The University of Akron IdeaExchange@UAkron Akron Intellectual Property Journal Akron Law Journals March 2016 Patent Litigation in Japan David W. Hill Shinichi Murata Please take a moment to share how this work helps you through this survey. Your feedback will be important as we plan further development of our repository. Follow this and additional works at: https://ideaexchange.uakron.edu/akronintellectualproperty Part of the Intellectual Property Law Commons, International Law Commons, and the Litigation Commons Recommended Citation Hill, David W. and Murata, Shinichi (2007) "Patent Litigation in Japan," Akron Intellectual Property Journal: Vol. 1 : Iss. 2 , Article 1. Available at: https://ideaexchange.uakron.edu/akronintellectualproperty/vol1/iss2/1 This Article is brought to you for free and open access by Akron Law Journals at IdeaExchange@UAkron, the institutional repository of The nivU ersity of Akron in Akron, Ohio, USA. It has been accepted for inclusion in Akron Intellectual Property Journal by an authorized administrator of IdeaExchange@UAkron. For more information, please contact [email protected], [email protected]. Hill and Murata: Patent Litigation in Japan PATENT LITIGATION IN JAPAN David W. Hill*& Shinichi Murata** I. INTRODUCTION There are many differences between the U.S. and Japanese judicial systems. For example, Japan has no jury trial or thorough discovery sys- tem comparable to the system in the United States, and treble damages are not allowed in Japan. These judicial differences have been reflected in the patent litigations taking place in the two countries. In the past, many observers said that it took a very long time and was burdensome to enforce patent rights in Japan, and the amounts of damages awarded by Japanese courts were usually small. Recently, however, the situation has been rapidly changing in Ja- pan. The Patent Law and the Code of Civil Procedure have been amended several times.1 In addition, several meetings of the Strategy Council on Intellectual Property, formed directly by the Prime Minister, were held in 2002. The Council developed the Intellectual Property Pol- icy Outline in July 2002, which included reform of the patent litigation system. 2 The Council also introduced the Basic Law of Intellectual . Attorney at Law and Partner, Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, Reston, VA, 1977-present; B.S., Engineering, U.S. Military Academy, 1969; M.S. with honors, Business Administration, Boston University, 1974; J.D., George Washington University, 1977; LL.M. with highest honors in Patent & Trade Regulation Law, George Washington, University, 1981; Technical Advisor, U.S. Court of Customs & Patent Appeals, 1976-77; Gaikokuho Jimu Bengoshi (Licensed Foreign Lawyer), Japan, 1988-90. Attorney at Law (admitted in Japan and New York), Kaneko & lwamatsu, Tokyo, 1995-present; Trainee at Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, Washington, DC, 2001-2003; LL.B., The University of Tokyo, 1992; LL.M. in Intellectual Property Law, The George Washing- ton University, 2001. 1. TOKKYO HO [Patent law], Law No. 51 of 1998, Law No. 41 of 1999, Law No. 24 of 2002, Law No. 47 of 2003, Law No. 120 of 2004, Law No. 75 of 2005, Law No. 55 of 2006, and MINSOHO [Code of civil procedure], Law No. 109 of 1996, Law No. 108 of 2003, Law No. 120 of 2004. 2. STRATEGIC COUNCIL ON INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY POLICY OUTLINE (Jul. 3, 2002), http://www.kantei.go.jp/foreign/policy/titeki/kettei/O20703taikoue.html (English translation). Published by IdeaExchange@UAkron, 2007 1 Akron Intellectual Property Journal, Vol. 1 [2007], Iss. 2, Art. 1 AKRON INTELLECTUAL PROPERTY JOURNAL [1:141 Property bill in October 2002, which was enacted in November of the same year. 3 Under this law, the Intellectual Property Policy Headquar- ters was established at the Cabinet level, and this Headquarters devel- oped "Strategic Programs for the Creation, Protection, and Exploitation of Intellectual Property" in July 2003. 4 The plan has been revised every year since that time. 5 The government's initiatives demonstrate that a strategy on intellectual property has become an important national con- cern for Japan. Japanese procedures have become faster, and the amount of dam- ages awarded by Japanese courts has been increasing. 6 Both trends sug- gest that Japanese patent litigation is becoming a more attractive way to resolve patent disputes. This article will explore how patent litigation in Japan has changed and will also compare and contrast aspects of patent litigation in the U.S. and Japan. In Part II, we show recent statistical data on Japanese patent- infringement litigation. Parts III and IV briefly review the Japanese ju- dicial system and legal professionals in the area of intellectual property. Part V addresses patent-infringement actions in Japan and the recent amendments of the Code of Civil Procedure and the Patent Law. Next, Parts VI and VII discuss infringement analysis and possible defenses in patent-infringement litigation. Part VIII reviews how to calculate the amount of damages in patent litigation in Japan. Finally, Part IX dis- cusses provisional injunctions in Japan. 