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  • less substantive examination lower filing cost full description,not claims Easier, faster, simpler and less expensive to apply usually shorter duration in some countries, limited technology, and only products (not processes) Usually, may be converted into a regular patent application.
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    1. 1. IP -- A Business Strategy For SMEs Carol sun [email_address] CEA Forum 2007 -- Walk In Faith
    2. 2. IP – A Business Strategy for SMEs <ul><li>Why Is IP Relevant To You or Your Enterprises? </li></ul><ul><li>What Is IP Asset? </li></ul><ul><li>How Dose the IP System Work? </li></ul><ul><li>– Who , When, Where and How </li></ul>Strategy… Strategy… Strategy…
    3. 3. IP – A Business Strategy for SMEs <ul><li>Why Is IP Relevant To You or Your Enterprises? </li></ul>
    4. 4. Is IP Relevant To You Or Your Enterprises Why ? It's a JUNGLE out there ! Use IP as both a Shield and Sword to integrate your technology and IP strategies into your overall business, marketing and export strategies.
    5. 5. Why Is IP Relevant To You Or Your Enterprises? <ul><li>Protection – </li></ul><ul><li> Piracy/Counterfeiting </li></ul><ul><ul><li>More than $250B and 750,000 jobs are lost per year because of IP theft . </li></ul></ul><ul><li>USPTO--IP Awareness : </li></ul><ul><li>Stopfakes “One-stop Shop” for information on IP theft http://www.uspto.gov/smallbusiness </li></ul><ul><li>Freedom To Operate (FTO): </li></ul>~ Use IP as a Shield
    6. 6. ~ Use IP as a Sword <ul><li>Acquire Loans, Raise Funds, VC, </li></ul><ul><li> M&A, IPO, Spin-off </li></ul><ul><li>Access to Technology or Form Partnership through Cross-Licensing </li></ul><ul><li>Penetrate New Market – licensing out: inaccessible regions, distribution channels </li></ul><ul><li>Plan Ahead for New Products / Services </li></ul><ul><li>Improve Your Company’s Financial </li></ul>Why Is IP Relevant To You Or Your Enterprises?
    7. 7. ~ Use IP as a Sword <ul><ul><li>Improve Your Company’s Financial </li></ul></ul><ul><ul><li>Total Worth: Brand Name, Book the value of your IP </li></ul></ul><ul><ul><li>Line Revenue: Exclusive Rights - </li></ul></ul><ul><li> enhance Market Position & Competitive Advantage </li></ul><ul><ul><li>Profit or Return On Investment: Pricing Structure </li></ul></ul><ul><ul><li>Bottom Line-- IP Monetization and Leveraging </li></ul></ul><ul><ul><ul><li>Licensing Out: Royalty Revenue </li></ul></ul></ul><ul><ul><ul><li>Assignment / Auction: </li></ul></ul></ul><ul><ul><ul><li>Donation: Tax Benefits </li></ul></ul></ul>Why Is IP Relevant To You Or Your Enterprises?
    8. 8. IP – A Business Strategy for SMEs <ul><li>Why Is IP Relevant To You or Your Enterprises? </li></ul><ul><li>What Is IP Asset? </li></ul>
    9. 9. Is IP <ul><li>Brand Name (Trade Name) </li></ul><ul><li>Trademark </li></ul><ul><li>Trade Secret (Know-how) </li></ul><ul><li>Industrial Design (Design Patent) </li></ul><ul><li>Patent </li></ul><ul><li>Copyright </li></ul><ul><li>Management Team </li></ul><ul><li>Other: Distribution Channel, Client Base, Vendor Relationship, Certification </li></ul>What ? $66B Steve Jobs
    10. 10. Top 26 Most Powerful Brands (Brand Value in $B) What ? Is IP Source: 2007 Brandz Top 100 Most Powerful Brands – MillwardBrown Optimor; Chg% ($B) Brand # Chg% ($B) Brand # -33% 18.3 Home Depot 26   2% 28.8 Bank of America 13 -26% 18.7 Intel 25   19% 31.7 Nokia 12 -10% 18.8 Cisco 24   14% 33.1 McDonald's 11 0% 19.5 NTT DoCoMo 23   11% 33.4 Toyota 10 -12% 21.1 Vodafone 22   -7% 33.6 IBM 9 2% 22.6 Disney 21   9% 33.7 Citi 8 16% 22.7 Louis Vuitton 20   -2% 36.9 Wal-Mart 7 23% 23.1 American Express 19   2% 39.2 Marlboro 6 N.A. 24.3 Wells Fargo 18   5% 41.2 China Mobile 5 13% 24.6 UPS 17   7% 44.1 Coca Cola (*) 4 55% 24.7 Apple 16   -11% 55.0 Microsoft 3 27% 25.0 HP 15   11% 61.9 GE (General Electric) 2 8% 25.8 BMW 14   77% 66.4 Google 1
    11. 11. Trademark <ul><li>a powerful branding and marketing tool </li></ul><ul><li>a crucial component of franchising agreements </li></ul><ul><li>may be the most valuable business asset for some companies </li></ul><ul><li>encourage companies to improve product quality </li></ul><ul><ul><li>Enhancing Company’s Goodwill </li></ul></ul><ul><ul><li>build a brand image and reputation </li></ul></ul><ul><ul><li>Gain Customer’s trust, loyalty, emotional Attachment </li></ul></ul>What ? A sign capable of distinguishing the goods or services produced or provided by one enterprise from those of other enterprises. <ul><ul><li>Any distinctive words, letters, numerals, drawings, pictures, shapes, colors, logotypes, labels or combinations </li></ul></ul><ul><ul><li>Maybe: Advertising slogans, single colors, three-dimensional signs (shapes of products or packaging), audible signs (sounds) or olfactory signs (smells). </li></ul></ul>Is IP
