The JPO Has Announced Changes to Rules Surrounding Fee Reduction, as of April 1, 2019, for Various Small Entities (1) | ONDA TECHNO Intl. Patent Attys.[Japan Patent Firm] | Gifu City

The JPO Has Announced Changes to Rules Surrounding Fee Reduction, as of April 1, 2019, for Various Small Entities (1) | ONDA TECHNO Intl. Patent Attys.[Japan Patent Firm] | Gifu City

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The JPO Has Announced Changes to Rules Surrounding Fee Reduction, as of April 1, 2019, for Various Small Entities (1)

Based on the amendment to Japanese Patent Law, Article 109, as of April 1, 2019, the range of targeted small entities for reduction will be expanded. Further, the procedure for filing a reduction application will be simplified; there will be no need to file an application document or a certificate to show that the corporation is qualified for the reduction with the JPO.

To qualify for the reduction, an applicant must meet one of the following requirements:

< Micro Sole Proprietorship or Micro Enterprises >

1) A micro sole proprietor (up to 20 employees, up to 5 employees for trade or service business)

2) A corporation (up to 20 employees, up to 5 employees for trade or service business). Further, it is necessary to meet the following requirements both A and B
A: One large corporation (a corporation other than small and medium-sized enterprises) does NOT have 1/2 or more of shares or the total amount of investment.
B: Multiple large corporations (corporations other than small and medium-sized enterprises) do NOT have 2/3 or more of the shares or the total amount of the investment.

(See item 1 and 2 of the below Table for details.)

< Venture Sole Proprietorship or Small & Medium Venture Enterprises >

3) A micro sole proprietor who started his/her business within 10 years

4) A corporation within 10 years after its establishment, and the capital of the corporation is less than three hundred million yen (approximately 3 million US dollars).
Further, it is necessary to meet the following requirements both A and B.
A: One large corporation (whose capital amount or investment total is more than three hundred million yen) does NOT have 1/2 or more of shares or the total amount of investment.
B: Multiple large corporations (whose capital amount or investment total is more than three hundred million yen) do NOT have 2/3 or more of shares or the total amount of investment.

(See item 3 and 4 of the below for details.)

Official Fees Reduction for the above items 1-4:
Request for examination: Reduced to 1/3 of normal fee
Annuities (1st to 10th): Reduced to 1/3 of normal fee

5) Small & Medium Enterprises (SMEs)

  1. Manufacturing, construction, transportation and other industries (excluding industries (B) to (G) listed below.
    Up to 300 employees, OR the capital of the corporation is less than three hundred million yen
  2.  Wholesale trade Up to 100 employees, OR 100 million yen or less
  3.  Service industry (excluding industries (F) and (G)
    Up to 100 employees, OR 50 million yen or less
  4. Retail trade Up to 50 employees, OR 50 million yen or less
  5. Rubber product manufacturing industry (excluding automobile or aircraft tire and tube manufacturing industry and industrial belt manufacturing industry)
    Up to 900 employees, OR 300 million yen or less
  6. Software industry or information processing service industry
    Up to 300 employees, OR 300 million yen or less
  7.  Hotel/Inn industry Up to 200 employees, OR 50 million yen or less

*A-G: It is necessary to meet the following requirements both A and B:
A: One large corporation (a corporation other than small and medium-sized enterprises) does NOT have 1/2 or more of shares or the total amount of investment.
B: Multiple large corporations (a corporation other than small and medium-sized enterprises) do NOT have 2/3 or more of the shares or the total amount of the investment.

Official Fees Reduction for the above items A-G:
Request for examination: Reduced to 1/2 of normal fee
Annuities (1st to 10th): Reduced to 1/2 of normal fee

(See item 5 of the below Table for details.)

6) Small and Medium Enterprises (Sole proprietorship)

7) Academic discount (researchers at universities, universities, etc.)

