent management programme, aimed at supporting these successes. maintaining the strength of its portfolio while controlling for quality and cutting Toshiba Corporation filing and maintenance costs. Headquarters: Tokyo, Japan Industry sector: Electronics, Toyota Motor Corporation semiconductors Headquarters: Toyota, Japan Japanese conglomerate Toshiba has Industry sector: Automotive weathered the economic ebbs and flows of Toyota has established itself as Japan’s recent decades through a flexible approach leading export, with a brand valued by to IP management. The company has Interbrand at more than US$30 billion. In proved itself highly adaptable to market other table-topping statistics, it claimed trends and forces, expanding its R&D from the number one spot for R&D spend

Treasury Wine Estates – simplicity is IP team of the entire Fosters group before involves providing support for commercial the key the spin-off. In setting the IP agenda for this activities: his unit effectively acts as an Treasury Wine Estates (TWE), comprising “unashamedly growth-driven company”, internal consultancy to ensure that such all wine brands and services of the simplicity has been his watchword. “IP initiatives proceed smoothly to plan. Fosters Group, was spun out from its has overcomplicated itself, and one of my Above this are strategic concerns on parent company in 2011. Its self-styled objectives is to make it non-mysterious,” he how best to leverage company assets (and trademarked) ‘vintrepreneurs’ have explains. “If you can’t describe it to a CEO in for growth and return. Much of TWE’s demonstrated a keenly commercial two minutes, then it is not worth it. Simplicity intellectual property represents a powerful approach to branding in fast establishing is the key, not complexity.” draw for strategic partners and solid TWE’s standing in the notoriously TWE’s streamlined IP department collateral for transactions or agreements; competitive global wine market. reflects this philosophy. Operating as a lean the IP team plays a key role in realising the At the heart of these efforts is IP team of three, it has farmed out all routine full potential of this rich portfolio. director Owen Malone, who headed up the and systematic tasks to a highly organised Meanwhile, the dynamic wine sector external service provider. From this central brings with it its own challenges, observes hub, instructions are distributed through a Malone. Rolling out alcohol brands in new network of agents and data consolidated territories can present unique obstacles, back into the company at regular intervals. such as cultural and religious sensibilities By setting up default instructions and to overcome. More generally, continental clear channels for dialogue with external Asia is identified as a particular hotspot partners, the team has created the time and for his team: IP regimes across the region space for them to focus on more complex are inconsistent and enforcement actions strategic matters. in these jurisdictions often come up short. Malone describes TWE’s overall IP Communication and collaboration are function in terms of a pyramid structure. vital in such a demanding environment, The bottom line is asset security, which and TWE has forged strong relationships involves watching and monitoring the with interested parties and government market for signs of possible brand misuse. authorities on the ground in Asia to The next step up is operations, which safeguard its brands effectively.

Treasury Wine Estates IP team (from left: Robyn Booth, Owen Malone and Esther-Maree Gallert) Success through focusing on quality and efficiency

