Impact of the Weakening Yen on Japanese Patent Prosecution

l  Yen drops past 160 to fresh 34-year low against the dollar

In the foreign exchange market on April 29, 2024, the Japanese yen experienced a significant decline against the US dollar, reaching a level of 1 dollar = 160 yen at one point, marking around 34 years since the yen reached such a weak level against the dollar, last seen in April 1990.

The following chart shows the change in yen per dollar over the recent years.

l  Decrease in Costs Associated with Patent Prosecution in Japan

Considering a typical patent application in Japan, the fees charged by the Japan Patent Office, the application fee is 14,000 yen, the examination request fee for example, for 20 claims, amounts to 218,000 yen, and the registration fee for the 1 to 3 years after the patent is assessed is 28,300 yen for 20 claims, totaling 260,300 yen.

At the exchange rate of 1 dollar = 107.35 yen in 2020, this would amount to $2,425. However, at the current exchange rate of 1 dollar = 160 yen, this is equivalent to $1,627.

Furthermore, if a patent law firm invoices attorneys’ fees in yen, the total cost of acquiring rights, including attorneys’ fees, is reduced. As a result, not only are official fees lower, but the overall cost of obtaining rights is also decreased.

 l  Excellent opportunity for U.S. entities to establish IP portfolio in Japan

In addition to the economic benefits of the weak yen, the followings are some of the advantages of the patent prosecution in Japan

• Fast Patent Examination at the JPO: The average pendency from Request for Examination (RFE) to 1st Office Action is 10.0 months, and the average pendency from RFE to Establishment of Right is 14.7 months, which both are the fastest among big IP Offices.
• Reasonable Grant Rate at the JPO: The average Grant Rate during patent examination is around 75% for the past five years.

In conclusion, now is an excellent opportunity for U.S. entities to establish IP portfolio in Japan!