strategic use of ip for business in knowledge-driven economy dr. guriqbal singh jaiya director small...
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Strategic Use of IP for Business in Knowledge-driven Economy
Dr. Guriqbal Singh JaiyaDirector
Small and Medium-Sized Enterprises Division
World Intellectual Property Organization www.wipo.int/sme
May 2009, Seoul
Spotlight is on knowledge in today’s economy
• Knowledge, Weightless, Information, Digital or Service Economy
• Factors of production: Land, Labor, Capital, Intangibles (Knowledge)
• Knowledge as useful Information (or Service)
• Information as a “Public Good”
• Information as Property
Market-oriented Economy
• Playing Field: Unfair competition; free riding• National Legal Systems: Diversity
(bilateral/regional/ international treaties or agreements)
• Adding Value : Meeting or exceeding market needs or expectations
• Market research: Consumers’ needs, competing products or substitutes, gaps
• Technological innovation as an element of marketing
Customer Expectation
Dilemma
Time
Perf
orm
an
ce
Expectation
s
Continuo
us Improv
ement
Performance Gap
Tangible and Intangible Assets
• Intangibles differ from tangibles in two ways that “change the rules of the game”, (if not the game itself):
– Value in context
– Multiple simultaneous value streams
Tangibility Spectrum
TangibleDominant
IntangibleDominant
SaltSoft Drinks
DetergentsAutomobiles
Cosmetics
AdvertisingAgencies
AirlinesInvestment
ManagementConsulting
Teaching
Fast-foodOutlets
Fast-foodOutlets
The challenge
Performance
Time
Sellingproducts
Selling (parts of)interconnected
systems
Strategic Entrepreneurship and Innovation
• Entrepreneurship is concerned with:– The discovery of profitable opportunities
– The exploitation of profitable opportunities
• Firms that encourage entrepreneurship are:– Risk takers
– Committed to innovation
– Proactive in creating opportunities rather than waiting to respond to opportunities created by others
Pre-IPO
Expansion
Start-Up
Seed
Idea / Concept
TimeTime
$
• Bright Idea• Experimental• Research• Business Plan• Proof of Concept
• Legal Entity• Founders = Mgt Team• Minimal Revenue• Slow Growth • Support Functions
• Administration• Marketing• Revenue Growth
• High Growth• Head Count • Multiple Cycles
• Viable• Market acceptance• Heading to IPO or M&A
The Process/Steps of Innovation
Understanding the Process of Innovation
Expansion
Start-Up
SeedIdea / Concept
TimeTime
$
•Business Plan•Prototype/ POC•Project Management•Business Premises•Project Management•Management Training
•Corporate and Secretarial •Financial •Training •PR and Marketing•Networking •Business Development
•Recruitment•Business Development•A & P•Market Access
•International support and Mkt. Access •Diversification strategies and support •Recruitment•Training and Incentives
The Needs of Each Stage
IP Management Needed in all stages
Understanding the business/role of IP
ManufacturingPatent Distribution Sales Brand
• Understand the value chain of the business and industry
• Understand how profits are generated
– primary product
– spare parts and related products
– service and maintenance
• What are the important features of the IP? How does it add value to the business?
• What are the important features of the industry other than IP?
– other important intangible and tangible assets in the value chain
– competitive structure of the industry
– customer characteristics and purchasing criteria
– substitute products or services
Suppliers
Established Leader
Complimentors
Customers
Other CompetitorsDisruptive
Technologies
Converging Technologies
You
IP Environment
IP Deployment Continuum
• IP risk balance favors target
• Goal: Design Freedom
Concerns OpportunityMAD
• Balanced IP risk
• Goal: Confirm MAD
• IP risk balance favors You
• Goal: Identify value generation opportunities
| | | | | | | | | | |
Aligning Capabilities
VisionVision VisionVision
StrategiesStrategies StrategiesStrategies
InnovationInnovationStrategiesStrategies
InnovationInnovationStrategiesStrategies
Value Creation
Value Creation
Value Extraction
Value Extraction
IP Objectives/Roles:
Strategic Framework
Cash Value
Positioning Value
Where does Intellectual Property fit into this?
