The Asian Intellectual Property Forum in Kawasaki: New Trends in Intellectual Property Frontiers was held on April 19 at the Institute of Industrial Promotion Kawasaki Hall (Horikawa-cho, Saiwai-ku). Kawasaki City Mayor Takao Abe and Naha City Mayor Takeshi Onaga signed the Declaration of Cities Advanced in Intellectual Property Ethics. They also mutually pledged, along with the other participants from Asian countries, to aim for the realization of a society which understands and appreciates “intellectual property” in order to sustainably develop regional economies which are part of the global community.
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Toward a society which understands and appreciates “intellectual property”
Exchange of opinions over sustainable economic development
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This was the first forum sponsored by a forum executive committee comprised of Kawasaki City, Naha City, Microsoft Corporation, Kawasaki Shimbun, and others. Backing for the event was provided by the Okinawa Times, the Cabinet Office, and the Ministry of Economy, Trade and Industry, and others. A total of 14 experts and people with ties to businesses from Japan and overseas, including people from various cities in Asia which have friendly relations with Kawasaki City, attended as speakers and panelists, and opinions were exchanged in a lively manner. The venue was packed with some 300 participants from places like Okinawa Prefecture and the metropolitan area who were brimming with excitement.
Amidst the rapid advances made in the globalization of economic activities, the question of how to protect and utilize “intellectual property” in the form of the technology and know-how of companies which exist in local regions, and also as patents and copyrights pertaining to music and films, has come to pose a significant challenge.
In June 2007 Kawasaki City and Microsoft agreed to work together for the establishment of “information ethics,” with this forum serving as one of the initiatives for this. Naha City, a city that has friendly relations with Kawasaki, also joined in to realize the declaration of ethics. The approved municipalities with friendly relations include the cities of Shenyang, China, Bucheon, South Korea, and Da Nang, Vietnam.
At the morning session, experts and researchers raised issues around the theme of “Regional Vitalization through Intellectual Property in a Global Scope -Viewpoint of Income Values-” from a variety of different viewpoints, including “television programs and regional development,” “research and development,” and the “tax system.”
The afternoon began with keynote addresses and also featured reports of practical examples from various locations in Asia. For the main panel discussions, opinions were exchanged as Mayors Abe and Onaga introduced initiatives from their regions.
Opportunities to deepen discussions concerning intellectual property between concerned parties from Japan and abroad based around local regions are rare. Appraisals from general participants were heard, including comments like, “I feel more familiar with intellectual property, which I had previously thought of as having no relation to myself, and I have gained a thorough understanding of its importance” (from a small to medium-sized manufacturer in Kawasaki City).
The sentiment that “While I was under the impression that this was an issue for the national level, my perception changed to see that there is value in initiatives by regions that go beyond the national level” was held for this event, which was sponsored under the initiative of the municipality of Kawasaki. There was also the feeling that “I was impressed at Microsoft Corporation’s efforts in striving to raise awareness of intellectual property ethics in collaboration with the municipality.”
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- Morning Session (10:00~11:30)
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Forum Opening 10:00~10:10 <Emcee> Satoko Ito Newscaster
Raising of Topic 10:10~11:30
Issue of regional development based on intellectual property seen from a global perspective
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Yasuyuki Tanaka Vice-Director, Media Rights Promotion, Contents and Rights Center, Editorial Board, TBS Television
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Takeshi Hosokawa Associate Professor, Hiroshima University Graduate School
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Koichi Sumikura Associate Professor, National Graduate Institute for Policy Studies
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<Moderator>
Junichi Kikuchi Professor, Graduate School of Business & Law, Aoyama Gakuin University
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Yasuyuki Tanaka
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Koichi Sumikura
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Takeshi Hosokawa
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Junichi Kikuchi
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Presenting strategies aimed at increasing the level of intellectual property
Rediscovering local areas through producing shows / Yasuyuki Tanaka
Establishing patent management organizations / Koichi Sumikura
Need for development of assessment system / Takeshi Hosokawa
Morality and morale Supporting development / Junichi Kikuchi
What kinds of strategies are needed in order to have regions and companies demonstrate their individuality and promote the creation and utilization of intellectual property while protecting intellectual property? Four panelists representing various fields presented issues from various angles regarding increasing the level of intellectual property.
