Fujikura Ltd.

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Governance

Intellectual Property

Protecting Intellectual Properties

Fujikura engages in business operations fully respecting the intellectual property rights of others. Based on this policy, R&D divisions and IP divisions work together to investigate connections between the Company’s products and technologies and third party industrial property rights. Specifically, patent information domestically and internationally on R&D division research themes is shared regularly and expert investigators are assigned to IP divisions to support investigations by R&D divisions. A number of lawyers that are employed by the company are also involved in determining the technical scope of products. In addition, we ask outside experts for their judgement when necessary. Moreover, we created a set of guidelines on copyrights and holding seminars it internally for employees to ensure we respect the copyrights of third parties.

Meanwhile, we take appropriate actions under the law to protect our patent rights, design rights, and trademarks from unauthorized use.

Policy on the Protection of Intellectual Properties

Intellectual Property Strategy

We shall actively protect the results obtained from research and development through acquisition of intellectual property rights to ensure the superiority of the business and to develop business while fully respecting the intellectual property rights of third parties We are acting as a basic policy on intellectual property. Based on this basic policy, we are addressing issues such as the following as intellectual property activities integrated with business strategy as a vision of intellectual property activities corresponding to the mid-term management plan of 2020.

Intellectual Property Strategy According to Business

Activities to Improve Brand Value

The Fujikura Group has been working proactively to improve its brand value.Currently, the brand logo is used by more than 70 manufacturing companies and sales companies in Japan and overseas, as well as by overseas agents to gain brand recognition overseas.

We are moving ahead with the registration of the logo as our trademark for all the countries and regions in which we operate by 2020. We have thus completed the process in more than 170 countries, and completed registration in Rwanda, Aruba, Djibouti, Syria, MexicoRwanda, Aruba, Djibouti, Syria, Mexico and others in 2018.

We make use of the obtained trademark rights to prevent illegal use of the brand logo and malicious use of the Fujikura domain name.

In 2018, we stopped unauthorized use in9 countries including Slovenia, Germany, Kazakhstan9 countries including Slovenia, Germany, Kazakhstan. In addition, this year, the monitoring of unauthorized use on e-commerce sites, which began last year, has been expanded from Asia to the rest of the world, and inappropriate pages are being deleted. Unauthorized and fraudulent use of the brand logo on the Internet are on the rise year by year. We will continue striving to discover infringements on the Internet around the world and strictly exercise our rights against those who infringe our intellectual property.

Trade Secret Management

Based on the regulations concerning management of trade secrets, the Company properly manages it. Especially, when securing the invention as a trade secret without applying for a patent, we conduct confidentiality management according to its importance based on internal regulations. Among them, highly important information that affects the business is managed as a trade secret so that relief of the Unfair Competition Prevention Act can be obtained. In addition, even if another company independently develops and acquires a patent about the technology afterwards, we also take actions to obtain prior use rights so that we can implement it.

In fiscal 2018, in order to properly manage confidential information, we created a “Confidential Information Management Casebook” and are working to spread it throughout the company.

Acquisition and Management of Intellectual Property

We regard intellectual property obtained through research and development as one of the management resources to ensure the superiority of technology, and actively proceed with acquisition and management of rights for domestic and overseas in coordination with the development department, business department and intellectual property department.

Regarding acquisition, we thoroughly discuss with the inventor about the essence of the invention and the range of possibilities that can be acquired, and we apply for licensing after considering the invention’s business contribution. Even regarding intellectual property rights that we have acquired, we judge the necessity of maintaining these rights each year based on the business value of the rights, and working to keep the optimum IP portfolio for our business at all times.

In addition, we are doing various forms of management from application to extinguishment of rights with our proprietary intellectual property management system. In fiscal 2018, we decided to focus on strengthening technical fields, and conducted an attempt to provide intellectual property departments with systematic support from discovery of inventions to patent applications.

Patent Ownership and Patents Pending

Patents Owned in Japan

The number of patents we hold in Japan continues to increase with each passing year. In fiscal 2018, we owned 2,978 patents.

Patents Owned Overseas

The number of patents we hold outside of Japan continues to increase with each passing year following the globalization of our business operations. In fiscal 2018, we owned 1,824 foreign patents. In particular, we own an increasing number of patents in the United States, Europe and China.

Patents Pending in Japan

The number of Fujikura’s patents pending in Japan ranges between 400 and 550.

With the globalization of business, the number of overseas patent applications is increasing year by year, and the global application rate, which indicates the ratio of overseas patent applications based on domestic applications in each fiscal year, has been 40%.

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