• 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.”

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• 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.

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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)*

*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.”

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

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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.

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