Business Link's Tomorrow's world: make sure you're part of it. David Morgan's presentation

1. © Enterprise Europe Network South West 2009
Intellectual Property a Sustainable Enterprise
Dave Morgan Innovation Adviser
European Commission
Enterprise and Industry

2. © Enterprise Europe Network South West 2009
Intellectual Property
A Vital Asset To Business
• Traditionally organisations seen value in hard assets
• Intellectual Assets the jewel in the crown to many organisations
• Exactly the same attributes as traditional property
• Unauthorised or illegal use may result in prosecution
• Rewards for your creativity and innovation.

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IPR – What are they?
• PATENT – protection function very powerful comes at a cost
• TRADE MARKS – essentially a brand building block of enterprise
• REGISTERED DESIGN- protects external appearance of a product
• COPYRIGHT – used by us all under pins the creative economy

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The Innovation Journey
• CONCEPT
• FEASIBILITY
• DEVELOPMENT
• IMPLEMENTATION

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FIRE ANGEL®
• Nick Tate & Sam Rutter - Coventry
• Determined to enter business
• Innovation stems from the home
• Researched domestic products
• Destructive construction – re-engineered

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What Problems Did They Discover?
How Can Product Be Improved?

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FireAngel® Problems
• Operated by batteries - inefficient
• Temperamental –goes off when you burn the toast
• Ugly – spoils the look of your ceiling
• Not robust – flimsy materials
• Reset button on side

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FireAngel®
• Re-engineered moved on resultant innovation suitable patent
• Patent Protection gave them ownership of their own creativity for a period
of 20years
• Effective monopoly for a period of 20 years which enables them to
manufacture and exploit
• Patent is a negative right – enables them to take action against any one
who copies them
• Opportunity to develop as a company and make a realistic profit

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First patent applied for in partnership with
Coventry Uni.
2 later inter national patents applied for.
Aware of the need to protect their ideas.
WO0021047 – 7 Oct 1998 Smoke Alarm.

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FireAngel®
• Needed to develop a brand to support the product – 1st
April 1999
• Product to market initial problems
• Determination led to exclusive contract with B&Q
• Now available across the UK
• International portfolio re-brand for the US – Angel Eye

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Building a Portfolio
• Technology Strategy –move forward while protecting along the way
• IP portfolio enhances business value while deterring competitors
• 51 national patents 11 pending patents covering 8 technologies
• 4 Registered trade marks
• 3 Registered Designs
• IP protection major developed countries
• Current spend £60k per annum

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Commercial Status
• Products in 5000 retail outlets
• Exclusive supply deals with TESCO for all Fire & Co Safety products
• 70% of the B & Q safety products range
• Approx 50% of the UK business with Fire Brigades
• Financial performance first 6 months 2007 £33.3Million Profit £255k!!!!!

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Does This Apply to Me?
• YES Intellectual Property Applies to All
• Creators, Innovators, Service Providers most valuable
thing is Intellectual Capital
• Understand how to use the IP to your maximum advantage
• Develop and implement strategies to under pin your
business
• Design, Trade Mark and Brand, Patents and Copyright

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PATENTS
• To be capable of grant there are a few basic rules:-
• Invention/innovation must be new and not known anywhere in the world
• Invention must have an inventive step not obvious or a simple adaptation
• Inventions must be industrially applicable
• The unwritten rule Commercially viable – most important is there a
market?

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Patents

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Patents

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Inventor Eric D Page January 2002
A fore head supporting device for resting
A users head against the wall above a
Urinal.
In use the user rests his head against the
Wall above the urinal enabling him to take
The ultimate comfort break

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Patents Why Bother?
• An agreement between the state and inventor fixed period
of time 20 years exclusive rights to this innovation.
• Solution to technical problems
• State gets access to the technology stops others from re-
inventing the wheel
• For the inventor substantial commercial returns if proven
viability

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What is a Patent ??
A Bargain
State Inventor
Fees
Technical Description
Exclusive Rights
20 years

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Citations v. novelty: “Prior art”
Paul Graham USHER
Patent No GB 2117179 A
Priority date: 18 March 1982
The BEANO
No. 2015 page 1
28 February 1981

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James Dyson

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Dyson
• Text book example of innovation yields market share
• Early 70s sea truck, ball barrow late 70s cyclonic separation
• Failed to get support – decided to go it alone
• Hoover noticed success copied patent Dyson success $5million damages
• Latest technology kitchen appliances

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Patent Hints
• No disclosure – no chats
• Work with others use Non Disclosure or Confidentiality Agreement
• Do work yourself – use online databases RESEARCH RESEARCH
RESEARCH
• Search www.ipo.gov.uk espacenet inventor, technology
• Expert help www.cipa.org.uk
• GB, Other countries or world wide
• Useful links www.ideas21.co.uk

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REGISTERED DESIGNS
• A registered design is a monopoly right which protects a design. This can
be for all or part of a product :-
• This can be lines; contours; colours; shape texture or materials of the
product or its decoration.
• The design maybe:-
• The shape of the product
• The decoration applied to a product or both eg a teapot with a specific
pattern applied to it
• It is the design itself that is protected no matter what product is named on
the application form

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Registered Designs
Design Registration No 2081155 Design Registration No 000084223-0001

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Registered Designs

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Registered Designs
Design Registration No 3301664

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Cuddle Dry
date

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Cuddle Dry
• Polly Marsh & Helen Woodbridge
• UK and European trade marks 2435436 and E6041131 registered
2006
• UK and European Design Registration 4003036 2007
• Baby Show in Milan
• Italian manufacturer – Infringement action
• Useful link www.acid.eu.com

