Amid drastic changes in the global environment for competition, a company’s intellectual property (IP) has growing importance for sustainable and stable business operations. The CITIZEN Group recognizes IP activities as a key management priority in achieving sustainable growth and enhancing corporate value. We regard IP as a key driver of business competitiveness and sustainable growth and actively promote the creation, protection, and utilization of IP rights to technologies, designs, brands, etc. We also respect the rights of third parties and implement fair and sound business practices. We will not only secure appropriate IP rights but also strategically utilize IP information to increase the value of our brands and products and to have a positive impact on the planning and execution of our management strategies, thereby enhancing our corporate value. We will continue to promote effective IP creation through interdepartmental co-creation based on dialogue with the respective business divisions, as well as with the research and development department.
Our IP activities are promoted mainly by the IP Department under the leadership of management, in collaboration with the Watches, Machine Tools, and Devices & Components Business Divisions. We hold regular IP Strategy Meetings with each Business Division to mutually share IP information and the current situation in each business. We have therefore established a system for providing each Business Division with specifically tailored IP strategies and services. Important issues are reported to the Board of Directors and the Management Committee for deliberation so that Group-wide IP strategies are formulated and implemented. This system allows The CITIZEN Group as a whole to promptly and accurately share and respond to IP issues and related management issues through close cooperation between the IP Department and the respective Business Divisions.
We actively apply for patent, design, and trademark registrations both in Japan and abroad. As of the end of FY2025, the number of IP rights held by the Group was as follows: 1,576 patents in Japan and 1,423 overseas; 408 trademark rights in Japan and 3,807 overseas; and 134 design rights in Japan and 695 overseas.
We will continue to promote the acquisition of IP rights, focusing on priority technological fields. While continuing our efforts to reliably protect our proprietary technologies, brands, and designs, we are also actively committed to IP activities to acquire IP rights that are effective and useful for our businesses, thereby achieving stable business growth. We will continue to strengthen our IP with the aim of increasing our corporate value and achieving sustainable growth.
We have in place a dedicated IP management system, whereby we manage our IP rights in an integrated way throughout their life cycle. We also conduct periodical reviews and risk analyses on our IP rights to appropriately maintain and effectively utilize those rights. Furthermore, we regularly modify and improve the system to enable pertinent personnel to manage, maintain, and monitor IP rights properly and efficiently. By doing so, we have established an environment where the status of IP rights in each business can be grasped in real time and the latest IP information can be fed back promptly to each Business Division. Through this initiative, we are working to enhance our IP management mechanisms so that IP information can be utilized in a timely manner in the IP and business strategies of each Business Division.
The CITIZEN Group has in place an incentive system to show its full appreciation of employees’ creativity and ingenuity and actively support their contribution to IP creation. We provide employees with appropriate incentives according to their level of contribution to applications for patents and registered designs, and consequently our businesses, to increase their motivation for IP activities. Once patent applications for our employees’ inventions are made public, we evaluate those inventions according to our original criteria and provide incentives to those coming up with particularly outstanding inventions. We also commend employees involved in design rights that are expected to have a positive impact on our businesses in the future, as a measure to actively offer incentives in the area of design as well. Through these initiatives, we support every employee’s endeavor to take on challenges and demonstrate their own ingenuity so that they can achieve better results.
We share information about commended inventions and design rights widely throughout the Group to encourage other employees to take on new challenges and exert their own creativity and ingenuity. We will remain committed to our IP activities with a view to the growth and development of the entire organization.
The CITIZEN Group regularly conducts internal awareness-raising and training activities focusing on IP to increase the IP literacy of all employees. We use such opportunities as new employee training, specialized training, and e-learning programs to raise awareness of the importance of IP among employees and its proper handling. For example, we offer an annual Group IP course intended for all employees, thereby creating an environment where every employee can acquire basic IP knowledge. In addition, we provide the staff of each Business Division with IP education tailored to the specific nature of its business to help them acquire the kind of knowledge that is directly applicable to their work. Moreover, to help streamline IP duties at each Business Division, we are also committed to thoroughly sharing information, such as questions, procedures, and IP news, as well as operating an IP website as an in-house tool for IP information sharing. With this system, we provide all employees with continuous support so that they can engage in high-quality IP activities.