Yasuyuki Tanaka: In France, there is a system in which a subsidy of 50% of the cost of repairs aimed at the preservation of cultural assets is provided, and there is a tax deduction for 50% of exhibition costs. If it were this alone, expenditures by the government would only increase and revenues would decrease, and it would be nothing more than protecting cultural assets with tax money. Nevertheless, it is a mechanism which produces a marginal gain that is greater than what is spent.
Firstly, while a subsidy is provided for the cost of repairs, a value-added tax is imposed on construction fees. As a result, tax revenues equivalent to the subsidy are produced. If a cultural asset is exhibited, it will become a resource for tourism which will generate consumption and employment, and new tax revenues can be expected. The result is that a marginal gain which is greater than the expenditure needed to protect cultural assets is being generated for the government of France. It appears that this mechanism is truly the “outcome logic” (term 1) of intellectual property by an administrative authority.
One example of regional development with television shows is the effect of the significant increase in the degree of recognition of filming locations which are used. Regions which are the setting for popular dramas can expect to see ripple effects such as “review tours” and “rediscovery tours” even after broadcasting has ended. In fact, the department of tourism of one region says that it has made a map of filming locations and that this has been useful in the development of tourism in the region.
Cooperation between show producers and administrative authorities will lead to regional development resulting from the rediscovery of local areas, increased tax revenues resulting from regional development, and further regional development resulting from the establishment of regional brands. There will also likely be increased possibilities for the creation of regional cycles centering on the intellectual property of television shows. Going forward, producers of television shows together with administrative authorities need to think of mechanisms that will lead to such development cycles.
Koichi Sumikura: It is possible to increase the value of intellectual property through “open innovation” (term 2). Based on this idea, various guidelines have been established on a global level which promote innovation and are related to the provision of licenses, particularly in the fields of IT, bio-technologies, and medicine.
In Japan, the Council for Science and Technology Policy has formulated “Guidelines for Research Licenses.” These state that in the case that a nonexclusive patent license for intellectual property rights for the nonprofit purpose of research is requested, the request shall be accepted and the research license shall be provided without halting the research in question. They also state that research licenses are to be in principle provided royalty-free or with a reasonable royalty. This has now been taken one step further with the establishment of the “Guidelines regarding Facilitation of Use of Research Tool Patents in the Field of Life Sciences.”
As for mechanisms for preventing patents from hindering new development, there is also the concept of “patent clearinghouses.” Various organizations which manage patents are established and serve as mediators between patent holders and companies and universities requesting to use patents.
There is also a method called a “patent consortium” in which use is facilitated by leaving out mediatory organizations and having participants provide each other with patents free of charge.
Regardless of which method is used, it is essential to develop human resources to handle and use various intellectual property. Going forward, in order to help human resources who are appropriate for jobs related to intellectual property to find their own niche and set a direction, it appears that there will be a need for places where they can feel free to get involved and obtain information regarding intellectual property.
Takeshi Hosokawa: With accounting and tax systems seeing various changes and additional items almost every year, goodwill has become the greatest matter of concern over the past several years. There is a question of how to assess the intangible asset of “goodwill.” There are three concepts in the discussions regarding goodwill.
The first is the concept of excess earnings. Goodwill is not a legal right, but a fact related to proprietary nature. In the case that an existing company makes earnings that are greater than the regular profit made by other similar companies due to the existence of various types of advantageous conditions or privileges, the causes of this excess earning power are said to be goodwill.
Second is the residuum concept in which the assessed value of goodwill is the difference when subtracting the net asset value at the market price from the corporate acquisition decided value. Third is what is called the concept of acquisition of sales opportunities, and it is a case in which the acquisition of exclusive sales opportunities is the source of profit and excess earning power.
There are three methods for the assessment of intangible assets: the cost approach, the income approach, and the market approach. Each of these methods has advantages and disadvantages, and grasping the correct value is very difficult.
