INTRODUCTION Contributed by: Hogan Lovells Cadwalader
defines legal exposure is not holding. Courts and legislatures are increasingly focusing on commercial impact rather than technical geography. The Rising Value of IP Disputes If there is one area where the importance of IP can be measured most clearly, it is damages. For many years, patent litigation in Japan involved comparatively modest sums. That perception changed dramatically in 2025 when the Intellectual Property High Court awarded approximately JPY21.8 billion in a pharmaceutical dispute. The decision shattered a ceiling that had stood for more than two decades and immediately attracted international attention. The case highlighted broader strengths of the Japa- nese system. Permanent injunctions remain relatively accessible, litigation costs are comparatively moder- ate, and proceedings are often faster than in many competing jurisdictions. Together, these factors have strengthened Japan’s position as an increasingly attractive venue for major patent disputes. China’s experience tells a similar story. Punitive damages have become a more prominent feature of enforcement, with courts willing to impose substan- tial awards in cases involving deliberate infringement. This trend signals a broader willingness to treat IP rights as economically significant assets deserving meaningful protection. South Korea has moved in the same direction. New rules permit punitive damages of up to five times the amount of loss for intentional copyright infringement, while criminal penalties have also been strengthened. Germany traditionally places greater emphasis on injunctions than damages, but the Unified Patent Court has amplified the power of that approach. The possibility of obtaining relief across multiple countries through a single action can create enormous com- mercial pressure, particularly in technology-driven industries. Standard Essential Patents Few areas of IP law illustrate global divergence more clearly than standard essential patents (SEPs).
SEPs are patents that protect technologies required to comply with technical standards, such as those used in telecommunications. Because entire industries depend on access to these technologies, disputes often centre on whether patent owners are offering licences on fair, reasonable and non-discriminatory (FRAND) terms. Japan offers a particularly interesting example of changing judicial attitudes. For more than a decade, successful SEP injunction claims were almost non- existent. That changed with the Tokyo District Court’s decision in Pantech v Google . What made the case remarkable was not simply the outcome but the rea- soning behind it. The court placed significant weight on the defendant’s refusal to engage with judicial settlement efforts. In other words, conduct during the dispute mattered as much as the underlying licensing negotiations them- selves. This emphasis has since been reinforced through Japan’s SEP litigation and mediation guidelines intro- duced in 2026. The new framework seeks to encour- age global settlements under court supervision, with consequences for parties that refuse to participate constructively. For multinational businesses, this creates a complex landscape. Different jurisdictions may apply distinct interpretations of FRAND obligations, creating oppor- tunities for parallel litigation and strategic forum selec- tion. Success increasingly depends on co-ordinating legal strategy across multiple countries rather than treating disputes as isolated national matters. Conclusion Despite their differences, the jurisdictions in this guide are responding to many of the same challenges: artifi- cial intelligence, digital commerce, the growing value of intangible assets, and increasing international inte- gration. Some countries have pursued rapid legislative reform, while others have relied on judicial develop- ments or regional frameworks. Taken together, they reveal an IP landscape that is becoming more inter- connected, more valuable, and increasingly central to economic growth and innovation.
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