Enforcement of Patents in Japan


This material was first presented at the AIPLA Asia Patent Practice Seminar held in Crystal City, VA on October 13-14, 1997.

Contents


1.Claim Scope and Interpretation, including the Doctrine of Equivalents

2.Preliminary Relief - Injunctions and Seizures

3.Defenses to a Claim of Infringement

4.Compulsory Licensing

1. Claim Scope and Interpretation, including Doctrine of Equivalents


1.1 Claim Scope and Interpretation


1.1.1 Claim Scope


As in the United States, the all-element rule also applies in Japan. An accused product or process is infringing if it satisfies all the limitations recited in the claim.


1.1.2 Claim Interpretation


The terms and phrases in a claim are interpreted to determine the scope of protection. They are interpreted in the light of detailed explanation in the specification and the drawings attached to it. As in the United States, if a word has a definition in the specification, it will be interpreted in accordance with the definition given in the specification. When no definition is given in the specification, a term appearing in the claim is given the meaning that an ordinary person skilled in the art would give to that term.


1.1.3 File Wrapper Estoppel


The file history plays a more important role in interpretation of a claim in Japan than in the United States. In the United States, the doctrine of file wrapper estoppel plays a role in applying the doctrine of equivalents. However, the doctrine of file wrapper estoppel is often applied even to deny literal infringement in Japan.


To illustrate it, let's assume that a claim recites an "aluminum compound" as an essential element of the claimed invention. Without any further qualification, the term "aluminum compound" would encompass any compound containing aluminum. However, if the applicant stated in a response to an office action that the effect of the claimed invention has been achieved because the aluminum compound is metallic, even if no amendment was made either in the claim or in the specification, the term "aluminum compound" would be interpreted as "aluminum metallic compound."


In the above hypothetical case, an accused product containing alumina (aluminum oxide) but no other aluminum compound would literally infringe the claim without application of the doctrine of file wrapper estoppel if it satisfies all other limitations. When this result is felt unfair in the United States, one solution would be to declare the claim invalid based on the reason that the claim is indefinite or the specification does not meet the enablement requirement, or otherwise. However, the Japanese courts do not have the authority to declare a claim invalid. Hence, they need to interpret the claim narrowly so that they can avoid an unfair conclusion. The file wrapper estoppel gives the court a reason to give a term in the claim a narrower interpretation than an ordinary dictionary would.


1.1.4 Prior Art


Another reason that requires narrow interpretation of a claim is existence of close prior art. If the court finds literal interpretation of the claim to cover the prior art or an obvious modification from the prior art, it gives the claim a narrower interpretation than its literal meaning. This enables the court to avoid finding infringement by an accused product or process that should be in the public domain. This logic is similar to that used to avoid application of the doctrine of equivalents in the United States, where no infringement under the doctrine should be found if the hypothetical claim is not patentable in light of the prior art.


1.2 The Doctrine of Equivalents


For the latest information on this subject, please refer to " The Supreme Court Re-Defines the Doctrine of Equivalents ." in the news section at this site.


1.2.1 Recognition of the Doctrine of Equivalents in Japan


Even when no literal infringement is found, the court may still find infringement under the doctrine of equivalents. The doctrine has been recognized for a long time though we have few reported cases in which it was actually applied.


1.2.2 Test to Be Used to Apply the Doctrine


The doctrine is applied when one or more elements recited in the claim are missing in the accused product or process. First step in application of the doctrine is to identify elements that somehow correspond to the missing elements. Then the following conditions are considered:


i) substitutability;

ii) easiness of substitution; and

iii) absence of remarkable effects brought about by the substitution.

When the above three conditions are met, infringement under the doctrine of infringement is found.


One question still under debate is at what point of time condition ii) must be met. It is usually said that it should be met at the time of filing. However, some practitioners say that it may be met at the time of infringement. An extreme opinion is that it should be met at the time of infringement, but it must not be met at the time of filing. The rationale of the extreme opinion is that the applicant should be deemed to have waived the right covering the substitution by failing to claim it if it was obvious to those skilled in the art at the time of filing.


