1. Basic Policy

JTEKT provides solutions to address social issues and market needs, and is continuously creating unique technologies and products necessary for these solutions. To support these efforts, our intellectual property (IP) activities are focused on both traditional defensive measures and new IP activities. The JTEKT Group works together to promote IP activities, leveraging the synergy of the group with the aim of leading the field and developing unique technologies under the slogan "No.1 & Only One".

2. Promotion System

Every year, JTEKT holds a meeting of its Intellectual Property Committee and a Group Intellectual Property Management Conference to ensure alignment between management policies and the overall group IP policies.

We hold a Patent Strategy Review Meeting twice a year that allows each business unit to formulate an optimal IP strategy tailored to that business and to implement IP activities that contribute to the business.

We hold a meeting of the Trademark Committee once a year to formulate product trademark strategies.

We hold meetings of the Counterfeit Measures Working Group twice a year to formulate and implement global activity plans.

We also hold Development Meetings for each development theme in which we check for patent clearance and ensure that there are no omissions in patent applications for development results.

3. Specific Initiatives

1) Utilization of Intellectual Property Information - IP Landscape -

JTEKT provides timely IP information to its internal stakeholders according to their needs. For example, at the product planning phase, we utilize IP information to understand the latest technology trends and industry movements. Additionally, during business strategy formulation, we visualize patents owned by us, our competitors, and our partners. We then analyze and utilize this information to identify our strengths, areas of potential growth, areas of competition, and areas in which co-creation may be possible.

Example:

In the roadmap formulation stage of each business, we incorporate both patent information and sales information to understand customer needs and competitor trends. We follow a cycle of hypothesis building and verification to formulate the optimum roadmap.

During the development stage, we determine patent application policies based on the roadmap, identify inventions from development results, and patent them. This ensures the early and accurate protection of development results and secures technological competitiveness.

2) Creation and Protection of Core Competencies
- Building a Patent Portfolio and Keeping Know-How Confidential -

JTEKT is increasing its research and development investment in new technology areas that have the potential to help resolve social issues and create new businesses. Through such investment, we are thoroughly protecting our core competencies (technologies that form the core of our competitiveness) and building a patent portfolio. Additionally, as the value of software and big data increases, we are protecting our core competencies through a combination of patent utilization and measures to maintain the confidentiality of our know-how.

3) Strategic Utilization of Intellectual Assets - Open & Closed Strategies -

JTEKT is formulating and promoting open & closed strategies to maximize our business by utilizing intellectual assets such as patents and know-how. In the open domain, we encourage the use of our patents by other companies to expand the market size. In the closed domain, we restrict the use of our patents by other companies to maintain our strengths and secure market share. By effectively combining these strategies, we can gain business advantages.

4) Comprehensive Protection of Development Results

JTEKT selects key development themes (approximately 30 themes/year) for each business, sets target numbers for patent applications, and systematically advances invention discovery activities. For example, in the case of steer-by-wire systems, we have continued patent application activities while maintaining a lead over other companies in development, resulting in a stronger patent portfolio than our competitors.

A SBW system can increase steering design flexibility, reduce vehicle weight, and expand the available interior space.

* These results were analyzed and evaluated from the perspective of the number of patents held and their remaining duration.

5) Respect for Other Companies' Intellectual Property Rights (Infringement Prevention)

JTEKT considers issues related to other companies' patents and IP rights as quality issues and works to ensure that our products do not infringe on these rights. We have established the necessary IP activities at each stage of development, and products cannot pass through the development gate (QG: Quality Gate) without passing through the IP gate (P&A Gate: Patent & Agreement Gate).

• Necessary contracts are concluded and properly executed.
• Confirmation that there are no problematic IP rights of other companies (avoidance or acquisition of licenses for other companies' patents is completed).
• Development results are comprehensively protected by patents or other means.

We check these points to promptly identify and reliably resolve various issues related to IP.

6) Anti-Counterfeiting Activity

Damage caused by counterfeiting is spreading worldwide.

JTEKT leverages its trademark rights registered in approximately 200 countries worldwide to actively combat counterfeiting, fulfilling our corporate responsibility as a brand owner and contributing to the protection of our customers' safety and business.

Initiatives:

We are implementing various measures globally to address the distribution of counterfeit products. We are particularly focusing on activities in countries such as China, Southeast Asia, the Middle East, and Latin America, which are sources of counterfeit product proliferation.

Our efforts against counterfeit products are here