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Automotive parts manufacturers are currently facing a once-in-a-century period of major...
``I want to get a patent, but it's too expensive'' and ``It's not possible for small and medium-sized businesses to file overseas patent applications'' - we hear these comments on a daily basis. In fact, it is not uncommon for the process from filing a patent application to obtaining a patent to take anywhere from several hundred thousand yen to more than a million yen, and filing overseas requires an investment of several million yen.
However, as of 2026, the intellectual property cost reduction/exemption system and subsidies for small and medium-sized enterprises and startups are more extensive than ever before. If you make the right use of the patent office's examination request fee reduction/exemption, foreign application subsidies, local government-specific subsidies, etc., it is quite possible to reduce the cost of acquiring intellectual property to half or less.
This article provides a comprehensive explanation of the major intellectual property support systems that will be available in 2026, and provides useful information on practical matters, including things to note when applying and tips for adoption. If you are a company that has given up on intellectual property because of the cost, please read this book to the end.
Table of Contents
- Why small and medium-sized enterprises need IP acquisition and support systems
- Patent Office's reduction/exemption system ─ Up to 2/3 off examination request fees and patent fees
- Foreign application subsidy - significantly reducing the cost burden of overseas expansion
- Municipal government's own subsidy - covers patent attorney fees
- Four golden rules for utilizing subsidies
- Summary: IP costs can be turned into "investments"
Why small and medium-sized enterprises need IP acquisition and support systems
Patents and trademarks have a strong image of being reserved for large companies, but in reality, acquiring intellectual property rights is an important management issue for small and medium-sized enterprises. I will explain the reasons from three perspectives.
Reason 1: Preventing the risk of imitation
Technologies and products independently developed by small and medium-sized enterprises cannot be legally protected unless they obtain rights. Particularly in recent years, the risk of ``misappropriated applications'' in which a third party files an application based on product information published at an exhibition or on a website has increased. By acquiring patent rights and trademark rights, it becomes possible to legally prohibit the manufacture and sale of counterfeit products, ensuring a competitive advantage in the market.
⚠ Beware of fraudulent applications
When a technology or brand is disclosed at an exhibition, press release, SNS, etc., there are many cases where a third party uses that information to file an application first. The principle is to apply before publication. If information is disclosed before the application is filed, it is necessary to consider applying exceptions to the loss of novelty, but the procedure is complicated, so it is best to complete the application before publication as much as possible.
Reason ②: Utilization for financing/credit acquisition
Intellectual property rights are important management assets that make a company's technological capabilities and brand power visible. Holding patent rights and trademark rights is a major selling point to financial institutions and investors. In recent years, the use of financing systems that use intellectual property as collateral (Intellectual property-backed loans) has become widespread, and is attracting attention as a new means of raising funds for small and medium-sized enterprises that tend to lack physical collateral.
💡 What is intellectual property-backed financing
This is a system for obtaining loans from financial institutions using intellectual property rights such as patents and trademarks as collateral. The Japan Finance Corporation and some local banks and credit unions are increasingly handling this service. For small and medium-sized enterprises and startups that lack physical collateral such as real estate, acquiring intellectual property rights is the key to expanding financing options. In fiscal 2026, financial institutions continue to expand their intellectual property evaluation loans.
Reason 3: "Cost barrier" can be overcome by utilizing the system
The biggest reason for hesitation in acquiring intellectual property is cost. It is not uncommon for the process from filing a domestic patent application to obtaining a patent to cost approximately 500,000 to 1 million yen in total, and it is not uncommon for foreign applications to cost more than 1 million yen per country. However, in 2026, there are many support programs that small and medium-sized enterprises can take advantage of, such as the Japan Patent Office's reduction/exemption system, INPIT/JETRO's foreign application subsidies, and local government-specific subsidy systems. By combining these correctly, it is quite possible to reduce the actual out-of-pocket costs tohalf or less.
