コニカミノル（4902） – Intellectual Property Report 2021

INTELLECTUAL PROPERTY REPORT 20211IntroductionThe novel coronavirus epidemic has brought about dramatic changes in social conditions and the business environment. The sources of corporate earning power are also undergoing change, with the proportion of intangible assets growing larger and increasing in importance as management resources. Under these changing circumstances, corporations have been reaffirming that a significant influence on management is exerted by investments and strategies relating to intangible assets, including intellectual property. Proper disclosure of information about the investments and strategies is being called for.Konica Minolta recognizes that intellectual property is an important management resources. We have been continuously disclosing investments and strategies relating to intellectual property since fiscal 2004 by means of our Intellectual Property Reports. In this Intellectual Property Report, we have made every effort to disclose specifics about intellectual property investments and strategies in our Medium-Term Business Plan ”DX2022” together with our intellectual property activities in fiscal 2020. I hope that this Report will serve as a tool for dialogue with all of our stakeholders, including our shareholders and investors.Going forward, we will continue to support the sustained growth of our business by investing in and actively utilizing intellectual property on the basis of our philosophy, “The Creation of New Value.” In this way, we will further improve our corporate value and contribute to our customers and society.Tetsuya MatsuedaCorporate Senior Vice PresidentGeneral Manager, Corporate Legal Division and Responsible for General Affairs, Intellectual Property, Compliance and Crisis ManagementINTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section2Directions for Intellectual Property Activities❚ Active Utilization of Intellectual Property As a result of the accelerating advances made toward digitalization in recent years, it has come to be seen as an urgent task to transform a business centered on selling products into a business of solutions and IT services. To achieve this, the creation of innovation is essential. Konica Minolta is not only tackling the creation of innovation on its own, but also making active use of M&A and open innovation to acquire intangible assets, including technology, know-how, and other forms of intellectual property.Through the effective use of these intangible assets, we will accelerate our business transformation, expand our business profits, and provide solutions to various social issues.❚ Intellectual Property StrategyIntellectual property is one of the management resources, and an intellectual property strategy tied closely to business strategy and technology strategy is an essential element for management. When Konica Minolta formulated the previous Medium-Term Business Plan “SHINKA 2019,” we also formulated Intellectual Property Strategy 2017–2022 to support our businesses with intellectual property. Under the Intellectual Property Strategy 2017–2022, we have been acquiring domain patents and building a patent portfolio to protect our proprietary technologies. In addition, we have been engaging in initiatives to incorporate know-how and data into intellectual property strategy and fully utilize them. We have also been updating the strategy annually to keep up with environmental changes in business and intellectual property.To continue steadily implementing the Intellectual Property Strategy 2017–2022, we are also carrying out strategies and intellectual property experts. We are developing intellectual property professionals with the aim of improving the asset value of our intellectual property and making our intellectual property strategy more effective. Konica Minolta formulated its new Medium-Term Business Plan ”DX2022” in fiscal 2020. Under this Plan, we are transforming our business portfolio by means of a digital transformation (DX) that has a proprietary “imaging-IoT platform” at its core. Accordingly, we have initiated a strategy to achieve genre-top position for our imaging-IoT intellectual property as a new focus based on the Intellectual Property Strategy 2017–2022, providing intellectual property support for DX2022 Intellectual Property PolicyStrengthen imaging-IoT “intellectual property genre-top” strategy■ Intellectual Property Strategy 2017-2022Intellectual property genre-top strategy / Intellectual property mix strategy / patent information analysis■ Strategies and Policies to Improve Intellectual Property Quality■ Strategies and Policies to Foster Intellectual Property ExpertsMedium-Term Business PlanSHINKA 2019Medium-Term Business PlanDX2022Business ModelImaging-IoTPlatformDigital Workplace (DW)Professional Print (PP)Healthcare (HC)Industry (Ind)Intellectual Property PolicyProfitabilitythe imaging-IoT platform business, which is central to the transformation of our business operations.