Nissan 2006 Annual Report Download - page 53

Nissan Annual Report 2005 51
INVESTMENT FOR THE FUTURE
In the second area, proactive management, we
are trying to generate revenue and profits. We have
two ways of spotting potential partners and licensees
for a particular technology. One is that patent
applicants must show what similar inventions they
have checked, including the critical differences
between their invention and those that came before.
We can also check who cited our own patents. Both
make it much easier to start a dialogue.
We have already successfully negotiated
licensing agreements with companies to use Nissan
technologies. One example is our diamond-like
carbon coating technology (super low friction
technology), which has attracted the interest of global
firms both in and outside the automotive sector.
A welcome byproduct is that our researchers are
now highly motivated to pursue new technological
innovations. Prior to this, they seldom received
positive feedback, unless their inventions were
implemented on particular vehicles or products.
Patents also demonstrate our strength to R&D
people in other companies.
Merchandising is another way to leverage
Nissan’s assets. Toys and games are examples.
Another possibility is a management game for
business school students. We used to just say yes to
requests about using our cars in race games, without
negotiating or considering our brand’s value. Now
that Nissan’s brand is highly ranked, however, we
need to negotiate harder on merchandising rights.
Renault is far ahead of us in merchandising. They
even have a merchandising office. We’re actually very
complementary, because Renault also has greater
skills in interior and exterior design, whereas Nissan
has the advantage in technology. It is a fine example
of the synergy we expect from our alliance.
In the third area, reactive management, protecting
our IP is vital. Counterfeit products are rampant in
Asia, and IP is constantly being targeted in China.
Counterfeiters copy parts of a Nissan vehicle and a
competitor’s model and call it a completely new
design. Duplicating components like brake pads is
more problematic—copies are often sold at the same
store alongside genuine parts at a tenth of the price.
We have to fight such activities constantly,
finding out who did the copying and going after
them. This is expensive but essential. As a result of
our activities, in 2005 China’s State Administration
for Industry and Commerce officially recognized
Nissan as a famous trademark. Only well-known
brands with a high reputation in China are awarded
this status, including just two from Japan, Nissan and
YKK. This honor represents an important milestone
in Nissan’s brand-building efforts in China.
What distinguishes Nissan’s IAM activities is that
we are objective and proactive, and one of the few
companies with a consistent, organized strategy
toward intellectual property. Of course, we are not
satisfied with our current performance. In fact, our
benchmarks are U.S. and European companies,
especially IT-related firms, because they have more
experience in this area. We are currently
collaborating with IBM, GE and Siemens to further
develop our IAM activities.
Improving the infrastructure surrounding
intellectual asset management is vital to marketing
our technology. Fortunately, that is happening, and
we appear to be at the forefront of the economy,
which is increasingly driven by intangible assets.
Our office is still new, however, and we must work
harder to properly present the many assets Nissan
has to offer.