Intellectual Capital Strategy


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  • 8% of patents create value Cost of patent lifetime modest filing list $300,000 to $500,000 Competitors and customers, one stopping the other enabling
  • Patent immunity from suit, or indemnification on entire field
  • Intellectual Capital Strategy

    1. 1. Finding and Using the Best Intellectual Capital Strategy to Protect your Idea IC for the Entrepreneur Reed Shick January 22, 2010
    2. 2. What is Intellectual Capital? Intangible Assets Tangible Assets Patents Trade Secrets Trademarks Documented Know how Customer Relationship Head Knowledge Business System Good Will IP IC Physical Plants Equipment Product Inventory Office Buildings Accounts Receivable Cash and monetary instruments
    3. 3. Why do I care? <ul><li>In 2005, over 80% of average company value is in IC, not tangible assets </li></ul><ul><ul><li>Some companies much higher </li></ul></ul><ul><ul><li>Start up, IC is usually pretty high value </li></ul></ul><ul><li>Your IC Strategy directly supports your business strategy </li></ul><ul><li>Patents can create or destroy value </li></ul><ul><li>Trade Secrets </li></ul><ul><ul><li>Coke recipe valued over $1,000,000,000! </li></ul></ul><ul><li>Keep your confidential information protected! </li></ul>
    4. 4. IC Strategy Elements <ul><li>Business Plan </li></ul><ul><li>External Technology </li></ul><ul><li>Competition </li></ul><ul><li>IP </li></ul><ul><li>Documentation </li></ul><ul><li>Licensing </li></ul><ul><li>Agreements </li></ul><ul><li>Freedom to Operate </li></ul>
    5. 5. Business Plan <ul><li>Your IP Strategy exists for one purpose only! </li></ul><ul><li>Protect your business plan </li></ul><ul><li>No plan = high cost or lost value IC </li></ul><ul><ul><li>All options open = $$$ </li></ul></ul><ul><ul><li>Change plan, lose IC value </li></ul></ul>
    6. 6. Competition, Cooperation <ul><li>Know what others are doing </li></ul><ul><ul><li>Technology search </li></ul></ul><ul><ul><li>Company deep drills </li></ul></ul><ul><ul><li>Government/School research </li></ul></ul><ul><li>Decide to compete or cooperate? </li></ul><ul><ul><li>Create value always </li></ul></ul><ul><ul><li>Information Sharing </li></ul></ul><ul><li>License in or out </li></ul>
    7. 7. Early Stage Paradox <ul><li>Protect your Idea VS. Share your Idea </li></ul><ul><ul><li>Public disclosure = no patent, stolen idea </li></ul></ul><ul><ul><li>Not sharing idea = no support </li></ul></ul><ul><li>Know what to share and when </li></ul><ul><ul><li>Understand essential element of your idea </li></ul></ul><ul><ul><li>Document list of public knowledge </li></ul></ul><ul><ul><ul><li>Decide what to share with CDA </li></ul></ul></ul><ul><ul><ul><li>Know what you will never share </li></ul></ul></ul>
    8. 8. Basic Protection Tools <ul><li>Patents </li></ul><ul><li>Trademarks </li></ul><ul><li>Trade Secrets </li></ul><ul><li>Publications </li></ul><ul><li>Freedom to Operate </li></ul><ul><li>Confidentially Agreements </li></ul><ul><li>Licensing </li></ul>
    9. 9. Basic IC Strategy <ul><li>Go Fast </li></ul><ul><ul><li>Rapid changing field, no patents </li></ul></ul><ul><li>New Composition of Matter </li></ul><ul><ul><li>Invent new material (future commodity) </li></ul></ul><ul><ul><li>Patent (COM + Process) or Trade Secret </li></ul></ul><ul><li>Bouquet Application of known goods or services </li></ul><ul><ul><li>Patent best mode + concept </li></ul></ul><ul><li>Already known goods or service </li></ul><ul><ul><li>Ensure Right to Practice </li></ul></ul><ul><ul><li>Robust Publications </li></ul></ul>
    10. 10. Strategic Patent Issues <ul><li>Cost vs benefit </li></ul><ul><li>Who are you stopping from what? </li></ul><ul><ul><li>What is in and out of scope? </li></ul></ul><ul><li>What is current state of the art? </li></ul><ul><li>Where will you compete? </li></ul><ul><li>How will your competitors respond? </li></ul><ul><ul><li>Devils advocate </li></ul></ul><ul><ul><li>Blocking (defensive) patents </li></ul></ul><ul><li>Invention Strategy </li></ul><ul><ul><li>What can we develop and patent? </li></ul></ul>
    11. 11. Patents <ul><li>US Patents </li></ul><ul><ul><li>20 year government granted monopoly </li></ul></ul><ul><ul><li>Negative right, can stop others from infringing </li></ul></ul><ul><ul><li>Patent an Idea </li></ul></ul><ul><ul><li>Provisional Filing - Conventional Filing </li></ul></ul><ul><li>WIPO, EP </li></ul><ul><ul><li>Needs more data, time and $$$ </li></ul></ul><ul><li>Detect Infringement </li></ul>
    12. 12. Patent Considerations <ul><li>Timing </li></ul><ul><ul><li>File soon: first coverage, may miss value </li></ul></ul><ul><ul><li>File late: better understanding, may be too late </li></ul></ul><ul><li>Important dates </li></ul><ul><ul><li>Provisional one year to complete </li></ul></ul><ul><ul><li>18 months publish </li></ul></ul><ul><ul><li>30 month rollout </li></ul></ul><ul><li>Simple patent vs complex </li></ul><ul><ul><li>Fast limited coverage </li></ul></ul><ul><ul><li>Application held open for CIP or divisional </li></ul></ul><ul><li>Patent Office Politics </li></ul>
    13. 13. Fast Patents <ul><li>Conventional Filing First! </li></ul><ul><ul><li>Cover your entire idea </li></ul></ul><ul><li>Co-file multiple or break out divisional </li></ul><ul><ul><li>Choose areas for fast grant </li></ul></ul><ul><ul><li>At first office action have phone interview with examiner </li></ul></ul><ul><li>Continue to fight for rest of application </li></ul><ul><ul><li>Keep the base case open, so you can break off divisional or CIPs </li></ul></ul>Hire, work with, communicate with and manage an attorney!
