1. Grace Period System under AIA vs. Exception to Loss of Novelty in Japan JPAA International Activities Center Kazuhiro Yamaguchi January 29, 2013 AIPLA Mid-Winter Institute IP Practice in Japan Committee Pre-Meeting Seminar

2. 2 2013.01 Disclaimer The views expressed in this presentation are those of the author and do not necessarily reflect the views of JPAA or the author’s firm. This presentation is for general informational purposes only and should not be taken as legal advice.

3. 3 2013.01 Patent Reform and Recent Revisions in Japan History: “Act on Partial Revision of the Patent Act, etc. of 2011” February 16, 2011 Reported to the Intellectual Property Policy Committee March 11, 2011 Agreed by the Cabinet April 15, 2011 Passed by House of Councilors May 31, 2011 Passed by the House of Representatives June 8, 2011 Issued April 1, 2012 Effective Date

4. 4 2013.01 Key Points: “Act on Partial Revision of the Patent Act, etc. of 2011” Protection for non-exclusive licensee Protection for collaborative research and development Review of invalidation trial and trial for correction in JPO Bailout for applicants and patentee - Annuity for small and medium-sized company - Expansion of “Exception to Loss of Novelty” etc. Patent Reform and Recent Revisions in Japan

5. 5 2013.01 Scope of “Exception to Loss of Novelty” Before the Reform: Old Article 30 Paragraphs (1)-(3) Limited to inventions made public through: - the implementation of a test; - presentation in a printed publication; - presentation in an electric telecommunication line (not including broadcasting); - writing presented at an academic conference designated by the Commissioner of the Patent Office; or - display at a specific exhibition etc., or Against the will (Old paragraph (2)) "Exception to Loss of Novelty" Before the Patent Reform in Japan

6. 6 2013.01 Expanded scope of “Exceptions to Lack of Novelty of Invention” After the Reform: New Article 30 Paragraphs (1)-(2) - Against the will (New paragraph (1) = Old paragraph (2)) - “Invention which has fallen under any of the items of Article 29, paragraph (1) as a result of an act of the person having the right to obtain a patent” (New paragraph (2) > Old paragraphs (1)&(3)) [Note] Article 29, paragraph (1) = Novelty: 1.Known to public, 2.Worked/Used in public, 3. Publication "Exception to Loss of Novelty" After the Patent Reform in Japan

7. 7 2013.01 Expanded scope of “Exceptions to Lack of Novelty of Invention” After the Reform: New Article 30 Paragraph (2) (Allowable Examples) - Inventions made public at meetings and seminars, which are not academic conference designated by the Commissioner of the Patent Office - Inventions made public on TV or radio - Inventions made public through sales *For details: Procedures for Seeking the Application of Exceptions to Lack of Novelty of Invention, Corresponding to the Patent Act Article 30 http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/e_pae_paa30.htmhttp://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/e_pae_paa30.htm "Exception to Loss of Novelty" After the Patent Reform in Japan

8. 8 2013.01 Japan Old Article 30(1) and (3) U.S. Old Section 102(b) Disclosed by: Person having the right to obtain a patent (ex. inventor etc.) Anyone How made public or disclosed? Limited to inventions made public through certain circumstances Any way How long? 6 months prior to JP filing (incl. PCT filing) (At most, 6 months from disclosure) 1 year prior to US filing (At most, 1 yr. from disclosure) Required Procedures Submission of Statement and Proof "Due Date for Submission" for Non-PCT:Statement = At the time of filing Proof = Within 30 days from filing for PCT: Within 30 days from the date on which the "national processing standard time" None Summary and Comparison: Before the Patent Reforms in JP and US

