Volker Plogmann

WIPO WORKSHOP ON INTELLECTUAL PROPERTY FOR BUSINESS FOR SMALL AND

MEDIUM-SIZED ENTERPRISES(SMES)

Workshop in Dar-es-Salaam, May 10 and 11 2005

Dipl.-Ing. Volker PlogmannManaging Director Patent and Trademark Department

Wilhelm Karmann GmbHFull Service Vehicle Supplier, Osnabrück, Germany

Volker Plogmann

Why Intellectual Property Rights ?

Intellectual Property / Immaterial Goods• No „physical entity“ („idea“)• Realizable / easy to copy/multiply• Value when multiplied? (rises/falls)• Aggregate Value added (by whom?)• Amendments possible• control?

Volker Plogmann

Why Intellectual Property Rights ?

Invention and competitive advantage• keeping secret (method / product) ?• Easy to copy/analyze (Know-How) ?

General Goal of IP System• Support of Innovation• Providing of Knowledge (Publication)

“Legal Protection” as renumeration for publication of knowledge

Volker Plogmann

Kinds of Intellectual Property Rights

• Registered IPRs• Un-registered IPRs

• Technical IPRs• Non-technical IPRs

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Registered IPRs

• Technical IPRs• Patents• Utility models• Topographic designs• Plant varieties

• Non-technical IPRs• Registered Trademarks• Designs

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Patents / Utility Models

• Subject matter• Technical teaching

• Products• Processes (only patent)• Uses (only patent)

• Important Exception: software “as such”

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Patents / Utility Models

• Requirements for registrability• Novelty• Inventiveness• Commercial applicability

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Designs

• Subject matter• Two dimensional patterns• Three dimensional • configurations

• Requirements for registrability• Novelty• Uniqueness

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Designs

• Creation of protection• National deposition/registration• International deposition/ registration/The

Hague Convention

• Scope of protection• Merely against copying

(no protection against independent development of third party! )

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Trademarks

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Legal Aspects (TRIPS)

• International Minimum Standards• Copyright, Trademark, Design, ...• Patents, Art. 27 to 34 TRIPS:

• all fields of technology without discrimination

• novelty, inventiveness, industrial applicability

• no discrimination as to place of invention or whether products are imported or local

Volker Plogmann

Why Intellectual Property Rights ?

World of Patents

„Worldwide there are more than 4 million patentsin force, every year it will be applied for patents for about 800 000 inventions. For each invention a patent will be requested in average in 4 countries. By licensing patents have achieved royalty payments in the amount of about 100 billion US$ in 2000, 10-times as much as 1990.“

Volker Plogmann

Why Intellectual Property Rights ?

Patents in and for Europe

„In the year 2000 about 140 000 patent applications have been filed with the EPO. Nearly 70 % of the applicants allover the world trust the EPO with the examination of their applications.

For Patent Searches the EPO has access to about 38 million documents from more than 60 countries.

About 50 states have adapted their patent systems more or less to the European Patent Convention, having increasing influence in many countries of the world.“

Volker Plogmann

Commercial Benefits from IPRs

• Protection of own business (!!)• prevent copying• cross licensing basis (free to market)• keeping price level of own products

• Cooperation with other parties• Transfer out (License/Sale)

• Transfer of Technology possible !!• Controlling use of joint results• Use of joint patent ownership to avoid

antitrust problems

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Patents in Force

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Application Activities

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Worldwide Patent Activities

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Application Activities - Globalization

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Application Activities - Globalization

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„Licensing“ and TT

• Negotiation Skills for Licensing Technology

• General Possibilities• Sale• Licensing

• Types• Terms• Issues in Licensing

Volker Plogmann

„Licensing“ and TT

• „Permitting“• licensor => licensee• Anything, which is owned by the

licensor and otherwise could not be used by the licensee• 1) Due to legal reasons (IPRs)• 2) Due to factual reasons (Know-How)

Volker Plogmann

Types of Transfer of Technology

• Product/Service/System

• Transfer of Equipment

• Transfer of Know-How

• Transfer of Permittance

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Coverage of License Agreement I

• Which IPRs ?• registered / non-registered

• Where ?• territorial boarders / markets

• Time Frame ?• Start / End / Termination

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Coverage of License Agreement II

• Quantity ?