    12. 12. - Trademark – Continued ™ sm ® <ul><li>Trade Name: full name of your business, company identity </li></ul><ul><li>Trademark: a sign that distinguishes a (set of) product(s)/service(s) of your company </li></ul><ul><li>Domain name: becomes Trademark by using it in your Ad.; trademark infringement - register the trademark of another company or person as a domain name </li></ul>What ? <ul><li>Types of Trademark </li></ul><ul><li>Trade marks </li></ul><ul><li>Service marks </li></ul><ul><li>Collective marks: </li></ul><ul><li>Marks used to distinguish goods by members of an association </li></ul><ul><li>Certification marks: </li></ul><ul><li>licensing to products that meet these quality standards -100% wool </li></ul><ul><li>Well-known marks: </li></ul>Is IP
    13. 13. <ul><li>From an IP law perspective- only refer to the Ornamental or aesthetic aspects of a product, not technical or functional features </li></ul><ul><ul><ul><li>Three-dimensional features: shape </li></ul></ul></ul><ul><ul><ul><li>Two-dimensional features: ornamentation, patterns, lines or color </li></ul></ul></ul><ul><ul><ul><li>A combination of one or more such features </li></ul></ul></ul><ul><li>NOT: </li></ul><ul><ul><ul><li>No novelty , originality and/or individual character </li></ul></ul></ul><ul><ul><ul><li>technical or functional design ( other IP rights: patents, utility models or trade secrets) </li></ul></ul></ul><ul><ul><ul><li>official symbols or emblems </li></ul></ul></ul><ul><ul><ul><li>contrary to public order or morality </li></ul></ul></ul><ul><ul><ul><li>Some Countries exclude handcrafted designs : Not an article of manufacture : </li></ul></ul></ul>- Design Patent - Industrial Design What ? <ul><li>A useful marketing tool </li></ul><ul><li>A valuable Business Asset </li></ul><ul><li>Customize to make the product attractive , appealing or unique in general or to: </li></ul><ul><ul><li>Create a new niche or some specific market segments </li></ul></ul><ul><ul><li>target different age groups, cultures or social groups </li></ul></ul>Is IP
    14. 14. <ul><li>A powerful business tool with strongest legal protection </li></ul><ul><li>Strong market position and competitive advantage </li></ul><ul><li>Create positive image </li></ul><ul><li>Must be new , useful and non-obvious </li></ul><ul><li>Required to disclose the invention- Publish 18 months after filing date </li></ul><ul><li>Access to new technology or markets through cross-licensing </li></ul>- Patent What ? exclusive right granted the patent owner to prevent or stop others from making, using, offering for sale, selling or importing a product or a process , based on the patented invention, without the owner’s prior permission . Is IP A complex product : may incorporate a number of inventions that are covered by several patents, which may be owned by different patent holders
    15. 15. <ul><li>Structure of a patent application </li></ul><ul><li>Request: title, filing date , priority date, and information about inventors and applicants </li></ul><ul><li>Description : describe the invention in sufficient detail so that anyone skilled in the same technical field can reconstruct and practice the invention from the description and the drawings without putting in further inventive effort </li></ul><ul><li>Claims : determine the scope of legal protection of a patent. </li></ul><ul><li>Drawings: (if necessary) </li></ul><ul><li>Abstract: brief summary; included on the front page when the patent is published by the patent office </li></ul> Patent -- Continued What ? Is IP <ul><li>If the claims are badly drafted: </li></ul><ul><ul><ul><ul><ul><li>Your invention is not legally protected </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>You voluntarily disclose your invention after publication date </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cost of obtaining IP protection becomes a financially burden </li></ul></ul></ul></ul></ul>Blog turns 10—who is the father Priority Date : First-to-file (most countries) First-to-invent (US) * Defensive Publication New Invention : a technical solution to a technical problem; an innovative idea, a working model or prototype innovation: the translation of the invention into a marketable product/service or process Useful for people skilled in the same technical field non-obvious