❚ Initiatives Corresponding to Business PhasesKonica Minolta carries out intellectual property activities in line with the phases of each business concerned. For strategic new businesses, we concentrate our efforts on creating intellectual property that originates in customer value and on protecting related data and know-how. The aim is to steadily advance market creation and participation. For core businesses, we protect the technology that is the mainstay for sustained growth and revenue of the business, and in this way, we are striving to secure our competitive advantage. For businesses with stable or low profit, we manage intellectual property ROI to optimize our intellectual property investment efficiency according to the business environment. Thus, we are working to maintain and improve our profitability and competitiveness.Secure a competitive advantage by protecting technologies and businesses that are the core for sustained growth and revenue of the businessMarket creation and participation by creating intellectual property that originates in customer valueStrategic new businessesCorebusinessesOptimize intellectual property investment efficiency by intellectual property ROI managementRecover investment by monetizationBusinesses with stable profitBusinesses with low profitBusiness phasepolicies to improve quality of intellectual property and to foster Fig1. Transition of intellectual property strategyFig2. Business phases and intellectual property activity measurestechnology that Konica Minolta considers its strengths. We will 20152016201720182019INTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section3Efforts to Strengthen Intellectual Property CapabilitiesIntellectual Property Genre-Top StrategyIQ-501indicates the score of patents with the highest evaluationProduct launch 2.0❚ Imaging-IoT Intellectual Property Genre-Top StrategyWe are promoting the imaging-IoT intellectual property genre-top strategy to support Konica Minolta’s Medium-Term Business Plan DX2022. We figure out the business and intellectual property environment, and then identify the fields where Konica Minolta can realistically aim for genre-top position. In these fields, we secure patent rights for edge devices (sensors), AI-driven solution and business model. Also, utilizing know-how and data, which is the source of our services, we are promoting collaborations with our partners and contributing to our business. Business solutions, which are created by applying our proprietary visualization technologies to data acquired by means of edge devices (sensors) and imaging AI, are protected in multifaceted ways through active utilization of patent acquisition and know-how management.As to the data itself, we are building an environment in which such data itself can be actively utilized as a valuable information asset. In these ways, we are using intellectual property to build multifaceted and multilayered barriers around the fields of aim for the top position in those fields.For the Intelligent Quality Optimizer Unit IQ-501 that we launched in the summer of 2017, we have strengthened our patent portfolios globally and built an intellectual property genre-top position. As a result of these efforts to build our patent portfolios, products equipped with Intelligent Quality Optimizer Unit functionality have secured the highest share in their target markets. The portfolios are also helping to secure a high profit ratio.Imaging IoT TechnologyVisualization TechnologyIntellectual Property Mix StrategyOutputEdge Device(Sensor Device) Protection by intellectual (1) Protect edge devices (sensors) with property rightspatent rightsImaging AIProtection by know-how protect AI-driven solutions with patent (2) Keep AI confidential as know-how and Konica Minolta aims for customer value and application-specific fields by identification and segmentation of “the visible”Contracts with partners (3) Protect business models with patent Fig5. Patent-owner score in Intelligent Quality Optimizer functionsrightsThe score of patents with the highest evaluationIoT Platformfor data creation and rights and collaborate with partners with utilizationuse of data*Provided by Konica Minolta using Patent Result Co., Ltd.’s “Biz Cruncher.” The size of the circles indicates the number of patents of eachcompany. The horizontal axis indicates the score of patents with the highest evaluation; the vertical axis indicates the overall score of patent portfolios.Fig3. Diagram of genre-top strategy for imaging-IoT intellectual property 2.01.51.00.5CalendarYear出願件数（2015年を1とした指数）：左軸日米欧の出荷台数シェア（2015年を1とした指数）：右軸Number of applications (indexed with 2015 as 1): Left vertical axisShipment share in Japan, US and Europe (indexed with 2015 as 1): Right vertical axisSource: IDC Worldwide HCP Tracker 2021Q2 (Share by Company)Fig4. Strengthen Intelligent Quality Optimizer Unit IQ-501 patent portfolio (trend in number of patent applications worldwide)IQ-501↓Konica Minolta1.51.00.50.0oiloftroptnetap fo erocs llarevo ehTINTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section4Structure Supporting Intellectual Property Activities❚ Intellectual Property Management Structureenvironment and business flow of each business department, we At Konica Minolta, a Corporate Vice President in charge of develop, promote and execute the intellectual property strategy in intellectual property is responsible for Group intellectual property close coordination with the business department. The Intellectual management in accordance with the business judgments of the Property Division has two functions: one as developing and President and CEO. The Corporate Vice President in charge of executing strategies for each business department and acquiring intellectual property participates in key management meetings as intellectual property rights in accordance with the strategies, and a standing member, and he deliberates on important matters, the other as promoting company-wide strategies and managing such as intellectual property policy, for the Group as a whole. The intellectual property-related risk. We have created organized intellectual property policy based on management strategy is structures for these two functions to effectively execute the shared among Intellectual Property Division and business strategies in coordination with relevant business departments as departments. Taking into account such factors as the marketwell as planning/management divisions.shareholders’ meetingReport and ProposeAppoint and DismissBoard of DirectorsReport and ProposeAppoint and DismissPresident and CEOAssignment of area of responsibilityKey Management MeetingsExecutive Officers, Corporate Vice Presidents (Business Departments and Departments Subsidiaries)Executive Officers, Corporate Vice Presidents, Departments with Jurisdiction Over Internal ControlsCorporate Vice President Responsible for Legal Affairs and Intellectual Property Decide and execute strategy relating to IPEach Business Department, Each Planning and Management Division (Corporate business management ＆ strategy, etc.)Strengthen Technology, Create Innovation, and Set, Execute and Manage Targeted Goals, based on Management StrategyIntellectual Property DivisionCollabo-rateFormulate and Promote Group IP Policy, and Manage IP Functions in Each Business Departments, based on Management StrategyDialogue and Disclose InformationDisclose IP InformationStakeholders(Customers, Employees, Business partners, Shareholders, Investors, etc.)Formulate and Execute IP Strategy in Each Business Departments, Apply for Patents and Acquire RightsPromote IP Strategy across the Company and Manage IP RiskFig6. Intellectual property (IP) management structure❚ Intellectual Property Activity Support for Group CompaniesIntangible assets such as intellectual property are the focus of increasing attention as sources of corporate competitiveness. In this context, we are engaged in developing the framework to acquire intellectual property rights and conduct a freedom-to-operate search (search to check whether third-party’s intellectual property rights are not being infringed) at development sites in Japan and overseas so that no losses of business opportunity or serious risks arising in connection with intellectual property will occur. Acknowledging that business environments, development targets and speeds differ from one development site to another, the Intellectual Property Division conducts interviews with each center about how its rights acquisition and the freedom-to-operate search are functioning, suggests the best frameworks for those activities, and supports the site in developing the frameworks. By means of such support, we are promoting the implementation of rights acquisition and search at each site. In doing so, we, as the Konica Minolta Group, are forming intellectual property assets and avoiding the risks of infringement, and channeling this toward improved corporate competitiveness and expanded corporate profitability.