283. First of all, we would like to express our gratitude to the Delegation of Canada for introducing the background for this year's theme. Japan would like to contribute to this year's discussion as a co-sponsor and Japan also would like to express our gratitude to the Delegation from the United States for summarizing our discussion of last year. This delegation believes that WTO Members promoted better understanding regarding the role of IP in innovation through fruitful discussions in 2019.
284. Today, this delegation would like to share our experience and national policies with respect to making MSMEs competitive through trademarks.
285. In order for MSMEs to expand their business activities and collaborate with large companies, it is essential for them to differentiate their products and services and establish their own brands by utilizing their intellectual property. In that sense, trademark rights are very valuable rights that can help rights holders enhance their reliability with customers and to establish their own brands.
286. Furthermore, acquiring trademark rights is expected to be advantageous for companies in terms of obtaining financing and promoting business transactions. Accordingly, the acquisition of trademark rights would be significant for MSMEs.
287. Meanwhile, according to the results of interviews that the Japan Patent Office (JPO) conducted with SMEs, some companies mentioned that they cannot afford to manage trademarks and that they have limited interest in trademarks. Therefore, how to encourage MSMEs to utilize trademark rights is one of the major issues that we have to work on. Under these circumstances, Japan has been implementing various initiatives to support MSMEs to acquire trademark rights and expand their business activities smoothly.
288. Firstly, last year, the JPO published its guide focusing on utilizing trademarks, which is entitled, "Guide for Utilizing Trademark Learning from Case Examples". This guide is not designed for trademark experts but aims to highlight the advantages of obtaining and using trademark rights for persons and entities who intend to utilize trademarks in their business activities through mainly presenting actual cases in which trademark rights were used by SMEs. For example, it presents what was being considered when the best possible trademarks were determined, motivations for obtaining trademark rights, and actual effects arising from the acquisition of trademark rights.
289. Moreover, this delegation would like to provide some examples with respect to actual effects of obtaining trademark rights presented in the guide. Some companies were able to increase sales approximately 30 times after changing their product name to a name more easily understood from the consumers' perspective. At another company, inquiries to licensing negotiations increased after its product brand became famous. Also, thanks to the acquisition of trademark rights, some companies were able to gain greater confidence and evaluation from their clients or contribute to boosting employee morale and sharing their brand concept with employees.
290. MSMEs are quickly gaining more useful knowledge from these successful cases of SMEs, who are facing common issues under similar business circumstances. The guide also includes an outline of the trademark system and answers to frequently asked questions. Thanks to these features, the guide has been widely used by individuals and other entities involved in businesses as a valuable reference for business strategies based on the effective use of trademark rights.
291. Secondly, this delegation would like to introduce the JPO's initiative on IP Business Valuation Reports. In general, there is a need of MSMEs who hope to obtain financing support from local financial institutions based on the business value of their IP. Meanwhile, most local financial institutions lack human resources who can evaluate how MSMEs' IP rights contribute to the growth of their business. As a result, it is difficult for financial institutions to provide financial support based on IP.
292. Under these circumstances, in order to promote financing for MSMEs, the JPO provides "IP business valuation reports" to local financial institutions at no cost. The valuation reports are developed by research companies specialized in evaluating IP so as to visualize their value. Thanks to these valuation reports, local financial institutions are able to understand how MSMEs' intellectual property contributes to developing their business activities and making greater profits. In other words, financial institutions can use the valuation reports as reference materials for providing IPbacked financing.
293. In fact, the Guide, which I have mentioned before, presents successful cases in which financing based on SMEs' IP was provided by making use of the IP business valuation reports. From the viewpoint of financial institutions, the bank, which provided IP-backed finance, also highly praised the valuation report effectiveness as a helpful reference for evaluating business possibilities because the report quantified the value of the SME's trademark rights.
294. Lastly, we would like to talk about the JPO's initiative on Comprehensive IP Support Service Counters. The Service Counters are set up in all 47 prefectures in Japan to provide one-stop consultation services for MSMEs. The services include consultation for their management issues and advice for IP issues at every stage of development, to include from the conceptual stage, through commercial production. Additionally, at the Service Counters, we have assigned not only patent attorneys and lawyers but also specialists in many fields, such as designers, brand specialists, global IP producers, and they provide MSMEs with advice regarding filing applications and acquiring IP rights, developing business and IP strategies and they propose solutions to IP activities based on these strategies in order to help MSMEs strengthen their competitive advantages.
295. One of the benefits from providing such one-stop support services might be to enable companies visiting the service counters to notice points that should be improved. Also, in the guide that I previously mentioned, an actual case is presented in which advice for avoiding risks of trademark rights infringement was given to an SME who visited for consultation on technical software issues.
296. In summary, it is a fact indicated in various actual cases that acquiring trademark rights can contribute to expanding businesses of MSMEs. This has been accomplished not only by establishing brands of their products and services but also by providing benefits in terms of obtaining financial support and conducting business transactions. In this regard, with respect to raising awareness of trademark among MSMEs, we believe that providing information of successful MSME's case is invaluable, because they are facing common issues under similar business circumstances.
297. Furthermore, to encourage the effective use of trademarks, our experience has seen that supporting the decision process of financial institutions which intend to provide financing for MSMEs based on MSME's intellectual property rights is also effective. Moreover, when MSMEs are expanding their business activities, it is essential for them to consider the importance of inclusive IP protection, including trademarks, patents and designs. Therefore, when it comes to solving various IP issues that MSMEs confront, providing one-stop support service for MSMEs has proven to be an important and effective policy to be implemented by a government that helps strengthen MSMEs' competitiveness.
