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SHARP ANNUAL REPORT 2006 24
have successfully made a prototype of the new LED which
realizes natural white light close to sunlight, with a high aver-
age color rendering index*. Sharp aims to commercialize the
LEDs for lighting applications.
*An index of color reproducibility
Sharp has developed an intellectual property strategy to
secure a competitive edge with one-of-a-kind products and
devices by aggressively promoting patent right obtainment
and keeping technologies as “black-box.”
Sharp has clearly delineated the fields that are central to
each business, and has exhaustively filed patent applications
in those fields. A patent specialist has been assigned to each
of these core business areas to conduct strategic patent
development close to the frontline. As a result, Sharp now
has around 15,900 patents in Japan and around 18,700
patents overseas*.
Sharp utilizes these patents to safeguard its strategic
businesses. In order to make the most effective use of
patents, a proactive patent strategy is pursued. The prod-
ucts of other companies in the industry are scrutinized and if
a patent infringement is discovered, an appropriate warning
is issued. In certain cases, more aggressive action, such as
filing a lawsuit, is taken.
*As of April 2006
In December 2005, the pioneering electronic calculator first commer-
cialized by Sharp was recognized with a prestigious IEEE Milestone
from the IEEE, a worldwide electrical and electronics engineering
society. We were praised for our innovative efforts to make the prod-
uct smaller and use less electric power. The technologies used in the
development process of this product, notably integrated circuit tech-
nology and LCD technology, form the basis of today’s digital appli-
ances, proving the major contribution Sharp has made to the elec-
tronics industry.
Intellectual property strategy
02
144 152 162 175 185
03 04 05 06
10%
8%
6%
4%
2%
100%
80%
60%
40%
0%0%
20%
8.0%
7.6%
7.2% 6.9% 6.6%
50.8%
65.4%
74.6%
86.0% 88.4%
R&D expenditure / Net sales
Operating income / R&D expenditure
R&D expenditure
Sharp Corporation and Consolidated Subsidiaries
Years ended March 31 (billions of yen)
R&D expenditure / Net sales
Operating income / R&D expenditure
Sharp’s electronic calculators (1964 to 1973) that received
the IEEE Milestone from the IEEE
Behind: The commemorative plaque presented by the IEEE