Download - Intellectual Property For Innovator
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IP Regime for Designer/Innovator in Knowledge Economy
Navneet Bhushan
Crafitti Consulting (www.crafitti.com)
New Delhi, March 13, 2010
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March 21, 2010 2© Crafitti Consulting Private Ltd.
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March 21, 2010 3© Crafitti Consulting Private Ltd.
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The Other Side - Non-Sensible
March 21, 2010 © Crafitti Consulting Private Ltd.
4
There are Many Patents Granted by Patent Offices that can only be called absurd
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March 21, 2010 5© Crafitti Consulting Private Ltd.
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March 21, 2010 6© Crafitti Consulting Private Ltd.
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March 21, 2010 7© Crafitti Consulting Private Ltd.
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March 21, 2010 8© Crafitti Consulting Private Ltd.
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March 21, 2010 9© Crafitti Consulting Private Ltd.
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Topics in the Theory of Design
March 21, 2010 10© Crafitti Consulting Private Ltd.
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March 21, 2010 11© Crafitti Consulting Private Ltd.
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Black Swan – The impact of the highly improbable
• “I cannot accept a pretense of science. I much prefer a sophisticated craft, focused on tricks, to a failed science looking for certainties” Nassim Nicholas Taleb
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Competitive Advantage- Over Ages
Time
Ex
tent of
Connec
tednes
s
How much of
Agricultural
land and
Natural
Resources
How much
can be
produced
How much
and Quickly
can be
Informed
How much
Actionable
Knowledge
How Fast
Innovate
How Fast
Co-Create
In the Connected Age –Co-Creators will thrive
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IDEAS…. The new world of Ideas
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Practice of Open Innovation (The P&G Case)
Source: Larry Huston & Nabil Sakkab, Connect And Develop – Inside Procter & Gamble’s New Model for Innovation, Harvard Business Review, March 2006
Connect and Develop
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P&G Connect and Develop
The Complete Picture
What to Search
How & Where to Search
Evaluate Ideas
Go To Market
$$
Source: Larry Huston & Nabil Sakkab, Connect And Develop –Inside Procter & Gamble’s New Model for Innovation, Harvard
Business Review, March 2006
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Open Innovation Processes • Uncertain
• Wasteful/Inefficient/Non-
flowing
• Unpredictable/Stochastic
• Is it possible to craft
an open innovation
process to be LEAN?
• Is it possible to craft
an open innovation
process to be
INNOVATIVE?
TRIZ Embedded
Lean Open
Innovation
Network
TRIZ
Lean
Six
Thinking
HatsAHP
DSM
Innovation
CraftingOpen
Innovation
Idea ProductivityIdea Hit Ratio
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March 21, 2010 18© Crafitti Consulting Private Ltd.
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March 21, 2010 19© Crafitti Consulting Private Ltd.
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March 21, 2010 20© Crafitti Consulting Private Ltd.
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Failures/Mistakes/Errors
Burning your hand is a small price to pay for a good idea.
PLEASE LET YOUR EMPLOYEES FAIL!
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© CRAFI
CONCEPTUAL SOLUTION: GLOBAL ENTERPRISE AS A SOCIAL
SYSTEM
The Tipping Point
that refers to the moment when something unusual becomes common. The book seeks to explain "social epidemics",
or sudden and often chaotic changes from one state to another. (Wikipedia)
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© CRAFITTI CONSULTING
Three types of people create Idea Tipping Points
Connectors are those with wide social circles.
Mavens are knowledgeable people.
Salesmen are charismatic people with powerful
negotiation skills. They exert "soft" influence rather
than forceful power.
The PROCESS of TIPPING POINTS
The Law of the Few: Find out Connectors, Mavens and Salesmen – a
few of these is what one idea needs to become an epidemic
Stickiness: Ideas or products found attractive or interesting by others
will grow exponentially for some time.
The Power of Context: Human behavior is strongly influenced by
external variables of context.