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in 2011, with an investment of US$9.9 development of new high-tech materials: billion, according to Bloomberg; and last its patented HeatTech and Ultra Light down year secured the most US patents of any fabrics, which make traditionally bulky company in the automobile sector. A winter apparel lighter and more wearable, forward-thinking approach has kept it have proved a big hit since their release in at the vanguard of the burgeoning green 2003 and 2009 respectively. Uniqlo has automotive market: in 2012 it led green- also entered into a string of licensing deals tech patent filings in the United States for with prestigious partners such as Coca- three consecutive quarters. It began R&D Cola, Fiat Group Automobiles, Warner Bros on its ground-breaking hybrid systems back and New York’s Museum of Modern Art. in the early 1990s and has safeguarded all These shrewd collaborations have not only elements of this complex technology since allowed Uniqlo to produce products bearing day one: the Prius is covered by over 2,000 popular marques and images that resonate patents. This has given Toyota a significant with the public, but also boosted its profile edge as demand for greener cars increases; among customers unfamiliar with the brand competitors such as Ford and Nissan had and facilitated its expansion into US and to license its technology when they started European markets. developing their own hybrids. United Microelectronics Corporation Treasury Wine Estates Headquarters: Hsinchu, Taiwan Headquarters: Melbourne, Australia Industry sector: Semiconductors Industry sector: Winemaking As the first spin-off from Taiwan’s ITRI, See box on page 85. United Microelectronics Corporation (UMC) has had a commercially savvy Tsinghua University approach towards its intellectual property Headquarters: Beijing, China since its establishment in 1980. It has Industry sector: R&D institute proved particularly adept at adapting its IP One of China’s two most prestigious strategy to gain an edge over other industry academies, Tsinghua University is a players. In 2000, the chipmaker sued cradle of science and engineering. It has domestic competitor Silicon Integrated had it own dedicated patent department Systems in the United States for patent ever since the early 1980s, providing infringement and misappropriation business-minded guidance on filing of trade secrets, in order to block the and commercialisation strategies. The latter from building a fab and entering institution puts much weight on monetising the same market. More recently, last its intellectual property and has rolled year it acquired a licence for IBM’s 20 out a sophisticated licensing programme nanometer process design kit and FinFET involving various technologies – most architecture to accelerate the availability notably digital television and biochips. In of these technologies for UMC customers. 2011-2012 alone, Tsinghua signed some The deal not only beat arch-rival Taiwan 89 licensing and tech transfer deals worth Semiconductor Manufacturing Company to more than RMB110 million (US$1.6 million) first use of the technology, but also further in total. The university has made significant ramped up UMC’s manufacturing capacity; contributions to the development of it signed an agreement to produce chips for intellectual property in China in both the Qualcomm shortly thereafter. regulatory and academic spheres – it is actively involved in advising on the drafting Wipro of new laws and regulations, and is in the Headquarters: Bangalore, India process of setting up its own Business Industry sector: Information technology School IP Centre to educate tomorrow’s While the IP strategy at IT consulting entrepreneurs on the importance of IP. and outsourcing specialist Wipro previously centred on the development Uniqlo of new technologies, it is now focused Headquarters: Tokyo, Japan on extracting maximum value from the Industry sector: Fashion, retail company’s existing products. To help In a style-driven sector that is characterised achieve this goal, the IP function has by imitation, Uniqlo has stayed true to been restructured as a centrally governed the origins of its name –shorthand for unit reporting directly to the CEO, and ‘unique clothing’ – with a commitment to a dedicated team has been set up to innovation that sets it apart from many of explore potential licensing opportunities its fast-fashion rivals. The Japanese clothing – a forward-thinking move for an Indian manufacturer has invested heavily in the company. One way in which Wipro is

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Chart 1. The Asia IP Elite by industry

Winemaking 1% Vid

Telecommunications equipment 3%

eo games 1% T elecommunications 3% Sport 1% 3%

Automotive 4% emicals

Ch re 5% Biotechnology 3% Semiconductor 12% rdwa Automotive Internet e 3% Biotechnology Materials omputer ha C ce 1% Chemicals Media/entertainment ComputerE-commer softwar Computer hardware Medical equipment 1% Electrical Computer software Personal care E-commerce Pharmaceuticals Electrical equipment R&D institute R&D institute 6% Electronics Semiconductor Energy Sport Engineering and construction Telecommunications Pharmaceuticalse 1% 1% Electr Fashion Telecommunications equipment Personal car onics 25% Home appliances Video games Medical 1% Engineering and construction Imaging Winemaking Media/entertainment 3% Information technology

Materials 1%

Home appliances 3% net 4% Inter

Ener

Fashion 1% mation technology 5%

gy 1% Infor

1%

Imaging 5%

seeking to optimise existing technologies objective is to obtain patents that align is by introducing them into new industries: with its commercial strategy. Strict quality an example is a partnership with Qatar control procedures begin at the mapping Airways to develop a range of innovative stage, while the costs of administration and software products addressing aircraft enforcement are controlled by portfolio maintenance planning, crisis management integration and the abandonment of low- and route profitability. Wipro also recently value patents. ZTE is also actively exploring announced its appointment as a strategic the establishment of patent pools with IT partner to Dubai-based shopping and other industry parties to streamline the entertainment complex developer Majid licensing process and make technologies Al Futtaim Ventures, in a deal which has more accessible. The company’s IP strength further expanded its geographical footprint has given it significant leverage in disputes: on the back of its intellectual property. a global cross-licensing settlement with Ericsson in 2012 – just eight months after ZTE Corporation Ericsson had sued it in the United Kingdom, Headquarters: Shenzhen, China Germany and Italy for patent infringement, Industry sector: Telecommunications receiving a countersuit in China in equipment response – bears testament to its smart IP The statistics are the most persuasive management. evidence of ZTE’s commitment to intellectual property. In 2012 it topped the tables as the world’s number one Patent Cooperation Treaty (PCT) filer, with close to 4,000 applications filed – a trend which Seher Hussain is IAM’s Asia editor; Virna will doubtless continue in the future, given Chung and Justin Kung are members of that it spent a staggering US$1.47 billion the IP Media Group’s research team. All on R&D last year alone. Its overarching three are based in Hong Kong www.iam-magazine.com Intellectual Asset Management November/December 2013 87