9. 9 2013.01 Japan New Article 30(2) U.S. New Section 102(b) Disclosed by: Person having the right to obtain a patent (ex. inventor etc.) Inventor; Joint inventor; "Another who obtained the subject matter" etc. How made public or disclosed? Inventions made public as a result of an act of the "person having the right to obtain a patent" As prescribed in Sec. 102(a)(1)&(2) How long? 6 months prior to the JP filing (incl. PCT filing) (Still, at most, 6 month from disclosure) 1 year or less before the effective filing date (Possibly, 2 years from disclosure) Required Procedures Submission of Statement and Proof (No change in the "Due Date") Statement, Affidavit or Declaration (as in proposed 37 CFR §1.77(b)(6) and §1.130) (*Derivation proceedings, if necessary) Summary and Comparison: After the Patent Reforms in JP and US

10. US Application “A” or PCT Application "A" 10 2013.01 Publication “A” Application “A” may be filed in the U.S. within maximum 2 years from the publication if a priority is validly claimed. Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (1) US Application “A” or PCT Application "A" Publication “A” 1 year or less before the "effective filing date" JP Application “A” = Eligible for "Grace Period" 1 year or less before the "effective filing date" (= max. 2 yrs. from Publication "A") Priority Claim under Paris Convention (max. 1 yr.) US US Sec. 102(B)1(A) [not prior art] US Sec. 102(B)1(A)

11. 11 2013.01 Publication “A” Application “A” must be filed in Japan within 6 months from the publication irrespective of priority claim Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (1) JP Application “A” or PCT Application "A" Publication “A”JP Application “A” or PCT Application "A" within 6 months from Publication "A" US Application “A” = Eligible for "Exception" = Non-Eligible for "Exception" more than 6 months from Publication "A" Priority Claim under Paris Convention JP JP Art. 29(1)3 [prior art] JP Art. 30 [not prior art]

12. 12 2013.01 Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (2) Who may obtain a patent for the same and original invention ("A"="B") in JP and US? Application “A” Application “B” Publication “A” Publication “B”

13. 13 2013.01 Application “A” Application “B” Applicant of Application “A” may obtain a patent for the invention JP Art. 29bis (* but not for Art. 29(2) "Inventive step") US Sec. 102(a)(2) (* also for Sec. 103 "Non-obviousness") Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (2) Application Publication “A” Application Publication “B” JP & US [prior art]

14. 14 2013.01 Publication “A”Application “A” Publication “B”Application “B” 6 months Who may obtain a patent if the same and original invention ("A"="B") is disclosed by the original inventors who independently invented it? Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (3)

15. 15 2013.01 Pub. “A”Appl. “A” Pub. “B” Appl. “B” 6 months In the U.S., Applicant (earlier disclosure) of Application “A” may obtain a patent for the invention. US Sec. 102(b)(1)(A) US Sec. 102(b)(1)(B) US Sec. 102(a)(1) US Sec. 102(b)(1)(A) Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (3) US [prior art] [not prior art]

16. 16 2013.01 Pub. “A” Appl. “A” Pub. “B” Appl. “B” 6 months JP Art. 30 JP Art. 29(1)3 JP Art. 30 Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (3) JP [prior art] [not prior art] [prior art] In Japan, both applications shall be rejected even if "Exception to Loss of Novelty" is sought.

17. 17 2013.01 Pub. “A”Appl. “A” Pub. “B” Appl. “B” 4 months Who may obtain a patent if the same and original invention ("A"="B") is disclosed by the original inventors who independently invented it and the earlier disclosure ("B") is filed later? 6 months Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (4) Appl. Pub. “A” Appl. Pub. “B”

18. 18 2013.01 Pub. “A” Appl. “A” Pub. “B” Appl. “B” 4 months 6 month Sec. 102(b)(1)(B) Sec. 102(b)(1)(A) Sec. 102(a)(1) Sec. 102(b)(1)(A) In the U.S., Applicant (earlier disclosure) of Application “B” may obtain a patent for the invention. Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (4) US [not prior art] [prior art] [not prior art] Appl. Pub. “A” Appl. Pub. “B” Sec. 102(b)(2)(B) [not prior art]

