Abstract of Retail Services and Wholesale Services

1. Abstract of Retail Services and Wholesale Services

2. BCD Department Store BCD Department Store Commodity (Designated goods) Commodity 1. Trademark for Retail Services and Wholesale Services Trademark for Goods Fruit: BCD Department store Books: BCD Department store Clothes: BCD Department store Trademark for Services WholesaleServices : BCD Department store Expensive Inexpensive

3. BCD Department Store WAREHOUSE BCD BCD BCD BCD BCD 2. Actual Situation “Services” at shops Stocking of various kinds of commodities Displaying various kinds of commodities Explaining various kinds of commodities to customers Trademarks used at shops - Shop signs at the entrance or on an outside wall, etc. - Employee uniforms - Shopping carts - Shopping bags (Paper bags, plastic bags)

4. BCD Department Store 3. Before the Law Was Revised (Until March 31, 2007) “Services” are considered as “accompanying” (or “dependent”) The cost of “Services” are included in the cost of Commodities Expensive Trademark rights must be obtained for each commodity But Using the trademark is not considered the same as using for the commodity Loss of trademark ≠ BCD The trademark right for a commodity may be invalidated by a “Non-Use Trial”

5. 4. After the Law is Revised (From April 1,2007) The “services” are considered as “independent” services. Trademark rights can be obtained for retail services or wholesale services Using the trademark is considered the same as using for the “service” The trademark right can not be invalidated by “Non-Use Trial”

6. BCD Department Store BCD Department store BCD Department Store 5. The Damage of Not Having a Trademark for “Services” If you are using the “BCD” registered trademark for retail or wholesale goods, and are not the proprietor of that trademark… We are very sorry! We don’t realize that we were unlawfully using a registered trademark. …you are infringing on the “BCD” trademark, and any use thereof is strictly prohibited by Trademark Law! We have been using the “BCD” trademark for a long time… BCD …you are not infringing because you are the proprietor of the trademark right! And if you are the proprietor of the registered trademark “BCD” for retail or wholesale services … BCD

7. 6. Interim Measures (April 1, 2007 to June 30, 2007) We are not using a trademark! We are using the trademark! We are using the trademark! Please Discuss!! Treated as “filed on the same day” The general terms of registration are examined A Consultation order is issued by the Commisioner of Japanese Patent Office Assertation of usage Evidence of usage Refused Both are registered as proprietors

8. BCD Department Store BCD Department Store BCD Department Store BCD Department Store BCD Department Store BCD Department Store BCD Department Store 7. Continuous Usage Right Based on Prior Usage March 31, 2007

9. BCD Department Store 8. Retail Services or Integrated retail Services The conditions of registration of integrated retail services: Percentage of xxx for integrated retail services: ＯＫ Apparel (Clothing, etc.・・・) 10％～70％of sales FoodandBeverages 10％～70％of sales General Merchandise 10％～70％of sales BCD Department Store Retail services for apparel Apparel (Clothing, etc.･･･） BCD Department Store Retail services for food and beverages ＮＯ Food and Beverage BCD Department Store Retail services for general merchandise General Merchandise