JPO aims to tidy its license registry

It emerged over the weekend that the Japan Patent Office (JPO) is preparing to sharpen up its service by improving its system of registering license agreements. Currently a much under-used facility of Japan’s IP framework, the system provides legal recognition for licensing deals between firms, enshrining them as permanent fixtures even in the event of corporate insolvency.

That way, any such contract is preserved on behalf of its original signatories, effectively recognising them as the IP holders of the relevant deal. This gives licensing agreement creators a similar legal standing to that of trademark registrants or patentees. However, JPO figures for the 2006 fiscal year show that, of a potential 110,000 licensing agreements at large within Japanese industry, only 1,315 are currently registered with the JPO.

When pressed to explain their reluctance to sign up, firms have cited concerns over the licensing system’s inability to handle complex situations involving licensing agreements between firms who are both awaiting the confirmation of a patent in order to progress – e.g. the principle of the deal is in place, but vital IP is still pending.

Changes brought to indigenous firms by international investment have given the JPO an impetus to improve its programme. Foreign buyouts have made IP ownership more complex on paper, and the JPO considers that a more flexible model will encourage firms to register their deals in stronger numbers.

Details of the improvements have yet to be revealed, but IP Review Online will report any announcements.