Promotion of Intellectual Property Utilization

To respond quickly to changes in the business environment and achieve sustainable growth, the JVCKENWOOD Group has formulated a strategy for the utilization of intellectual property that corresponds to its management issues, emphasizing (1) creating innovation, (2) strengthening business competitiveness, and (3) strengthening the organization and corporate base that will accelerate the implementation of (1) and (2). We utilize the IP landscape* to identify management issues in the creation and expansion of businesses and promote intellectual property activities that contribute to the resolution of such issues. We are focusing on the following points as the pillars of our initiatives to utilize intellectual property.

1. 1. Building strong partnerships with customers by promoting the use of intellectual property with each contributing their strengths
2. 2. Building barriers to entry appropriate to the characteristics of the business by strengthening the management of intellectual property (intangible assets) in the broad sense, including data and know-how
3. 3. Expanding profits based on investment in intellectual capital and utilization of intellectual property that contributes to enhanced customer value, while promoting a cycle of intellectual creation through reinvestment

As a system for the use and management of intellectual property, we have established a patent development group for each business field in addition to the Intellectual Property Department at the Head Office, which creates an intellectual property portfolio in anticipation of future use. We are also strengthening our efforts by placing persons responsible for IP, as well as persons responsible for promoting IP, in the technological groups of each business department, thereby enhancing the entire company’s awareness toward IP.
Furthermore, these intellectual property activities are regularly reported to the Board of Directors, and a system has been established in which the Board of Directors effectively supervise them.

In order to properly manage and utilize intellectual property, we have established the following KPI.

To achieve these KPIs, we will continue activities aligned with our intellectual property strategy, aiming to maximize corporate value through the generation of innovation and the enhancement of business competitiveness.

See Materiality and Performance for the progress of the initiatives.

Patent Portfolio to Support Our Business

In light of the Company's business structure, we have acquired patents to support the business, with the number of patent applications since FY2017 increasing in the Mobility & Telematics Services Sector (M&T), and maintained in the Entertainment Solutions Sector (ES) and the Safety & Security Sector (S&S). In addition, since the establishment of the R&D Division in 2018, the division has strengthened its applications and is continuously engaged in patent creation activities that contribute to the creation of customer value in the future.

Patent portfolio that enhances competitive advantage

By collaboration between business and R&D strategies, we proceed to optimize the patent portfolio through intellectual property activities based on KPI newly set forth by the use of the IP landscape. Furthermore, we expand invention and creation activities by all employees to understand customer needs at each phase in the value chain and to create patents focusing on the provision of customer value.

We analyze and assess the value of the Company's intellectual property (intangible assets) in a broad sense, including data and know-how, leading to strengthening its business competitiveness. Creating intellectual property by investing in intellectual capital and generating profits by increasing customer value will promote our intellectual creation cycle of "Create," Protect," and "Earn," which brings a virtuous cycle for reinvestment.

JVCKENWOOD Group utilizes the IP Landscape to support the formulation of R & D directions and technology development strategies through intellectual property.
In order to strengthen our intellectual property capabilities, the R&D Division, the Technology Department of each division, the JVCKENWOOD Design, and the Intellectual Property Department work together to analyze each technical theme using the IP Landscape and to co-create inventions that are expected to be used in the future in a workshop format, taking into consideration the social environment of the future. We also actively host the Patent Idea Conference at each of the patent development groups at the different sites for the purpose of protecting new businesses. The matters discussed at the conference help to develop our portfolio.

In addition, we are working to raise awareness of intellectual property among group employees by holding "Intellectual Property Training" for new recruits, newly appointed executives, engineers, and designers, and by holding "Intellectual Property Awards."

Combined with our other efforts to disseminate information on various internal rules related to IP and "IP Monthly", etc., this symposium helps to improve awareness on IP throughout the company.