• Quality Control ?

• Support• Technically / Marketing

• Documentation• technical drawings, specifications, market search

results...

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Kinds of License Agreements

• Exlusive License• „Sole“ License

• Non-exclusive License

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Valuing the Technology

• Cost approach

• Market approach

• Benefit approach• 25 % “Rule“• Technology Factor and others

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Licensing Terms

• Running Royalties• Sliding• Capped

• Downpayment/Milestones/Installments• Creditable or not

• Minimums (Maximums?)

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Limitations and Restrictions

• Field

• Geography

• Time

• Terminal Rights

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Warranties

• Protection

• Freedom

• Technical / Product Liability

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Intellectual Property Rights

Thank you for listening!

Volker Plogmann

WIPO WORKSHOP ON INTELLECTUAL PROPERTY FOR BUSINESS FOR SMALL AND

MEDIUM-SIZED ENTERPRISES(SMES)

Workshop in Dar-es-Salaam, May 10 and 11 2005

Dipl.-Ing. Volker PlogmannManaging Director Patent and Trademark Department

Wilhelm Karmann GmbHFull Service Vehicle Supplier, Osnabrück, Germany

Volker Plogmann

Karmann Ghia Coupe 1955

Wilhelm Karmann GmbH

Volker Plogmann

Audi A4 Convertible 2002 Mercedes-Benz CLK Convertible 2003

Complete Vehicles

Chrysler Crossfire Coupé 2003 Chrysler Crossfire Roadster 2004

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VW New Beetle Convertible 2002

Renault Mégane Coupe-Convertibles 2003

Roof Systems

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3.5 Million Vehicles 1949-2004

VW Beetle Convert.331,847 units

VW Karmann Ghia362,601 units

VW Porsche 914118,949 units

VW Scirocco I504,153 units

BMW 6th Series96,149 units

VW Golf A1 Convert.388,522 units

VW Scirocco II291,497 units

Ford Escort Conv.104,237 units

VW Corrado97,521 units

Ford Escort Conv.83,983 units

VW Golf A3 Convert.139,577 units

Renault Mégane Conv.58,867 units

Merc.-Benz CLK 81,518 units

Audi 80 Convertible12,012 units

VW Golf A4 Convert.72,666 units

Merc.-Benz CLK Coupé31,568 units

Audi A4 Convertible20,906 units

Selection from reference vehicle list:

Chrysler Crossfire

Volker Plogmann

Global Locations

Wilhelm Karmann GmbHOsnabrückVehicle Engineering • ToolingRoof Systems • Production

Karmann-Ghia de MexicoPueblaRoof System Production

Karmann-Ghiado Brasil Ltda.Sao PauloTooling • StampingVehicle Production

Karmann-Ghiade Portugal Lda.Vendas NovasFabric Production

Julius Heywinkel GmbHBramscheFabric & Plastics Production

Karmann-RheineGmbH & Co. KGVehicle Production

AGS GmbHOsnabrückLogistics Services

ATP Automotive Testing Papenburg GmbHPapenburgProving Ground

Karmann U.S.A., Inc.Plymouth, MichiganVehicle Engineering

Volker Plogmann

Wilhelm Karmann GmbH

Germany - OsnabrückService Spectrum:

Vehicle Engineering • ToolingRoof Systems • Production

Founded: 1901

Employees: 6,106

total area: 435.000 m2

built-on-area: 195.116 m2

Current Key Products:

Chrysler Crossfire Coupe

MB CLK Convertible

MB SLK (BIW Module)

Volker Plogmann

Karmann-Rheine GmbH & Co. KG

Germany - Rheine

Service Spectrum:

Vehicle Production

Founded: 1965

Employees: 1,760

total area: 432.500 m2

built-on-area: 78.500 m2

Current Key Products: Audi A4 Convertible

Renault Mégane II CC (RHT module)

Jaguar XK8 (Soft-top Frame)

Volker Plogmann

Karmann-Ghia do Brasil Ltda.