❚ Management Structure for Creation of InnovationChanges in the business environment have been accelerating in recent years. For corporations to grow sustainably, it is essential that they open up new fields of business according to the changing times. Compared with existing businesses, however, creating innovation in new fields entails greater inefficiency and uncertainty. At Konica Minolta, we are building management structure for proprietary technologies and business models at each business stage in order to create innovation in new fields more efficiently. As part of hypothesis verification, management judgments using information are made. As an example of hypothesis verification using intellectual property information, by analyzing the patent portfolios of other companies in new fields, we can grasp trends in technology, competition/alliance relationships, our position in the fields, and verify the business model’s uniqueness, and its expandability and sustainability.Report and ProposeCommunicationinnovation creation that provides hypothesis verification for INTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section5Intellectual Property that Helps Solve Social IssuesIn the context of advancing development of the world economy due to globalization, social issues such as global environmentalproblems are becoming increasingly diverse and complex, and solving them will require advanced innovation.Konica Minolta is working to create new customer value through constant innovation. We seek to maintain and strengthen our competitive advantage by actively utilizing the technology and intellectual property, such as know-how, obtained in that process, and we also aim to help resolve social issues through focusing on five material issues.5.04.03.02.01.00.0SDGs Goal 8SDGs Goal 9200020042008201220162020* Classified by means of a search formula that includes international patent classifications (IPC) and keywords from the 169 SDG target definition statements.CalendarYearFig7. Number of Konica Minolta patents registered in Japan related to SDG Goals 8 and 9 (indexed with 2000 as 1)Contribution to Solutions for Future Social Issues❚ Konica Minolta Capability to Resolve Social Issues from the Patent Perspectiveoffered in the Digital Workplace Business and Professional Print Business. Incorporated into the value creation process, these Konica Minolta actively utilizes intangible assets, including patent assets become a driving force for business activities customer engagement, technology, human resources, to resolve centered around Konica Minolta’s five material issues and various social issues. Part of the intellectual property contained in technology is made public in patent applications. This means that some parts of efforts to resolve social issues can be visualized from patent information that has been disclosed. In light of the 169 target definition statements for the Sustainable Development Goals (SDGs), we have identified our Japanese contribute to the resolution of future social issues.❚ Measures toward Solutions for Environmental ProblemsAs part of Konica Minolta’s measures to address SDGs in the intellectual property field, we have been acting as a corporate partner in WIPO GREEN since fiscal 2019. WIPO GREEN is a registered patents associated to each goal of the SDGs. Since the platform operated by the World Intellectual Property Organization year 2000, the number of such patents has been increasing. Notably, we have been accumulating technologies related to Goal 8 (fulfilling work and economic growth) and Goal 9 (build infrastructure for industry and technical innovation).Out of the Konica Minolta portfolios of patents registered in Japan which were active in 2020, 44% are portfolios of patents that link to SDG targets. Of those, 42% are classified under Goal (WIPO) of the United Nations to promote active utilization of environmental technology. In fiscal 2020, we registered over 20 additional environmental technology patents. These include a portfolio of patents relating to an all-solid-state alkali metal secondary battery, which is attracting attention as a next-generation technology for improved safety and longer life, and a portfolio of patents relating to a planar heating element with 8 of the SDGs. The majority of them have to do with usability and high heating efficiency that realizes a large energy-saving. With automation, which support the resolution of one of the Konica Minolta material issues “improving fulfillment in work and corporate dynamism.” These portfolios of patents contribute to maintaining and reinforcing the competitiveness of solutions these patent portfolios openly available, we will support the creation of green innovation toward solving environmental problems that present urgent issues on a global scale.Improving fulfillment in work and corporate dynamismSupporting healthy, high-quality livingEnsuring social safety and securityAddressing climate changeUsing limited resources effectivelyBusiness ActivitiesIntangible Assets (Patent Rights)Portfolio of patents relating to management and utilization of natural resources他12%8%11%Portfolio of patents relating to prevention and treatment of non-infectious diseases as well as education and human resource management in medical