1.Introduction
  In Japan, a system for reducing/exempting request for examination fee and patent fee (hereinafter, referred to as the "reduction/exemption system") exists, for small-and-medium enterprises, venture enterprises, individuals, etc. Particularly, as for patent applications for which the request for examination is filed on or after April 1, 2019, procedures to apply for this system have been greatly simplified, and applicants or patentees can easily receive a reduction or exemption, as long as they satisfy subjective requirements.

  In this article, we will explain the outline of the reduction/exemption system in Japan.

 
2.Eligible Applicants/Patentees and Benefits
  Mainly, small-and-medium enterprises, R&D-oriented enterprises, small enterprises, venture enterprises, sole proprietorships, individuals, and test and research institutes, are eligible for the reduction or exemption. For each type, requirements for eligibility are defined in detail. Receivable benefits (degree of reduction/exemption) depend on which requirements the applicant (or the patentee) satisfies.

  Below, taking "small-and-medium enterprises," "R&D enterprises," "small enterprises," "venture enterprises," "test and research institutes," and "individuals" as main types of eligible applicants or patentees for reduction/exemption, we will explain in more detail the corresponding requirements and benefits for each type.

(1) Small-and-Medium Enterprises
<Requirements>
  1. Any company satisfying one of the conditions of "number of employees" and "amount of capital" corresponding to the "industry" to which the company belongs, as indicated in the table below.

  2. The company is not under the management of large enterprises (here, the large enterprise is defined as the company not satisfying the conditions in the above table).
 

<Benefits>
  Request for examination fee is reduced to 1/2.
  Patent fee (for year 1 to 10) is reduced to 1/2.

(2) R&D Enterprises
<Requirements>
  1. Any company satisfying Requirement 1 for small-and-medium enterprises (i.e., the conditions in the above table).
  2. The company has a ratio of expenses for test and research to the amount of revenue of more than 3%.

<Benefits>
  Request for examination fee is reduced to 1/2.
  Patent fee (for year 1 to 10) is reduced to 1/2.

(3) Small Enterprises
<Requirements>
  1. Any corporation that has up to 20 employees (as for commercial or service industry, up to 5 employees).
  2. The corporation is not under the management of large enterprises (here, the large enterprise is defined as the company not satisfying the conditions in the above table).

<Benefits>
  Request for examination fee is reduced to 1/3.
  Patent fee (for year 1 to 10) is reduced to 1/3.

(4) Venture Enterprises
<Requirements>
  1. Any corporation that was established less than 10 years ago and has an amount of capital of up to 300 million JPY.
  2. The corporation is not under the management of large enterprises (here, the large enterprise is defined as the company which has an amount of capital of more than 300 million JPY).

<Benefits>
  Request for examination fee is reduced to 1/3.
  Patent fee (for year 1 to 10) is reduced to 1/3.

(5) Test and Research Institutes etc.
<Requirements>
  Entity satisfying one of the following conditions:
    ·Researcher of a school equivalent to a university or a college of technology; or
    ·Entity that has established a school equivalent to a university or a college of technology.

<Benefits>
  Request for examination fee is reduced to 1/2.
  Patent fee (for year 1 to 10) is reduced to 1/2.

(6) Individuals
<Requirements>
  Entity whose total amount of each type of income calculated under regulation of the Income Tax Act is less than 2.5 million JPY (*if the total amount is less than 1.5 million JPY, further preferential benefit could be received).

<Benefits>
  Request for examination fee is reduced to 1/2 (*exemption, if the total amount is less than 1.5 million JPY).
  Patent fee (for year 1 to 3) is reduced to 1/2 (*exemption, if the total amount is less than 1.5 million JPY).
  Patent fee (for year 4 to 10) is reduced to 1/2.

 
3. Procedures of Application for Reduction/Exemption
  For either the request for examination fee or the patent fee, applicants or patentees only have to provide a column "Remarks related to fee" in the request for examination form or the patent fee payment form, and state therein that their application is "subject to receiving reduction/exemption." It is unnecessary to prepare any separate petition form for reduction/exemption or to submit any document for certifying that the requirements are satisfied. In stating about the reception of the reduction/exemption, what requirement is satisfied should be specified in accordance with regulation of the Order for Enforcement of the Patent Act.

  For joint applications or shared patent rights for which a part of the applicants or patentees is eligible for reduction/exemption, a ratio of share should be described for each eligible entity. Note that no document for certifying the share is required to be submitted.

  It should be noted that the petition for reduction/exemption always must be made at the same time as the submission of the request for examination form or the patent fee payment form. Petition for reduction/exemption after regularly submitting the request for examination form or the patent fee payment form (in detail, making amendment of the subject document to add the column "Remarks related to fee" described above with required items) is not accepted.

 
4. Summary
  As explained above, in recent Japan, applicants or patentees can receive the benefits of reduction/exemption for the request for examination fee or the patent fee by simple procedures, without the submission of any certification, as long as the subjective requirements are satisfied, and the eligible range becomes wide. Particularly, it is of great advantage that applicants can receive reduction of the request for examination fee, which is often comparatively expensive. Thus, we recommend confirming once whether you are eligible for the reduction/exemption.

  If you are eligible for the reduction/exemption, it is recommendable to promptly make instructions for it to your agent in Japan, considering the requirement that the petition for reduction/exemption must be made at the same time as the submission of the request for examination form or the patent fee payment form. In making such instructions, it will help you in smooth subsequent procedure, to provide the agent with information on which requirement for which type you can satisfy (including, as for Requirement 1 for small-and-medium enterprises, which one of A to G is satisfied), and in case of joint applications or shared patent rights, also information on your share.

  We hope that this article will help you in economical acquisition of patent right in Japan.