Japanese Intellectual Property and Employee Rights to Compensation

Japan is inventing its way out of economic inertia that has existed for at least a decade. It is making some of the most radical changes in history to its assessment of valuing intangible assets and changing its attitudes to litigation. The speed of change in the field of intellectual property (IP) is occurring at a furious pace and in some cases surpassing that in western countries. Recent landmark decisions concerning employees' rights to invention, which have resulted in large payouts by Japanese companies to their former inventors, all point to change propelled by the need to be globally competitive. Because of these changes, there is a determination to make proceedings for those wishing to patent and license in Japan less cumbersome and to defend the patents of Japanese companies. This has been achieved by the introduction in 2005 of a bespoke patent court and a series of groups and associations that Japanese companies can join in order to collaborate in monitoring IP infringements among their East Asian neighbours. The recent decisions on employees' rights to compensation made in the Japanese courts coupled with patent examination acceleration is encouraging increased activity by Japanese inventors making Japan globally competitive economically.