fields15%19%44%Portfolio of patents registered in Japan which were active in CY202042%Portfolio of patents relating to automation and usability, which serve as a measure to promote fulfillment in workPortfolio of patents relating to productivity improvement, environmentally friendly manufacturing processes, resource utilization efficiency and clean technology, and social welfare and nursing care＜FY2019＞Dye-sensitized solar cell, film mirror for solar power generation＜FY2020＞Secondary battery,planar heating elementFig8. SDG 17 goals compositionINTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section6DX of Operations to Execute Intellectual Property StrategyKonica Minolta is engaged in business reform through digital technology, leveraging intangible assets such as “imaging” technology. Through this digital transformation (DX), we are transforming our business mainly into high value-added services and working to balance growth as a corporation and solutions to social issues.We are also reforming intellectual property operations and processes with full use of data and digital technology in an effort toestablish our competitive advantage in each business department and to ensure our sustained growth.In creating an intellectual property strategy that uses the intellectual property landscape to advantage, we need to study and research competing companies and related markets. For this purpose, it is also essential to check into general information, such as new product information and market trends, as well as intellectual property information.As to intellectual property information, we have developed a system for automatically collecting the necessary information with the help of IT tools. When it comes to general information, we have actively utilized RPA for the collection and selection of web information. The RPA has enabled to automatically and timely collect only what is useful from among the vast quantities of information. Having necessary information available in a simple and timely manner allowed us to allocate more resources ❚ Vision for Promotion of DXThe other is to improve quality of intellectual property rights.to create intellectual property strategies which make the most of We have set two visions for the DX initiative for intellectual In fiscal 2020, as initiatives to make our intellectual property such information. This has increased the sophistication of property operations and processes. One is to make our strategy more sophisticated and effective, the Intellectual intellectual property strategies.intellectual property strategy more sophisticated and effective. Property Division automated its operations, including information Through these actions, the Intellectual Property Division is The matter of intellectual property expenses has for many accelerating the shift toward high value-added operations years faced issues due to the difficulty in managing actual versus (improvement of quality of intellectual property rights, forecast results with a high degree of accuracy. Patents and acquisition of rights to important intellectual property, provision trademarks incur expenses for applications, registrations and of intellectual property solutions) that will contribute to increased maintenances. The difficulties are that we have a large number ofbusiness profitability. Knowledge accumulated through measures patents and trademarks, and they differ in the timing for to promote DX in the Intellectual Property Division is also being payment of the expenses. Konica Minolta is therefore actively deployed and applied to intellectual property-related operations utilizing the results from statistical analysis of the data on the Active Utilization of AIStrengthened Collaboration Among OrganizationsReform of IP Operations and Processes in IP Strategy erom ygetarts PI gnkaMievitceffe dna detacitsihposytilauq sthgir PI gnivorpmIVisualization of IP OperationsStreamline of Business Environment• Automation of business operations• Automation of information collectionand processes in other divisions.❚ Examples of InitiativesProgress in FY2020Increasing contribution to business profitabilitythe Intellectual Property Division.Fig9. DX promotion policy *IP: intellectual propertyRobotic process automation (RPA) was introduced to a part of the patent application workflow. This realized a reduction in labor hours of 200 hours or more annually in the operations of processes from the application to the expiration of rights. We have developed systems to calculate the intellectual property budget for the fiscal year, and to predict the timing for occurrence of expenses by the quarter. This has improved the accuracy of expense prediction. We have also created a system capable of compiling and confirming expense records in real time. Due to these systems, we have