Recent Intellectual Property (IP) Situation Surrounding Japan

The Japan Patent Office (JPO) has published the “JPO Status Report 2024” (English version). This report includes the JPO’s statistical information and the results of its policies. Both a Japanese version and an English version are available from the JPO, but this article will focus on the English version, highlighting key results from the report, while also explaining the intellectual property (IP) situation surrounding Japan.

The Number of Patent Applications in 2023 (including the Number of International Patent Applications and the number of applications for the registration of the extension of the duration of a right) was 300,133, an increase of about 10,000 from 2022, showing an upward trend. Among these, International Patent Applications (applications under the Patent Cooperation Treaty (PCT) that include Japan as one of the designated countries and for which documents to enter the national phase were submitted to the JPO) accounted for 75,787 applications, representing an increase of about 10,000 compared to five years ago in 2018. This indicates that the number of international applications under the PCT, where the JPO acts as the receiving office, remains at a consistently high level.

One interesting point is that while the overall number of patent applications in 2023 was approximately 24,000 fewer than in 2014, applications from small and medium-sized enterprises (SMEs) and universities have shown an increasing trend compared to 2014.

In terms of the residency of applicants in 2023, Japan led with approximately 230,000 applications, followed by the United States, China, South Korea, and Germany. Moreover, among the Top 10 Foreign Companies for registered patents in 2023, all companies significantly increased their number of registrations compared to 2022. These foreign companies include two from China, three from South Korea, four from the United States (one of which is a subsidiary of a Japanese company), and one from the Netherlands.

As for Design Applications in 2023 (including the Number of International Applications for Design Registration), there were 31,747 applications, which is almost flat compared to 2022. Meanwhile, the number of international applications for design registration (applications under the Geneva Act of the Hague Agreement concerning the International Registration of Industrial Designs that designate Japan as a contracting party, and have been recorded as international registrations and published by the International Bureau) was 4,160, which is roughly double that of 2014, a notable point.

In terms of the residency of design applicants in 2023, Japan topped the list with approximately 21,000 applications, followed by China, the United States, Germany, and South Korea. Additionally, looking at the Top 10 Foreign Companies for registered designs, six companies increased their registration numbers significantly compared to 2022, while three companies showed a decrease, and one remained roughly the same. These foreign companies were from the United States (six companies), China (one company), Switzerland (one company), France (one company), and New Zealand (one company).

Regarding Trademark Applications in 2023 (including the Number of International Applications for Trademark Registration), there were 164,061 applications, a decrease of about 5,000 compared to 2022. Trademark applications peaked between 2019 and 2020 but have been decreasing since then, a phenomenon attributed to the Tokyo 2020 Olympics (which was held in 2021). However, compared to 2014, the number of applications increased by about 40,000.

In terms of the residency of trademark applicants in 2023, Japan topped the list with 122,213 applications, followed by China, the United States, South Korea, and Germany. Moreover, in the Top 10 Foreign Companies for registered trademarks, six companies significantly increased their registration numbers compared to 2022, while three showed a decrease, and one remained roughly the same. These companies are from the United States (four companies), China (one company), South Korea (two companies), the United Arab Emirates (one company), Switzerland (one company), and the United Kingdom (one company).

Next, focusing on the number of Trials for Invalidation against registrations, the number of patent invalidation trials in 2023 was 84, continuing a decreasing trend since 2015. In contrast, the number of trademark cancellation trials in 2023 was 1,029, slightly lower than in 2022 but remaining mostly flat since 2014. The number of patent oppositions in 2023 was 1,411, the highest since the system was reintroduced in 2015. The number of trademark oppositions in 2023, however, saw a significant decrease, nearly halving compared to 2022, and appears to be on a slight downward trend.

The report also includes Trends in Intellectual Property Worldwide. The number of global patent applications was 3,457,000 in 2022, continuing to show an upward trend over the past decade. One notable characteristic of this decade is the sharp increase in patent applications to China, while the number of applications to other countries has seen less significant changes. This report highlights the trends in the Patent Grant Rate among the IP5 offices. As of 2022, the USPTO’s patent grant rate has dropped by approximately 10% compared to 2021, while the JPO’s patent grant rate stands at 75.9%, the highest among the IP5 offices.

Lastly, the Japanese version of the report includes data on the number of Registered Patent Attorneys in Japan (taking into account newly registered attorneys and those who have had their registration canceled). Over the past 20 years, the total number of registered patent attorneys has increased from 5,548 in 2003 to 11,799 in 2023, more than doubling (an increase of 6,251). However, in 2013, the number of registered attorneys was 10,171, meaning that the increase over the last 10 years has been only 1,628. When comparing the number to 2022, the increase was 56 (293 new registrations, 237 cancellations). In the near future, it is possible that the number of newly registered attorneys may not exceed the number of cancellations, leading to a potential decrease in the total number of registered attorneys.