As such, in thinking about how the level of intellectual property should be increased from the perspective of corporate accounting, it is important to determine what should held as intellectual property and what should be made open as common knowledge.
Furthermore, unless there is a correct understanding of tax laws and so forth, there will be a greater burden in terms of taxes. “Production systems based on special technologies or items pursuant to these” and other things related to know-how can also be subject to taxation.
Recently there has also been thought about loans securing intellectual property, and I believe that there has come a need for the development of systems for the assessment of intellectual property by third-party organizations and so forth.
Junichi Kikuchi: Intellectual property should be thought of not as “income logic” directed toward the inside of a company, but “outcome logic” directed toward the outside of a company. In being granted the legal rights to intellectual property, responsibility regarding past results is generated at the same time as responsibility regarding future results. As compensation for receiving this, it is possible to obtain “a predefined income generated from the outcome.”
There is a need for a strategy of moving away from the principle until now of focusing on income value, and looking at how open innovation will be materialized and outcome value will be created and utilized going forward. Rights should not only be emphasized, but should be considered from a broader perspective.
Nevertheless, efforts leading up to the creation of intellectual property must be recompensed. I do not believe that a monetary assessment is absolutely necessary, but perhaps there is a need for a system of preferential treatment with taxes, subsidies, and so forth.
Going forward, in utilizing intellectual property, the two elements of “morality” and “morale” will be important.
Counterfeit and pirated goods that violate intellectual property rights must be avoided. This is morality which people who use intellectual property must observe. Meanwhile, if rights are overemphasized, the morale to bring about development utilizing this intellectual property will be weakened.
It is important to not only restrict the use of intellectual property, but to have a balance in which intellectual property rights holders and users mutually respect each other.
Terms
1. Outcome logic: effects and outcomes produced based on input costs and services. While income is the result in terms of compensation to the supply side, outcome means the effects and ripple effects for the side that is being supplied. In recent years, it has often been used as an indicator for assessing the services of administrative authorities.
2. Open innovation: when a newly invented technology or idea is not used only by the company that invented it, but is used by various companies, resulting in further new inventions and the creation of new value.
- Afternoon Session (12:30~16:10)
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Greeting from Sponsors 12:30~12:45
Takao Abe Kawasaki City Mayor
Takeshi Onaga Naha City Mayor
Yumiko Ito Operating Officer, Microsoft Corporation
<Moderator>
Daisuke Hiratsuka Head, Development Studies Center, Asian Economic Research Institute, JETRO
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Keynote speech 12:45~13:30
Pioneering the intellectual property frontier and regional expectations
Masuo Aizawa Executive member, Council for Science and Technology Policy, Cabinet Office
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Masuo Aizawa
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Creating a cycle of technologies, systems, and markets
Currently, with the development of the Internet, means of transportation, and so on, globalization and the movement toward an information society are progressing rapidly. It appears that we are moving from the material society that we have had until now toward a knowledge society that seeks true affluence. Thus, “knowledge” has come to possess economic value, and it has started to be recognized as an asset.
Japan has a history of originally being a country with few resources, but it has produced a series of innovative technologies and has become an industrially-advanced nation that holds a top place in the world. The “knowledge” that Japan displays is not just industrial technology. Japan's “culture,” including animation, comic books, video games, and food culture, is also intellectual property that has gained popularity in the world. Now is possibly a big chance for Japan.
In order to make use of this chance, it is necessary to protect the right to be compensated for this valuable intellectual property and to furthermore enable it to be utilized. There is a need to build mechanisms such as global patents, measures against counterfeit goods, and international standardization strategies. If a single international standardization strategy is wrong, it is possible that even an outstanding product or technology may not be accepted in the world.
An example is cellular phones. Many of the parts that are used are made in Japan or feature technologies that were developed in Japan. It is said that 80% of the parts in the cellular phones in the world are made in Japan. Nevertheless, cellular phones made in Japan as a finished product are being completely ignored in the world market. This is because the Japanese communications technology and the international standard communications technology are different. As a result, Japanese manufacturers have to make phones for Japan and phones for overseas separately, so it costs money for development, and they have lost their competitiveness.
