January 28 (Monday), 2008
International Symposium
Intellectual Property and East Asia Renaissance
“Intellectual Property and Global Economic Growth”
Canon’s Corporate Management
and Intellectual Property
in East Asia
Nobuyoshi Tanaka Ph.D.
Senior Managing Director
© 2007 Canon Inc.
Group Executive,
Corporate Intellectual Property
and Legal Headquarters
Canon Inc.
1
Canon Management Philosophy
Started with camera business in 1937
＝ Management philosophy since start-up ＝
・ “Respect for human life and integrity”
・ “Compete with Canon’s original technology”
Diversification by
original technology
Global Top
Market Share
・
・
・
・
・
・
・
Digital cameras
Plain paper copiers(PPC)
LBP (color)
LBP (monochrome)
Large format LCD exposure systems
TV Broadcasting lenses
Image scanners
22%
28%
52%
60%
51%
60%
35%
* Canon estimates for 2006 data
Examples of failure due to original technology: Synchroreader, office computer, FLC and plenty more…
© 2007 Canon Inc.
2
Company Introduction
Breakdown of Sales by Region (consolidated)
3 times
Asia & Oceania
8%
Asia & Oceania
15%
Japan
Japan
22%
28%
Europe
1999
2006
29%
Europe
32%
Americas
34%
Americas
31%
1.5 times
2.53 trillion yen
© 2007 Canon Inc.
4.15 trillion yen
3
Canon’s Development into Asia
Major Production & Software
Development Sites
Dalian (1989)
Beijing (1998)
(LBP,CRG)
software development
50%
Tianjin (1997)
(photocopiers)
45%
Suzhou (2001)
(photocopiers)
New Delhi (1999)
software development
Overseas Production Ratio
South Korea
(1985)
(photocopiers)
Shenzhen (1993)
(photocopiers)
Zhongshan
Taiwan (1970)
(2001)
(cameras)
(LBP)
Zhuhai (1990)
(cameras & LBP)
Thailand (1990)
Vietnam (2001)
(IJP)
Manila (1991)
(IJP)
Software
development
Major Production Site
Malaysia (1988)
(cameras & lenses)
Overseas production ratio
Asian production ratio (excluding
Japan)
42%42%
40%
35%
35%
30%
38% 37%
31%
30%30%
40%39%
38%
37% 37%
24%
25%
20% 17%
19%
15%
99 00 01 02 03 04 05 06
Major Software
Development Site
© 2007 Canon Inc.
4
Canon’s Production Site Concept
Select production site based on characteristics of each product
1.
1. Japan
Japan
・・High
Highvalue-added
value-addedproducts
products(absorbing
(absorbinglabor
laborcosts)
costs)
--High
Highquality
qualityphotocopying
photocopyingmachines,
machines,digital
digitalSLR
SLRcameras
cameras
・・Products
Productsbest
bestfitting
fittingfor
forfull
fullautomation
automation
--Consumables,
Consumables,etc.
etc.
2.
2. Asian
Asian Region
Region
・・Regional
Regionaldecentralization
decentralizationinstead
insteadof
ofconcentration
concentration
--To
Tocope
copewith
withunforeseen
unforeseensituations
situationssuch
suchas
aspolitical
political
instability,
instability,SARS,
SARS,etc.
etc.
・・Cost
Costcompetitive
competitiveproducts
products
--Inkjet
InkjetPrinters,
Printers,LBP
LBP(monochrome)
(monochrome)
© 2007 Canon Inc.
5
Relocation of Production Sites
・1970s – 1980s
・Since 1990s
U.S.A. ⇒ Japan
Japan ⇒ Asia (China, etc.)
＝Rise of the Asian Region＝
･ Production site
・ Improvement of technological strength
・ Shift to a large consumption region
(markets)
To strengthen international competitiveness:
･Create new knowledge (technology), produce new products,
and develop new business
･Protect new business with intellectual property rights
derived from this “knowledge”
Intellectual property based country
© 2007 Canon Inc.
6
Economic Development & Intellectual Property
East
Asia
region
Domestic
businesses
Consumption
region
Economic development
Improvement of
technological strength
Production site
Counterfeits deter the healthy growth
No intellectual
property culture
of the original products
【 Urgent development of
intellectual property system 】
Counterfeit
products
Products
compatible
with original brand
Enforce
trademark &
design rights
Enforce
patent
rights
Original
technology
products
Establishment of production company
Out-Out production/sales
・Royalty base
Overseas
businesses
(Trademark, design, copyright, know-how)
【 Transfer pricing tax problem】
Establishment of sales company
Brand management
(trade name management, businesses with similar trade names, billboards, business cards, etc.)
Establishment of research and
development company
Prevent technology outflow
© 2007 Canon Inc.
【 Contract 】: Management of
intellectual property rights
7
Number of Canon Counterfeit Enforcements
Yearly progress by region
No. of Cases
500
450
400
350
493
豪Australia
州
欧Europe
州
汎Americas
米
東South
南 アEast
ジア
Asia
中China
国
363
20
45
300
42
100
© 2007 Canon Inc.
88
62
26
101
56
335
150
5
0
2000
324
15
180
200
50
82
55
250
422
41
35
5
243
178
141
218
35
2001
2002
2003
2004
2005
2006
8
Brand Management Initiatives
Within company
=Inappropriate usage=
・ Improvement of
brand awareness
Outside company
=Unauthorized brand usage=
Authorized
distributors
Countermeasures to
・Trade name
・Counterfeit products
1. Creation of system for Canon logo management
2. Establishment of the brand management committee
at each branch
・Deploy brand management training seminar
Guangzhou branch
office (China)
© 2007 Canon Inc.
9
Prevention of Technology Outflow
Awareness reform : “culture and thinking differ in countries & regions”
1. Production companies
・Products management
⇒ Produce key parts and devices in Japan
・Personnel management
⇒ Prepare rules & regulations including
non-disclosure agreements
・Information management ⇒ Provide minimum electronic transmission of drawings
for local production
2. Software development companies
(1) In-house security
management
① Management of employee entry/exit (with guard)
② Management of employee with its ID card
③ Entry/Exit with individual passwords
(2) Equipment
management
① Inspection of personal items such as media at the gate
(3) Internet connection ① Prohibition of internet access
management
② Access management for intranet data by data
© 2007 Canon Inc.
10
I P System from a Business Perspective
Sound global economic growth needs promotion of
innovation and protection by intellectual property system
Current Situation
① Counterfeit products harm the healthy business growth,
damage brands, threaten people’s safety and enrich a source
of funds for criminal organizations.
② There are gaps in the legal system among countries and regions
for intellectual property protection as well as its enforcement.
Developed countries are requested to proactively support
the establishment of East Asia’s intellectual property system.
Requests and Cooperation
© 2007 Canon Inc.
11