    16. 16. <ul><li>Subject Matters -- NOT Patentable </li></ul><ul><li>Discoveries and scientific theories; </li></ul><ul><li>Aesthetic creations; </li></ul><ul><li>Schemes, rules and methods for performing mental acts; </li></ul><ul><li>Mere discoveries of substances as they naturally occur in the world; </li></ul><ul><li>Inventions that may affect public order, good morals or public health; </li></ul><ul><li>Diagnostic, therapeutic and surgical methods of treatment for humans or animals; </li></ul><ul><li>Plants and animals other than microorganisms, and essentially biological processes for the production of plants or animals other than non-biological and microbiological processes; and </li></ul><ul><li>Computer programs. </li></ul> Patent -- Continued What ? Is IP
    17. 17. <ul><li>Patent or Not Patent your invention ? </li></ul><ul><li>Align with your company’s business strategy? </li></ul><ul><li>Patentable? Prior Art Search, FTO Analysis </li></ul><ul><li>Cost/Benefit analysis -- Valuation -- to your business and to competitors </li></ul><ul><ul><ul><li>Market: Size, trends, region, timing </li></ul></ul></ul><ul><ul><ul><li>Competing technologies—Comparison Analysis </li></ul></ul></ul><ul><ul><ul><li>“ reverse engineer” or “design around” </li></ul></ul></ul><ul><ul><ul><li>Likely for others to invent and patent it </li></ul></ul></ul><ul><ul><ul><li>Improving an existing product or developing a new product </li></ul></ul></ul><ul><ul><ul><li>Potential licensees, partners or investors? ( take the invention to market?) </li></ul></ul></ul><ul><ul><ul><li>Cross-licensing </li></ul></ul></ul><ul><ul><ul><li>Enforcing the patent </li></ul></ul></ul><ul><li>Alternatives </li></ul><ul><ul><ul><li>Provisional Patent </li></ul></ul></ul><ul><ul><ul><li>Utility models </li></ul></ul></ul> Patent -- Continued What ? <ul><li>less substantive examination </li></ul><ul><li>lower filing cost </li></ul><ul><li>full description,not claims </li></ul><ul><li>Easier, faster, simpler and less expensive to apply </li></ul><ul><li>usually shorter duration </li></ul><ul><li>in some countries, limited technology, and only products (not processes) </li></ul><ul><li>Usually, may be converted into a regular patent application. </li></ul>Is IP
    18. 18. Copyright <ul><li>Copyright includes: </li></ul><ul><li>Economic rights : economic interests in possible commercial gain: </li></ul><ul><li>Moral rights : author’s creative integrity and reputation; </li></ul><ul><li> cannot be transferred without a written agreement </li></ul>Protect authors, composers, computer programmers, website designers and other creators against the unauthorized copying, reproducing or distributing their original literary, artistic, dramatic and other types of “ work ”. What ? <ul><ul><li>Reproduce, Distribute, Rent copies </li></ul></ul><ul><ul><li>Make translations or adaptations </li></ul></ul><ul><ul><li>Publicly perform and communicate a work to the public </li></ul></ul><ul><ul><li>Make works available </li></ul></ul><ul><ul><li>authorship right or paternity right : The right to be named as the author of the work </li></ul></ul><ul><ul><li>The right to protect the integrity of the work . </li></ul></ul>Is IP
    19. 19. Copyright -- Continued <ul><li>Copyright protects the following: </li></ul><ul><li>Both published and unpublished works; </li></ul><ul><li>both on paper and in digital form </li></ul><ul><li>Literary works : book, magazine, product manual, instruction, packaging </li></ul><ul><li>Musical works or compositions, including compilations; </li></ul><ul><li>Dramatic works: plays, sales training programs captured on videocassettes </li></ul><ul><li>Artistic works : cartoons, drawings, paintings, sculptures and computer artwork </li></ul><ul><li>Photographic works </li></ul><ul><li>Computer programs and software </li></ul><ul><li>Databases : with sufficient level of originality in its structure: </li></ul><ul><li>Cinematographic works: motion pictures, television shows, and webcasts; </li></ul><ul><li>Multimedia products </li></ul><ul><li>Maps, globes, charts, diagrams, plans and technical drawings; </li></ul><ul><li>Advertisements, commercial prints and labels; </li></ul><ul><li>some countries: works of applied art: ex: artistic jewelry, wallpaper and carpets </li></ul>What ? <ul><li>Does Not Protect These: </li></ul><ul><li>Ideas or concepts ; facts or information </li></ul><ul><li>Names, titles, slogans and other short phrases unless they are highly creative </li></ul><ul><li>Official government works </li></ul><ul><li>Works of applied art </li></ul>Is IP