realized highly accurate management of actual versus forecast expenses by the quarter.INTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section7Key Data for Five-Year Period（Millions of yen） FY2016962,555Revenue50,135Operating Profit73,275R&D ExpensesFY20171,031,25653,84477,021FY20181,059,12062,44478,395Number of Patents OwnedIn JapanOverseasNumber of Patents AcquiredIn Japan21,61113,1688,4432,1181,380Ranking Among Japanese Corporations *1 22OverseasRanking Among Japanese Corporations in Number of Patents Acquired in the US *2Rate of Requests for ExaminationRate of Patent Grants Decided7381976.7%84.0%21,27612,9268,3502,2691,473127962448.2%83.0%20,23511,6788,5572,0531,183228702179.3%81.1%FY2019996,1018,21174,04020,45311,7578,6962,1981,226199722464.5%83.0%FY2020863,381-16,26665,03419,81411,0838,7311,8501,234116162282.0%76.4%*1 Ranking by number of patents acquired based on information in the Japan Patent Office Annual Report 2021 published by the Japan Patent Office.*2 Ranking estimated from information in Intellectual Property Owners Association Top 300 Patent Owners.• IFRS Standards• Number of Patents Acquired: In Japan ＝ Japanese patents; overseas ＝ US and Chinese patents• Number Owned: In Japan ＝ Japanese patents; overseas ＝ US and Chinese patents• Rate of Requests for Examination: Number of requests for examination / Number of cases with examination request deadline date within the fiscal year• Rate of Patent Grants Decided: Number of patent grants decided / (Number of patent grants decided + Number of grants denied + Number of cases withdrawn after first action or abandoned)1.51.00.50.0-0.5RevenueR&D ExpensesOperating ProfitNumber of Patents Owned• Revenue, operating profit, and R&D expenses indexed on FY2016 as 1 (Left vertical axis)• Number of patents owned is the sum of patents owned in Japan and overseas, indexed with FY2016 as 1 (Right vertical axis)Fig10. Key data trendsWe are engaged in building a high-quality patent portfolio that is based on the plans of each business departments in accordance with our Medium-Term Business Plan “DX2022”.The number of Japanese patent rights owned rose in fiscal 2020 with about 1,200 patents newly added to the portfolio. We abandoned about 1,900 cases, and reviewed portfolio composition according to the plans of each business departments. As a result, the number of Japanese patents owned in fiscal 2020 has declined compared with the previous year.The acquisition of intellectual property rights overseas is extremely important for Konica Minolta, which has 80% of its revenue from overseas. For patents overseas, just as in Japan, we are engaged in portfolio formation according to the plans of each business departments. Japanese applications are carefully screened to select even more important inventions. The selected inventions are then applied for patent in the US, China, and other countries, which results in the increased number of patents worldwide. In order to build optimal patent portfolios according to the phases of each business departments and its field of technology, we are proceeding with the careful screening of inventions for application and registration.As a result of reevaluation and careful screening of pending applications, the rate of patent grants decided in fiscal 2020 declined somewhat from the previous fiscal year to 76.4%. However, the average of patent scores, one of the indexes for the quality of patents, rose 1.1% compared to that in fiscal 2019. These high-quality portfolios attribute to our careful screening of inventions highly eligible for patent application and acquisition.With continued optimization of portfolios, we will enhance intellectual property investment efficiency and increase our contribution to business.1.00.90.80.70.60.550.650.450.250.049.849.649.483.0%49.850.476.4%100%90%80%70%60%50%FY2019FY2020Average Patent ScoreRate of Patent Grants DecidedFig11. Year-on-year patent scores for Konica Minolta patent portfoliosINTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section8Data Highlights❚ Transformation of Intellectual Property Portfolios❚ Highly Investment Efficient Intellectual Property PortfolioIn order to establish a mainstay business at Konica Minolta which follows the Office Business, a At Konica Minolta, we are taking measures to raise our investment efficiency so that our business portfolio transformation is being implemented. In the course of this, we are making intellectual property investments oriented to transformation of the corresponding intellectual intellectual property portfolio will be composed of high-quality patents to support the transformation of our business portfolio. The question of whether these measures are property portfolios. The component ratios of patent applications by business segment for each functioning properly or not can