3. BASIC LAW ON INTELLECTUAL PROPERTY (LAW NO. 122 OF 2002), http://www.kantei.go.jp/foreign/policy/titeki/hourei/021204kihone.html (Provisional English Translation). 4. INTELLECTUAL PROPERTY POLICY HEADQUARTERS, STRATEGIC PROGRAM FOR THE CREATION, PROTECTION AND EXPLOITATION OF INTELLECTUAL PROPERTY (Jul. 8, 2003), http://www.kantei.go.jp/foreign/policy/titeki/kettei/030708f_e.htm 5. INTELLECTUAL PROPERTY POLICY HEADQUARTERS, INTELLECTUAL PROPERTY STRATEGIC PROGRAM 2004 (May 27, 2004), http://www.kantei.go.jp/foreign/policy/titeki/kettei/040527_e.html (English version of 2004 pro- gram); INTELLECTUAL PROPERTY POLICY HEADQUARTERS, INTELLECTUAL PROPERTY STRATEGIC PROGRAM 2005 (Jun. 10, 2005), http://www.kantei.go.jp/foreign/policy/titeki/kettei/050610 e.pdf (English version of 2005 program); and INTELLECTUAL PROPERTY POLICY HEADQUARTERS, INTELLECTUAL PROPERTY STRATEGIC PROGRAM 2006 (Jun. 8, 2006), http://www.kantei.go.jp/jp/singi/titeki2/keikaku2006_e.pdf (English version of 2006 program). 6. See infra notes 11-17 and accompanying text. https://ideaexchange.uakron.edu/akronintellectualproperty/vol1/iss2/1 2 Hill and Murata: Patent Litigation in Japan 2007] PATENT LITIGATION IN JAPAN II. RECENT TRENDS IN IP CASES A. Numbers of IP Cases Table 1: IP Cases Filed in Japan 7 Year Total Patent Design Trademark Copyright Unfair and Patent Competition, Utility etc. Model 1991 311 132 29 36 40 74 1992 413 149 24 45 66 129 1993 470 221 37 55 70 87 1994 497 204 26 53 72 142 1995 528 172 31 53 87 185 1996 590 234 28 80 85 163 1997 563 236 25 63 95 144 1998 559 214 22 77 113 133 7. The data of 1997 to 2005 are derived from the HOSO JIHO, vol. 50, No. 12; vol. 51, No. 12; vol. 52, No. 12; vol. 53, No. 12; vol. 54, No. 12; vol. 55, No. 12; vol. 56, No. 12; vol. 57, No. 12; and vol. 58, No.12. The data of 1991 to 1996 are derived from the Administrative office of the Supreme Court of Japan. Published by IdeaExchange@UAkron, 2007 3 Akron Intellectual Property Journal, Vol. 1 [2007], Iss. 2, Art. 1 AKRON INTELLECTUAL PROPERTY JOURNAL [1:141 Table 1: IP Cases Filed in Japan (cont.) Year Total Patent Design Trademark Copyright Unfair and Patent Competition, Utility etc. Model 1999 642 263 32 65 117 165 2000 610 235 38 89 97 151 2001 554 187 29 67 127 144 2002 607 203 27 99 113 165 2003 635 216 27 106 113 173 2004 654 252 25 80 107 190 2005 579 209 28 90 96 156 Table 2: IP Suits Resolved in Japan (District Courts) 8 Year 1991 1992 1993 1994 1995 1996 1997 1998 Number 386 471 457 402 440 442 549 596 Year 1999 2000 2001 2002 2003 2004 2005 - Number 772 740 717 643 615 696 639 - 8. The data are derived from Distribution Material at the H6s6 jih6, vol. 53, No. 12; vol. 54, No. 12; vol. 55, No. 12; vol. 56, No. 12; vol. 57, No. 12; Third Meeting of Consultation Group on Intellectual Property Litigation, available at http://www.kantei.go.jp/jp/singi/sihou/kentoukai/titeki/dai3/3siryou5-1 .pdf and vol. 58, No. 12.Intellectual Property High Court's homepage, http://www.ip.courts.go.jp/aboutus/stat_03.html. https://ideaexchange.uakron.edu/akronintellectualproperty/vol1/iss2/1 4 Hill and Murata: Patent Litigation in Japan 2007] PATENT LITIGATION IN JAPAN Table 3: IP Provisional Injunctions Commenced and Resolved in Japan 9 Year 1991 1992 1993 1994 1995 1996 Commenced 238 314 362 299 316 386 Resolved 273 323 350 302 299 355 Year 1997 1998 1999 2000 2001 - Commenced 410 391 488 552 521 Resolved 379 426 563 530 578 - Table 4: IP Suits Commenced and Terminated in the U.S '0 Patent Trademark Copyright Commenced IP Suits 2,720 3,668 5,796 During Oct. 2004 - Sept. 2005 Terminated IP Suits 2,708 3,617 4,494 During Oct. 2004 - Sept. 2005 9. Judge Toshiaki limura, Changes to Intellectual PropertyLitigation in Japan, Prepared for the AIPLA IP Practice in Japan Committee Meeting (October 15, 2002) (data available in distribu- tion material entitled "Changes to Intellectual Property Ligitigation in Japan," which accompanied the presentation). Published by IdeaExchange@UAkron, 2007 5 Akron Intellectual Property Journal, Vol. 1 [2007], Iss. 2, Art. 1 AKRON INTELLECTUAL PROPERTY JOURNAL [1:141 As shown in Tables 1 and 2, in 1991, the number of suits filed in Japanese District Courts relating to intellectual property equaled 311, with the number of decided cases relating to intellectual property total- ing 386 in 1991. By 2004, these totals had risen to 654 and 696 respec- tively, although they decreased to 579 and 639 in 2005.