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Page 1: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current
Page 2: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

MANAGING INTANGIBLE ASSETS: an introduction to Intellectual Property Rights

Page 3: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current
Page 4: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

How important is an effective Intellectual Property protection for start-ups and SMEs operating in a competitive-intensive environment?

Page 5: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Importance of Intellectual Property:

just a quick example of “real world” situations to break the ice…

Page 6: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INSTRUCTION BOOKLET

WARRANTY CARD

Trademark Rights

Design Rights

Patent Rights

UtilityModel Rights

Copyright

More INTELLECTUAL PROPERTY than we normally imagine…

Page 7: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Imagine a dream comes true…

You have won 3 millions Euro at the lottery…

…you are very happy and you want to make the best use of this money…

…so, you decide to buy a:

Page 8: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

On the car market…all very nice!

Page 9: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

What the crude reality looks like instead!

Page 10: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Other examples of TMs infringements

Page 11: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Again: more INTELLECTUAL PROPERTY than we can imagine!

Page 12: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Let’s go serious: themes for today

• Innovation – definition, concept and examples

• How to defend Innovation – the role of Intellectual Property

• Intellectual Property – generalities (types & characteristics – focus on patents & trademarks)

• a glance on the legal framework of IP

• IP in the World – differences

• IP Strategy & Enforcement

• Final considerations & recommendations

• Q/A

Page 13: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION

Process of translating an idea or invention into a good or service that

creates value or for which customers will pay

Innovation should:• be replicable at an economical cost• satisfact a specific need

Innovation:• involves deliberate application of information, imagination and initiative in

deriving greater or different values from resources• includes all processes by which new ideas are generated and converted into

useful products

Page 14: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: two main categories

Evolutionary innovations

brought about by many incremental advances in technology or processes

Revolutionary innovations

often disruptive and new

(continuous or dynamic evolutionary innovation)

(also called discontinuous innovations)

Page 15: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: Evolutionary examples

Page 16: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: some other remarkable examples

Gaming-Automotive

Baby pram-Landing gear

Egg basket-Wine box

Kingfisher-Shinkansen

Phone box-Solar box

Esplanade Theatre-Durian Plant

Mercedes-

Boxfish

Page 17: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION is also adaptability

Page 18: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: higher/moderate risk

In the ICT world: IBM PC vs. Apple Computer, Compaq cheaper PC’s vs. IBM, Dell with its still-cheaper clones against Compaq

HIGHER RISK

revolutionary products, technologies, services

NEW MARKETS

LESS RISK

imitators

Page 19: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: Protection

…but where is the word protection here?

Page 20: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INNOVATION: how to defend it – role of Intellectual Property

• Effective intellectual property protection is one of the key drivers of the research-intensive, high-tech innovative companies (including start-ups and SMEs), especially in global industries with the highest percentage of sales re-invested in research and development

Without the prospect of a reasonable return on investment connected to the protection of IP, innovative companies would not be in a position to bear the substantial costs of developing cutting-edge innovation

• Innovators need predictability and uniformity in intellectual property protection across jurisdictions, while maintaining a proper balance of rewards, to continue on their path to progress and deliver solutions to the world’s most pressing needs

• Innovative companies as well as their investors depend on a stable and effective environment for the protection of intellectual property

Page 21: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY for Innovation

Page 22: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY

Page 23: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Definition & characteristics

• Intellectual Property (IP) refers to the protection of creations of the mind, which have both a moral and a commercial value

• IP law typically grants the author of an intellectual creation exclusive rights for exploiting and benefiting from their creation. However, these rights, also called monopoly right of exploitation, are limited in scope, duration and geographical extent

• IP protection is intended to stimulate the creativity of the human mind for the benefit of all by ensuring that the advantages derived from exploiting a creation benefit the creator

• This will encourage creative activity and allow investors in research and development a fair return on their investment

Page 24: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Why it is so important…*

• IP enables creativity to be protected, and clearly establishes who owns what

• IP can be licensed or sold

• It can be a key negotiating tool - a "deal-maker“

• IP will attract investment

• IP appears as an asset on the company accounts, even if other parts of the business get into trouble

• IP is a source of information and knowledge

• IP presents both opportunities and risks which are to be exploited or avoided – strategy is key!

