Limits of Protecting Technology and Know-How Through Intellectual Property Rights
First written in FY2017. 2 of 6 entries say "Restated". Latest entry: FY2026.
Shima Seiki Mfg. moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
The whole theme swung hardest in 2026: 5 of 29 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Moreover, as the use of technologies such as generative AI and social media has expanded in recent years, unauthorized alterations by generative AI and the inappropriate dissemination of information on social media could be deemed to infringe third-party portrait rights and other rights, potentially leading to legal disputes and a decline in social credibility.」
In addition to the existing risks of counterfeit products and patent infringement, the company has newly identified the risk of infringing portrait rights and other rights through unauthorized alterations by generative AI and the dissemination of information on social media. - FY2024MitigatedAnnual report
「Accordingly, the Group constantly monitors patent infringements by other companies, makes effective use of information from local subsidiaries and distributors in each country, and has established a system for issuing warnings or taking legal action as necessary. In addition, regarding the intellectual property of other companies, it conducts thorough investigations and verifications at each stage of product development. It has also assigned personnel in its in-house legal departments to handle negotiations and litigation concerning non-infringement claims and licensing terms, and has established a system for responding appropriately to each matter in cooperation with experienced attorneys.」
In addition to monitoring patent infringements and conducting investigations during development, the company has detailed a framework for handling negotiations and litigation through in-house legal personnel and cooperation with attorneys. - FY2023RestatedAnnual report
「Accordingly, the Group constantly monitors patent infringements by other companies, makes effective use of information from local subsidiaries and distributors in each country, and has established a system for issuing warnings or taking legal action as necessary. In addition, regarding the intellectual property of other companies, it conducts thorough investigations and verifications at each stage of product development.」
Based on the limits of protection afforded by intellectual property rights, the company continues to monitor patent infringements, gather information, pursue legal proceedings and conduct investigations during development. - FY2021MitigatedAnnual report
「Accordingly, the Group has established a system under which its Intellectual Property Department constantly monitors patent infringements by other companies, makes effective use of information from local subsidiaries and distributors in each country, and issues warnings or takes legal action as necessary.」
While the risk of counterfeit products continues, the company has detailed its response framework involving the Intellectual Property Department, information from local subsidiaries and distributors, warnings and legal proceedings. - FY2018RestatedAnnual report
「As a result, the Group may be unable to effectively prevent third parties from illegally using its intellectual property rights to manufacture counterfeit products. This could lead to a decline in sales share and increased price competition, affecting the Group's operating results and financial position.」
The risk of counterfeit products and price competition in regions where intellectual property rights are difficult to fully protect has been reiterated. - FY2017First statedAnnual report
「As a result, the Group may be unable to effectively prevent third parties from illegally using its intellectual property rights to manufacture counterfeit products. This could lead to a decline in sales share and increased price competition, affecting the Group's operating results and financial position.」
The company indicates that fully protecting intellectual property is difficult or limited in some regions, creating the potential for market-share declines and price competition caused by counterfeit products.