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TRIZ - Theory of
Inventive Problem Solving
HOW TO INVENT, UNDERSTAND and SOLVE PROBLEMS – How to Innovate
LIST – INVENTIVE THINKING
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TRIZ – Inventive Problem Solving by Altshuller
Teoriya Resheniya Izobreatatelskikh Zadatch• 1946 Patent Officer
in Russian Navy
• Discovered patterns in patents, published paper. Sent to Gulag
• 1954 released, analysed 2,500,000 patents
• Identified what makes a successful patent
• 1956-1985 TRIZ formulated
A Brief History of TRIZ
World’s best ideas
in this situation
(Access)
A situation like mine
(Abstraction)Access
World Knowledge
Base
Abstraction
My specific solutionMy specific situation
Specific
Me / my companyEvaluate
• Same Problems and Solutions appear again and again but in different industries
• There are a series of recognizable Technological Evolution paths for all industries
• Innovative solutions used theories outside their own area/industry
• The most powerful solutions uncover and eliminate contradictions
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5 Levels of Inventions
March 21, 2010 © Crafitti Consulting Private Ltd.26
• Pioneering Invention – based on newly discovered phenomenon
• Pushing existing technology to a higher level
• RevolutionaryLevel 5 (<0.3%)
• New System Developed
• Interdisciplinary solutions
• Replacing old technology with NewLevel 4 (< 4%)
• Radical change or elimination of one principal system component
• One Engineering Discipline
• Resolution of a physical contradictionLevel 3 (19%)
• Slight Modification of the system
• Knowledge from different areas within the industry
• Resolution of a technical contradictionLevel 2 (45%)
• A simple improvement
• Knowledge within the trade
• No system conflicts are resolvedLevel 1 (32%)
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Patent Benchmarking Competitor’s Patents to TRIZ Lines of System Evolution
Case Study: Technological Alternatives Study on EP0922744
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PASSION ….. Is the new Skill for the New World …
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Define Global Trends and Scenarios
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Red Ocean Versus Blue Ocean Startegy
In the red ocean, differentiation costs because firms compete with the same best-practice principle. Here, the strategic choices for firms are to pursue either differentiation or low cost. In the reconstructionist world, however, the strategic aim is to create new best-practice rules by breaking the existing value-cost trade-off and thereby creating blue ocean.
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s
activities with its strategic choice
of differentiation or low cost.
Align the whole system of a firm’s
activities in pursuit of
differentiation and low cost.
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Future Directed Patent Strategy Elements
Link business Strategy with IP Strategy through Balanced Score Cards
Are we playing in the Red Ocean or are we creating Blue Oceans? How can you create Blue Oceans and Protect these as well.
Define Global Trends and Scenarios
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SETTING UP AN IP CELLHIGH LEVEL PROCESS MAPS
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An IP Cell Vision
Document
Training
Needs
IP Asset Management System Needs
Gap Analysis Report
GA
P A
nal
ysis
Su
rvey
Des
ign
Tra
inin
g M
ater
ial
and
sc
hed
ule
Buy COTS? Build? Integrate Disparate
systems?
Hig
h L
evel
org
aniz
atio
nal
str
uct
ure
of
IP
Cel
l/ P
roce
sses
/Sys
tem
s/ S
trat
egy
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IDEATIONHIGH LEVEL PROCESS MAPS
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Business Strategy
Competitor’s Patent
Portfolio
Pate
nt
Des
ign
Aro
un
d P
roce
ss
Direction Setting (Technology
Fields, Patent Portfolios, Target Geographies)
IDEASR&D
Processes
Patent Watch
Patent Strategy
Competitor’s Patent/
Products
Idea
Gen
erat
ion
Pro
cess
es
Pate
nt
Lan
dsc
apes
/ W
hit
e Sp
ace
An
alys
is
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FROM IDEA TO PATENT HIGH LEVEL PROCESS MAPS
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Invention Disclosure
Idea
Patent/Trade Secret/
Publication?
Prior Art Search?
Mak
ing
Inve
nti
on
Pa
ten
tab
le/
Stro
nge
r
Claims Drafting
Application
Received
Patentability
Assessment
Valuation?/ FTO?
Filin
g St
rate
gy
App Drafting
Patentability
Assessment
Office
Actions
Patent
Grant
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CommercializationHIGH LEVEL PROCESS MAPS
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Active Infringement Study
Patent/ Product with Patent protection
Negotiation Strategy/
Agreements
Cross Licensing
Patent Sale
Exclusive Licensing
Licensing Opportuniti
es Study
Licensing
Valuation Study
Re-Assignm
ent
Legal Actions
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CREATING WEALTH ……..
• The Ongoing Wealth Revolution
• Explosion of Prosuming – The unpaid work all of us do
• Wealth System – Money economy enmeshed with Prosumer economy
• The Ancient Wisdom – wealth beyond barest self-sufficiency is UN-NATURAL (Aristotle)
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March 21, 2010 42© Crafitti Consulting Private Ltd.
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March 21, 2010 43© Crafitti Consulting Private Ltd.
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Value of a patent
March 21, 2010 44© Crafitti Consulting Private Limited
How much is my patent worth?