There are other categories besides the above. The following is a list of the detailed categories that qualify for the reduction and the definitions:

  • Small and medium-sized enterprises (Union)
  • Small and medium-sized enterprises (NPO Corporation)
  • Research and development type small and medium enterprises (corporation/individual business owner/Union/NPO corporation)
  • Small and medium-sized enterprise (corporation) applied corporate tax exemption
  • Individual (exempt from paying municipal inhabitant tax etc.)
  • Public Research and Development Institute

For details, please refer to the following website: http://www.ondatechno.com/en/news/patent/p642/

 

Target of Reduction Requirements Reduction
1.2.
Micro Enterprises (corporation/individual business owner)
  • A private business owner
  • A micro sole proprietor who employs 20 or fewer employees who are continuously employed (5 or fewer employees for those who engage in businesses belonging to the trade or service industry as the main business).
  • A corporation (to meet the following two requirements)
  • A corporation that has 20 or fewer employees who are continuously employed* (5 or fewer employees for those who engages in businesses belonging to the trade or service industry as the main business).
  •  Must not be dominated by large corporations (i.e., other than small and medium-sized enterprises (SMEs)) means meeting the following requirements both (A) and (B) (“Small and medium-sized enterprises” belong to this (“small business operator” in Article 10 of the Enforcement Order of the Patent Act)):

(A) A single large corporation (other than small and medium-sized enterprise) does NOT have 1/2 or more of shares or the total amount of investment.

(B) Multiple large corporations (corporations other than small and medium-sized enterprises) do NOT have 2/3 or more of the shares or the total amount of the investment.

 

* “Employees who are continuously employed” means “person who must be notified prior to dismissal” in accordance with Article 20 of Labor Standards Law. That is, when a worker is employed based on the same basis as a regular employee, the worker should be considered as an employee. On the other hand, regarding corporate officers and individual business owners who do not fall under “person who must be notified prior to dismissal”, they are not considered as employees who are continuously employed. Regarding part-time workers, they are individually determined based on Article 20 of the Labor Standards Act. The following are examples of part-time “employees”:

(Example)

  •  Employees who are employed on a day by day basis (part-time job etc.) are not normally considered as employees.
    (Note) If the person is employed more than one month, such case will be considered as an employee who is continuously employed.
  • Those who are employed within two months are not normally considered as employees. (Note) If the person will continue being employed more than the specified time period, such a case will be considered as an employee who is continuously employed.
  • Those who are employed for a seasonal business for a certain time period, not exceeding four months, are not normally considered as employees.
    (Note) If the person will continue being employed more than the specified time period, such a case will be considered as an employee who is continuously employed.”

Top

<Patent>
Request for examination fee: Reduce to 1/3 of normal fee
Annuities (1st to 10th year): Reduce to 1/3 of normal fee
3.4.
Small and medium venture enterprises (corporate/individual business owner)
  • A private business owner
  • A corporation within 10 years after its establishment
  • A corporation (to meet the following two requirements)
  • A corporation whose capital amount or investment total is less than 300 million yen (approximately 3 million US dollars) and in less than 10 years after its establishment.
  • Must not be dominated by large corporations (capital amount or corporate entity whose total investment is less than 300 million yen) means meeting the following requirements both (A) and (B):

(A) A single large corporation (a corporation other than a corporation with a capital amount or total investment of 300 million yen or less) does not have 1/2 or more of the total number of shares or total investment.

(B) Multiple large corporations (capital amount or a corporation with a total capital investment of 300 million yen or less) do not have 2/3 or more of the total number of shares or total investment.

Regarding a corporation without capital or investment, the amount equivalent to 60/100 of the total amount of assets recorded on the balance sheet at the end of the previous fiscal year, in which the total liabilities have been deducted (if the amount of profit relating to the relevant business year is indicated in the balance sheet, the amount is considered as deducted amount. If the amount of loss relating to the relevant business year is indicated in the balance sheet, that amount shall be added.), must be less than 300 million yen.

 

Top

<Patent>
Request for examination fee: Reduce to 1/3 of normal fee
Annuities (1st to 10th year): Reduce to 1/3 of normal fee
5. Small and medium enterprises (SMEs) (Corporation)

A corporation that falls under both (A) and (B):/en/news/patent/p641/
(1) A corporation that meets either of the following “number of employees” or “capital amount or total investment”
(2) A corporation NOT being dominated by large companies (corporations other than SME)*

