[A strong ally for overseas expansion! ] Support the cost of acquiring intellectual property rights with the INPIT foreign application subsidy!

For small and medium-sized enterprises, venture companies, universities, etc. aiming to expand overseas or expand their business in the global market, it is extremely important to securely acquire local intellectual property rights (patents, designs, trademarks, etc.). However, obtaining rights in a foreign country is expensive.

At times like these, you might want to consider taking advantage of the "INPIT Foreign Application Subsidy" run by INPIT (Independent Administrative Institution Industrial Property Information and Training Center)!

This subsidy is aimed at supporting part of the costs incurred by businesses in acquiring intellectual property rights in foreign countries and supporting the establishment of international intellectual property strategies.

So, specifically, what kind of businesses and what activities does it support? I will explain this to all my blog readers in an easy-to-understand manner!

1. What kind of businesses are eligible for the subsidy?

This subsidy is available to businesses with head offices in Japan. And you must meet one of the following requirements:

• Small and Medium Enterprises:
  • A company or individual whose capital or number of full-time employees is less than or equal to a specific number determined by industry.
  • If you are a sole proprietor, you must have an address in Japan.
  • Includes specific associations, etc. (business associations, cooperatives, business cooperatives, etc.). However, there are some restrictions when applying for regional collective trademarks.
• Specified founding corporation:
  • A corporation with a capital of 300 million yen or less and established within 10 years as of the application date.
  • However, large companies with a capital of over 300 million yen that own more than half of their shares are not eligible.
• Testing and research institutions, etc.:
  • Researchers at universities and technical colleges, persons establishing universities and technical colleges, and interuniversity research institute corporations.
  • Approved business operator as a technology transfer organization (TLO) such as a university.
  • Includes specific independent administrative agencies, special corporations, entities establishing public testing and research institutions, etc., and local independent administrative agencies for testing and research.
• Licensee etc.:
  • A person who falls under any of the above-mentioned small-to-medium sized businesses, specified start-up corporations, testing and research institutes, etc., who will obtain a license, etc. for an application filed by one of these persons and will bear part or all of the cost of acquiring rights in a foreign country on their behalf. However, you must also fall under any of the above A~C.

[Businesses that are not eligible]

The following businesses are not eligible for this subsidy.

• Deemed large companies (e.g. small and medium-sized businesses that have a large share or investment in large companies). If the company becomes a deemed large company during the subsidy project implementation period, it is also not eligible.
• Persons who have been subject to subsidy suspension measures or nomination suspension measures from the Ministry of Economy, Trade and Industry.
• Businesses associated with organized crime groups or organized crime members.

2. What activities will be supported? (Applications and procedures eligible for assistance)

The activities eligible for support are mainly the following applications to foreign patent offices ("Applications eligible for assistance") and their specific procedures ("Procedures eligible for assistance").

• Supported application:

  • An application filed with a foreign patent office, etc. based on an application filed in Japan, claiming priority under the Paris Convention.
  • An application filed with a foreign patent office, etc. without claiming priority by the following method.
    • A method of filing an international application based on the PCT (Patent Cooperation Treaty) with a foreign patent office, etc. (through national phase procedures in each country/region). However, in this case,it is necessary to carry out national phase procedures with the Japan Patent Office.
    • A design registration application filed with a foreign patent office, including Japan as a designated contracting party, based on the Hague Agreement (Agreement on the International Registration of Designs).
    • Application for trademark registration with a foreign patent office based on the Madrid Protocol (Agreement on the International Registration of Marks). However, the applicable trademarks are limited tothose that correspond to applications filed with the Japan Patent Office or domestic registered trademarks.
  • [Important] If the applicant's name in the application to a foreign patent office and the underlying application to the Japan Patent Office are not the same, the application will not be eligible for assistance.

• Supported procedures:

  • Among the procedures related to applications eligible for assistance, the following are applicable.
    • Procedure for requesting examination of application.
    • Procedures for submitting written opinions and amendments in response to the notice of reasons for refusal
  • [Note] These procedures are limited to procedures related to the patent application of those who have received the INPIT foreign application subsidy or a patent office related project in the past.

