ANALYSIS: Japan Firms Strengthen Resolve to Tackle Patent Infringement
April 8, 2004 (TOKYO) -- Japanese companies have begun to take tougher strategies regarding intellectual property rights.
Fujitsu Ltd recently filed a lawsuit against Samsung SDI Co Ltd over plasma display panel (PDP) patent infringement, after nearly three years of urging the Korean firm to pay royalties.
Other Japanese companies also appear ready to enter legal battles to protect their patents.
Behind their toughening stance is the rapid technological innovations being achieved by Korean and Taiwanese rivals, particularly the Samsung group of Korea.
Samsung Electronics Co Ltd became the largest shareholder in the global DRAM market about a decade after entering the arena in 1983. It grabbed the top position in the global thin-film-transistor liquid crystal display market six to seven years after moving into the market in 1995.
Samsung SDI rapidly expanded its global PDP market share to 20% in 2003 from a mere 1%-plus two years before.
Until some time ago, most Japanese companies tried to settle patent conflicts with other Asian firms through dialogue. The disputes did not cover advanced technologies and had little impact on related markets, according to Yasuo Sakuta, an executive officer of Hitachi Ltd.
However, in recent years, competition with Asian rivals has escalated in crucially important technological areas, "making it urgent for Japanese firms to engage in legal battles even if it involves a significant amount of time and money," says Sakuta.
Matsushita Electric Industrial Co Ltd also intends to stop tolerating infringement on its patents by other companies.
Their "get-tough" approach is reminiscent of the lawsuits over computer software and semiconductor patents lodged against them by US companies like IBM Corp. and Texas Instruments Inc in the 1980s-90s.
In those days, Japanese companies were unable to fight back against the US because of their lack of powerful patents, according to an official in charge of intellectual properties at one major Japanese manufacturer. But nowadays, more Japanese firms have come to possess patents of global importance.
Ways to tackle patent infringements are varied, including setting the amount of royalties through dialogue, concluding cross-licensing agreements, having an all-out legal battle or seeking a favorable settlement while pressuring targeted firms with a lawsuit.
Japanese manufacturers, which are relying more heavily on their technological capabilities to remain competitive, have to employ skillful tactics on a case-by-case basis to tide over patent infringements, analysts say.
(The Nihon Keizai Shimbun)
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