Intellectual capital is emphasized by the JGC Group as a management resource for sustained growth, and the Group is actively engaged in creating, protecting, and applying intellectual property (IP) and intangible assets, and in associated risk management.
A broad range of these IP and intangible assets built up through internal "creation of knowledge" and collaborative "fusion of knowledge" are used in a variety of ways while ensuring compliance with intellectual property laws and regulations, respecting the rights of third parties, and minimizing our own risks.
To realize the three transformations in our Group's long-term management vision, the "2040 Vision" especially the "Business Area Transformation" and "Business Model Transformation"—we will continue to strategically invest in and utilize IP and intangible assets that contribute to future value and enhanced competitiveness.

1. 1.Creation of IP and Intangible Assets
   We will create IP and intangible assets that meet the needs of society and our customers, by undertaking the "creation of knowledge" by multi-faceted conceptualization of various ideas within the JGC group, and the "fusion of knowledge" by finding excellent technology outside of the group and co-creating together with partners.
2. 2.Protection of IP and Intangible Assets
   We will protect the IP and intangible assets contributing to sustained growth of our business, and value enhancement by appropriate management of trade secrets and a mixture of IP or intangible assets that includes patents, trademarks, designs, know-how, systems, software, technical brands, and so forth.
3. 3.Promotion of Business by the Application of IP and Intangible Assets
   We will make efforts to achieve a competitive advantage for our general engineering business and functional materials manufacturing business, and strengthen our technical licensing business, by broadly applying our accumulated IP and intangible assets. We will further link our business strategy and technology development strategy with our IP strategy, and promote establishment of new business models and commercialization of technology through collaboration with others.
4. 4.Risk Management Regarding IP and Intangible Assets
   We will respect the IP rights of others, and make efforts to take appropriate actions. Furthermore, we will comply with IP laws and regulations, and will make efforts to improve our literacy of IP and intangible assets, to minimize IP risks.

Examples of forms of usage

Accumulating and utilizing IP and intangible assets

For example, such intellectual property and other intangible assets are contributing to the achievement of the three key strategic themes set forth in our Medium-Term Business Plan.

• Technologies and Solutions

• Example of Usage of IP and Intangible Assets

Proportion of Patent Ownership by Business Segment

At the JGC group, in order to realize stronger competitivity and sustained growth of our businesses, we continue to acquire and maintain IP rights, focusing on catalysts in functional materials manufacturing businesses, fine chemical fields, and so forth, in addition to oil and gas, LNG, chemicals, and life science fields, in the general engineering business, which is an important segment. Moreover, we are reviewing the IP rights that will be needed in line with the business development and technical trends, securing businesses for own implementation, and we are also working on building an IP portfolio that will benefit co-creation activities with third parties along with technology licensing.

Proportion of Patent Ownership and Patent Applications by Region

We are expanding our business focusing on general engineering and functional materials manufacturing business, not only in Japan, but in countries and regions around the globe. The number of our patent applications overseas, especially in Asia, which is the business region that we specialize in, is increasing. We are conducting systematic acquisition of rights in line with our global business expansion.

Proportion of patent ownership by region

Our Group positions IP and intangible assets as strategic assets that connect technology and society. Especially in our core business, the Total Engineering business, we accumulate and manage expertise and know-how as IP and intangible assets, and flexibly share and utilize them within the Group, making IP strategy a key pillar.
The four EPC-related companies conduct business throughout the entire plant lifecycle (planning, design, procurement, construction, operation, maintenance), identifying expertise and know-how gained at each stage and from client feedback, standardizing and formalizing our Group's technologies, and utilizing them cyclically. This IP ecosystem contributes to further strengthening our Group's competitive advantage and expanding our core business. Going forward, we will promote the construction of the IP ecosystem, not only in existing businesses but also in new businesses such as chemical recycling and clean energy fields. In the Functional Materials Manufacturing Business, which develops and manufactures products such as catalysts, fine chemicals, and fine ceramics, each company is striving to create new value through in-house development and partnerships.

Examples of IP utilization in technical services

• PLANT PLUS ^TM

Consulting services proposing diagnosis and improvement of existing plants

Details are here[PDF:4.45MB]

• INTEGNANCE^®

Maintenance services that detect failure signs using sensor data and operation history, and propose optimal maintenance schedules

Details are here

Our group is promoting collaboration with new business partners to expand our business region and realize diversity of our business model. By fusing IP and intangible assets that are the strengths of our group and our partners, we will focus our efforts on system integration and digitalization of existing fields and new fields, and in creation of new businesses.

Also, mid-to-long-term efforts, such as confirmation of performance and operation through verification testing is indispensable for technology development regarding sustainability, such as chemical recycling, clean energy, and so forth. In such mid-to-long-term efforts involving social issues, we are actively taking part in government research and development projects and so forth, and are working toward social implementation of large-scale technology development themes, such as proposing solutions through cooperation of government, business, and academia.

• Accelerating the Promotion of Gasification Chemical Recycling of Plastic Waste -Conclusion of an EUP Relicensing Contract-

The creation and growth of new businesses that will serve as future growth engines is promoted by formulating IP strategies linked to our business and development strategies using a backcasting approach from the desired future state. The Group then repeats PDCA cycles for IP that integrate all three strategies.
Regarding important commercialization themes, the IP Department participates in meetings to deliberate commercialization, and ensures that development and business strategies are linked by confirming with development and commercialization departments. During these deliberations, the IP Department conducts IP landscape analysis and uses the analysis results in discussing the materials.

In important technology development themes, we provide multiple stages from research and development through commercialization, perform reviews regarding IP in gate examinations at stage transitions. And, we also perform monitoring by PDCA sheet, to make sure that planning and implementation of the IP strategy is being carried out in a sure manner, in conjunction with business strategy and technology development strategy.

Forms of use of IP and intangible assets in our group can be roughly classified into five categories. Re-examination of the management system of technology information, such as protection of IP and intangible assets appropriate for each usage, know-how, and so forth, is performed, to improve cooperate value by maintaining superiority in business and creating new businesses.

One of various types of risk minimization activities regarding businesses and projects is handling risks related to IP and intangible assets. In the JGC group, the business department, the technology development department, the legal department, and the IP department cooperate to identify and reduce IP risks.