An indemnity clause can be a powerful tool to control costs and manage risk when licensing technology. An indemnity clause, at its most powerful, can completely shield one party from liability, forcing the other party to cover all potential risk stemming from the agreement. However, more commonly, it will be used to cover specific areas of risk such as potential damage caused by use of the licensed technology or claims by 3rd parties for IP infringement.
When establishing a company in Japan it is necessary for the founders to make an initial investment of money into the company’s account. This money will ideally be used as capital for the inevitable costs associated with setting up a business, such as renting office space, purchasing supplies and paying salaries. While there is no legally defined minimum amount of initial investment, applications for companies without proper financing will be looked upon poorly.
The Patent Act requires that an invention be novel, inventive and “highly advanced” in order to receive a patent. While “highly advanced” may sound like a very high bar for inventions to meet, generally it is considered as less important than the novelty and inventiveness requirements.
Situations can arise where the negligence of one party is compounded by the negligence of the other party. Courts will take this factor into consideration when determining the amount of damages to be awarded and who is responsible for paying. The damages for negligence might be split between the two responsible parties or, in some cases, both parties might be liable for the full amount of damages.