Foreign applicants/patentees must satisfy the following both (1) and (2) in addition to the above-requirements (A) and (B).

(1) Unions which are intended to promote the common interests of members and which also have a purpose equivalent to the purpose described in Article 10 (1)*of the Patent Law Enforcement Ordinance, and such provisions are written in the establishment ground law of the corporation and/or the articles of incorporation of the corporation
(2) Having a business form of corporation

*Unions described in Article 10 (1) of the Patent Law Enforcement Ordinance correspond to unions (a)-(j) listed in the above-table.

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*”NOT being dominated by large corporations” 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.”

Foreign applicants/patentees must satisfy the following both (1) and (2) in addition to the above-requirements (A) and (B).

(1) The purpose of the NPO is not to aim for profit and to contribute to the promotion of the benefits of unspecified and many things, and the NPO carries on an activity that falls under any of the activities listed in the specific nonprofit activity promotion law, Article 2, Appendix Table, and such provisions are written in the establishment ground law of the corporation and the articles of incorporation of the corporation.
(2) Having a business form of corporation

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2) In the case of a corporation (to fall under any of the following), it is necessary to meet the following requirements both A and B:
(A) A corporation that meets either of the following “number of employees” or “capital requirement”
(B) Must meet the research and development requirements listed below.*

3) In case of union or NPO corporation, see “Small and medium-sized enterprises (Union)” or “Small and medium-sized enterprises (NPO Corporation)”.

*Research and Development Requirements:
(1) A private business owner
Must meet one of (a), (c) – (f) of the following R & D Requirements.

(2) A corporation/association/NPO corporation
Must meet one of (b) – (f) of the following R & D Requirements.

(3) R & D requirements
(a) In the year prior to the year of which the date of the reduction application (in one year of two years before of the date of the reduction application, if the month of the reduction application is between January and March), the ratio of examination research expenses (the ratio of total research and research expenses and development expenses in one year to the total income of the business income) exceeds 3%. (However, in the case where it is not possible to calculate the test research and research expenses ratio out of those that have not passed since the date of starting the project on the day of application for reduction, the number of full-time researchers is two or more, also, the number of researchers relative to the total number of employers and employees is 10% or more.)

(b) In the previous business year of the business year to which the day of reduction application is applied (if the application day of reduction application is within two months after the previous business year, the previous business year), the ratio of research and research expenses exceeds 3% (the ratio of the total amount of research and development expenses and development expenses in the 1st fiscal year to the income amount (the amount deducted the total revenue amount of income from transfer of fixed assets or securities from the amount of the total income.). (However, if it is not possible to calculate the research and research expenses ratio out of those that have not passed 26 months since its establishment on the date of application of reduction, the number of full-time researchers is two or more, and also the ratio of the number of researchers to the total number of full-time officers and employees is 10% or more.)

(c) In the case where the patented invention or invention pertains to the result of the research and development project relating to the new technology to which the specified subsidy prescribed in Article 2 (15) of the Small and Medium-Sized Enterprises Etc. Management Enhancement Act is issued (limited to those filed within two years from the date of termination of the project), those who received the related specific subsidies etc.

(d) The patent invention or invention pertains to the results of business innovation conducted pursuant to the approved management reform plan (limited to those pertaining to research and development concerning technology) prescribed in Article 9 (2) of the Small and Medium-Sized Enterprises Etc. Management Enhancement Act. (limited to those filed within two years counting from the date of termination of the approved management reform plan). Or, who is engaged in business for the management innovation in cases where it pertains to the right to obtain a patent right or a patent succeeded pursuant to the approved management reform plan as necessary to implement the result.

(e) The patented invention or invention is carried out according to Article 11 (3) of the Small and Medium-Sized Enterprises Etc. Management Enhancement Act. Different Fields Collaboration Different Fields Collaboration According to New Business Field Development Plans Business (limited to those related to R & D related to technology) related to new business field development (limited to those filed within two years from the date of termination of the accredited cross-disciplinary new business field development plan). Or, in connection with the right to obtain a patent right or patent inherited pursuant to the accredited cross-disciplinary new business field development plan as necessary for implementing the result, those who engaged in business related to the development of new business fields in the different field cooperation.

(f) The patented invention or invention pertaining to the outcome of specific research and development etc. conducted in accordance with the accreditation plan prescribed in Article 5 (2) of the Small and Medium-Sized Enterprises Etc. Management Enhancement Act (limited to those filed within two years counting from the date of termination of the accreditation plan). Or, in connection with the right to obtain a patent right or a patent acquired pursuant to the accreditation plan as being necessary for implementing the result, those who conducts the specified research and development etc.

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A corporation that falls under all of the following (1), (2), and (3)
(1) A corporation with a capital amount or total investment of 300 million yen or less
(2) Income tax not imposed
(3) Not being dominated by another corporation *

*NOT being dominated by another corporation” 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 (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.

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.

For 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 that the total liabilities have been deducted must be 300 million yen or less. (If the amount of profit pertaining to the relevant business year is recorded in the balance sheet, the amount is deducted from the amount, and if the amount of loss relating to the relevant business year has been recorded, that amount shall be added.)

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1. Municipal inhabitant’s tax exemptor,
2. Income tax exempt, or
3. Individual employer who is tax exemptor from business tax.

See below chart for details.

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<Patent>
Request for examination fee:
Exemption or Reduce to 1/2
Annuities (1st to 3rd year):
Exemption or Reduce to 1/2
Annuities (4th to 10th year):
Reduce to 1/2

<Utility model>
Utility model technology evaluation request fee: Exemption or Reduce to 1/2
Registration fee (1st to 3rd year annuities):
Exemption or three years grace

A person who establishes public test research institution (i.e., local public entity).

“Public test research institution” is a laboratory, research institute or other institution located in a local public organization that conducts research and work relating to research.

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