  Industry Number of Employees (employed continuously) Capital Amount
or Total Investment
a* Manufacturing, construction, transportation and other industries (excluding industries listed below (b) to (g)) Up to 300 OR 300 million yen or less
b* Wholesale trade Up to 100 OR 100 million yen or less
c* Service industry (excluding industries listed (f) and (g)) Up to 100 OR 50 million yen or less
d* Retail trade Up to 50 OR 50 million yen or less
e* Rubber product manufacturing industry (excluding automobile or aircraft tire and tube manufacturing industry and industrial belt manufacturing industry) Up to 900 OR 300 million yen or less
f* Software industry or information processing service industry Up to 300 OR 300 million yen or less
g* Hotel/Inn industry Up to 200 OR 50 million yen or less

 

*NOT being dominated by large companies” means meeting the following requirements both (A) and (B) (small and medium-sized enterprises belong to this (“small business operator” in Article 10 of the Enforcement Order of the Patent Act)):

(A) A single large corporation (a corporation other than a corporation with a capital amount or total investment of 300 million yen or less) does NOT have 1/2 or more of the total number of shares or total investment.
(B) Multiple large corporations (corporations other than small and medium-sized enterprises) do NOT have 2/3 or more of the shares or the total amount of the investment.

 

*”Employees who are continuously employed” means “person who must be notified prior to dismissal” in accordance with Article 20 of Labor Standards Law. That is, when a worker is employed based on the same basis as a regular employee, the worker should be considered as an employee. On the other hand, regarding corporate officers and individual business owners who do not fall under “person who must be notified prior to dismissal”, they are not considered as employees who are continuously employed. Regarding part-time workers, they are individually determined based on Article 20 of the Labor Standards Act. The following are examples of part-time “employees”:

(Example)

  • Employees who are employed on a day-by-day basis (part-time job etc.) are not normally considered as employees.
    (Note) If the person is employed more than one month, such case will be considered as an employee who is continuously employed.
  • Those who are employed within two months are not normally considered as employees. (Note) If the person will continue being employed more than the specified time period, such a case will be considered as an employee who is continuously employed.
  • Those who are employed for a seasonal business for a certain time period, not exceeding four months, are not normally considered as employees.
    (Note) If the person will continue being employed more than the specified time period, such a case will be considered as an employee who is continuously employed.”

Top

<Patent>
Request for examination fee: Reduce to 1/2 of normal fee
Annuities (1st to 10th year): Reduce to 1/2 of normal fee
6. Small and medium enterprises (Sole proprietorship) 

Sole proprietor who meets “number of employee employed continuously” requirements below.

  Industry Number of Employees (employed continuously)
a Manufacturing, construction, transportation and other industries (excluding industries listed below (b) to (g)) Up to 300
b Wholesale trade Up to 100
c Service industry (excluding industries listed (f) and (g)) Up to 100
d Retail trade Up to 50
e Rubber product manufacturing industry (excluding automobile or aircraft tire and tube manufacturing industry and industrial belt manufacturing industry) Up to 900
f Software industry or information processing service industry Up to 300
g Hotel/Inn industry Up to 200

Top

 
7. Academic discount (researchers at universities, universities, etc.)

1. Researchers at universities and others:

A person who falls under one of the following (a), (b), and (c):

(a) Person who engages in research exclusively among the president, vice president, dean, professor, associate professor, assistant professor, lecturer, assistant or other staff (postdoctor with employment relationship with university etc.) of the university prescribed in Article 1 of the School Education Act.
(b) Person who exclusively engages in research amongst the principal, professor, associate professor, assistant professor, lecturer, assistant or other staff of a technical college prescribed in Article 1 of the School Education Act (hereinafter referred to as “technical college”).
(c) Person who exclusively engages in research amongst the director or its staff of a university interoperable institution corporation (hereinafter referred to as “university interoperable institution corporation”) prescribed in Article 2 (3) of the National University Corporate Law.

2. University et al.:

A person/entity who falls under one of the following (a), (b), and (c):

(a) A person/entity who establishes university (national university corporation, public university corporation, school corporation, etc.).
(b) A person/entity establishing a technical college of higher education (National High School Organization etc.).
(c) University interoperability institution corporation.

Top

<Patent>
Request for examination fee:
Reduce to 1/2 of normal fee
Annuities (1st to 10th year):
Reduce to 1/2 of nor

 

For further information, see
https://www.jpo.go.jp/system/process/tesuryo/genmen/genmen20190401/
document/index/leaflet_e.pdf