Intellectual Property Governance Code Compliance Support
In June 2021, the Corporate Governance Code was revised.
For the first time, disclosure provisions related to intellectual property were added in this revision.
According to these provisions, it is necessary to disclose and provide information in a clear and concrete manner regarding investments in intellectual property while being aware of their consistency with the company's management strategy and management issues (Supplemental Principle 3-1③).
In addition, in light of the importance of investment in human capital and intellectual property, among other management resources, the board of directors should effectively supervise the allocation of these resources and the execution of strategies related to the business portfolio to contribute to the company's sustainable growth (Supplemental Principle 4-2②).
"Investment in intellectual property, etc." is considered to include not only investment in intellectual property but also information related to intangible assets generated as a result of investment in intellectual property.
On the other hand, on page 15 of the "Intellectual Property Promotion Plan 2021" (July 13, 2021, Cabinet Office, Intellectual Property Strategy Headquarters, headed by the Prime Minister), it is stated that disclosure of information regarding investment in intellectual property should not be a simple list of intellectual property, but rather must be in the form of something that conveys cash flow. In other words, companies should clearly indicate their business models that utilize intellectual property and explain how monetization is achieved.
At our firm, we offer various indicators that quantify patent assets as intangible assets of companies, such as YK value and YK3 value, and indicators that quantify brand assets as intangible assets of companies, such as TK value.
YK value, YK3 value, and TK value are indicators that have economic significance and can be said to be indicators that convey the image of cash flow. Additionally, some companies have already demonstrated their competitive advantage in business sectors using the YK value in governance reports.
Please use the various indicators provided by our firm and the information on competitive advantage calculated by these indicators as the basic information for your governance report.