19. JP Art. 29bis [prior art] 19 2013.01 Pub. “A”Appl. “A” Pub. “B” Appl. “B” 4 months 6 month Art. 30 Art. 29(1)3 In Japan, both applications shall be rejected even if "Exception to Loss of Novelty" is sought. Comparison between "Exception to Loss of Novelty" in Japan and "Grace Period" in the U.S. (4) JP [not prior art] [prior art] Art. 29(1)3 [prior art] Art. 30 [not prior art] Appl. Pub. “A” Appl. Pub. “B”

20. 20 2013.01 Conclusion Even after patent reforms in Japan and the U.S., there are differences in the meaning of “Grace Period.” 1)Applicant of "First Disclosure" cannot always enjoy the benefits of the "Exception to Loss of Novelty" in Japan. ="File First" is more important in Japan. 2)The "Exception to Loss of Novelty" is limited to 6 months (not 12 months) prior to an actual filing date in Japan or an PCT filing date (not a priority date). 3)In Japan, the "statement" is required at the time of filing, and the "proof" is required within 30 days* from the date of filing. *Exception:Within 30 days from the date on which the "national processing standard time" for a PCT national entry into Japan

21. Kazuhiro Yamaguchi SOEI PATENT AND LAW FIRM Marunouchi MY PLAZA 9th fl. 1-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-0005 JAPAN www.soei.com yamaguchi-k@soei-patent.co.jp THANK YOU

22. Appendix

23. 23 2013.01 Topics of Interest Discussions in "Operational Guidelines for Applicants to Seek the Application of Exceptions to Lack of Novelty" -How to state the "Facts of Publication" (Requirement 1: See Section 3.3) ex.Displays at shows, trade fairs or exhibitions Sale or distribution Press conferences or performance at a live program on TV or radio -How to state the “Facts of Succession to the Right to Obtain a Patent, etc.” (Requirement 2: See Section 3.4) -How to prepare a statement if the invention is disclosed twice or more "by the inventor etc." or "by another" (See Section 4, cf. New US Sec. 102 (b)(1)(B) and (b)(2)(B)) (Source)Operational Guidelines for Applicants to Seek the Application of Exceptions to Lack of Novelty http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdfhttp://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdf

24. 24 2013.01 Article 29 (1) An inventor of an invention that is industrially applicable may be entitled to obtain a patent for the said invention, except for the following: (i) inventions that were publicly known in Japan or a foreign country, prior to the filing of the patent application; (ii) inventions that were publicly worked in Japan or a foreign country, prior to the filing of the patent application; or (iii) inventions that were described in a distributed publication, or inventions that were made publicly available through an electric telecommunication line in Japan or a foreign country, prior to the filing of the patent application. "Novelty" in Japan (Source)Japanese Law Translation Database System http://www.japaneselawtranslation.go.jp/ http://www.japaneselawtranslation.go.jp/ (*emphasis added)

25. 25 2013.01 Article 30 (1) In the case of an invention which has fallen under any of the items of Article 29(1) by reason of the fact that the person having the right to obtain a patent has conducted a test, has made a presentation in a printed publication, has made a presentation through electric telecommunication lines, or has made a presentation in writing at a study meeting held by an academic group designated by the Commissioner of the Patent Office, such invention shall be deemed not have fallen under any of the items of Article 29(1) for the purposes of Article 29(1) and (2) for the invention claimed in a patent application which has been filed by the said person within six months from the date on which the invention first fell under any of those items. "Exception to Loss of Novelty" in Japan: Before the Patent Reform (*emphasis added) (Source)Japanese Law Translation Database System http://www.japaneselawtranslation.go.jp/ http://www.japaneselawtranslation.go.jp/

26. 26 2013.01 Article 30 (2) In the case of an invention which has fallen under any of the items of Article 29(1) against the will of the person having the right to obtain a patent, the preceding paragraph shall also apply for the purposes of Article 29(1) and (2) to the invention claimed in the patent application which has been filed by the said person within six months from the date on which the invention first fell under any of those paragraphs. "Exception to Loss of Novelty" in Japan: Before the Patent Reform (*emphasis added) (Source)Japanese Law Translation Database System http://www.japaneselawtranslation.go.jp/ http://www.japaneselawtranslation.go.jp/

