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Viewing cable 06TOKYO657, JAPAN PROPOSES A "PATENT FTA"

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Reference ID Created Released Classification Origin
06TOKYO657 2006-02-07 01:06 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tokyo
VZCZCXRO7688
RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #0657/01 0380106
ZNR UUUUU ZZH
R 070106Z FEB 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 8322
INFO RUEHBJ/AMEMBASSY BEIJING 0434
RUEHFK/AMCONSUL FUKUOKA 4445
RUEHGZ/AMCONSUL GUANGZHOU 1182
RUEHNAG/AMCONSUL NAGOYA 4537
RUEHNH/AMCONSUL NAHA 7090
RUEHOK/AMCONSUL OSAKA KOBE 7507
RUEHKSO/AMCONSUL SAPPORO 5649
RUESLE/AMCONSUL SHANGHAI 1974
RUCPDOC/USDOC WASHDC
RUEHGV/USMISSION GENEVA 2749
RUEHBS/USEU BRUSSELS
UNCLAS SECTION 01 OF 02 TOKYO 000657 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/J, EAP/EP,EB/TPP/MTA/IP 
EAP/J PLEASE PASS TO USTR 
 
E.O. 12958: N/A 
TAGS: KIPR ETRD ECON JP
SUBJECT: JAPAN PROPOSES A "PATENT FTA" 
 
 
1.  (SBU)  Summary: Building on earlier proposals for a 
"Patent Superhighway" Japan is now considering what it calls 
a "Patent Free Trade Agreement" (FTA) between the US and 
Japan.  The plan calls for the Japan Patent Office (JPO) and 
US Patent Office (USPTO) to share the results of patent 
examinations so that applicants could receive a speedier 
patent review in the second country.  After a 3-year 
confidence-building period the GOJ proposes that the second 
patent office grant a patent based on the results of the 
first patent office's examination.  GOJ believes that 
Trilateral talks among U.S. Japan, and the EU on sharing the 
results of patent searches are not progressing because of EU 
internal problems, and that a targeted bilateral agreement 
makes more sense because U.S. and Japanese views and approach 
are much closer. However, US firms are wary of a system that 
would obligate the USPTO to issue a patent based on the 
examination results of another patent office.  End Summary. 
 
2.  (U)  The Cabinet's Intellectual Strategy Headquarters 
(IPSH) Secretary-General Hiramitsu Arai shared his latest 
proposal with John Neuffer, Deputy Assistant USTR for Japan; 
Michael Keplinger, Senior Counsel, International Relations 
Office, USPTO; and Steven Tepp, Planning Policy Advisor, 
Office of Policy and International Affairs, US Copyright 
office at IPSH on January 25. 
 
3.  (SBU)  Background: 
 
Japan is looking for ways to cope with the explosion of 
patent applications in the last 10 years, which has lead to a 
backlog of 800,000 applications and an average wait of 27 
months before applications are examined.  Recently it offered 
to refund all application fees if companies would withdraw 
their applications.  The JPO is asking corporations that 
submit more than 1000 patent applications a year to submit 
fewer applications.  An IBM-Japan Patent Attorney recently 
told us that JPO had asked him to stop submitting so many 
patent applications. 
 
4.  (U)   According to JPO statistics, Japan alone handle 37 
per cent of patent applications worldwide, while the US 
handles 22 per cent and the EPC (European Patent Office) 21 
per cent.  Together the three offices handle 80 per cent of 
worldwide patent applications.  JPO has had trilateral 
dialogues not only with the U.S. and EU but also with China 
and Korea (the State Intellectual Property Office of China, 
SIPO and the Korean Intellectual Property Office, KIPO.)  JPO 
Commissioner Nakajima recently announced that one of JPO's 
priorities is to push for international harmonization of 
patent systems.  The JPO Commissioner called for a trial run 
of what he called the "Patent Prosecution Super Highway" and 
with the US Patent office.  The JPO announced plans to start 
a similar dialogue with Korea. 
 
5.  (U)  IPSH's Patent FTA proposal: 
 
IPSH now wants to take the idea a step further with a 
bilateral agreement which would start with a three-year trial 
under which applicants would be able to apply to either the 
USPTO or JPO and each would share their examination results. 
The second patent office would then be able to review the 
patent application using the results of the first patent 
office, do a "complimentary" examination, and grant the 
patent if it finds no reason to refuse the application within 
six months.  During the three-year trial period the JPO and 
USPTO would be able to develop more confidence in each 
other's patent examinations. 
 
6.  (U)  At the end of the trial period, the JPO and USPTO 
would recognize each other's examination results and grant a 
patent to applicants without a second examination. 
Applicants and third parties would be able to file appeals 
and/or take their cases to court in either country.  If 
successful, Japan would like to expand the agreement to 
European Patent Convention (EPC) countries and others.  The 
ultimate goal is a true global patent. 
 
7.  (SBU)  Comment: 
 
TOKYO 00000657  002 OF 002 
 
 
 
The Japanese government believes that IPR is a very promising 
area for strengthening US-Japan bilateral cooperation.  This 
is another ambitious plan from the IPSH, but one which may 
encounter much resistance.  In talking to U.S. companies and 
patent attorneys in Tokyo, as well as the Japan Intellectual 
Property Association (JIPA) we find great enthusiasm for the 
first part of the plan, in which the USPTO and JPO are able 
to share examination results and thus speed up the process. 
However, even U.S. companies which might stand to benefit 
from mutual recognition of patents, such as IBM, are wary of 
a system whereby the USPTO would have to issue a patent based 
on the examination results of another patent office. End 
Comment 
 
SCHIEFFER