    14. 14. Low Cost Patents <ul><li>Provisional Filing </li></ul><ul><ul><li>One Year to convert </li></ul></ul><ul><ul><li>Cover your entire idea </li></ul></ul><ul><ul><li>Good for idea you are selling </li></ul></ul><ul><li>Convert to Conventional Filing </li></ul><ul><ul><li>Pare claims to heart of value </li></ul></ul><ul><ul><li>Phone interview with examiner </li></ul></ul><ul><li>Roll out to limited country list </li></ul><ul><ul><li>Cover major producer and user </li></ul></ul>Hire, work with, communicate with and manage an attorney!
    15. 15. Trademarks <ul><li> </li></ul><ul><li>Check for originality </li></ul><ul><ul><li>TESS </li></ul></ul><ul><li>Application </li></ul><ul><ul><li>Use attorney OR DIY </li></ul></ul><ul><ul><ul><li>TEAS (application) + TMEP (instruction) </li></ul></ul></ul><ul><ul><ul><li>Fill out the forms </li></ul></ul></ul>
    16. 16. Trade Secrets <ul><li>Document Trade Secrets </li></ul><ul><ul><li>Written, filed, protected </li></ul></ul><ul><ul><li>Secret is in use </li></ul></ul><ul><ul><li>Inform any leaving employees of trade secrets </li></ul></ul><ul><ul><li>Only reveal trade secret with employee contract or confidentially agreement </li></ul></ul><ul><li>Document your ideas </li></ul><ul><ul><li>Bound numbered, countersigned databook </li></ul></ul>
    17. 17. Publications <ul><li>Defensive Publications </li></ul><ul><ul><li>Destroy novelty, maintain freedom to operate </li></ul></ul><ul><ul><ul><li>, trade journals, conference proceedings </li></ul></ul></ul><ul><li>Offensive Publications </li></ul><ul><ul><li>Promote product, technology and people </li></ul></ul><ul><ul><ul><li>Refereed journal, trade journal, newspaper, conference, web page </li></ul></ul></ul>
    18. 18. Freedom To Operate <ul><li>Insure you can do what you want to do…. </li></ul><ul><li>Prior Art, Current Awareness </li></ul><ul><li>Google Patents, USPTO (MicroPatent, Aureka) </li></ul><ul><ul><li>Make sure patent is valid and in force </li></ul></ul><ul><ul><ul><li>Check grant and expiration date, fees paid </li></ul></ul></ul><ul><li>Oppositions </li></ul><ul><li>Invalidation </li></ul><ul><li>License </li></ul><ul><li>Get written legal opinion </li></ul>
    19. 19. Confidentially Agreements (CDA) <ul><li>One Way, protects one party </li></ul><ul><li>Two Ways protects both </li></ul><ul><li>Can cover Information and samples </li></ul><ul><li>Include prohibition on disclosure of either your information or joint information to patent office </li></ul><ul><li>Download from internet or your lawyer </li></ul>
    20. 20. LICENSING <ul><li>In license </li></ul><ul><ul><li>What am I getting? </li></ul></ul><ul><ul><li>Exclusivity? </li></ul></ul><ul><ul><li>How long, what cost? </li></ul></ul><ul><li>Out license </li></ul><ul><ul><li>Patents, Trademarks, Know How </li></ul></ul><ul><ul><li>Territory, Exclusivity </li></ul></ul><ul><ul><li>Sale or royalty stream </li></ul></ul>
    21. 21. Summing it all up <ul><li>Develop an IP plan to follow business plan </li></ul><ul><li>Execute on Patents, Trade Marks, Trade Secrets </li></ul><ul><li>Use best practices on agreements, FTOs </li></ul><ul><li>License technology in or out maximize value </li></ul>