In the following sections, we will explain in detail the main intellectual property support systems that small and medium-sized enterprises can utilize in 2026, along with specific examples of amounts and application points.
JPO's reduction/exemption system ─ Up to 2/3 off examination request fees and patent fees
The Japan Patent Office has established a reduction/exemption system for examination request fees and patent fees (for 1 to 10 years) in order to promote the utilization of intellectual property by small and medium-sized enterprises. In 2026, the allowance will continue to be reduced by one-half for small and medium-sized enterprises and one-third for startups.
Examination request fee and patent fee cut in half
If you fall under the category of small and medium-sized enterprises as defined in the Small and Medium Enterprise Basic Act, the examination request fee and patent fees for the first to tenth years will be half price. All you need to do is submit the prescribed documents when filing an application or requesting an examination, and no special preliminary examination is required. This exemption also applies to sole proprietorships and small businesses.
💡 Specific amount example (for claim 10)
The normal examination request fee is about 170,000 yen, but if you apply the small and medium-sized business exemption, it will be reduced to about 85,000 yen. Additionally, patent fees for 1 to 3 years (approximately 20,000 to 50,000 yen per year x 3 years) will be halved, making it possible to save hundreds of thousands of yen in the total cost from application to right maintenance.
Startups will receive even more preferential treatment - reduced to one third
For start-up companies that have been established for less than 10 years, the examination request fee and patent fee will be reduced to one-third of the normal amount. This is a huge benefit for start-up companies with limited funds.
📌 Points of preferential treatment for startups
The basic requirement for the definition of a "startup" is that it is a corporation that has been established for less than 10 years. If a sole proprietorship becomes a corporation, the date of establishment of the corporation becomes the starting date. Please note that this preferential treatment does not apply to subsidiaries or group companies of large companies. Be sure to check whether your company meets the requirements before applying.
Notes for 2026 - Upper limit of 180
Starting from 2026, the 1/3 exemption for startups will be capped at 180 cases per year. For companies that file a large number of applications per company, it is important to formulate an application plan in advance and prioritize applications. If the amount exceeds the upper limit, the usual 1/2 reduction for small and medium-sized businesses will be applied, but care must be taken as this will affect cost planning.
| Company classification | Reduction rate | Target expenses |
|---|---|---|
| Small and medium-sized enterprises (Basic Law definition) | 1/2 reduction | Examination request fee, patent fee (1 to 10 years) |
| Startup (less than 10 years old) | 1/3 reduction | Examination request fee, patent fee (1-10 years) *Up to 180 cases per year |
| Small business owner | 1/2 reduction | Examination request fee, patent fee (1 to 10 years) |
| Sole Proprietor | 1/2 reduction | Examination request fee, patent fee (1 to 10 years) |
Foreign application subsidy - significantly reducing the cost burden of overseas expansion
For small and medium-sized enterprises aiming to expand into overseas markets, the cost of filing intellectual property applications in foreign countries is a major hurdle. The Foreign Application Subsidy operated by INPIT (Industrial Property Information and Training Institute) and JETRO (Japan External Trade Organization) is a system that significantly reduces this cost burden.
System Overview
The foreign application subsidy is a system that subsidizes a portion of the costs when small and medium-sized enterprises apply for patents, utility models, designs, and trademarks overseas. One-half of the costs required for application (local agent fee, translation fee, application fee, etc.) will be subsidized. Apply through the intellectual property general support counter in each prefecture or JETRO.
💡 Maximum subsidy amount (per application)
- Patent application:Maximum per application1.5 million yen
- Utility model application:Upper limit per application600,000 yen
- Design application:Maximum per application600,000 yen
- Trademark application:Maximum per application600,000 yen
- Annual upper limit per company: 3 million yen
Supplementary expansion of requests for examination and interim responses
In 2026, the subsidy has been expanded to cover not only the initial cost of filing a foreign application, but also post-filing examination request costs and intermediate response (office action) costs. By being able to cover the entire process of obtaining rights overseas, the issue of not having to continue paying costs after filing an application has been greatly alleviated.