1.3 Example of Application of the Doctrine of Equivalents


1.3.1 Introduction

On March 29, 1996, the Osaka High Court found infringement of a bio-tech patent under the doctrine of equivalents. A brief study of this case will probably give you an idea as to how the doctrine works in Japan.


1.3.2 Background

The Plaintiff was the patentee of a patent granted for an invention directed to t-PA. During its prosecution, the Japanese patent examiner allowed the application with some broad claims which did not include any sequence listing, but which were defined in terms of the function and other properties of t-PA. However, he later rejected the application on the ground that the claims were not sufficiently specific. After the appeal procedure at the Patent Office a patent was granted with claims which the applicant restricted to a single specific sequence found in the application in order to avoid the examiner's reason for rejection.

Attempting to stop the defendant from making and selling t-PA products, the plaintiff sued it at the Osaka District Court alleging patent infringement. However, the plaintiff was not successful at the first instance. The reason was that one amino acid was different from the one specified in the claims. At position 245 of the claimed sequence, valine (Val) was specified in the claims, but it was replaced by methionine (Met) in the accused product.

The plaintiff appealed to the Osaka High Court against the judgment of the Osaka District Court.

1.3.3 Issues

The issues before the Osaka High Court are as follows:

(1) whether the accused product was equivalent to the claimed t-PA;

(2) what kind of factors must be considered to find patent infringement under the doctrine of equivalents;

(3) whether independent development of the accused product should be considered as defense against application of the doctrine of equivalents; and

(4) whether the prosecution history of the patent in suit should preclude the plaintiff from alleging infringement under the doctrine of equivalents.


1.3.4 The Court's Opinion


The Osaka High Court found infringement by the defendant applying the doctrine of equivalents for the first time in a case involving a chemical or biotechnology patent. As to the factors to be considered, the Court followed the standard that had been at least theoretically accepted over years in Japan. The factors considered by the Court were as follows:


(1) whether the claimed invention and the accused product solve the same problems and share the same technical idea;


(2) whether no significant effects arise from differences between the claimed invention and the accused product; and


(3) whether replacing the element or feature recited in the claim, but missing in the accused product, with the element existing in the accused product was possible and easy for a skilled person in the art based on the state of the art as of the filing date.


On the other hand, the Court stated that independent development would not per se serve as defense against application of the doctrine of equivalents, pointing out that the question of infringement is not related to good or bad faith of the infringer. However, the Court recognized that lack of independent development would serve as circumstantial evidence to find infringement under the doctrine of equivalents.


Finally, the Court declined to apply the prosecution history estoppel to this case, finding that amendment of the claims had been made to comply with the requirements of specificity, but not those of novelty and non-obviousness.


2. Preliminary Relief - Injunctions and Seizures


2.1 Availability of Provisional Injunctions


Under the Civil Provisional Measures Law, which applies to all civil cases including patent infringement cases, certain provisional measures are available in Japan before a judgment is rendered after regular proceedings of a civil lawsuit. The provisional measures are granted in the form of provisional court orders. To obtain a provisional court order, a petition must be filed, and the petitioner must show his likelihood of success on the merits and indispesability of such an order to avoid exceptionally significant damages or an urgent danger to him. However, in a case of intellectual property infringement, it is usually presumed that such indispensability exists unless there is a serious question about the validity of the right in suit.

The available orders include:

an order compelling the defendant to do something;
an order prohibiting the defendant from doing something;
an order compelling the defendant to deliver something;
an order instructing a custodian to keep something in his custody; or
an order taking measures that are appropriate and necessary to achieve the purpose of the petition for the provisional court order.

A petition for a provisional court order may be filed before or at the same time as filing the complaint of the principal lawsuit. In principle, the district court which would have jurisdiction over the principal lawsuit seeking permanent injunction also has the jurisdiction for the provisional measures. Although it is practically rare, it is also permissible to file a petition for provisional measures during the pendency of the principal lawsuit. In such cases, provisional injunction proceedings usually take place before the same court as the principal lawsuit, which could be the district court having geographical jurisdiction over the district in which the plaintiff resides if monetary relief is sought in the principal lawsuit.


Before issuing a provisional court order, the court must hold a hearing at which the defendant is allowed to be present unless holding such a hearing would make the provisional measures meaningless.


