Konica Minolta 2005 Annual Report Download - page 38

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In addition to conducting R&D within the Group, Konica Minolta is speeding up
the R&D process by proactively forming research and development alliances both in
Japan and overseas through participation in national projects, joint projects with other
companies, and collaboration with universities, and through these activities has firmly
established itself as a global player. Specific examples include participation in the
Technology Research Association for Advanced Display Materials (TRADIM),
a national project sponsored by Japan’s Ministry of Economy, Trade and Industry,
and development of large-capacity optical storage technologies. In the Photo Imaging
business, moreover, the Group is promoting the PASS standard in conjunction with
Fuji Photo Film Co., Ltd. and Eastman Kodak Company for easier digital storage,
printing, viewing and sharing of images.
3. ACQUISITION AND MANAGEMENT OF INTELLECTUAL PROPERTY, TRADE SECRET
MANAGEMENT AND POLICIES ON TECHNICAL LEAKAGE PREVENTION
The Konica Minolta Group recognizes that intellectual property is an important
management resource, and is actively promoting asset formation and the effective use
of the intellectual property the Group possesses for its business activities as well as
forming Group-wide policies for intellectual property. Specifically, intellectual
property strategies for individual business companies are formulated annually based
on Group-wide intellectual property policies, and activities to promote these
strategies are implemented on a rolling basis in accordance with the particular
circumstances and condition of the business. In the acquisition of intellectual
property the Group is working to improve the quality of its patent filings through
joint reviews with its R&D division and the Intellectual Property Center of the
technological and patent aspects of discoveries, and based on the results of those
reviews determining filing policies for each invention on an individual basis.
Moreover, the Group is working to expand its overseas patent acquisitions in keeping
with the overseas development of each business, and is placing particular focus on
increasing patent applications of core technologies in China, given the remarkable
economic development in that country.
In keeping with the amended Japan patent law which became effective in April
2005, the Group has revised its internal regulations regarding compensation for
employee inventions. Under the revised regulations, the Group holds in-depth
negotiations with the employee concerned to reach a conclusion that is agreeable for
both the inventor and the Company. In 2004, in addition to lifting a previous ceiling
on related compensations, the amount of compensation was effectively increased,
and a system was introduced to allow the inventor to receive a lump-sum, up-front
compensatory payment when the patent is filed. These policies provide even greater
incentive for the creation of new inventions.
In terms of management of trade secrets and technology security, the Group has
established detailed regulations such as its “standards for the management of
confidential information.” Based on the Group’s “Konica Minolta Compliance Code of
Conduct,” these standards ensure the appropriate handling of sensitive information
and help to prevent the inadvertent leakage of confidential information.
4. CONTRIBUTION OF LICENSING-RELATED ACTIVITIES TO BUSINESS
The Konica Minolta Group is effectively utilizing the extensive number of intellectual
property rights it holds to ensure the Group’s product differentiation and competitive
advantage as a means of generating earnings for the business. However, due to the