be checked, for example, by analysis of our patents that are fiscal year up to fiscal 2019 shows a trend of expansion in the Professional Print Business, where cited in the examination of other companies’ patents (cited patents). As cited patents present strengthened profitability is expected, and in the Healthcare Business, which is centered on diagnostic imaging. In the Industry Business, the sources of our competitive advantage are anticipatory technology, they can be considered of great interest to other companies. The total number of patents that can be cited increases year by year as patent applications continue to various kind of intangible assets, including the production technology being kept confidential as be filed. With the abandonment or expiration of low-quality patent rights, the proportion of data or know-how, the production equipment itself and our skills for rapid response to customer patents in force to patents that can be cited is tending to diminish. At Konica Minolta, however, requests. With respect to patents, we are filing applications mainly for core technologies we have the proportion of cited patents in force to all cited patents is largely constant. This indicates carefully screened. As a result, highly investment-efficient and high-quality patent portfolios that measures to ascertain inventions that have an anticipatory quality or are attractive to other have been formed in the Industry Business, In this way, we are providing support in terms of intellectual property for business portfolio transformation.companies when making applications and maintaining patents are keeping the proportion of high-quality patents to patents in force at a high level. Figure 15 shows the ratio by business segments of patents cited in the examination of other companies’ patents in fiscal 2020 out of Konica Minolta patents having application dates during 2015–2018. It is also apparent from this data that a high-quality patent portfolio has been formed in our Industry Business.100%90%80%70%60%50%40%30%20%10%0%5%29%10%29%6%26%12%33%6%23%11%34%5%15%12%42%27%24%27%26%FY2016 FY2017 FY2018 FY20192016年度 2017年度 2018年度 2019年度DWPPHCInd その他OthersFig12. Component ratio of patent applications by business segment14%12%10%8%6%4%2%0%-2%i］%［ngra】m% tif【or率p益 gn利it均ar平ep度O 年fo0 e2t0a2r -e8g1a0r2evA0202-8102YFIndDWPPHCOthers1.21.110.90.80.70.6*Provided by Konica Minolta using “Biz Cruncher” patent analysis tool from Patent Result Co., Ltd.The size of the circles indicates the number of patents owned by each business segment. The horizontal axis indicates the average patent score. The vertical axis shows the average operating profit margin in FY2018–2020.(a)(b)Others17%DW9%FY2020Composition ratio of citationsCumulative number of patents application CY2015-CY2018PP16%HC14%Ind44%0.951.001.051.10Average score of patents in Japan日本パテントスコア平均(DWを1とした指数)(Indexed with DW as 1 )2012 2013 2014 2015 2016 2017 2018 2019 2020Calendar yearIndexed with CY2012 as 1生存被引用件数/全被引用件数 (2012年を１とする指数)Number of cited patents in force / All citations生存公開特許数/累積公開特許件数 (2012年を1とする指数)Number of living published patents / All published patentsFig13. Patent scores*Fig14. Example of trend in intellectual property investment efficiencyFig15. Component ratios of number of patent citations by business segmentINTELLECTUAL PROPERTY REPORT 2021Directions for Intellectual Property Activities｜Efforts to Strengthen Intellectual Property Capabilities｜Governance｜Special Topics｜Data Section9Data Highlights❚ Designs and Trademarks❚ Outside EvaluationsKonica Minolta has made trademark applications and acquired rights to the corporate name At the Local Commendations for Invention of fiscal 2020 (organized by Japan Institute of “KONICA MINOLTA” and the logo in about 180 countries. In order to maintain and improve the Invention and Innovation*1), four Konica Minolta patent rights were awarded the brand image, we strategically acquire trademark rights to the names of our products and Encouragement Prize for Invention.services. In fiscal 2020, we launched the imaging IoT platform that combines proprietary Konica Minolta imaging technology with the leading-edge IoT and AI technologies under the brand name “FORXAI” (pronounced FOR-SIGH). This brand carries two considerations: one for “forward-looking” (Foresight) and “for AI serving society” (For X AI). We are protecting and developing this brand through applications for trademark registrations in Japan and overseas. Konica Minolta owned about 2,800 trademark rights worldwide as of the end of fiscal 2020.Digital printing systemAwards Local at Kanto Regional Commendations for Invention of Fiscal 2020Title of InventionPatent NumberEncouragement Prize for InventionImage reading device for monitoring image position formed on both sidesEncouragement Prize for