II. Risks in Fujitsu Group Business Activities

11. Intellectual Property

[ Overview and impact of risks ]
The Fujitsu Group has accumulated technologies and expertise that help differentiate its products from those of other companies. However, we may not be able to adequately protect some of the Group’s proprietary technologies and expertise as intellectual property due to legal restrictions in certain regions. Due to this, we may not be able to effectively prevent other companies from using the Group’s intellectual property to manufacture and sell similar products. Moreover, the creation of comparable or superior technologies by other companies could erode the value of the Group’s intellectual property. In addition, if the Group’s products, services, or technologies are found to have infringed on another company’s intellectual property, or the use of third-party software, including open source software, is found to not be in accordance with the terms of the license, and the company incurs usage fees or design change costs, the Group’s profit or loss may be affected.

In regard to compensation and/or rewards for innovation created in the workplace for employees’ inventions, there is a possibility that employees may initiate lawsuits related to compensation and/or rewards for innovation created in the workplace.

[ Measures against the risks ]
The Fujitsu Group has established internal regulations and conducts thorough investigations of other companies’ intellectual property prior to shipping products to prevent infringement of other companies’ intellectual property. We also investigate and take corrective action against the unauthorized usage of our Group’s intellectual property by other companies.

In regard to employee inventions, we are proactively providing compensation and rewards for innovation in accordance with laws and regulations.