Sony 2006 Annual Report Download - page 43

41
600
450
300
150
02004
431.0
83.4
1.1
433.3
68.5
0.2
514.5 502.0
418.1
108.7
5.0
531.8
2005
(Yen in billions)
R&D Expenses
2006
■ Electronics
■ Game
■ All Other
41
ClearVid CMOS Sensor
The following month, we announced collaboration with Toshiba
and NEC Electronics Corporation to develop system LSI manu-
facturing processes for 45 nanometer-generation products. This
cooperative effort is intended to overcome the challenges of
developing the sophisticated manufacturing technologies necessary
for design rules below 45 nanometers.
• Optical Disc Drive Joint Venture
NEC Corporation and Sony signed a contract in February 2006 to
establish an optical disc drive joint venture. This partnership will
draw on NEC’s LSI technologies and Sony’s optical pick-up
expertise as well as the design capabilities of both firms to create
a robust business.
R&D Achievements
A major breakthrough emerging from our laboratories in the period
under review was the ClearVid CMOS Sensor. This sensor has
its photo pixels arranged at 45-degree angles, simultaneously
boosting digital camera imaging resolution and sensitivity, which
up until now had been difficult to achieve. In combination with our
new Enhanced Imaging Processor, an image signal engine, the
new technology doubles the effective pixel count for still images
from 2.0 to 4.0 megapixels.
At the International Solid-State Circuits Conference (ISSCC) in
February 2006, we announced to great acclaim the development
of CMOS sensors that can output 6.4 megapixels of image data
up to 60 times per second, compared to 20–60 times per second,
the speed supported by existing consumer CCDs.
Intellectual Property
Since its establishment, Sony has sought to ensure the proper
protection of its intellectual property—R&D accomplishments that
are essential to sustaining its growth strategies—and to employ
such intellectual property to strengthen the competitive advantage
of our businesses. Sony’s intellectual property strategy is forged in
close alliance with its R&D and business strategies. All three
strategies are implemented in an integrated manner.
In the digital network age, many basic technologies have
become standardized. We license such technologies to other
companies through patent pools, providing broad accessibility
within the industry. We are also stepping up efforts to protect
intellectual property related to our differentiating technologies—
a source of added value.
To make effective use of patented assets, we are pursuing
cross-licensing agreements and alliances with other companies. In
addition to patents, we are utilizing copyrights, registering designs
and trademarks and otherwise securing intellectual property
protection to protect our proprietary differentiating technologies.
R&D Expenses for the Fiscal Year under Review
R&D expenses for the period increased 5.9% from the prior fiscal
year, to ¥531.8 billion. This is equivalent to 7.9% of net sales, exclud-
ing the Financial Services business, which was up from 7.6% a year
earlier. R&D expenses in the Electronics business declined 3.5%, to
¥418.1 billion, while the Game business figure rose 58.7%, to ¥108.7
billion. Approximately 64% of R&D expenses in the Electronics
business was directed toward prototype development and 36%
to semiconductors, communications, displays and next-generation
optical disc technologies.