ACHIEVING COMPETITIVEADVANTAGEBYPATENTING YOUR INVENTIONSPat Bhatt
About Me• Currently Founder and CEO of SkyAccountant™• Background in Engineering and Business• Specialize in:– Product Inn...
Executive Summary• Organizations depend on product managers to create a“Differential Advantage” for sustaining growth– Inn...
Types of Protection for IntellectualPropertyPat Bhatt 4CopyrightTrademarkPatent
What is a Patent?Exclusive RightAn Inventionto benefit fromA Limited TermforFull Disclosurein return forabout the inventio...
What is an Invention?New to the world(not in “Public Domain”)Not “obvious”6Pat Bhatt
Some Examples• Light bulb• Gramophone• Telephone• New Font• High-yield Corn• Cholesterol reducing compound• Internal Combu...
Types of PatentsUtility• Useful process, machine, method, or composition ofmatter.• New uses for previous inventions (in p...
Pop QuizPatentable? Utility, Design, or Plant?Airplane UtilityChewing gum UtilityPeach PlantStatue of Liberty DesignStrate...
Role of Product ManagerSuperior BrandCommunicate benefitsto customersSuperior ProductSolve customer problems innew and dif...
Innovation and Returns11Pat BhattObvious None, or negative returnSource of Functionality Return on InvestmentPublic Domain...
Patent or Trade-Secret?Disclose and file for a patent?ORMaintain as trade secret?12Pat Bhatt
Patent vs. Trade-Secret:Considerations• Is protection needed for 20 years?• Will technology last? Will business last?• Whi...
Patent TrendsPat Bhatt 14-10.0%-5.0%0.0%5.0%10.0%15.0%AxisTitleChange from Previous Year1. Mostly positive YOY trends2. Dr...
DemographicsPat Bhatt 15- 20,000 40,000 60,000 80,000 100,000Philadelphia-Camden-Wilmington, PA-NJ-…Austin-Round Rock-San ...
Risks of Not PatentingPat Bhatt 16Patent Litigation is on the Risehttp://www.pwc.com/en_US/us/forensic-services/publicatio...
Litigation BenchmarksPat Bhatt 17Chance of losing in litigation remains high. Average award = $8M
Largest Awards/SettlementsPat Bhatt 18
Case Study: Namestasia™• Problem: Text to speech unable to accuratelyrecognize or speak international names• Solution: Eng...
Start with E2E FlowAwareness amongcustomersWeb, Email, MobileTrial- Expiry key, 30-daydisable, etc.Purchase- Online purcha...
Sample Product ImplementationName Database• Purchase list• Import intodatabaseNormalize• Scrub duplicates• Find varyingspe...
Filing the PatentDetermine whatis new to theworld?Wait until furthernotice22Pat BhattDefensivePublicationTrade SecretPaten...
Product Managers as Change Agents1. Create a culture of innovation• Find a “senior exec” sponsor who is passionate about t...
What Did We Learn?• IP and patent terminology, examples• Implementing a patent strategy offerssignificant advantage– Not f...
Q&APat Bhatt 25
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Achieving Competitive Advantage By Patenting your Inventions

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Achieving Competitive Advantage By Patenting your Inventions: Talk by Pat Bhatt at SVPMA Monthly Event May 2013

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Achieving Competitive Advantage By Patenting your Inventions