    20. 20. Copyright -- Continued <ul><li>Protect Computer Software: </li></ul><ul><li>Copyright : author’s original expression in a computer program as a ‘literary work.’ </li></ul><ul><li>Patents : functional elements of (that is, inventions relating to) computer programs </li></ul><ul><li>Trade Secret : common commercial practice to keep Source Code as trade secret and license Object Codes </li></ul><ul><li>Industrial Designs: certain features created by computer programs, such as icons </li></ul><ul><li>Contract law (super-copyright): agreement addressed legal protection complementing or possibly even substituting for IP rights </li></ul><ul><li>Criminal Law : illegally access to information, technologies, including software </li></ul><ul><li>Technology: lockout programs and use of encryption methods </li></ul>What ? <ul><li>For Computer Software , copyright does not protect: </li></ul><ul><li>the underlying functions, ideas, procedures, processes, logics, algorithms , or system itself. </li></ul><ul><li>methods of operation (e.g., menu commands), GUI, or icon it generates </li></ul>Is IP Does SW even Patentable?
    21. 21. Copyright -- Continued <ul><li>Publishing rights: include the right to record, perform, duplicate, and include the work in a new or different work, sometimes called a derivative work. </li></ul><ul><li>Public performance right </li></ul><ul><li>Mechanical right : the right to record, reproduce and distribute </li></ul><ul><li>Synchronization (“synch”) right : to record a musical composition in synchronization with the frames or pictures in an audiovisual production, such as a motion picture, television program, television commercial, or video production </li></ul><ul><li>Print right : print and sell single song and multiple songs or copies of sheet music of musical compositions </li></ul><ul><li>Master recording rights : required to reproduce and distribute </li></ul><ul><li>Digital Rights Management” (DRM) tools </li></ul>What ? Copyright : protects the works of the authors themselves Related Right or Neighboring Rite: are granted to certain categories of people like performers, phonogram producers and broadcasters or businesses that play an important role in performing, communicating or disseminating works to the public that may or may not be protected by copyright Music/Movie involves layers of copyright and related rights and a range of rights owners/administrators . However, in most cases a license can be obtained from one collective management organization Is IP
    22. 22. Copyright -- Continued <ul><li>How to protect your work in Electronic or Digital form ? </li></ul><ul><li>mouse-click contract” (also called “ Click-Wrap License ” ) </li></ul><ul><li>Shrink-Wrap License for SW </li></ul><ul><li>Digital Rights Management: ( DRM ) Tools and system </li></ul><ul><li>“ Rights Management Information” </li></ul><ul><li>“ Technological Protection Measures” ( TPM s): control (permit or deny) access or use of the digital works </li></ul><ul><li>Label the digital content: ex:May be reproduc ed for non-commercial purposes only.” </li></ul><ul><li>Digital Object Identifier ( DOI ): digital tags/names assigned to a work in digital form for use on the Internet. </li></ul><ul><li>Time Stamp: important in proving copyright infringement </li></ul><ul><li>Digital watermarks </li></ul><ul><li>Encryption </li></ul><ul><li>Access Control or Conditional Access System </li></ul><ul><li>Releasing only versions of lower quality </li></ul>What ? Is IP
    23. 23. Copyright -- Continued <ul><li>How to prove you are the owner of the copyright </li></ul><ul><li>Deposit and/or register your works for a fee to a national/regional copyright office </li></ul><ul><li>Deposit a copy of your work with a bank or lawyer . </li></ul><ul><li>Mail a copy of your work: keep the stamped, unopened envelop </li></ul><ul><li>Mark published work with a copyright notice , and possible ISBN, ISRC, ISMN, ISWC, ISAN </li></ul>What ? <ul><li>authorship : the person who created the work; Moral rights always belong to the individual creator unless waived in a written agreement </li></ul><ul><li>ownership: the person who has the exclusive rights to exploit the work; </li></ul><ul><li>Joint works </li></ul><ul><li>Collective works </li></ul><ul><li>Derivative works (exclusive right of the copyright owner) </li></ul>Is IP