In order to utilize intellectual property and increase industrial competitiveness, research and development departments and so forth need to produce high-quality intellectual property, these needs to be swiftly protected as rights, and its added value in industry needs to be maximized. In other words, by evolving the “technology frontier,” the “product frontier,” and the “market frontier” into a spiral, the development and reproduction of a more expansive “intellectual property frontier” will continue, and a virtuous cycle will be produced.
Until now, talking about intellectual property, it was mainly patents. It was centered on materials. Now, however, it is a time when intangible intellectual property such as the local culture of regions is also recognized as being of value. Proactively transmitting things that are seen by the outside as attractive as the intellectual property of regions can be useful in regional development.
In an era when intellectual property is valued, various roles need to be fulfilled on the level of individuals. One of these is recognizing the intellectual property of other people as a right. Mutually respecting intellectual property rights will lead to protecting oneself.
If awareness toward intellectual property rights increases on the level of regions and individuals, it will be passed on to the children of the next generation, and it will lead to aspirations to produce one's own intellectual property in the future. This will become a spiral of producing intellectual property, and I believe that it will bring about the creation of a better society.
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Report on case 13:30~14:40
Regional revitalization due to globalization and intellectual property
Daisuke Hiratsuka Head, Development Studies Center, Asian Economic Research Institute, JETRO
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Daisuke Hiratsuka
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Cooperation among Asian cities is meaningful
In thinking about regional revitalization based on globalization and intellectual property, the three keywords are: “globalization,” “intellectual property,” and “regional revitalization.”
Globalization means reducing the barriers of national borders and in place of the unit of nations, the unit of cities and municipalities becomes important. As such, it is important for regions to transmit information and for cities to become visible.
Global efforts are needed regarding intellectual property problems. In the World Trade Organization (WTO), negotiations are taking place regarding trade and services, but Doha Round negotiations, which began in 2001, are progressing slowly. In regard to intellectual property, the participating countries do not have a mindset (common understanding), and it has been removed from the points for negotiation.
With this reality, advanced countries are forming bilateral and multilateral free trade agreements (FTA) and are trying to protect intellectual property, but it does not seem that progress is being made. Based on this situation, cities in Asia are cooperating in regard to intellectual property problems, and there is a need to supplement the WTO.
There is a strong relationship between intellectual property protection and attracting industries, and the development of intellectual property can be a source for regional development. Cities with a high degree of interest in intellectual property have the advantage in attracting companies, and companies are no longer going to cities where their technologies might be stolen.
In the era of globalization, developing strong, high-level systems for intellectual property that include measures to not only protect intellectual property, but also to create and utilize intellectual property and to develop human resources will produce communities and robust cities where research and development-intensive companies will gather.
There are still few cities with this way of thinking, and it is very meaningful for cities to declare a high degree of interest in intellectual property and for cities in Asia to carry out cooperation.
Reports on efforts in various regions
| Lee Jong Hyun |
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Chairperson, Asian Science Park Association |
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| Li Wei |
China |
Assistant Director, Science and Technology Bureau, People’s Government of Shenyang City, China |
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| Yin Sheng Jun |
South Korea |
Deputy Mayor, Bucheon City, South Korea |
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| Luong Minh Sam |
Vietnam |
Director, Foreign Affairs Bureau, Da Nang City People’s Committee, Vietnam |
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<Moderator>
Daisuke Hiratsuka Head, Development Studies Center, Asian Economic Research Institute, JETRO
Lee Jong Hyun
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Li Wei
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Yin Sheng Jun
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Luong Minh Sam
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Creating a harmonized and balanced world / Lee Jong Hyun
Intellectual property rights are closely related to changes in the times. In the past, production cooperatives were created and next economic cooperatives, and now it is a global era in which we are aiming for knowledge cooperatives.
Nevertheless, there are countries which cannot keep up with this flow, and these people will be against globalization and will try to stop it.
In the 1800s, the industrial revolution took place, and now an information revolution is taking place. As the degree of freedom to be able to receive extensive information no matter where one goes becomes greater, capital, economies, and the movement of people will also become free. As this great power is put to work, a counteraction will definitely arise.
