q Patent Portfolio w Emphasis on “Quality” in Patent Filings As of April 2004, Fujitsu had registered and holds approximately 32,000 patents worldwide.  Obtaining patents contributes to our ability to maintain competitive leadership in our businesses. We are working to elevate the quality of our patents by securing patents for technologies that others have no choice but to use. In order to acquire high-quality patents, it is essential that there be an objective evaluation of our own discoveries in relation to the patents and technologies of other companies. We are putting into place a structure that brings together inventors and the Intellectual Property Group for this purpose.  Obtaining High-Quality Patents A Global Patent Portfolio In keeping with the globalization of our business, we are building a broad international patent portfolio by securing patents in Europe and the US, as well as in other countries in Asia. In order to play a leading role in the standardization of technologies, we are actively participating in various standardization organizations. We also take into consideration future standardization implications when seeking to obtain patents. Involvement in Standardization e Respecting Other Companies’ Patents Infringing on the patent rights of other companies would result not only in problems for us but also cause tremendous difficulties for our customers. At every stage – from R&D through commercialization – we take exhaustive precautions to prevent any potential infringement of the patent rights of other companies. At the same time, we take appropriate measures to deal with any infringement of Fujitsu’s patent rights by third parties.  Along with seeking to cultivate a corporate brand in which customers can place their trust, we are working to maintain and increase the value of the  brand. We have established rules for the use of the Fujitsu brand name by both domestic and overseas affiliates in order to maintain consistency. In addition, we have registered and are working to protect this trademark in over 150 countries to ensure that no trademark-related problems impede our international business. As a basic principle, we seek to secure copyright protection for the software we develop. Protection of these copyrights is not only essential from the perspective of maintaining competitive advantage but also is important in terms of improving quality and speeding delivery, thus making it possible to provide customers with better products and services. With respect to the use of other companies’ software, we have established an internal monitoring unit and taken other measures to assure that we do not infringe on other companies’ copyrights. Today, thanks to the high-quality patents that we have secured and the rights that they provide, we are able to deal with other companies from a position of strength. A notable example is the very significant licensing revenue contributed by the patents we hold for our pioneering developments in plasma display panel and SAW (Surface Acoustic Wave) filter technologies. 3. Leveraging Intellectual Property (5) Copyrights (4) Trademarks 21 Our Global Patent Portfolio