2.2 Advantages of Seeking Provisional Injunctions


Decisions by the court given after regular proceedings of a civil lawsuit are highly dependable because examinations are made deliberately based upon reliable evidence and without haste. However, it often takes three or four years just to get the decision of the court of first instance. If this decision is appealed, of course even more time is required.


In contrast, provisional proceedings are less formal and more intensive in order to reach an early conclusion of the matter, including a court-assisted settlement. Therefore, the filing of a petition for provisional (or preliminary) injunction is often preferred. Although theoretically it is preliminary, it often leads the parties to a final settlement of the dispute. Hearings for preliminary injunction are more frequently held and less formal than those for regular civil cases. Therefore, the decision is sometimes given within a year from the filing with less than ten hearings.


2.3 Requirement of Bond


When the court decides to grant an injunction, since the decision is preliminary, the petitioner is required to make a security deposit sufficient to cover the damages that may be incurred by the accused infringer if the injunction be found to be erroneous. The amount of the deposit is determined by the judge at his discretion after considering various factors, including the petitioner's probability of success in the final decision of the case. The deposited security money is to be returned to the plaintiff when the defendant has exhausted or waived all measures to have the provisional injunction reversed.



3. Defenses to a Claim of Infringement


3.1 Non-Infringement and Invalidity


Non-infringement and invalidity are typical defenses to a claim of infringement.

Burden of proof is on the patentee. This means that the patentee must show not only the the scope of protection of the patent in suit but also the fact that all the limitations are met by the accused product/process. In many cases, the central issue is how to interpret the claims. While the plaintiff is always desirous to interpret the claims literally or even more broadly, the defendant often asks the court to interpret a claim more narrowly than it literally mean.

In this regard, it should be noted that it is not rare that the court rejects the literal interpretation and accepts a narrower one. This is mainly because invalidity per se cannot be a defense before a court, as already mentioned. Instead of waiting for the patent in suit to be declared invalid by the Patent Office, the court often disposes of the case by finding no infringement by way of interpreting the claims narrowly.

Otherwise, when invalidity of the patent in suit is a valid defense, the accused party should take a separate action before the Patent Office to seek its invalidation. Then, the court hearing the infringement case may, at its discretion, stay the proceedings before it during the invalidation action before the Patent Office.


3.2 Other Defenses


3.2.1 Prior User Right

The prior user right is a legal defense against infringement claim by the patentee. To establish a prior user right, the defendant must show the following facts:

(1) he himself made the invention without knowledge of the patentee's invention, or he came to know the invention through a third party that made the invention without knowledge of the patentee's invention; and

(2) he was practicing the invention as business, or he had prepared for the practice of the invention as business, within the territory of Japan prior to the filing date of the patent.

Under the prior user right, the prior user is entitled to practice the invention within the mode of the invention which he practiced or prepared for practice of, and within the purpose of his business that he conducted.

3.2.2 Permissible R&D Activities

Any person may practice a patented invention for the purpose of R&D. One issue relating to this defense is whether testing a drug for obtaining approval from the Ministry of Health and Welfare should be regarded as R&D within the meaning of the Patent Law. We have some conflicting decisions at the first instance and appellate court levels. So far no Supreme Court decision has addressed this issue. (For updated information, click here. )

3.2.3 Exhaustion and License

Under the doctine of patent exhaustion, repair of a patented product sold with consent by the patentee is permissible. However, distinction between permissible repair and illegal reconstruction is not clear. For example, when the ink cartridge for a personal computer printer is patented, it is not clear whether re-filling a used cartridge with ink is permissible.

A licensee of a patent has the right to have someone make the patented products on his behalf. Hence, a supplier to, or a subcontractor of, the licensee may invoke the license as defense if the licensee is the only purchaser of the products.

3.2.4 Parallel Import

In principle, parallel import is permissible. For more detail, please refer to " Judgment Permitting Parallel Import Affirmed ." in the news section of this site.


4. Compulsory Licensing



Although the Patent Law of Japan has provisions for compulsory licensing, it is inconceivable that they are actually invoked. So far I am aware of no meaningful precedent to speak on.