Journey
Contract Operations
Work Overview
Contract operations involve the preparation of contracts with various business partners for business support and development support. A “contract” is essentially a set of promises exchanged between companies and is an indispensable element at the starting point and subsequent milestones of any business relationship. Canon’s IP Contract Division handles contracts related to intellectual property, making contract drafts and negotiating contract terms for various agreements, including confidentiality agreements that define the handling of confidential information exchanged with other companies, development outsourcing contracts for entrusting development tasks to other companies, joint research agreements for conducting research with universities and research institutions, and software license agreements for allowing other companies to use our software. The IP Contract Division receives nearly 3,000 contract drafting requests annually from various business divisions and development departments within Canon. Contract professionals carefully review each request, prepare contracts with optimal conditions for each case, and execute them, supporting Canon in conducting its business activities more smoothly and safely.
Canon’s Contract Operations
Considering Contracts with Business in Mind at All Times
The primary responsibilities of contract professionals include drafting contracts and negotiating agreements with others. However, there are times when we consider risks from an intellectual property perspective and provide advice to business and development departments regarding the framework and approach to business, working from the same perspective. Rather than simply preparing contracts as requested, it is crucial for contract professionals to engage in discussions with the requesting department, considering not only the specifics of the contract but also the overall business approach.
Considering Contracts from a Comprehensive, Company-wide Perspective
Canon’s contract operations have various distinctive features. One of them is preparing contracts while overseeing the entire Canon business. Canon IP operates as a headquarters directly overseen by its president, independently from the business divisions. It considers not only the business of the requesting department but also the overall status of Canon’s business when contemplating contract conditions. For example, when reviewing a contract for a particular business department, it is necessary to consider whether the contract terms will impact the business being pursued by other departments and whether entering into the contract will pose risks to such activities, making it crucial to approach contracts from a company-wide perspective.
Considering Contracts in Anticipation of Future Risks
Furthermore, we make sure to propose optimal contract conditions by thoroughly considering future risks. For instance, when receiving confidential information from the other party in a contract, we not only focus on the conditions of confidentiality but also consider what the developer or the department accessing the information plans to do in the future. If there are other departments handling similar information, we also assess whether there is a risk of the other party suspecting unauthorized use of the confidential information.
While some companies may use standardized templates for contracts, Canon IP drafts individualized contract documents for each case. There are times when, even for commonly used and general conditions in typical contracts, we advise the requesting department not to accept such conditions easily if they are deemed to pose future risks. Aware that delays in contracts can of course immediately lead to the loss of business opportunities, we make great efforts to deal with the matter promptly with a sense of urgency.
Daily Operations
Intellectual property contract operations may be perceived as spending the entire day sitting at a desk, typing away at Word documents on a computer screen, but that is far from the truth. While there is a significant amount of time spent in Word drafting contracts, daily activities also involve meetings, negotiations, and reporting to business and development departments. In order to prepare persuasive contracts and conduct convincing negotiations, it is necessary to directly hear about the technology and products from the development department. This involves attending technical briefing sessions and engaging in the study of technology, fostering interactions with a diverse range of people.
The Fulfilling Aspects of Contract Operations
Contracts play a crucial role as the foundation for the development of products that will emerge in society several years down the road and serve as the starting point for business endeavors. Therefore, contract professionals engage in their work while interacting with technologies that are currently under development and will come to light in the next few years. Initial meeting with developers for a technical contract motivates us to be excited by and how the technology which will emerge in a few years and by the conceivable success of the business. Moreover, contract professionals who see a developer’s strong determination to make their project and business successful also feel a sense of passion and enthusiasm during the drafting of the contracts and negotiations, striving to respond to those sentiments. When a contract is successfully concluded and the client expresses their gratitude with a message such as "We managed to reach favorable terms early on thanks to the IP team!" we feel a sense of accomplishment and a desire to continue supporting business endeavors. Thus, the excitement of being able to explore future businesses and products, and collaborating with developers and business professionals to aim for successful ventures through contract negotiations, are fascinating aspects of contract operations and bring significant fulfillment.