The trajectory of the integration of the IP Department
In the world of chemical manufacturing, a company is only as good as the products it produces. Whether a manufacturer is “upstream” – producing raw materials like plastics and solvents – or a “downstream” producer of functional tools, it relies on its intellectual property (IP) portfolio of products and processes for continued business success. As a result, the IP department is at the heart of any sizable chemical manufacturer. All the major players have their own teams of IP experts protecting and exploiting their innovations to get ahead of their rivals. But what happens when IP departments from different companies need to work together?
That was the situation at two Japanese chemical manufacturing companies, Showa Denko Co., Ltd. and Showa Denko Materials Co., Ltd. (formerly Hitachi Chemical Co., Ltd.). On January 1, 2023, they merged to form a new company, Resonac. The company’s name was created by combining the words “resonate” and “chemistry” and was inspired by its ambition to become a world-class chemical manufacturer. This case study explores how the IP departments of both companies joined forces during the merger to create a strong, cohesive IP strategy for Resonac. In this article, we will introduce how the intellectual property departments of both companies resonated during the integration and promoted intellectual property activities to truly contribute to the business.
The trajectory of the integration of the Intellectual Property Department - looking at the same scenery
The merger got off to a fortunate start: the IP managers of both companies knew each other, and began productively exchanging opinions on the integration back in 2019, when the merger was announced. By 2020, official integration activities were underway. Five areas were identified where both companies shared similar organizational structures – such as strategy, planning, information utilization, external relations and system management – and integrated working groups were created for all five areas, each featuring members from the two companies. This supported a positive and productive working environment, with all staff able to understand and respect each other’s strengths. By 2022, the companies began virtually integrating their IP operation.
Combining offensive and defensive IP strategies
Producing a single IP strategy for Resonac was an interesting exercise, as its two constituent companies had taken different approaches to protecting their IP. Showa Denko was an upstream chemical manufacturer that produced raw materials and had an impressive product range. Consequently, it had decided on a defensive patent strategy, securing strong rights for each product with the aim of keeping them safe from rivals who might otherwise try and patent the same products.
The former Showa Denko Materials, conversely, was a downstream chemical manufacturer that produced functional products, with a focus on semiconductor-related products. It pursued an offensive patent strategy, building a patent portfolio aimed at accumulating and sometimes using lots of rights to keep competitors out of the market.
Since the merger, Resonac has also dramatically expanded its international IP footprint. Between 2022 and 2025, the company filed almost 1,600 PCT applications. This high level of filing activity reflects not only the scale of Resonac’s R&D operations, but also the company’s strong commitment to protecting its innovations globally and supporting business growth across multiple markets.
Intellectual property landscape mapping
These alternative approaches led to the idea that, by combining upstream defensive strategies and downstream offensive strategies, a powerful and multi-pronged IP strategy would be possible for Resonac. To see if this was possible, however, it was necessary for staff at both companies to better understand their shared IP landscape. To study an IP landscape is to analyze the IP – usually patents – in a certain subject or geographic region. This is then mapped out to provide a visual overview of the current state of IP and emerging trends.
IP landscaping is typically carried out by businesses looking to better understand the strengths and weaknesses of their own IP portfolio versus those of their competitors. For Resonac, however, it was used to see how the IP of Showa Denko and Showa Denko Materials could complement each another. The map below shows how many similar technologies existed in the related technology fields of both companies, with Showa Denko patents marked in red and Showa Denko Materials patents in blue.
When the two companies analyzed each other’s IP landscapes to identify complementary areas for joint business development, they found that, while there was a large overlap in the types of technologies they were patenting, there was little overlap in individual products. This meant that integration could enable the co-creation of technologies ranging from materials to applications as well as the development of a wide variety of upstream and downstream products. The IP landscaping exercise proved extremely useful when making management decisions regarding the merger and in providing explanations to get investors to support the integration.
Enhancing Back-End Processes for Semiconductor Manufacturing
Resonac’s semiconductor manufacturing is one area that looks set to benefit from the combined IP portfolio. With the miniaturization of semiconductor circuits having reached its limit, so-called back-end processes – performed once the circuit has been created – are expected to hold the key to competitiveness. Resonac is now using its integrated material technology to develop a variety of back-end material products, with the hope that the applications of this technology could be expanded dramatically.
An IP strategy rooted in creativity
As of 2025, the merged IP department had 86 members. Of these, 35 people – approximately 41 percent – are women. Team members come from a variety of personal and professional backgrounds, and Resonac aims to support the various abilities of each employee. There are also plenty of opportunities for staff to communicate freely with each other, such as career roundtables. Encouraging staff to think freely and confidently not only improves their experience at Resonac, but promotes innovative approaches to IP management and strategy.
This emphasis on creativity and open-mindedness extends beyond the IP department, with ideation workshops and a new education program available to staff in various departments. Some of the workshops have resulted in IP applications and even commercialization. One of Resonac’s more unusual IP awareness activities for staff is its IP board game, which guides new employees through the tactics, challenges and successes of IP. As you advance through the panels, you can engage in intellectual property activities such as patent applications, sales, and purchases, and quickly understand the value and content of the patent rights your company has acquired while having fun with your friends.
Sparking Creativity with Ideation Workshops
The result of these innovative approaches is a robust IP strategy and a proactive IP department at Resonac. There is an emphasis on co-creation with stakeholders both inside and outside the company, and with internal departments not typically associated with IP, such as sales department and business units, and public relations. For example, a Development Department ideation activity known as ToBiWo – short for ‘Topic Bird’s-eye view Workshop’ – helps generate an idea, which became a development theme, and more than a dozen related patent applications were filed. It has become a track record of commercialization.
Recognition of Resonac’s IP Portfolio and Corporate Social Responsibilty
Elsewhere, collaboration with public relations has enabled the company to issue press releases about its IP to promote their technology brand externally. Resonac has recently been releasing news about the development of new technology related to the production of anisotropic bonded magnets – powerful magnets often used in motors. By issuing press releases at the same time as acquiring patent rights for these technologies, Resonac broadcasts to customers its technological strengths and the patent rights that support them. This, in turn, can establish contact with equipment manufacturers.
Internal recognition of IP is also promoted by “IP designers.” These are members of staff who, in addition to solving business and technical issues related to the company’s IP portfolio, raise awareness of new IP ideas within the company. This includes encouraging colleagues in other departments to think about how they might support the continued development of Resonac’s IP portfolio and use the company’s IP rights.
Resonac’s ultimate aim is not just that its IP strategy will contribute to the company’s success, but to “change society through the power of chemistry.” In line with this vision, the company engages in global sustainability initiatives such as WIPO GREEN, an online marketplace that promotes environmentally friendly innovation and supports sustainable technology transfer. By successfully combining two IP departments – and two IP strategies – the company is now better placed to achieve this goal.