InventionIntermediate transfer component for image forming deviceEncouragement Prize for InventionInkjet ink that realizes high-speed, high-quality printingEncouragement Prize for InventionOdor visualization device6547647457736245564146508440*1. List of Kanto Local Commendations for Invention of Fiscal 2020 from the Japan Institute of Invention and Innovationhttp://koueki.jiii.or.jp/hyosho/chihatsu/R2/jusho_kanto/There are also other instances of outside recognition of the value of our intellectual property. The Patent Result Co., Ltd. publishes a Ranking of Capability to Prevent Other Companies from Obtaining Patent Rights*2, and Konica Minolta was placed fourth in the precision equipment *2. Patent Result Co., Ltd., 2020 Ranking of Capability to Prevent Other Companies from Obtaining Patent Rightshttps://www.patentresult.co.jp/news/2021/08/fcitpre.htmlWe are also engaged in creative work on design* as an important means of building brands. In industry in the 2020 edition of this ranking. We have been holding a place in the top five since fiscal 2020, the designs for six of our products, including the HitomeQ Connect communication 2013.service for care facilities and multifunctional peripherals were recognized and won awards in Japan and overseas. The AccurioPress C14000/C12000 color production printers won a Good Design Award organized by the Japan Institute of Design Promotion, a Red Dot Design Award organized by the Design Zentrum Nordrhein Westfalen in Germany, and an iF Design Award administered by iF International Forum Design GmbH in Germany. The design is appropriate for a There are instances of outside evaluation relating to intellectual property investment flagship product that embodies our motivation to expand the printing business, and it was rated oriented to solutions for social issues. In the ranking of corporations by technology for SDGs*3 highly. At the end of fiscal 2020, Konica Minolta owned about 530 design rights worldwide.created by the Japan Patent Information Organization (Japio), we took 5th place, a highly * Konica Minolta Designhttps://www.konicaminolta.com/global-en/design/index.htmlfavorable evaluation, under Goal 8 (fulfilling work and economic growth).*3. Ranking of corporations in Japan by SDG created by the Japan Patent Information Organizationhttps://transtool.japio.or.jp/work/show_sdg.php?mode=prev_yearINTELLECTUAL PROPERTY REPORT 202110Terminology⚫ Open InnovationAccelerating innovation with organically combined ideas that are generated from inside and outside the corporation.⚫ Intellectual Property Mix StrategyIntellectual property strategy that actively utilizes the strengths of intellectual property (e.g., know-how) and intellectual property rights (e.g., patent rights, design rights and trademark rights) in a complex and organic manner to provide multifaceted protection to the company’s own products and services.⚫ Imaging-IoT TechnologyA technology that involves supporting decision-making and drawingconclusions at wide-ranging job sites by analyzing image data and data from various sensors by using AI technologies such as deep learning. ⚫ Intelligent Quality Optimizer-501An optional unit that automates color management and front-to-backregistration during printing through continual monitoring, greatlyshortening calibration time and improving productivity.⚫ Business Segments⚫ Patent ScoreBusiness Segments●Field・UnitAn index that indicates the degree of attention to a patent in view of its prosecution history, which is calculated on Patent Result Co., Ltd.’s “Biz Cruncher.”Digital Workplace（DW）・Office（OP）・IT service solutions, Workplace Hub（DW-DX）⚫ Application and Acquisition of RightProfessional Print（PP）・Production print （PP）・Industrial print（IP）・Marketing services（MS）Healthcare（HC）・Healthcare（HC）・Precision medicine（APM)Industry（Ind）●Materials andcomponents（M&C）・Performance materials（PM）・Inkjet components（IJ)・Optical components（OC)●Sensing（SE）・Measuring instruments（MI)●Imaging-IoT solutions （IIS)・Imaging-IoT solutions （IIS）・Visual solutions（VS)Securing intellectual property rights (e.g., patent rights and design rights) based on or stemming from intellectual property (e.g., inventions and designs) by filing an application with the Patent Offices in Japan or overseas. It is important for an applicant not only to satisfy statutory requirements and examination guidelines for the rights, but also to design such rights which can cover his/her own products and block competitors. ⚫ Patent QualityAn index that indicates the influence a patent has on other companies (whether those companies will have difficulty in circumventing it but have no choice but to use it, whether it will block the entry of those companies into the business), aside from the value of the patent (to what extent it contributes to corporate profitability).