It is a question that needs a multipronged approach
As an entrepreneur you want a patent that has a high value
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Crafitti Multi-Dimensional Multi-Perspective (MDMP) Valuation Methodology for a Patent
March 21, 2010 © Crafitt
45
Current State of the Patent/
Patent Value Indicators
Citations
backward/
forward
Maintenance
levels/ Legal
Status
Technical
Description
Family
Size
Claims
Length/Breadth
Remaining
Life
Assessing the Patent Using Theory of Inventive Problem
Solving (TRIZ) – A Unique Proposition
TRIZ Level of Invention 77% of inventions are at Level 1 or 2, 19% at Level 3, 4% at Level 4 less than < 0.3% at Level 5, Higher Level means higher Valuation
TRIZ Laws of Evolution9 Laws have been identified. Based on the position of patent on each of these laws it is possible to ascertain the strength of the patent
TRIZ Function and Resources AnalysisHow does various parts of the invention combine to perform the function and how much resources have been utilized help in understanding the strength of Invention
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Relative Centrality of the Patent in its Ego-Centric Citation Network
March 21, 2010 © Crafitt
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19971996198719851984 2000 2002 2003 2006 2007 2008 2009
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Relative Centrality of the Patent in its Ego-Centric Citation Network
March 21, 2010 © Crafitt
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19971996198719851984 2000 2002 2003 2006 2007 2008 2009
Building the Ego-Centric Citation Network of the Patent
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Relative Importance Index quantifies (using crafitti’s methodology) the centrality of the Patent in its Ego-Centric Citation Network
March 21, 2010 © Crafitt
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19971996198719851984 2000 2002 2003 2006 2007 2008 2009
Relative Importance Index gives a view
of vitality of the patent. If its value is
more than the rest of the patents in its
ego-centric citation network, valuation
should be more
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Relative Centrality of Patent in its “Social” Citation Network – taking a cue from social network analysis
March 21, 2010 © Crafitt
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Relative Social Importance Index gives a view of vitality of the patent in its social network of patents which is formed by connecting all forward and backward citations of patents in its ego
centric citation network. This involves forming the “social” citation network of the Patent, which may large number of patents
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Using the AHP for relative importance of each parameters from multiple experts
March 21, 2010 © Crafitt
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Parameter Relative Importance
Level of Invention 15.0%
Position as per Laws of Evolution 15.0%
Function/ Resource Analysis 15.0%
Citation Network Analysis 15.0%
Maintenance levels/Legal Status 5.0%
Technical Description 10.0%
Claims Length/ Breadth 12.5%
Family Size 12.5%
Total 100%
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Multi-Dimensional Multi-Perspective (MDMP) Valuation Methodology for a Patent
March 21, 2010 © Crafitti Consulting Private Limited
51
Current State of the Patent
Future State of the Patent
Historical Factors related to the
invention/Patent
Current State of sub-systems,
components and parts that make-up
the patent
Future State of sub-systems,
components and parts that make-up
the patent
Historical Factors related to
components and sub-systems
PAST PRESENT FUTURE
Current State of Technology, Market
and Competition
Future Scenarios in Technology,
Market and Competition
History of Technology, Market
and Competition
Sub
Sys
tem
Syst
emSu
per
Sys
tem
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Valuation Methods Used (in Practice)
• The Capitalization Approach
March 21, 2010 © Crafitt
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• The Income Approach
• The Cost Approach
• The Market Approach
Valuation using multiple perspectives and multiple
Scenarios works best
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MDMP Valuation
• In each of scenarios (i) that emerge during the valuation study what are thepotential benefits that can accrue from the patent (bi) and the risks (ri)
– Incorporating the Invention in the existing products
– Potential Market Share enhancement
– Using the invention to Invent more adjacent areas
– Does it denies a space to competitor
– Does it enhances the portfolio of the inventor – the synergistic effect
– How easy it is to design around the patent?
– How easy it is to verify the infringement?
• In each of scenarios Value (vi) of Patent will vary within a range based on benefits and risks of the patent loosing its relevance (bi) and (ri)
• Each Scenario also comes with an estimation of likelihood or a probability estimation (pi)
• Overall value V = ∑ pi x vi = ∑ pi x f(bi , ri)
March 21, 2010 © Crafitt
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Patent Valuation Methodology
• Is Multi-Dimensional and takes into account multiple perspectives to produce a robust valuation considering multiple futures, current state and past trends
• We combine multiple science based methodologies to come up with the valuation framework
– TRIZ Based Patent Analysis
– Value Network Analysis
– Analytic Hierarchy Process
– Scenario Writing
– Standard Patent Landscaping and Analysis
– Systems Analysis
Multi-Dimensional Multi-Perspective (MDMPTM) Valuation does not produce a single $ number. The methodology gives a sum total of past, current and potential future value that the asset may create in a range of possibilities.
March 21, 2010 © Crafitt
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It is not enuf to be an innovator in the knowledge economy ….
March 21, 2010 55© Crafitti Consulting Private Ltd.
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© CRAFITTI CONSULTING
FINAL POINTS
• Complexity is Increasing, Scale is the New Frontier• Deep Knowledge, Expertise may lead to Inertia and restricted viewpoint • New ways of looking at reality are needed• Artful Making, Lean Thinking, TRIZ, Social Computing, Open Innovation, Scenario
Planning needs to be integrated as a framework• We need to design organization as a Learning Enterprise
• Integrated IP Response combining Patents, Design Rights, Trademarks and Copyrights is the need in the new world!
• To Generate Wealth – You have to PROTECT…
• YOU HAVE NO OTHER OPTION BUT to P (NO PUN
INTENDED)
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Crafitti helps craft innovation in multiple contexts.
Your Innovation Think Tank
March 21, 2010© Crafitti Consulting Private Limited 57
Crafitti Consulting
Crafting innovation together . . .
www.crafitti.com
Navneet Bhushan ([email protected])