    24. 24. IP – A Business Strategy for SMEs <ul><li>Why Is IP Relevant To You or Your Enterprises? </li></ul><ul><li>What Is IP Asset? </li></ul><ul><li>How Does the IP System Work? </li></ul><ul><li>– Who , When, Where and How </li></ul>
    25. 25. How Does IP System Work? unfair business behavior of competitors Unfair Competition misappropriation (obtaining, disclosing) Confidential business information Trade Secret absolute right: using, reproducing, distributing, performing, broadcasting, printing , etc works original form of expression of a work Copyright Related Right making, using, offering for sale, selling or importing a product or a process based on the patented invention new,useful,non-obvious- invention used in a process, product, service or business method Patent direct or indirect reproducing product ornamental or aesthetic features of a product Design Patent Industrial Design marketing identical or similar products under the same or a confusingly similar mark sign to distinguish a product/service Trademark infringe What Is Protected legal Protection
    26. 26. How Does IP System Work? -Continued Optional: Tm, Sm Optional © Automatically upon Creation Until it is been disclosed/ publicized/ reverse engineered immediately N / A only state law Trade Secret Economic right: life of the author and 50~70 years after his death. Moral rights: perpetual. Related right: 20~50 years immediately www.copyright.gov N / A Copyrigth / Related Right 20 years a few mons-a few yrs Avg: 2-5yrs Yes USPTO: www.uspto.gov N / A Patent 10-25 yrs 14 yrs in US 6-12 mons or longer Yes USPTO: www.uspto.gov N / A Design Patent Industrial Design 10 yrs; Renew to indefinitely 3 mons-2 yrs after registered ® USPTO: www.uspto.gov State Trademark Office Trademark Federal State Duration Time Registration/Apply Legal Means of Protection
    27. 27. How Does IP System Work? -Continued       Trade Secret government creator; based on agreement Copyrigth / Related Right   Contractor Empyee: Inventor Empyr: Owner Patent government Empyr Empyr Design Patent Industrial Design       Trademark work created for government Commissioned / contracted Employee- works made for hire Who Owns the Right Legal Means of Protection Moral Rt: creator Ecnomic Rt: Empyr;
    28. 28. IP – A Business Strategy for SMEs <ul><li>Why Is IP Relevant To You or Your Enterprises? </li></ul><ul><li>What Is IP Asset? </li></ul><ul><li>How Dose the IP System Work? </li></ul><ul><li>– Who , When and Where </li></ul>Strategy… Strategy… Strategy…
    29. 29. <ul><li>invention, design, work </li></ul><ul><li>Keep it Confidential or Publicize it? </li></ul><ul><li>Patentable? (Patent) Meet the Requirements? </li></ul><ul><li>FTO, Prior Art Search, Trademark Search – </li></ul><ul><li>Patent Document </li></ul><ul><li>Cost/Benefit Analysis: Valuation </li></ul><ul><li>Filing: Provision? Aboard? Grace Period </li></ul><ul><li>Commercializing: Licensing, cross-licensing </li></ul><ul><li> assignment, donation </li></ul><ul><li>Enforcing – Your responsibility </li></ul>IP Process -- Strategy
    30. 30. IP – A Business Strategy for SMEs Business Strategy IP Strategy IP Creation IP Managing IP Leveraging Marketing Strategy Export Strategy x Strategy x Strategy I Strategy x Strategy x Strategy x Strategy U Strategy
    31. 31. IP – A Business Strategy for SMEs <ul><li>Use IP as both a Shield and Sword </li></ul><ul><li>Integrate IP strategy into your overall business, marketing and exporting strategy </li></ul><ul><li>Audit Your IP Strategy with Your Business Strategy Periodically </li></ul><ul><li>Obtain Support and Commitment from the Leadership Team </li></ul><ul><li>and Educate Your Staff – IP Awareness culture </li></ul><ul><li>Keep Confidential Information confidential </li></ul><ul><li>NDA form, Demo, Trade Show, Publication, JV </li></ul><ul><li>Practice Contract Law Whenever You CAN to avoid confusions </li></ul><ul><li>Use Professional Service – IP system, Patent system in particular is complex- Do the right thing right </li></ul>Strategy… Strategy… Strategy… Starting Today …