An Aspect of Good Management• People Management – because IP is generated by people and
used by people
• Knowledge Management – because a lot of knowledge is informal and may or may not crystallise as
recognisable category of IP
• IT Strategic Planning – because a lot of IP is IT-related; someof the more complex IP issues arise in IT context
• Contract Management – because IP is often created (or improved) in context of a contract (eg, supply contract or joint venture relationship)
• Asset Management – because IP is an asset, albeit intangible; it has a value
• Risk Management – because there are risks to an organisation flowing from its actions, or failure to act,
in relation to IP (including risk of lost opportunity)
Introduction to IP Management 1
• Legal
• Technical
• Business
• Export
• Financial
• Relationships
• Accounting
• Tax
• Insurance
• Security
• Automation
• Personnel
Introduction to IP Management 2
• Trademarks (Brands)
• Geographical Indications
• Industrial Designs
• Patents and Utility Models
• Copyright and Related Rights
• Trade Secrets
• New Varieties of Plants
• Unfair Competition
Bringing it All Together Example No. 1Example No. 1
• Decades ago, Coca-Cola decided to keep its soft drink formula a secret
• The formula is only know to a few people within the company
• Kept in the vault of a bank in Atlanta
• Those who know the secret formula have signed non-disclosure agreements
• It is rumored that they are not allowed to travel together
• If it had patented its formula, the whole world would be making Coca-Cola
Bringing it All Together Example No. 2Example No. 2
• Patent for stud and tube coupling system (the way bricks hold together)
• But: Today the patents have long expired and the company tries hard to keep out competitors by using designs, trademarks and copyright
Bringing it All Together Example No. 3Example No. 3
• Patent for the fountain pen that could store ink
• Utility Model for the grip and pipette for injection of ink
• Industrial Design: smart design with the grip in the shape of an arrow
• Trademark: provided on the product and the packaging to distinguish it from other pens
Source: Japanese Patent Office
® Registered Trade Mark
‘TM’ Unregistered Registered Design
Copyright: Labels & Artwork
Patents: Several dozen!
Bringing it All Together Example No. 4Example No. 4
Basic Message 1
IP adds value at every stage of the value chain from creative/innovative idea to putting a new, better, and cheaper, product/service on the market:
Literary / artisticcreation
Invention
Financing Product Design
CommercializationMarketing
Licensing
Exporting
Patents / Utility Models/Trade secrets
Copyright/Related Rights
Patents / Utility models
Industrial Designs/
Trademarks/GIs
Trademarks/ GIsInd. Designs/Patents/Copyright
All IP Rights
All IP Rights
Basic Message 2• IP Strategy should be an integral part of the
overall business strategy of an Enterprise• The IP strategy of an Enterprise is influenced by
its creative/innovative capacity, financial resources, field of technology, competitive environment, etc.
• BUT: Ignoring the IP system altogether is in itself an IP strategy, which may eventually prove very costly or even fatal
Website of SMEs division
IP for Business Series
Published
• Making a Mark (Trademarks)
• Looking Good (Designs)
• Inventing the Future (Patents)
• Creative Expression (Copyrights)
Basic Modules Advanced Modules
1. Importance of IP for SMEs
2. Trademarks and Industrial
Designs
3. Invention and Patent
4. Trade Secrets
5. Copyright and Related Rights
6. Patent Information
7. Technology Licensing in a
Strategic Partnership
8. IP in the Digital Economy
9. IP and International Trade
10. IP Audit
developed by KIPO, KIPA and WIPO
http://www.wipo.int/sme/en/multimedia/
Guriqbal Singh Jaiya
WIPO SMEs Web-Site
“www.wipo.int/sme”
“IP for Business Series” in Publications
“IP Panorama” in Multimedia
“E-NEWSLETTER”