A development of gaps and movement toward polar opposites is progressing in the world, and I see globalization and anti-globalization advancing at the same time.
The problem of intellectual property is the same as this issue. Advanced countries are continuing to create new intellectual property, and countries which cannot do this have no choice but to turn to copying. We need to develop while gaining consent and protecting intellectual property.
I think it is important to eliminate structures that create conflict and to build mutually cooperative structures through discussions. I think the world should not have disparities in equality, but should be harmonized and balanced.
The Asian Science Park Association (ASPA), which was created in Kawasaki 11 years ago, continues to carry out activities in order to contribute to this.
Urgent need for international damage control / Yin Sheng Jun
Bucheon City is located between the South Korean capital of Seoul and Incheon City. Its population is approximately 860,000 people, the 11th largest in the country. The goal of the municipal government is “a Bucheon which develops culture and makes great economic advances,” and various related projects have been carried out starting 10 years ago.
In order to cultivate the four specialized industries of molds, robots, lighting, and parts materials, support is provided for the integration and technological development of industrial parks at Bucheon Technopark and so forth.
As for support for the cultural contents industry, Gyeonggi-do and Bucheon City have made a joint investment to establish the “Gyeonggi Digital Contents Agency,” and centered on this, an academy is being operated for intensive fostering and the cultivation of experts. Support is also being provided for the development of comic book artists and published comic books.
Bucheon City's support operations related to intellectual property are being carried out centered on the “Bucheon Intellectual Property Center,” which opened in 2005.
Each year, approximately 1,500 patents and utility models (intellectual properties) are registered, and electricity, semiconductors, electronics, metal processing, nonmetal processing, commodities essential to life, and so forth account for 70%.
South Korea is also thinking very seriously about intellectual property protection and ethics, and in particular, measures are swiftly being taken to control international damage to Korean culture and contents accompanying the Korean boom.
In Bucheon City as well, in order to have companies and citizens value intellectual property and to raise interest regarding ethics and intellectual property rights, education is being carried out for business associations and citizens, and we intend to strengthen efforts going forward.
Strengthening management structures of cities and companies / Li Wei
Shenyang City is the central city in the Three Northeast Provinces region of China. It covers an area of 13,000 square kilometers, and has a population of 7.4 million people.
Referred to as “China's equipping department,” it has 57,000 companies in 142 types of manufacturing industries in areas such as automobiles, electronics, chemical industries, medicines, and space flight, and 1.2 million industrial workers hold jobs there.
It is a model city for state intellectual property, and as of the end of 2007, the number of patent applications amounted to 56,082. Breaking this down, 12,479 were for inventions, 36,761 were for utility models, and 6,842 were for exterior designs.
We have various policies related to patents.
An intellectual property mayor executive meeting system has been established, and intellectual property projects are prepared. Specialized funds have been established, and in addition to developing an examination on patent licensing selecting priority industries, support is provided in regard to applying for domestic and foreign patents for inventions and creations which is in line with the patent application requirements of organizations and individuals, while giving support regarding expenses for excellent patents.
In order to implement intellectual property strategies, we will promote the building of intellectual property management mechanisms for the city and intellectual property management systems for companies. We will also carry out efforts such as promoting the building of an intellectual property mediation service mechanism, moving forward with enacting district legislation on intellectual property, and implementing intellectual property protection in regard to external economic trade, priority export companies, and foreign companies.
Promoting plan for doctoral and master's training / Luong Minh Sam
Da Nang City is in the central area of Vietnam, and it is an important hub for roads, railroads, sea routes, and air routes. Overseas investment projects are proceeding smoothly, but an issue that exists is the lack of knowledge and experience of managers.
Thus, over the past several years, my department has made efforts for the education and training of management staff.
We are currently facing the problem of brain drain.
Da Nang City has a system of preferential treatment system for persons who have graduated from prestigious universities and persons who have competed masters programs in foreign countries.
We are currently carrying out the “Program for Doctoral and Master's Training.” One-hundred public servants working at the central hospital and government organizations in the city have been dispatched to the United Kingdom, Singapore, Japan, South Korea, and other countries.
