Mikk Putk Patent attorney
Sarap & Putk Patent Agency
Startup companies &
Intellectual Property
Estonian Intellectual Property and Technology Transfer Centre
What to consider regarding IP protection?
About the topic
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Why startups & intellectual property and not just what to consider
regarding company’s IP protection?
DEFINITION of 'Startup' A company that is in the first stage of its operations. These companies are often initially bank rolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Due to limited revenue or high costs, most of these small scale operations are not sustainable in the long term without additional funding from venture capitalists. Read more: http://www.investopedia.com/terms/s/startup.asp#ixzz3a3Qszs7P
Some startup characteristics • Young & fast growing companies
‒ High risks ‒ Limited resources ‒ Unclear future ‒ Mostly active on emerging markets
• Rapid technological progresses ‒ Software/Internet based products and services ‒ Relatively short product life time
• Unconsidered actions – Product/service name randomly selected – Selected product or service name generic, descriptive or
already registered trademark – Intense pitching & networking
o publishing too early/too much secrets reveled
• No agreements between founders, employees, partners
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Some IP characteristics to consider
• What type of IP my company has?
• What is the most valuable IP to protect?
• Who actually owns the IP?
• What is the product life-time?
• How easy is to reproduce or copy my product?
• Where are the main markets?
• What is the business model?
• Who are the competitors?
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Some characteristics of new technologies and business models
http://www.forbes.com/sites/gartnergroup/2014/10/21/gartners-top-10-strategic-technology-trends-for-2015/
• Wearable technologies & sensors
• Autonomous vehicles
• Smart environments, smart machines
• Smart & Self healing materials, Bionics
• Augmented reality
• Big, Open & Linked data
• Virtual & digital currency
• Crowdsourcing, crowdfunding
• User/Client created content
• 3D drawing , scanning, printing, copying
http://edtechfrontier.com/2012/08/21/copyright-and-personal-transformation/
Some myths and mistakes 1. Thinking that you don’t have any intellectual property
2. Thinking that patents are the only intellectual property
3. Relying on one type of intellectual property protection
4. Failing to conduct prior art search
5. I want to patent/trademark it everywhere!
6. Publishing your IP before securing your rights
7. Doing It Yourself
8. No planning - The IP protection is not linked to your business plan
9. Relying on a single patent
10.Failing to create original trademark
11.Believing that nothing is going to happen
12.Requesting everyone to sign NDA
13.Using Outsourcing/Crowdsourcing: Freelancer, 99designs, Kickstarter etc
14.No budgeting - Underspending or Overspending on IP protection
15.Ignoring a Competitor's Patent/Registered trademark or design 6
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Some specifics of interdisciplinary IP
• Very broad prior art More complicated patent applications • New technologies become rapidly public domain Inadvertent patent infringing • Specific jargon • More and more patent lawsuits
http://www.ipwatchdog.com/2013/04/09/the-rise-of-patent-litigation-in-america-1980-2012/id=38910/
Thinking that you don’t have any IP
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Every company has at least:
• Domain name
• Trademark
• Know how,
• Copyrights,
• Trade secret
• etc
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See more examples https://oami.europa.eu/knowledge/course/view.php?id=1507
Thinking that you don’t have any intellectual property
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http://blog.thomsonreuters.com/index.php/apples-patent-claims-graphic-of-the-day/
http://www.imsmart.com/
Startups & IP strategy
1. How many different types of intellectual property belonging to company i’m S.p.A. can you count?
Read also: http://www.imsmart.com/en/contacts/press-centre/im-spa-press-release-19-september-2014
http://www.imsmart.com/en/contacts/press-centre/im-spa-press-release-19-september-2014
http://www.bodymedia.com/
Massive Health
Jawbone/Aliph
Jawbone/Aliph
Acquisitions
Patent, Trademark Litigations
& Patent Trolls
Partnerships &
Open platforms for developers
Who will acquire Jawbone? Google? Apple? Facebook?
Market leader & IP strategy
Relying on a single patent
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Competitor
P1
Competitor
Competitor
P2 P3 Pn P1 P2 P3 Pn
i’m S.p.A. Jawbone/Aliph
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http://edtechfrontier.com/2012/08/21/copyright-and-personal-transformation/
Thinking that patents are the only IP
Relying on one type of IPprotection
Patent = Intellectual Property
One single product can be protected for example by: Copyrights, Patent, Trademarks, Trade secrets; Know-how, Design registrations
http://www.slideshare.net/mtarrant/valuing-intellectual-property
Failing to conduct prior art search
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- Prior art - Novelty - Freedom to operate - Freedom to use - Competitors - Product/service/
business/domain name
• Do you have the rights? ‒ Conduct freedom to operate search! ‒ Conduct freedom to use search! ‒ Avoid infringement of other’s IP rights!
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Patent search example: Jawbone/Aliph
NB!
Failing to conduct trademark search
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Failing to create original trademark
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Failing to conduct design search
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Background
searches Idea
Idea
generation
Brainstormi
ng
Selection
of ideas
Drawings
Construction
Prototype
Development
Patent
applications
Communication
with experts
Patented
end product
Evaluation Development Production
Background search
Prior art analysis
Infringement search
Patentability search
Competitors search
FTO/FTU
Monitoring
Monitoring:
- Competitors
- New patents
- infriners
When you may need background searches
I want to patent it everywhere – The product has global market!
Stop! There is no world-wide patent nor you are going to commercialize your product in every single country!
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No planning - The IP protection is not linked to your business plan
• Publishing your IP before securing your rights – Disclosure of the invention – Publishing a research paper – Relying on grace-period
• Wrong timing – Filing too early – Filing too late
• No budgeting – Underspending on IP protection – Overspending on IP protection
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http://www.humorburst.com/internet-vs-intellectual-property/
The IP protection is not linked to your business plan
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Fujitsu: “We are promoting an intellectual property strategy closely integrated with our business and R&D strategies. ”
http://www.fujitsu.com/global/about/tech/intellectualproperty/
Idea Development Production Selling
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Source: http://i-to-m.com/product-development/
Author
Colleagues
Management
Partners
Researchers
Engineers
Programmers
Marketing
Designers
Dealers, resellers
Licensees
Media, publishers
Manufacturers
Who owns your intellectual property? ‒ Check your contracts!
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Some recommendations
• Raising awareness
• Identify your IP!
• Regulating ownership
• Evaluating your IP
• Patent/Trademark search (prior art, novelty, FTO, FTU)
• Risk analysis
• Monitoring competitors
• Budget
• Planning the IP protection according your business plan
• Start protecting your IP step by step!
http://global.epson.com/innovation/topics/201310_01.html http://global.epson.com/innovation/intellectual_property/
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Thank you!
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Contact Sarap & Putk Patent Agency, http://www.patent.ee, [email protected] Tartu: Margus Sarap, [email protected], tel 747 7058 Tallinn: Mikk Putk, [email protected], 53 039 088, Skype: mikkputk
https://www.facebook.com/Patent.ee
Presentations: http://www.slideshare.net/patent/presentations/
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Is the class half empty or half full?
Answer: Liquid H20 bisects an open cylindrical vessel