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Interview
Strategic IP Management for a Changing Business Environment
In today’s rapidly developing technological landscape, especially in the field of artificial intelligence, the approach to utilizing intellectual property (IP) is undergoing significant transformations and we must adapt our strategies for managing them accordingly. Traditional strategies focused on patent rights and simple licensing activities are proving insufficient to keep up with the pace of market developments. For NEC, which owns an extensive portfolio of IP assets in artificial intelligence and communications, this evolving situation provides both a challenge and an opportunity to drive business innovation. We spoke with one of NEC’s key leaders about her efforts to explore and develop new IP strategies that align with these evolving dynamics.
Profile
Since joining NEC in 1999, Eiko Nishimura has dedicated her career to intellectual property management. In 2002, she broadened her expertise by spending a year training at a U.S. law firm. In 2013, she took on a managerial role while also contributing to the energy business division. By 2018, she advanced to become an expert, and subsequently a senior expert, in the IP Planning and Strategy Group, while also serving as a senior expert in the Technology Strategy Group directly under the CTO. As of April 2023, she holds her current position as a Director in the Litigation and Counsel Department in the Global Innovation Business Unit’s intellectual Property Management Division. Ms. Nishimura is also a registered patent attorney.
Eiko Nishimura
Director
Litigation and Counsel Department, Intellectual Property Management Division
Global Innovation Business Unit
Unlocking and Utilizing the Hidden Potential in IP
Can you share insights into the activities of NEC's Litigation and Counsel Department?
Our department is dedicated to developing innovative approaches to utilizing intellectual property that align closely with our business objectives. We emphasize the term "develop" as it highlights the importance of effectively implementing these strategies within the company. This process involves establishing and enhancing internal infrastructure to create new systems that enable us to use our intellectual property to its maximum potential. Our initiatives are driven by changes in society and the evolution of NEC's own business model. In the past, when our focus was primarily on product sales, it was vital to secure patents for those products. However, as we transition towards providing services and solutions, the role and management of intellectual property have evolved significantly.
To adapt to these changes, NEC has outlined two main strategies in response. The first strategy is to expand the scope of our intellectual property portfolio. When launching a new business, it is essential to identify all potential and relevant intellectual property assets. This includes not only patents, trademarks, and copyrights, but also often-overlooked assets such as the know-how of our researchers and engineers and even user interface designs. Accurately capitalizing on these elements as intellectual assets is crucial for enhancing business profitability.
For example, NEC possesses numerous world-class AI technologies that include vital know-how, such as methods for creating datasets to optimize machine learning systems. Uncovering and integrating such latent know-how into our business assets and IP portfolio is vital to maintaining a competitive edge and remains is a key area of focus for us.
The second strategy centers on actively utilizing our intellectual property to drive business growth. As business models become more diverse, companies are increasingly collaborating to utilize each other's patents rather than solely developing and selling their own products. In this context, it is no longer sufficient to focus on business protection and, instead, a proactive approach to using IP as a tool in enhancing the business is essential. The ideal approach would be to move beyond traditional licensing methods to identify and implement strategies that create and maximize the business opportunities. However, achieving this requires a thorough assessment of the value of our intellectual property based on concrete reasoning. Such an approach would not only highlight the advantages of partnering with NEC but would also contribute to enhancing profitability and strengthening the branding of our technologies. Ultimately, our focus is on effectively using our intellectual property to address and solve our customers' challenges while continuously developing ways to utilize them in supporting and advancing our business objectives.
Contributing to Business Creation from the Ground Up Through Intellectual Property
How do you go about uncovering valuable know-how within the company?
We conduct in-depth interviews with developers and division managers to thoroughly explore NEC's unique strengths. Often, valuable know-how goes unnoticed by to those working the field because it has become part of their day-to-day operations. By asking questions such as, "What are our customers most satisfied with?" and "Why can't other companies do the same?" we unearth insights that, upon deeper reflection, highlight critical aspects that might otherwise be overlooked. Our team also operates across various business areas, allowing us to share insights such as, "This type of expertise was identified in another business area," and provide valuable perspectives that benefit the entire company.
It seems that you need to have a broad understanding not only of intellectual property but also about a wide range of businesses and the latest technological trends. Is that correct?
Yes, that is absolutely right. It's crucial to be curious and well-informed, not just about our own company's business but also about industry trends and developments. Working in the IP department requires developing a diverse skill set – everything from securing patent rights to managing contracts and safeguarding trade secrets. While there's a lot to learn and it can be challenging, it's also an incredibly rewarding job.
Our proactive approach has also transformed how we collaborate with the business divisions. In the past, our role was mainly to provide support during contract negotiations or when applying for patents. Now, we're involved much earlier and work with the business units right from the initial stages of business development. We help assess the true value of intellectual property and assist in considering sales methods with the IP portfolio in mind, ensuring a collaborative effort from the very beginning.
Shifting from Qualitative to Quantitative Intellectual Property Evaluation
What are your future goals?
I think the initiatives we have discussed so far have been primarily qualitative. Looking ahead, the key challenge is to quantify these efforts across all aspects of intellectual property, including know-how and patents. For example, if we could evaluate and quantify the impact of new technological information on NEC’s business, it would greatly enhance our profitability. Additionally, having a system that can quantitatively express our IP coverage would be extremely beneficial when launching new businesses. We are currently in the process of developing the infrastructure needed to achieve this.
Our team is dedicated to supporting the creation of new businesses from the ground up by using intellectual property as the foundation, especially when NEC introduces valuable technologies and solutions to society. In many ways, our approach is similar to business consulting. Moving forward, our goal is to continue to collaborate closely with business divisions, researchers, and developers to foster new business opportunities and become a vital part of this collaborative effort.