Thus far, 75 to 80 people have completed master's programs and 20 to 25 people have completed doctoral programs in fields such as medicine, education, tourism, and urban governance.
The city will cover the expenses for the dispatches and doctoral programs. The persons who are dispatched must agree to work at government offices based on the instructions of the city citizen's committee for a period of seven years after they obtain their degree. This program started in 2007, and it is scheduled to continue until 2010.
Da Nang City will continue to work to build a good employment environment so that the human resources of the city, who contribute to the city's development and growth, can demonstrate their capabilities.
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Panel discussion 14:50~15:50
Exchange of Opinions Based on Case Study Reports
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Takao Abe Kawasaki City Mayor
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Takeshi Onaga Naha City Mayor
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Yumiko Ito Operating Officer, Microsoft Corporation
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<Moderator>
Daisuke Hiratsuka Head, Development Studies Center, Asian Economic Research Institute, JETRO
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Takao Abe
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Takeshi Onaga
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Yumiko Ito
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Vitalizing bases for traditional culture
Creating industry utilizing regional resources
Supporting researchers by bringing together industry, academia, and government
Daisuke Hiratsuka: First of all, from your various perspectives, please comment on how intellectual property is being addressed in Japan.
Takao Abe: I would like to speak about the intellectual property efforts and international contributions of Kawasaki City. Kawasaki City is the core industrial city in the Tokyo-Yokohama Industrial Area. Major information telecommunications companies and numerous global large-scale companies are located in the city. Recently, a transition to a knowledge-intensive and high-added-value industrial structure has been progressing, and over 200 research institutes and small and medium enterprises with outstanding technological capabilities have gathered. We are thus changing into a research and development city.
In order to boost international competitiveness making use of our valuable regional resources and utilizing intellectual property and to make international contributions through industry, the “Kawasaki City Intellectual Property Strategy” was formulated in February. One of its basic principles is to aim to develop a region where new industries are created one after another by making use of regional resources and promoting the creation, protection, and utilization of intellectual property. Secondly, the goal is to become a leading city in intellectual property ethics which fosters and communicates such intellectual property ethics.
We established the “Intellectual Property Strategy Promotion Program” as an administrative measure. We will steadily implement this program, and continue to work to form a region called the “Kawasaki-Tamagawa Innovation Valley” that vitalizes industrial innovation and creates new industries making use of the valuable accumulation of industries. We are also carrying out various efforts such as the establishment of the “Carbon Challenge Kawasaki Echo Strategy” in order to promote the harmonization and virtuous cycle of “environment” and “economy” and realize a sustainable society on a global scale.
We will also carry out efforts in the area of welfare, making use of our fundamental technologies which are outstanding in manufacturing. The outstanding welfare products which have been developed and spread in Japan, where the society is rapidly aging, will likely contribute to boosting the welfare and quality of life of people in Asia. In order to promote the development and spread of welfare equipment and so forth, it is important to vitalize the creation as well as the protection and utilization of intellectual property. We intend to collaborate with cities in the Asian region in building high ethics and a common awareness regarding intellectual property, and transmit these from Kawasaki to the world.
Takeshi Onaga: I would like to speak about intellectual property originating from our history, traditions, and culture centering on the Ryukyu Dynasty and the unique efforts of Naha City.
Okinawa Prefecture consists of 150 islands located over a distance of 1,000 kilometers from east to west and 400 kilometers from north to south. It is thus culturally diverse, and even dialects differ from island to island. While Japan was in a time of national isolation, Ryukyu was in an era of extensive trade, and based on exchanges with Asian countries centering on China, its crafts such as dyed goods, fabrics, pottery, and lacquer ware, and court music, dance, and food culture developed as contents.
In the Meiji era, court culture was imitated on the islands, becoming the popular culture, and the islands began to take on a shared identity. In a shared society, there is not a climate of emphasizing awareness of rights, and the awareness of protecting intellectual property is low in some respects compared to Japan overall and the world.