✅ Benefits of intermediate cost subsidy
The cost of responding by a local representative when receiving a notice of reasons for refusal (office action) from a foreign patent office is now included in the subsidy. Previously, only the costs at the time of application were covered, but with the expansion, the entire cost up to the completion of obtaining rights will be reduced. This is expected to reduce the number of cases in which patent applications are abandoned due to lack of interim costs.
Points for adoption
The budget for foreign application subsidies is limited, and not all applications will be accepted. In order to increase the acceptance rate, it is important to apply with the following points in mind.
📌 3 tips to increase acceptance rate
- Specificity of overseas expansion plan:Clarify the sales plan, business partners, and market research results in the target country
- Consistency with IP strategy:Explain why you are filing in that country and the link between business strategy and IP strategy
- Early application:Budgets tend to be spent on a first-come, first-served basis, so apply as soon as possible after recruitment opens
| Intellectual property type | Supplementary limit per item | Subsidy rate |
|---|---|---|
| Patent | 1.5 million yen | 1/2 |
| Utility model | 600,000 yen | 1/2 |
| Design | 600,000 yen | 1/2 |
| Trademark | 600,000 yen | 1/2 |
| Annual limit per company | 3 million yen | ── |
Municipal government's own subsidy──covers patent attorney fees
In addition to the national system, prefectural and municipal levels also have their own intellectual property-related subsidies. Of particular note is that an increasing number of systems include patent attorney consultation and filing outsourcing costs as a subsidy. Under the national system, government fees (fees paid to government offices) are the main target, but municipal subsidies sometimes cover professional fees as well.
System that also covers patent attorney fees
In fact, a large proportion of the total cost of an intellectual property application is the professional fee paid by a patent attorney. The cost of creating a patent specification alone generally costs between 200,000 and 500,000 yen. If you can cover this part with local government subsidies, the hurdles to applying will be significantly lowered.
🏛 Tokyo: Intellectual property utilization support project
This is a subsidy system run by the Tokyo Small and Medium Enterprises Promotion Corporation, and in addition to foreign application fees, patent attorney fees, translation costs, and research costs are also subsidized. The subsidy rate is 1/2, and the upper limit is about 1 million yen for patents. Applications are open to small and medium-sized enterprises that have their head office or principal place of business in Tokyo, and recruitment is held multiple times each year.
🏛 Osaka Prefecture: Intellectual property acquisition support subsidy
Osaka Prefecture has a system for subsidizing the costs of domestic and overseas patent and trademark applications for small and medium-sized enterprises within the prefecture. It is unique in that patent attorney fees and prior art search costs are also covered. The subsidy rate is 1/2, and the maximum amount varies depending on the system, but it is attractive that it can be used even for domestic applications. Apply through support organizations such as MOBIO (Manufacturing Business Center Osaka).
Speed is important - first-come, first-served systems are common
Since the budget size of local government subsidies is smaller than that of the national system, there are many cases in which applications are closed on a first-come, first-served basis. Recruitment begins early in the fiscal year and ends as soon as the budget is exhausted, so the speed of information gathering and preparation is the key to selection.
⚠ Please note first-come-first-served/early end
Intellectual property grants from local governments sometimes reach their budget limit and end applications just a few weeks after the application begins. Every year there are cases where the application deadline ends just when you are planning to apply next month. Check information on intellectual property-related subsidies for the local government where your company is located at the beginning of the fiscal year (April to May) and prepare the necessary documents in advance. We recommend that you regularly check the websites of your local government's Industrial Promotion Division or Intellectual Property Comprehensive Support Desk.
Four golden rules for utilizing subsidies
In order to make the most of intellectual property-related subsidies and exemption systems, it is necessary to understand some important common rules. Here we will introduce four golden rules that you should always keep in mind when applying.