Sao PauloService Spectrum:Tooling • Stamping Vehicle ProductionFounded: 1960Employees: 498Current Key Products: Final Assembly of Land Rover

90 SW Tools for DC, Dana, Fiat, Ford,

GM, Krupp, Land Rover, Honda, Renault, Scania, Volvo, VW Stamping Parts for DC, Fiat,

Krupp, Scania, TWB, Volvo, VW

Volker Plogmann

Karmann-Ghia de Portugal Lda.

Vendas NovasService Spectrum:

Fabric ProductionFounded: 1992Employees: 276Current Key Products:

Fabric & leather seat covers for Audi A4 Convertible BMW new 5 series Ford Galaxy Land Rover MB CLK Convertible VW Sharan Seat Alhambra

Volker Plogmann

Karmann-Ghia de Mexico

PueblaService Spektrum:

Roof System Production

Founded: 2002

Employees: 150

Current Product:

Soft-top System forVolkswagen New Beetle Cabrio

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Karmann U.S.A.

Plymouth,MichiganService Spectrum:Vehicle Engineering,

Roof System Production (2006)

Founded: 1996

Employees: 140

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ATP Automotive Testing

Papenburg Service Spectrum:

Proving Ground Engineering

Operation Begin: 1998

Employees: 100

Testing Area: 870 ha

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Full Service Supplier

Powertrain & Chassis Integration

PrototypesVehicle Testing

Engineering/Concept

MachiningTools & DiesBIW AssemblySystems

QA Tooling Stamping Paint Shop Final Assembly

Module Manufact.

Body-in- white

Styling Concepts/Advanced

Engineering

Package/Measure Concept/

Surface Class A

Design/ Engineering

Plastics Technology

Roof SystemsFEM Analysis

Soft-top Production

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Division & Structure in Osnabrück

Vehicle EngineeringVehicle Engineering ToolingTooling ProductionProduction

StampingStamping

Body-in-whiteBody-in-white

Paint ShopPaint Shop

Final AssemblyFinal Assembly

BIW Assembly SystemsBIW Assembly Systems

Tools and DiesTools and Dies

MachiningMachining

designStudiodesignStudio

conceptTeamconceptTeam

FEM AnalysisFEM Analysis

Design/EngineeringDesign/Engineering

Plastics TechnologyPlastics Technology

PrototypesPrototypes

Vehicle TestingVehicle Testing

Intellectual Property ManagementIntellectual Property Management

Package/Measure Concept/Surface Class A

Package/Measure Concept/Surface Class A

Modules/ComponentsModules/Components

Roof SystemsRoof Systems

PrototypesPrototypes

Development

Design

TestingTesting

ProductionProduction

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IP Department

Intellectual Property Department

Patents, Utility Models

Trademarks,Designs

Licensing Administration

Volker Plogmann

Intellectual Property Management

• The protection of innovative solutions and the covering of Know-How in respect of the economic advantages in national and international competition is the major task of an Intellectual Property Management

• The support and the consulting in-house is another topic of the Intellectual Property Management• Law of Contract (Patents and Licenses)• Online research in patent databases• National and international prosecution• Patent litigation

Volker Plogmann

Patent Strategy

• Support in reaching the company targets• Economical and professional protection of

own inventions• Decrease the risk of a blocking by

competitors• Avoidance of patent infringement

Setting up a patentportfolio

Volker Plogmann

Patent Strategy

Questions to be answered:

• a) Shall a patent be applied for an invention?

• b) At what time should the application of an invention

take place?

• c) Can invention be kept secret for „absolute reasons“?