32. © Enterprise Europe Network South West 2009
Robert Welch Designs Ltd
142922
Argos
ACID.UK.COM

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Registered Design
• Royalties for past sales of £103,302.81
• £46,750 towards costs
• A licensing deal has now been agreed
• Alice Welch MD said in January 2006 “having built our brand on a strong
design history, it is critical to us that our customers do not mistake an
inferior product/copy to be our design. Therefore we at Robert Welch take
IP very seriously and will pursue anybody who copy/pass off our designs”
• Useful link www.acid.co.uk

34. © Enterprise Europe Network South West 2009
Trade Marks
• A badge of origin, a sign which is capable of distinguishing goods or
services of one company from those of another
• Distinguished by an R in a circle. Trade marks are the only form of
intellectual Property which can last forever provided they are kept in force
• As a society we are brand aware and TMs provide the opportunity for us all
to effectively brand ourselves and to protect our brands.
• A Trade Mark is a BADGE OF ORIGIN

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What Can Be Registered
Name Shape
Domain Name Slogan
Colour Logo
Music

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Who Uses Trade Marks
• Anyone setting themselves up in business must consider brand right from
the start.
• Established business spend vast amounts of time and money on research
to identify a niche in the market before they launch a new product
• Probably one of the most important business decisions any SME will
make.
• Consumers buy branded products and it is this which they will identify

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Shapes as Registered Trade Marks

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Colours as Registered
Trade Marks- as applied to the outside of petrol filling stations
- in relation to roadside recovery services
- in relation to milk chocolate
- in relation to cat food
- in relation to baked beans
- in relation to mobile communications

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Slogans
• Just Do It
• I’m Lovin it
• Don’t leave home without it
• Always cutting prices
• Work, Rest & Play
• Once you pop, you can’t stop

40. © Enterprise Europe Network South West 2009
Richard Branson – Virgin
date

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Trade Mark Hints
• Create distinctive brand – this is your opportunity to create a brand
identity.
• Check up on the IPO database to establish if others have adopted this
brand or something similar.
• Your brand will exist in a class which is the most appropriate for your field
of business.
• Do your ground work before you set up a business mistakes are expensive
to rectify and can destroy consumer confidence.
• DIY but you may need to use the services of a Trade mark agent who can
add value to your application.

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Copyright
Caxton’s Printing Press
The Statute of Anne 1709
Scope increased to include
engravings, prints, sculptures,
dramatic works and musical
works
1956 – films, broadcasts and
typographical arrangement
Copyright, Designs and Patents
Act 1988

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What Is Copyright?
• It is a property right – gives creators ownership over what they create
• It is automatic
• No registration no forms to fill in
• Enables creators to earn money from their creativity
• Protects creations and allows creators to control how others can use them

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Who Uses Copyright?
• Authors, artists, photographers, musicians
• Gives creators ownership what they create
• Automatic – you have to prove infringement
• Prove ownership – retain original
• Musicians earn royalties

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Copyright Owners Control
• Copying works by any means including electronic storage
• Distribution of works as first sale, rental or publication
• Public performance of their works
• Broadcasting
• Adaptation or change

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Copyright in Music
• In music copyright exists in :-
• Lyrics(“literary works”)
• Music(“musical works”)
• Production(”sound recordings”)
• Additional Copyright might exist in:-
• Photo or design of CD cover
• CD booklets - descriptions

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Who Owns Copyright
• Usually the first creator or author………..
• Or their employer if produced in the ordinary course of their employment.
• In the case of a contractor he will retain ownership unless their contract
says otherwise
• Claim copyright by adding your name © date to all your works
• Provide an audit trail of your creations which you can use
• Copyright lasts for 70years after authors death.

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Who owns copyright?
Taken by the prince’s executive chef,
Carolyn Robb wearing their ‘new set of tweeds’.
Settlement later reached with Robb involving a
four figure fee for the use of the photograph and
use by the Royal Mail.

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Copyright
• ECONOMIC Rights Creators have various rights including the right to:-
• Copy their work, to perform or play their work in public.
• To broadcast their work on TV and radio, to make their work available on the internet
• To adapt their work
• MORAL rights – also protects the personality of the creator:-
• The right to be identified as the creator
• The right to object to any mis or derogatory use

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Audrey Hepburn

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Audrey Hepburn
• German postal service printed 14 million stamps
• Hepburn,s refused to grant permission under copyright to
use his mothers image - glasses & not a cigarette
• Moral rights had been affected
• German government ordered all stamps to be destroyed
• Original approval sheet retained
• Sold auction 600,00 euros profits to charity

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Dan Brown -v- Michael Baigent & Richard Leigh
40 Million Copies – March ’03
£1M+ in Legal Costs

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To Sum Up
• IP affects us all as an asset it is quite often of more commercial value than
traditional assets
• Every business owns IP in some form or fashion
• Vital that you understand the value of IP before you start a business
• IP enables you to raise funds through licensing, capital funding, loans
based on IP
• Be wary of those who make empty promises

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Bringing it all together
® Registered Trade Mark
‘TM’ unregistered
Registered Design
Copyright: labels & artwork
Patents: several dozen!

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GWE Offering
• Impartial and commercially strategic IP advice
• IP audit of all Intellectual assets
• Sign posts to other areas of expertise
• Sign post to other services UKTI, ERDF, EEN
• Aim to ensure SMEs in the South West
succeed.

57. © Enterprise Europe Network South West 2009
Contact Details
• info@enterpriseeuropesw.org.uk
• 0845 60 60 969
• www.enterpriseeuropesw.org.uk
• dave.morgan@enterpriseeuropesw.org.uk
date