Japan Unveils Intellectual Property Strategic Program 2022 with Key Reforms for University-Industry Joint Patents

On June 3, 2022, the Japanese government released its Intellectual Property Strategic Program 2022, setting forth comprehensive policies to promote the creation, protection, and strategic use of intellectual property (IP) across the nation. This annual program is deliberated and approved by the Intellectual Property Strategy Headquarters, a Cabinet-established body chaired by the Prime Minister since 2003.

The 2022 program focuses on transforming Japan’s economy and society by enabling motivated individuals and entities to fully leverage existing intellectual properties and intangible assets. It identifies eight priority policies: (1) strengthening the IP ecosystem for startups and universities; (2) enhancing mechanisms to promote investment in and utilization of IP and intangible assets; (3) encouraging strategic use of international standards; (4) improving data distribution and utilization environments to realize a digital society; (5) developing strategies for digital content; (6) bolstering IP utilization by small and medium-sized enterprises, local regions, and the agriculture, forestry, and fisheries sectors; (7) reinforcing systems, operations, and human resource infrastructure supporting IP utilization; and (8) rebooting the Cool Japan initiative in a post-COVID context.

Among these, the first policy—strengthening the IP ecosystem for startups and universities—stands out for its potential to reshape IP management and commercialization. This policy aims to create an environment where startups can swiftly and flexibly develop new businesses based on technologies and ideas originating from universities.

Key measures under this policy include facilitating the use of startup shares and share options as consideration for acquiring university-owned IP. It also proposes supporting universities in building robust patent portfolios aligned with business objectives by establishing funding schemes for prosecuting foreign patent applications, involving startups early in IP strategy development, and enhancing the IP management capabilities of university IP divisions and Technology Licensing Organizations (TLOs).

A particularly notable provision addresses jointly owned patents between companies and universities. Under this measure, universities would be permitted to grant licenses to third parties, such as startups, without the consent of the company co-owner if the company fails to exploit the invention within a specified period without legitimate reason. This represents a significant departure from current practice, where joint owners must consent to licensing decisions.

Additional initiatives include creating systems to visualize IP assets held by companies and universities that can be licensed, thereby facilitating effective matching with startups. The program also aims to systematize IP strategy support services for startups by developing professionals skilled in both IP strategy and business and matching them appropriately at various business stages.

Further, the program encourages large companies to provide management assets to startups to foster open innovation and mutually beneficial relationships. It also seeks to address and prevent unfair conduct by large companies in transactions with startups.

To promote nationwide adoption of best practices, the government plans to develop and publish a "University IP Governance Guideline (temporary name)" to disseminate effective IP management ideas and processes within universities.

The proposed change allowing universities to license jointly owned patents without co-owner consent could profoundly affect companies engaged in collaborative research and joint patent filings with universities. Corporations will need to review their jointly owned patents to assess usage and licensing status, as well as reconsider research funding and collaboration strategies in light of potential licensing to competitors.

Implementing this provision may require amendments to the Patent Act, specifically Article 73, paragraph 3, which currently mandates joint owner consent for licensing. Alternatively, a special law applicable to universities might be introduced. Stakeholders, including IP associations and industry groups, should monitor developments closely and consider submitting feedback during any public consultation on proposed legislative changes.

These reforms signal Japan’s commitment to invigorating its innovation ecosystem by empowering startups and universities while balancing the interests of corporate collaborators. The coming months will be critical in observing how these policies translate into legal frameworks and practical impacts on IP management and commercialization in Japan.