3. What expenses are eligible for subsidy?

Expenses that can be clearly classified for subsidized projects and whose necessity and appropriateness of amount can be confirmed with documentary evidence are eligible. In addition, those who have entered into a contract (ordered) after the issuance decision date and have completed acceptance inspection and payment within the subsidy project implementation period are eligible.

The main expenses eligible for subsidy are as follows.

• Fees paid to foreign patent offices, etc.:
  • Application fees, national phase procedure fees for international applications, application examination request fees, etc.
• Agent fees etc.:
  • Domestic agent (patent attorney, etc.) fees, local agent fees. As a general rule, the cost is for one domestic office and one local office for each country of application.
  • Notary certificate application fee, power of attorney creation fee, bank transfer fee, etc.
• Translation cost:
  • This is the cost of translating the statement. Details such as unit price x number of words and number of pages must be clearly stated in the statement.

[Examples of expenses that are not eligible for subsidy]

The following expenses are not eligible for subsidy.

• Costs for preparing subsidy applications and performance reports.
• Consumption tax, overseas value added tax (VAT), etc.
• Exchange fees.
• Fees paid to the Japan Patent Office.
• Costs for prior art searches and prior trademark searches.
• Fees for the international phase of an international application (such as international filing fees).
• Patent fees, registration fees.
• Other expenses corresponding to non-subsidized activities and expenses.

4. What is the subsidy amount and subsidy rate?

The subsidy rate is 1/2 for the expenses eligible for subsidy.

The upper limit of the amount to be subsidized is as follows.

• Maximum amount per business operator (application):

  • Small and medium-sized businesses, specified corporations, testing and research institutions, etc. (with some exceptions), licensees, etc.: 3 million yen or less.
  • Testing and research institutions (some): No upper limit.

• Maximum amount per application (common):

  • Patent application: Within 1.5 million yen.
  • Utility model registration application, design registration application, trademark registration application: within 600,000 yen.
  • Application for trademark protection: within 300,000 yen.

• Maximum amount per procedure (common):

  • Within 500,000 yen. There is no upper limit for the overall procedure.

* In the case of a joint application, the upper limit of the subsidy amount per application is the amount above multiplied by the ownership percentage, etc. *In the case of small and medium-sized enterprises (excluding some testing and research institutions), up to five applications for design registration and five applications for trademark registration are eligible.

5. Main process/obligations after application and selection

• How to apply: As a general rule, only electronic applications via **JGrants (national electronic application system)** are accepted. A G Biz ID Prime account is required to apply.
• Restrictions on Duplicate Applications: Applications for which you wish to receive assistance may not be applied for in duplicate with other government-funded support systems. If duplicates are discovered, the application will be rejected or the issuance decision will be cancelled.
• Obligations after adoption: There are some obligations even after being selected as a subsidy operator. Here are some particularly important points.
  • Patent applications that include inventions that belong to the "specific technical fields" defined in the Economic Security Promotion Act are not eligible for this subsidy.
  • Businesses that have received additional points for implementing wage increases are required to report the wage increase status.
  • When changing, discontinuing, abolishing, or succeeding a subsidy project, approval from INPIT is required in advance.
  • After completing the subsidy project, it is necessary to submit a performance report within the deadline.
  • You are obligated to submit aright status reportevery yearuntil the examination results and registration status of all applications eligible for assistance have been reported. If you do not submit it or make a false report, the grant decision may be canceled, you may request a refund of the subsidy, or your future applications may not be accepted.
  • If the acquisition of rights is not completed without justifiable reasons (abandonment, withdrawal, etc.), the application may not be selected in future public calls.
  • Books and evidence related to subsidized expenses must be kept for 5 years after the subsidized project is completed.
  • It is necessary to respond to report requests and on-site inspections from INPIT and the secretariat.
  • Subsidy payments will be made in settlement after the completion of the subsidy project. Subsidies are taxable.
  • In the event of misconduct, the issuance decision may be canceled, a return order, or a public announcement may be made.

Summary

The INPIT foreign application subsidy is a system that provides strong financial support for acquiring intellectual property rights overseas. Why not check the target businesses and support details and consider using it as part of your intellectual property strategy for overseas expansion?

Please feel free to contact our office for the latest information on detailed application methods, required documents, and open recruitment period.

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).

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