ASM Automation Group Bhd’s wholly owned subsidiary Arrow Systems Sdn Bhd (ASSB) has entered into an agreement with Japan-listed Tokyo Automatic Machinery Works Ltd (TAM) to jointly file a patent application in Japan for a new automated bag-folding technology.
ASM said ASSB signed the Joint Patent Application Agreement with TAM on Sept 9 for an invention known as the “Continuous Bag Folding Apparatus”, which is designed to fold connected bags into a zigzag configuration using a pusher conveyor.
The agreement follows the business alliance established between ASSB and TAM in November 2025 to jointly promote, develop, manufacture and sell new products and technologies.
Under the latest agreement, TAM and ASSB will each own 50% of the right to obtain the patent and any patent rights subsequently granted for the invention.
Each party will be entitled to use the invention and exercise the resulting patent rights without paying royalties to the other.
Any decision to seek patent protection outside Japan will be determined through mutual consultation.
TAM, which is listed on the Tokyo Stock Exchange and specialises in the development, design, production and sale of automation packaging machinery, will handle the procedures required to file the patent application, obtain the patent and maintain the resulting intellectual property rights.
The Japanese company will also bear all costs associated with filing and maintaining the patent in Japan, meaning ASSB will not be required to pay any consideration under the agreement.
ASM said the Continuous Bag Folding Apparatus was developed through the combined technical expertise and joint development efforts of TAM and ASSB.
The patent agreement formalises their respective ownership interests and establishes the framework for protecting the intellectual property in Japan.
“The Agreement is intended to protect the intellectual property arising from the Parties’ joint development activities and support the potential commercialisation of the Invention,” ASM said.
The commercial exploitation of the technology will continue to be governed by the existing Business Alliance Agreement signed between the two companies.
That alliance, announced on Nov 25, 2025, covers collaboration in developing, manufacturing, promoting and selling new products and technologies.
The patent agreement will remain in effect until it is finally determined that no patent will be granted for the invention, including following a final rejection, or until any patent eventually granted expires or otherwise ceases to exist.
The agreement is governed by Japanese law, with disputes subject to the jurisdiction of the relevant court in Tokyo.