• c) Which scope of protection should be aimed for?

• d) In which countries should an application take place?

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Service Invention

• R & D Division• IP Department• Search for prior art• Filing an application

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Service Invention

1. Employee's invention law

(The German Problem!)

• Technical inventions• Inventorship• Right to apply for patents• Definition of invention• Definition of employee• Service or free invention

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Patent Strategy

2. Evaluation of inventions• Evaluation for the classification of the

inventions concerning the intended registration

• Orientation at markets and the competitive

position

• Evaluation of the invention by representatives

(Management of Technical Development and

its department managers)

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Patent Strategy

2. Evaluation of inventions (Example)

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Patent Strategy

3. Incentive-Program

(Law relating to inventions of employees)

• an incentive is paid after registration of an invention

• a payment according to the Employee´s invention law is done after a patent is granted and used in a product (award to the inventor)

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Patent Strategy

4. First filing applications

• Patent application - yes or no?

• Patent application - where and how?

National Territories

Volker Plogmann

Patent Strategy

4. First filing applications

• National Patentlaw (harmonised)• National Patentoffices• National Patents• National, independend proceedings in all

countries, where the patent will be registrated• a „worldwide patent“ does not exist !

Volker Plogmann

Patent Strategy

5. Foreign subsequent applications• Foreign protection

• Selection of countries (production; markets)

• National applications

• PCT

• EPC

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Patent Strategy

Paris Convention

• international convention

• subsequent application in the member states possible

• 164 member states

• right of priority (1 year)

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Patent Strategy

6. Examination procedure

• Getting a maximum extent of protection

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European Patent Office

European Patent Office

• 27 contracting states• 5 extension states• Registration / Search / Examination• Grant / Opposition / Appeal• Distribution of a „European Patent“

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European Patentsystem

Distribution procedure EPO

European Patent (“Regional-Patent”)

FR AT XY

Nationalization

DE

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PCT-System

Patent Cooperation Treaty (PCT)

• international announcing authority

• 123 Member countries

• Registration / Search / Preliminary Examination

• no distribution of a patent

• national/regional distribution procedures necessary (PCT is an „Preliminary stage “)

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PCT-System

International Phase PCT

National and regional Phases

US TZ DEEP

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PCT-System

First filing, DPMA

PCT-filing, DPMA, EPC (Priority)

Request for Int. Preliminary Examination

End of International Phase

EP DE US TZ JP

Month

0

12

19

(20) 30

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Fees and Renewals

7. Fees and Renewals

• Payment of• procedural fees• administrative fees• maintenance fees

• Screening of the Patentportfolios takes place annually

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Cost schedule of a patent family (I)

Locking device for cabriolet-tops

• First filing of the invention in Germany• Foreign subsequent applications in USA,

Japan and in Europe

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Cost schedule of a patent family (I)

Cost schedule of the patent family"Locking device for cabriolet-tops"

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Eu

ro

Total

Germany

USA

Japan

Europe

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Cost schedule of a patent family (II)

Element made of foamed metal

• First filing of the invention in Germany• Foreign applications in USA, Japan and Europe• Two oppositions in the german and in the

european procedure

Volker Plogmann

Cost schedule of a patent family (II)

Cost schedule of the patent family "Element made of foamed metal"

0

10000

20000

30000

40000

50000

60000

70000

80000

1996 1997 1998 1999 2000 2001 2002

Eu

ro

TotalGermanyUSAJapanEuropeOpposition

E

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Patent Strategy

8. Observation of competitors

• Examination of published registrations of

third parties

• Distribution of specific patent information to

the specialized divisions

• specific monitoring of selected competitors

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Patent Strategy

9. Execution of infringement procedures

• Infringement of patents of third parties

Development of a strategy to the practice:

Objection, nullity, license negotiations

• Infringement of own patent rights

Discussion with the management whether or

not to proceed against violators

Volker Plogmann

Patent Strategy

Thank you for listening!