Golden rule ①: Always apply in advance -- apply for subsidies before applying
Most subsidy systems requireto apply for and receive a subsidybefore application (disbursement). Even if you apply first and then decide to use that subsidy, subsequent applications will not be accepted. It is essential to plan your application schedule and grant application schedule at the same time.
⚠ In principle, subsequent applications are not possible
If you apply or pay before a decision is made to receive a subsidy, those costs will not be covered by the subsidy. "I submitted my application first because I wanted to hurry" is not valid. Even if you are under time pressure, such as a deadline for claiming priority, you should plan ahead and prepare for the timing of your subsidy application.
Golden rule ②: Subsidies are "paid in arrears" -- it is necessary to secure advance funds
The most common method for subsidies is the ``deferred payment (reimbursement)'' method, in which the expenses are settled and paid after the actual expenses have been paid. In other words, you will need to cover the entire application fee yourself. Subsidy payments will be made after the project completion report and inspection, so there will be a time lag of several months. It is important to factor this advance period into your cash flow plan.
Golden rule ③: Actively utilize public support institutions
At the Intellectual Property Comprehensive Support Desk (operated by INPIT) set up in each prefecture, you can consult about intellectual property for free. Our expert consultants will help you with advice on how to apply for subsidies, choosing a system that suits your company, and how to fill out application documents. In addition, the Yorozu Support Center and the Japan Small and Medium Enterprises and Regional Innovation Organization (SME Support Center) provide support not only for intellectual property but also for general management. Don't worry about it alone, first consult a public support organization.
Golden rule 4: Consult a patent attorney early
In order to proceed with the subsidy application and application procedures in parallel, it is essential to have the support of apatent attorney who is an intellectual property expert. A patent attorney can not only help you prepare application documents, but also advise you on which system is best for your company and what schedule you should follow. If you are worried about costs, you can consult a patent attorney early to come up with an optimal cost plan that utilizes subsidies. Many offices offer free initial consultations, so feel free to contact us.
Summary: IP costs can be turned into "investments"
In fiscal 2026, the support system for small and medium-sized enterprises and startups to acquire intellectual property will be enhanced more than ever. Let's look back at what we've covered so far.
- The Patent Office's reduction/exemption system reduces examination request fees and patent fees to 1/2 for small and medium-sized enterprises and 1/3 for startups
- Foreign application subsidy subsidizes 1/2 of overseas application costs (1.5 million yen/patent, upper limit of 3 million yen per year) and expands to include intermediate costs
- Local government-specific subsidies can cover application-related costs, including patent attorney fees
- The golden rules for utilizing subsidies are Advance application, understanding of deferred payment, utilization of public institutions, and early consultation with a patent attorney
The cost of acquiring intellectual property is not a ``cost'' but an ``investment'' to protect the future of a company. And now there is a system within reach that can significantly reduce the burden of that investment.
Please feel free to contact us if you have any questions such as ``Which system is available for my company?'' ``What order should I proceed?'' We will propose the best intellectual property strategy and cost plan for your company's situation.
Free consultation about intellectual property costs and subsidies
We will answer your questions regarding intellectual property costs, such as "Which exemption system can I use?" "What is the procedure for applying for subsidies?" Please feel free to contact us.
Small and medium-sized enterprises IP
Patent exemption system
Foreign application subsidy
Startup intellectual property support
2026 Subsidy
Reducing intellectual property costs
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AUTHOR
Takefumi SUGIURA （杉浦 健文）
EVORIX Intellectual Property Law Firm Managing Patent Attorney
Supports clients across IT, manufacturing, startups, fashion, and medical industries, covering patent, trademark, design, and copyright filings through trials and infringement litigation. Specialized in IP strategy for AI, IoT, Web3, and FinTech. Member of the Japan Patent Attorneys Association (JPAA), Asian Patent Attorneys Association (APAA), and Japan Trademark Association (JTA).