In recent years, the possibilities of contents industries based on culture appear to be opening up. Okinawa's music and artists have swept the nation, and a system for learning the sanshin on the computer has been developed. There is also a case of turning karate, which originated in Okinawa, into image contents and making this into a business. Clothing made from traditional fabrics and health food products that make use of resources from the subtropical zone of Okinawa are also taking root as intellectual property.
What should be done in order to boost interest in intellectual property? This is my personal idea, but we are examining whether it would be possible to offer the school songs of municipal elementary and junior high schools as ring tones for cellular phones. It seems like this would be an opportunity to learn about copyrights and intellectual property. As for approaches to transmitting contents, an Okinawa culture archive has been created, and the culture of the prefecture as a whole introduced on websites.
Historical assets and cultural assets can be seen as intellectual property, and how these can be effectively connected to vitalize regions and communities is important. We intend to boost the information ethics on the level of citizens and develop an awareness of rights.
Naha City has been designated as a special information business zone, and the information telecommunications industry is gathering in a new midtown district. With the information telecommunications industry, the demerits of being a remote island are being overcome, and efforts are being made to connect intellectual property with industry.
Yumiko Ito: Microsoft in its intellectual property strategy is aspiring for open innovation. It has become difficult for companies to develop everything with their own technologies, and this is an innovation model in which companies mutually use the intellectual property of various people.
If the value of wealth is money, then intellectual property such as technology and know-how that create innovation can be seen as the money or currency of innovation. In December 2003, we switched to a policy of making my technology open with licenses, and in February this year, in order to increase openness, an openness policy and management policy were announced to make it easier to connect my product with the products of other companies.
In addition to carrying out licenses with domestic development companies, we hope to serve as a bond in industry-academia-government collaboration, and in terms of human resources, we will provide support to researchers. We do not expect there to be results in the short term, but we intend to make steady, continuous efforts.
Daisuke Hiratsuka: Kawasaki has 100 years of history in industrialization, and I would like to learn about the policies that Kawasaki has developed. How will Naha City be able to spotlight the wonderful historical assets of Okinawa? To Ms. Ito I would like to ask: what kind of possibilities are there for open innovation and China, South Korea, and Vietnam?
Takao Abe: What Kawasaki struggled the most with was measures against pollution. As Asian countries need to continue with industrial development going forward, environmental problems will be an important issue, and I hope that the experience of Kawasaki City will be of use.
At that time, we will contribute to the antipollution measures of regional communities through the activities of companies. Technologies for antipollution measures need to be made open, and if the ethics of common intellectual property have not been established, there will be a great deal of confusion.
There are many research and development institutions within the city, but unless cooperation is carried out with each region of the international community, the nature of the development of companies with research and development institutions in Kawasaki will also become distorted.
Takeshi Onaga: The traditional arts established by our predecessors have taken root, and creative dance and music have been developed based on this. These are also incorporated into education from nursery school through high school, and one thing that is different from other regions is that historical assets are made concrete and perceptible. Okinawan poet and producer Daiichi Hirata has been made the artistic director of the city, and he creates dynasty picture scroll performances at Shuri Castle. With local students performing, it seems that it will be possible form a basis for efforts that are grounded in the region.
As for transmitting culture, many benefits come from the information telecommunications industry. The city is involved in fostering venture companies through the Naha Business Incubate Office, and we hope to also transmit culture as a synergistic effect.
Yumiko Ito: Innovation is not just technical innovation, but it is creating new value. Through mutually giving good technologies and increasing value by building something even better, open innovation is also pursuing business chances. It is important to constantly think about how to add value together with the people of Asia.
Daisuke Hiratsuka: There is a question from the floor: “What are your thoughts on education regarding the utilization of intellectual property?”
Takao Abe: It is important that students continue with the research that they want to pursue without being conscious of whether intellectual property is being protected. Knowledge of copyrights and intellectual property becomes necessary when they present a paper or sell something as a product. I think at that point they should have what they are doing checked.
Daisuke Hiratsuka: I would like to hear the thoughts of the floor regarding this forum.
