Fusion Systems Corporation in Japan

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Executive Summary Fusion Systems Corporation is a world leader of industrial UV curing and a worldwide provider of UV systems, equipment and service. Fusion Systems had been in business since 1975 and it had a patent in place for its technology for a special high-powered microwave UV lamp. This innovation gave Fusion Systems a niche of 80%-90% market share in the Japanese market. In 1981 Mitsubishi Electric opposed the Fusion Systems patent application for a high-powered microwave lamp, and this lead to one of the most public series of intellectual property disputes between U.S. and Japanese firms in the 1980s. These disputes stemmed around the ownership of patents protecting technologies. The Japanese patent law is based on the first-to-file principle and is mainly given force by the Patent Act of Japan. The United States (U.S.) at the time used the first-to-invent patent system which states that when an inventor conceives of an invention and diligently reduces the invention to practice, the inventor's date of invention will be the date of conception and thus be provided the patent (Junghans & Levy, 2006). The fundamental differences in there two types of patent systems started a long and unsuccessful process of negotiations, technical meeting and independent analysis to determine which company invented the technology first. This lead to the Trade-Related aspects of Intellectual Property rights (TRIPS) component of the Uruguay Round of General Agreement of Tariffs and Trade (GATT). Although this was not the final patent harmonization agreement, this GATT-TRIPS framework made considerable headway in reducing bilateral tension over intellectual property between the two countries (Girouard, 1996) 1.0 Introduction Fusion Systems Corporation, a U.S. firm manufacturing high-energy lamps, contends that Mitsubishi Electric Company attempted to file

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