27. 27 2013.01 Article 30 (3) In the case of an invention which has fallen under any of the items of Article 29(1) by reason of the fact that the person having the right to obtain a patent has exhibited the invention at an exhibition held by the Government or a local public entity (hereinafter referred to as the "Government, etc."), an exhibition held by those who are not the Government, etc. where such exhibition has been designated by the Commissioner of the Patent Office, an international exhibition held in the territory of a country of the Union of the Paris Convention or a member of the World Trade Organization by its Government, etc. or those who are authorized thereby to hold such an exhibition, or an international exhibition held in the territory of a state which is neither of a country of the Union of the Paris Convention nor a member of the World Trade Organization by its Government, etc. or those who are authorized thereby where such exhibition has been designated by the Commissioner of the Patent Office, paragraph (1) shall also apply for the purposes of Article 29(1) and (2) to the invention claimed in the patent application which has been filed by the said person within six months from the date on which the invention first fell under any of those items. "Exception to Loss of Novelty" in Japan: Before the Patent Reform (*emphasis added) (Source)Japanese Law Translation Database System http://www.japaneselawtranslation.go.jp/ http://www.japaneselawtranslation.go.jp/

28. 28 2013.01 Article 30 (4) Any person seeking the application of paragraph (1) or (3) shall submit to the Commissioner of the Patent Office, at the time of filing of the patent application, a document stating thereof and, within thirty days from the date of filing of the patent application, a document proving the fact that the invention which has otherwise fallen under any of the items of Article 29(1) is an invention to which paragraph (1) or (3) of this Article may be applicable. "Exception to Loss of Novelty" in Japan: Before the Patent Reform (*emphasis added) (Source)Japanese Law Translation Database System http://www.japaneselawtranslation.go.jp/ http://www.japaneselawtranslation.go.jp/

29. 29 2013.01 Article 30 (1) (= corresponding to Old Article 30(2)) In the case of an invention which has fallen under any of the items of Article 29 (1) against the will of the person having the right to obtain a patent, such invention shall be deemed not to have fallen under any of the items of Article 29 (1) for the purpose of Article 29 (1) and (2) for the invention claimed in a patent application which has been filed by the said person within six months from the date on which the invention first fell under any of said items. "Exception to Loss of Novelty" in Japan: After the Patent Reform (*emphasis added) (Source)Operational Guidelines for Applicants to Seek the Application of Exceptions to Lack of Novelty http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdfhttp://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdf

30. 30 2013.01 Article 30 (2) (= corresponding to Old Article 30(1) and (3)) In the case of an invention which has fallen under any of the items of Article 29 (1) as a result of an act of the person having the right to obtain a patent (excluding those which have fallen under any of the items of said paragraph through the publication in the bulletin pertaining to inventions, utility models, designs or trademarks), the preceding paragraph shall also apply for the purpose of applications of Article 29 (1) and (2) for the invention claimed in a patent application which has been filed by said person within six months from the date on which the invention first fell under any of said items. "Exception to Loss of Novelty" in Japan: After the Patent Reform (*emphasis added) (Source)Operational Guidelines for Applicants to Seek the Application of Exceptions to Lack of Novelty http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdfhttp://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdf

31. 31 2013.01 Article 30 (3) (= corresponding to Old Article 30(4)) Any person seeking the application of the preceding paragraph shall submit to the Commissioner of the Patent Office, at the time of filing of the patent application, a document stating that fact and, within thirty days from the date of filing of the patent application, a document proving the fact that the invention which has otherwise fallen under any of the items of Article 29(1) is an invention to which the preceding paragraph may be applicable. "Exception to Loss of Novelty" in Japan: After the Patent Reform (*emphasis added) (Source)Operational Guidelines for Applicants to Seek the Application of Exceptions to Lack of Novelty http://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdfhttp://www.jpo.go.jp/tetuzuki_e/t_tokkyo_e/pdf/e_pae_paa30/e_tebiki.pdf