Osamu Kuwae, Executive Director, Okinawa Industrial Federation: I participated in this forum as one of 16 people centering on small and medium enterprises. Observing science parks and industrial parks and the 100 years of history on industry were educational. I recognized the importance of respecting resources that come from regions. It is important to value and foster regionally-specific assets. Partly due to the weak awareness of rights, trademarks are being registered in the Okinawa boom. I gained a renewed awareness that in the business world, it is important to have knowledge about defense.
Koichi Takahashi, General Manager, Law and Intellectual Property Unit, Fujitsu: We understand the importance of making use of intellectual property in regional development. Nevertheless, many have expressed the opinion that they do not know how to utilize it or they do not know where to inquire about it, and I would like for local governments to make efforts to enlighten people. As globalization and open innovation progress, various conflicts will occur. Conflicts regarding systems cannot be resolved by a single company. It is necessary to proceed with a structure of industry-academia-government cooperation.
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Summary and comments 15:50~16:00
Pioneering the Intellectual Property Frontier and Regional Expectations
Yutaka Kubota Executive Director, Association of Copyright for Computer Software
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Yutaka Kubota
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Building ethics and developing human resources
Software rights cannot be protected unless patents, trademarks, copyrights, the Unfair Competition Prevention Law, and the Criminal Code are all utilized. My association, whose members consist of companies’ representative of Japan such as Microsoft, is carrying out copyright protection activities for software and other digital works. As I am doing research on the protection of intellectual property such as patents and trademarks, I will be presenting a summary.
When computerizing and circulating intellectual property, one should pay attention to the following three points: “laws and rules,” “electronics technology,” and “education.” Information can only be protected and circulated when each of these three points have been attained. This is supported by our ethics which tell us to obey the law.
Ethics and rules can easily be confused. If rules are not obeyed, a person is subject to a penalty. Meanwhile, ethics are built from the level of citizens.
In this forum, there were participants from Japan, China, South Korea, and Vietnam. Unless ethics are built as relationships of trust in terms of the people of these countries working to obey laws at the level of citizens, business cannot take place. With “open invention” as well, information can only be shared when there is a foundation of mutual use based on a mutual agreement with the establishment of thorough rules and guarantees.
It is very difficult to decide rules at the level of treaties between countries. Thus, globalization will progress and further business will take place based on relationships of trust between regions that wish to do business together. I believe that this will become the trend.
In the “presentation of issues” during the morning session, suggestions were given by four people, but “human resources” is the most important. Creations as stated in copyright laws and inventions and originality and ingenuity in patents belong only to human beings. In the end, when it comes returning this to people, what is important in fostering reliable human beings is education.
In this forum, many system methodologies for vitalizing regions while sharing information and building ethics have been heard from administrative authorities, citizens, and companies. In particular, I believe that the contents industry of Bucheon City, South Korea and the efforts to protect it show that concrete and effective measures are being developed.
For five years I have visited various regions inviting cities to make the declaration on ethics. I believe that Naha City, which is working for vitalization centering on culture, and Kawasaki City, which is a manufacturing hub, are just right for this declaration. I would like to express my deep gratitude to Kawasaki City and Naha City for making the “Declaration of Cities Advanced in Intellectual Property Ethics.”
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Declaration of Cities Advanced in Intellectual Property Ethics 16:00~16:10
Takao Abe Kawasaki City Mayor
Takeshi Onaga Naha City Mayor
Yumiko Ito Operating Officer, Microsoft Corporation
Declaration of Cities Advanced in Intellectual Property Ethics
1. In the midst of globalization, intellectual property has become an extremely important source of creative activity which is important for the development of society. Based on this, we will strive to create an environment which promotes the creation, protection and application of intellectual property.
2. Based on the high awareness of enterprises, citizens and administrative bodies, endeavors will be made in all situations in order to establish a society which correctly understands and respects intellectual property.
Naha City Mayor Takeshi Onaga (left of center) and Kawasaki City Mayor Takao Abe (right of center) hold the Declaration of Cities Advanced in Intellectual Property Ethics at the conclusion of the forum. Institute of Industrial Promotion Kawasaki Hall, Kanagawa Prefecture.
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