Page 25: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

You Others

Opportunity

Create IP that

makes you

attractive for

investment or to get

partners

Identify strong

partners through IP

competitive

intelligence

Risk

Establish IP that

protects your

products/ services/

name from being

imitated

Ensure that you have

freedom to operate

before launch to

prevent infringement,

unfair use

IP

Strategy

INTELLECTUAL PROPERTY: Why it is so important…**

Page 26: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: a bit of taxonomy

Restrictive

covenants

Confidentiality

agreements

Copyright

Database right

Unreg. TMs

Unreg. Designs

Inventions

Brands, logos

Designs

Musical, dramatic,

literary & artistic works

Databases

Reputation / Goodwill

Designs

Know-how

Trade secrets

Confidential

information

Patents, UMs

Reg. TMs

Reg. Designs

The formal registered & unregistered rights, when combined with this third group of "soft IP", are known collectively as intellectual assets

These rights are unregistered - they exist from the moment the works are createdOwnership is harder to clarify without a registerThe registered & unregistered rights together are called intellectual property

These are registered rightsThe inventor, creator or designer has no rights until they make a registrationOthers can check if rights exist, and who owns them, by looking at the register

Industrial Property Intellectual Property Intellectual Assets

Page 27: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Specifics on IPR titles

Type of IP Patents Trademarks Trade Secrets Copyrights

Protection Utility model, design and patentWords, names, symbols or

devices used to identify product or service

Advantageous formulas, devices or

compilation of information

Original creative works of authorship such as

writings, movies, records and computer software

Applicable Standards

New and non obviousAdvance in the state of the art

Identifies and distinguishes a product or

a service

Not really ascertainable, not

disclosed to the public

Original creative works in writing or in another

format

Where to apply Patent & Trademark OfficePatent and Trademark

officeNo public registration

is necessaryRegister of Copyrights

Duration

Utility model and patent: 20 years from the date of

application;Design patent: 14 years

Indefinite so long as it continues to be used

Indefinite so long as secret is not disclosed

to public

Life of author plus 50 years or 75 years from

publication for «work for hire»

Page 28: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY - Myth - IP is just for large companies

• Most SME’s have IP that they are unaware of…• Customer lists, designs, logos, brand names, etc.

• SME’s need to know about:• Their own IP (to leverage it / protect it)• Others’ IP (to avoid infringement)

• Some industries thrive off IP, where IP can help SME’s to position themselves for investments / buyout, e.g. Biotechnology, Communications

Page 29: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY – Most used Conventions & Treaties

Paris Convention for the Protection of Industrial Property

Bern Convention for the Protection of Literary and Artistic Works

Agreement on the Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement)

Trademark Law Treaty and the Patent Law Treaty (PLT)

Patent Cooperation Treaty (PCT)

Madrid Agreement Concerning the International Registration of Marks

Hague Agreement Concerning the International Deposit of Designs

Lisbon Agreement for the Protection of Appellations of Origin and their International Registration

Page 30: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY in the World – ranking 2014

Page 31: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Business perspective

Businesses use IP to…

• Find partnerships/joint ventures• License out rights to gain revenue streams• Establish a competitive advantage in the

marketplace• Prevent knockoffs or imitators • Invent-in-front of competitors

Question you have to ask yourself:

What role does IP currently play in my business?

How could I use it in the future?

Page 32: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Commercialisation through licensing

• IP can be licensed insomeone else might have invented the solution you need, saving you the effort

• IP can be licensed outuse this to build partnerships. Licensees might have access to bigger markets (especially if your invention is a component in a larger product)

• What sort of license?• Exclusive (not even the patent owner may use)• Sole (the patent owner may also still use)• Non-exclusive (multiple licensees)• Compulsory (license of right)

Page 33: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: What is an IP Strategy

An IP strategy…

• Starts with the business goals and business issues

• Decides how you plan to use IP to support your business goals

• Reflects your own IP position and also the ones of your competitors

• Identifies IP gaps and strengths for you and your competitors

• Drives how you extract/seek potential IP, how you will evaluate it and what type of

protection you will seek once you get it

• Determines how you will monitor and enforce your IP

• Is supported by internal IP processes

Page 34: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Why an IP Strategy is important

• Allows businesses to use IP in a systematic and uniform fashion

• Helps to prioritise resources, including time & money

• Can lower risk

• IP can be leveraged – to find partners, get better terms in a deal, out license for revenue, etc.

