The Teijin Group recognizes increasing the value of its intellectual property as a key strategic objective. Teijin Intellectual Property Center Limited, an independent entity, spearheads implementation of the Group's intellectual Property strategy, which ranks as a crucial priority alongside its business and R&D strategies.

In addition to formulating our Group intellectual property strategy, the Teijin Intellectual Property Center supports Group R&D by identifying innovations that offer market relevance, technological value, progress or originality and are thus eligible for copyright protection. The center maintains close contact with business groups to promote the protection of intellectual property through the acquisition of patents, trademarks and brand names, while at the same time it seeks to secure ownership of strategically valuable new intellectual property.

To maintain a leading global position in our core businesses, we have designated a number of strategic areas in which we are developing our capabilities. In R&D, we are stepping up efforts to expand our patent portfolio by gaining patent protection for new products, processes and applications, and to analyze patent information. In the information and electronics field, for example, we are seeking patents not only to develop new applications and next-generation materials that we expect will spur demand, but also to take advantage of growth in the markets for films and plastics in the PRC, ROK and other Asian countries. We are also increasing our overseas patent applications for high-performance fibers and other products for automotive and aircraft applications outside the United States and Europe.

We are also applying for patents in such strategically important fields as health care and environmental products, evidenced by the fact that the number of domestic patent applications filed in the health care field rose 2.5 times between fiscal 2004 and fiscal 2006.