  1. 1. ACHIEVING COMPETITIVEADVANTAGEBYPATENTING YOUR INVENTIONSPat Bhatt
  2. 2. About Me• Currently Founder and CEO of SkyAccountant™• Background in Engineering and Business• Specialize in:– Product Innovation– Evaluating and identifying patentable technologies– Designing and implementing patent programs• 15 patents/pending• Dad, Musician, MarathonerPat Bhatt 2
  3. 3. Executive Summary• Organizations depend on product managers to create a“Differential Advantage” for sustaining growth– Innovation is the most direct means to an advantage• Protecting innovation is overlooked by manyorganizations:– Gap in actual vs. assessed value of innovation– Lack of IP know-how and expertise• Organizations expose themselves to theft (bycompetitors) and litigation3Pat Bhatt1. What you need to know about IP and Patents2. What are the key decisions you need to make3. What can you take back to your organization
  4. 4. Types of Protection for IntellectualPropertyPat Bhatt 4CopyrightTrademarkPatent
  5. 5. What is a Patent?Exclusive RightAn Inventionto benefit fromA Limited TermforFull Disclosurein return forabout the invention and its implementation5Pat BhattA Sovereign Nationgranted byto an inventor or assignee
  6. 6. What is an Invention?New to the world(not in “Public Domain”)Not “obvious”6Pat Bhatt
  7. 7. Some Examples• Light bulb• Gramophone• Telephone• New Font• High-yield Corn• Cholesterol reducing compound• Internal Combustion EngineShock-absorber thatprevents glass breakagein iPhoneLocation-basedsearch usingmobile GPS• One-click purchase• Matrimonial matching• Sales reporting• Bank reconciliation• Optimization7Pat Bhatt
  8. 8. Types of PatentsUtility• Useful process, machine, method, or composition ofmatter.• New uses for previous inventions (in public domain)Design• Ornamental design for a manufactured item• Functionality not covered by patentPlant• Discovery or invention of a new plant (mutants, hybrids,seedlings)• Asexually reproduced (graft, cutting, or other; not fromseed or tuber) 8Pat Bhatt
  9. 9. Pop QuizPatentable? Utility, Design, or Plant?Airplane UtilityChewing gum UtilityPeach PlantStatue of Liberty DesignStrategy for tax reduction Not patentableFix round-off errors in financialstatementsUtilityA molecule that can reduceinflammationUtilityOCR check images into accountingsoftwareUtility9Pat Bhatt
  10. 10. Role of Product ManagerSuperior BrandCommunicate benefitsto customersSuperior ProductSolve customer problems innew and different waysPrimary focusProduct Manager’s Role in creating “DifferentialAdvantage”Superior ProcessDrive efficiencies inimplementation, delivery, sales,support, training, maintenanceEnd-to-End Ownership10Pat BhattThe Product Manager Must Facilitate Innovation in All Functional Areas
  11. 11. Innovation and Returns11Pat BhattObvious None, or negative returnSource of Functionality Return on InvestmentPublic Domain- Open source, academia, expiredpatents, “me too” solutions,consultingPossible short-term returnsInnovative and truly new to theworldPotential for long-term returns butcompetitors sure to move in (or worse– claim your innovation as theirs)“Prior Art” not in public domain butowned by another partyPotential lawsuit
  12. 12. Patent or Trade-Secret?Disclose and file for a patent?ORMaintain as trade secret?12Pat Bhatt
  13. 13. Patent vs. Trade-Secret:Considerations• Is protection needed for 20 years?• Will technology last? Will business last?• Which industries does this apply to?• Can competitors reverse-engineer product?• What type of products cannot be reverse-engineered?13Pat Bhatt• Are there other benefits?• R&D Tax Credits, Intangible Asset Value• Risk mitigation• Will brand-strength carry the product?• Microsoft, Intuit, Twitter, Facebook did not file patents• When will brand-strength alone not help?
  14. 14. Patent TrendsPat Bhatt 14-10.0%-5.0%0.0%5.0%10.0%15.0%AxisTitleChange from Previous Year1. Mostly positive YOY trends2. Drops correspond to recessions3. CAGR at 5%4. Applies to all industries1. Continued rapid increase inapplications and awards2. No five-year period of static ornegative growth3. Innovation far exceeds USpopulation growth4. Rest of dev world: 10%5. Developing countries: 1%0500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0001985 1990 1995 2000 2005 2010 2015Applications Vs. AwardsApplications Awards US Pop.Source: USPTO.GOV
  15. 15. DemographicsPat Bhatt 15- 20,000 40,000 60,000 80,000 100,000Philadelphia-Camden-Wilmington, PA-NJ-…Austin-Round Rock-San Marcos, TXDallas-Fort Worth-Arlington, TXDetroit-Warren-Livonia, MISan Diego-Carlsbad-San Marcos, CASeattle-Tacoma-Bellevue, WAMinneapolis-St. Paul-Bloomington, MN-WIChicago-Joliet-Naperville, IL-IN-WIBoston-Cambridge-Quincy, MA-NHLos Angeles-Long Beach-Santa Ana, CASan Francisco-Oakland-Fremont, CANew York-Northern New Jersey-Long Island,…San Jose-Sunnyvale-Santa Clara, CASilicon Valley has ledinnovation for 10+years inTotal patents granted between 2000 and 200902468101985 1990 1995 2000 2005 2010 2015Applications vs. Awards Per 1,000Applications AwardsPatents per 1,000people continues togrow
  16. 16. Risks of Not PatentingPat Bhatt 16Patent Litigation is on the Risehttp://www.pwc.com/en_US/us/forensic-services/publications/assets/2012-patent-litigation-study.pdf
  17. 17. Litigation BenchmarksPat Bhatt 17Chance of losing in litigation remains high. Average award = $8M
  18. 18. Largest Awards/SettlementsPat Bhatt 18
  19. 19. Case Study: Namestasia™• Problem: Text to speech unable to accuratelyrecognize or speak international names• Solution: Engine to recognize or generatesounds for names19Pat Bhatt
  20. 20. Start with E2E FlowAwareness amongcustomersWeb, Email, MobileTrial- Expiry key, 30-daydisable, etc.Purchase- Online purchase,third-party, in-productSupportUsageNameDatabaseFind Names &DetailsGenerateSoundMaintain• Update Names• Update Sounds• Bug fixes20Pat Bhatt
  21. 21. Sample Product ImplementationName Database• Purchase list• Import intodatabaseNormalize• Scrub duplicates• Find varyingspellings usingrules for“allophones”• Sort by usageCodify• Phonetics• Automatic fromrules• HumangeneratedGenerateSounds• Soundgeneration ideas• Concatenation• Domain-specific• DiphoneExercise:1. What is new to the world?2. What is non-obvious?21Pat Bhatt
  22. 22. Filing the PatentDetermine whatis new to theworld?Wait until furthernotice22Pat BhattDefensivePublicationTrade SecretPatentProvisionalFullSelf-PrepProfessional PrepDraft ofApplication- Review ClaimsFile ApplicationUSInternationalDisclosure
  23. 23. Product Managers as Change Agents1. Create a culture of innovation• Find a “senior exec” sponsor who is passionate about thebenefits of establishing a patent portfolio• Create buzz and excitement among employees and get theirbuy-in; give reasons to patent• Offer incentive, however small• Make sure every product release goes through a review forinventionsPat Bhatt 232. Establish an innovation pipeline within yourorganization• Encourage employees (inventors) to submit patentable ideas• Qualified team-members may review to determine if idea is newto the world and non-obvious• Recruit attorneys to help inventors submit application to USPTO3. Recognize and celebrate success• Every inventor gets credit irrespective of accept/reject byreviewers• Review successes and continually improve innovation processes
  24. 24. What Did We Learn?• IP and patent terminology, examples• Implementing a patent strategy offerssignificant advantage– Not filing for patents poses serious risks• Patent applications and grants are on the rise– So is litigation• Organizational culture is key to innovation• Product Managers hold pivotal role indelivering innovation and advantagePat Bhatt 24
  25. 25. Q&APat Bhatt 25
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