Page 35: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: What makes a strong IP Strategy

• Aligning it with your business strategy

• Using multiple forms of IP

• Keeping it current (periodic updates and revisiting it under unusual circumstances)

• Executing it! It is a plan to be carried out, not a report to file away• Ensure that owners and deadlines are assigned

• Communicating the strategy throughout the company• “This is why we have a trademark and here is how to use it”

• Getting advice where/when it is needed

Page 36: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: How to develop an IP strategy - outline

1. Review your current business goals

2. Review your current IP portfolio

3. Determine which, if any, types of IP protection will help reach current business goals

4. Review competitor IP and their IP strategies

5. Determine where there is a gap in your IP protection that you need to fill or gap in your competitors’ IP that you can exploit

6. Extract and capture IP that already exists within your company

7. Review potential IP to see if it meets your business needs• If so, consider appropriate type of IP and filing for protection• If not, consider creating IP that does or acquiring external IP

8. Implement internal processes that allow for steps 1 – 7 to be repeated as needed

Page 37: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Research as part of an IP strategy

• IP information is an invaluable source of research information; much of what appears in IP related literature does not appear in academic and technical journals• Data is publicly available (e.g. http://ep.espacenet.com/)

• Most of what is published in patents is not protected, and is therefore free to use

• IP information is also a source of commercial information, leading to customers, suppliers and new partners, as well as warning about developments by rivals and changes in the market

• Exploiting IP information is quite separate from owning, licensing and enforcing IP

Page 38: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Research perspectives

• IP research can help you understand how IP is used in your industry

• Note: You can have market competitors and IP competitors. For instance, one

of your competitors may have no IP but a company in a different industry

could be filing for patents in your space

• Therefore IP research should take multiple angles…

• Search around your known competitors (are they IP savvy?)

• Search in your industry (find new IP competitors)

• Search around your own IP (find potential partners or infringers)

Page 39: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: esp@cenet database

http://www.epo.org/patents/patent-information/free/espacenet.html

The esp@cenet database has over 65 million documents!

Page 40: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: EUIPO database

Design and trademark searching is easy via EUIPO!

https://euipo.europa.eu/ohimportal/en/search-availability

Page 41: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Important points to remember

Key points they need to look out for in order to ensure their IPR is effectively protected:

• IP Laws are territorial, register your IP

• Trade marks are granted under ‘first-to-file system’

• Get a local name for your trade mark

• It is highly recommended to register a copyright

• Non-disclosure and confidentiality agreements are essential to protect trade secrets

• Patents function under first-to-file and absolute novelty system

• Be active in enforcing your rights

Page 42: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Enforcement

• Litigation is very expensive – find alternatives

• Be absolutely sure of the strength of your case – although as we’ve seen previously some cases are too close to call

• Mediation and arbitration are confidential processes, and can lead to customised solutions

• Sell licenses, even at reduced prices; offer complementary know-how

Page 43: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Checklist for enforcing IP

• Register in the markets where they are being produced and marketed, but also in areas of transit• Register IPR in places where counterfeits are expected to be produced or sold• Maintain IP rights over time

Risk Identification and management• Incorporate your thoughts on counterfeiting into your business strategy and planning• Identify the risks and weaknesses• Develop precautionary measures to address them in advance – create scenarios• Respond quickly and effectively• Effective engagement with enforcement resources when counterfeiting is detected

Appoint an IP Champion in your organisation• to create an up-to-date inventory• to regularly review of the system and procedures• to assess risks• to build secure working relationships in/outside the business• to be a single point of contact for reporting infringements

Page 44: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: Resources for consultation

• www.epo.org (European Patent Office)

• EPO SME Case studies http://www.epo.org/focus/innovation-and-economy/sme-case-studies.html

• http://oami.europa.eu/ (OHIM)

• http://www.wipo.int/portal/index.html.en (WIPO)

• WIPO SME Portal http://www.wipo.int/sme/en/index.jsp

• http://arbiter.wipo.int/domains/index.html (WIPO Domain Name Dispute Resolution Service)

• http://www.ipr-helpdesk.org/index.html (IPR Helpdesk)

• http://ec.europa.eu/agriculture/foodqual/quali1_en.htm (European Commission - Agriculture and Food)

• http://oami.europa.eu/ows/rw/pages/ohim/multimedia/SME/smesinaction.en.do - (OHIM SME specific)

Page 45: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

INTELLECTUAL PROPERTY: 26th April…important date for IPRers

Page 46: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

Thanks for your attention

now comments, suggestions, remarks…

Page 47: MANAGING INTANGIBLE ASSETS€¦ · INTELLECTUAL PROPERTY: What makes a strong IP Strategy •Aligning it with your business strategy •Using multiple forms of IP •Keeping it current

THE NEXT SOCIETY

Join the movement!

THE NEXT SOCIETY

@TheNext_Society

[email protected]

www.thenextsociety.co