Transcript JAPAN PowerPoint

Recent Characteristics of
Royalties and License Fees
in Japan’s Balance of Payments
April 2004
Bank of Japan
2016/7/27
1
Trends in Japan’s
Royalties and License Fees
(Yen billion)
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
-400
-600
(Yen billion)
Receipts
Payments
Balance
First surplus
1961 64
120
100
80
60 Absolute am
40
20
0
-20
C
-40
-60
-80
-100
-120
1961 64 6
67
70
73
76
79
82
85
88
91
94
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
-400
-600
97 2000 03
(Year)
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Japan’s
Royalties and License Fees

a surplus was registered for the first time in
2003 due to…
growth in royalty receipts from the
overseas subsidiaries of Japanese
companies (non-resident corporations)
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What contributed to the
emergence of a surplus?
By industry
Transportation equipment
 By region
North America

--- Overseas production of automobiles by
Japanese companies is expected to increase over
the coming years in North America and Europe.
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What is suggested by statistics?



it cannot be said that the competitive
position of Japanese companies in the area
of intellectual property has improved
because…
weakness in the area of software
the surplus attributed to intra-firm trade
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Trends in Absolute Amount Ratio,
Comparative Advantage Index and
Exchange rate
(%)
(Yen / US $)
120
100
80
1
Absolute
amount
ratio
60
40
20
0
-20
Comparative advantage index2
-40
-60
-80
-100
-120
1961 64 67 70 73 76 79 82
400
350
300
250
200
150
100
50
Exchange rate (Right)
85
88
91
94
0
97 2000 03
(Year)
Notes 1: Computed as Exports / Imports
2: Computed as (Exports – Imports) / (Exports + Imports)
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Categories of Intellectual Property Rights
Trademark rights
Right of registered designs
Industrial property
Utility model rights
Intellectual property rights
Patents
Copyrights
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Comparative Advantage Indices of
Components of Royalties and License Fees
(%)
100
80
60
40
20
0
-20
-40
-60
-80
-100
Fees for industrial property, etc.
Combined
Fees for copyright
96
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97
98
99
2000
01
02
03
(Year)
8
Differential in the Competitiveness of
Industrial Property and Copyright
(Yen billion)
(Yen billion)
1,600
1,400
1,200
1,000
800
600
400
200
0
-200
-400
-600
Receipts
Payments
Balance
Turned to surplus in 1997
96
97
98
99
00
01
02
03
(Year)
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1,600
1,400
1,200
1,000
800
600
400
200
0
-200
-400
-600
Receipts
Payments
Balance
Consistently in deficit
96
97
98
99
00
01
02
03
(Year)
9
Receipts of Fees for Industry Property, etc.
by Industry
(Yen billion)
(Yen billion)
700
600
500
400
300
200
100
0
700
600
500
400
300
200
100
0
Automobiles
Pharmaceuticals
Electric machinery & IT
Others
1996
1997
1998
1999
2000
2001
2002
2003
(Year)
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Change in Contribution of Receipts of Fees
for Industry Property, etc. by Industry
(%)
(%)
20
20
15
15
10
10
5
5
0
0
-5
-5
1997
1998
1999
Automobiles
Electric machinery & IT
Total
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2000
2001
Pharmaceuticals
Others
2002
2003
(Year)
11
Royalty Income of Japanese Automobile
Manufacturers and Number of
Automobiles Manufactured Overseas
(Yen billion)
(%)
35
200
180
160
140
120
100
80
60
40
20
0
Royalty income (Right)
Year-on-year change in royalty income
Year-on-year change in number of automobile manufactured overseas
30
25
20
15
10
5
0
Q2
Q3
2000
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Q4
Q1
Q2
Q3
01
Q4
Q1
Q2
Q3
02
Q4
Q1
Q2
Q3
Q4
03
12
Unit Labor Costs of Japanese
Manufacturing Industries
Year-on-year change (%)
30
25
20
15
10
5
0
-5
-10
-15
-20
-25
Per capita wages
Labor productivity (Reverse scale)
Unit labor costs
1971
74
77
80
83
86
89
92
95
98
2001
(Year)
* Rate of increase in unit labor cost = (Rate of increase of per capita wage) – (Rate of increase of labor productivity).
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Overseas Manufacturing Ratios by Industry
(%)
35
Transportation
equipment
All manufacturing industries
30
Transportation equipment
Electrical machinery
General machinery
25
Chemicals
Textiles
20
Foodstuff
15
10
5
0
1985 86
87
88
89
90
91
92
93
94
95
96
97
Source: Basic Survey on Overseas Business Activitie, the Ministry of Economy, Trade and Industry.
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98
99 2000
(Fiscal year)
14
Trends in Payment Balances by Region
(Yen billion)
600
500
400
300
200
100
0
-100
-200
-300
-400
-500
-600
1998
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Surplus vis-`a-vis US
North America
EU
99
2000
Asia
Total
01
02
03 (Year)
(Yen billion)
600
500
400
300
200
100
0
-100
-200
-300
-400
-500
-600
1998
North America
EU
99
2000
Asia
Total
01
02
03 (Year)
15
Regional Breakdown of Industrial Property
Royalty Receipts in 1998 and 2003
EU
17%
Asia
31%
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Others
5%
North
America
47%
EU
14%
Asia
25%
Others
6%
North
America
55%
16
Balance of Payments of Royalty and
License Fees by Region
(Aggregate of industrial property and copyright royalties)
(Yen billion)
(Yen billion)
400
300
200
100
0
-100
-200
-300
-400
-500
-600
North America
1998
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99
2000
Asia
01
EU
Total
02
03
400
300
200
100
0
-100
-200
-300
-400
-500
-600
(Year)
17
Share of Intra-Firm Transactions in
Royalties and License Fees
(Estimated for Japan-US transactions)
(%)
70
65
60
55
50
45
40
35
30
Imports
Exports
1996
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1997
1998
1999
2000 (Year)
18
Royalties and License Fees
in 2000
Japan - 83.8 bill. Yen in deficit
 Germany - 283.4 bill. Yen in deficit
 Britain - 130.4 bill. Yen in surplus
 France - 28.0 bill. Yen in surplus
 US - 2,362.7 bill. Yen in surplus

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outlook for Japan’s balance of
royalties and license fees
deficit in its balance of copyright royalties
can be expected to remain basically
unchanged
 some significant changes can be expected
with regard to China

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What could be concluded?
it cannot be said that the competitive
position of Japanese companies in the area
of intellectual property has improved
 a closer look at Japan’s balance of payments
of royalties and license fees reveals that…



the increase is due to payment from overseas
subsidiaries
in the case of intra-firm trade, royalty income
could be affected by parent company’s policy
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Thank you for listening!
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