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IP Management – Towards an Integrative Approach
James G. Conley
Kellogg School of Management,
Northwestern University, USA...
• Elements of Value Proposition
• Integration – Central Aspects
• The Value Articulation Framework
• The Dolby Case
• Case...
Expression
Brand
Function
Story
Source
Benefit
Elements of Value Proposition
3
Expression
Brand
Function
Copyright
Mark, Dress
Patent, TS
IP Regimes Reconciled
4
Brand
(Trademark)
Function
(Patent/Secret)
Story about
Benefit
Source of
Benefit
Technical
Benefit
Expression
(Copyright)
...
Integration – Central Aspects
• Understanding that IP includes a breadth of rights regimes such as patents,
copyrights, tr...
Value
Time
Patent Value Trademark Value
Adopted from Keith Bockus, 2000
!!The dreaded “Shark Fin”
Curve!!
© James G. Conle...
Value Translation
Extend to New / Emergent Markets
Expand in Existing Markets
Value Transportation
time
Initial
limited li...
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
Source of Benefit
Copyright© Expression Original Expressi...
Case Study: Dolby Laboratories
From:
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
10
To:
Case Study: Dolby Laboratories
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
11
The Ray Story:
Case Study: Dolby Laboratories
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
12
Dolby Laboratories
1973: 2nd B-Type Patent
US3846719
1980: 1st C-Type Patent US4490691
0
100
200
300
400 1965
1975
1985
19...
1973: 2nd B-Type Patent
US3846719
1980: 1st C-Type Patent US4490691
Dolby Laboratories
0
100
200
300
400 1965
1975
1985
19...
1973: 2nd B-Type Patent
US3846719
1980: 1st C-Type Patent US4490691
Dolby Laboratories
0
100
200
300
400 1965
1975
1985
19...
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
Company Product Value Transference Value Translation Valu...
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
Discussion
The Value Articulation Framework…
• … is compl...
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
Discussion
Integration of IP
• Integrated view using mult...
© James G. Conley and Peter M. Bican, 2013.
All rights reserved.
Discussion
Further Research Questions
• How to measure th...
Thank you very much!
Questions?
j-conleya@kellogg.northwestern.edu
peter.bican@whu.edu
20
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Conley & Bican Value Articulation

James Conley and Peter Bican share the floor to explain the idea of value articulation, which they describe in detail in their piece with Holger Ernst. With the framework, the management of IP rights is explained within marketing constructs such as the unique selling proposition. The a

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Conley & Bican Value Articulation

  1. 1. IP Management – Towards an Integrative Approach James G. Conley Kellogg School of Management, Northwestern University, USA j-conleya@kellogg.northwestern.edu Peter M. Bican WHU – Otto Beisheim School of Management, Germany peter.bican@whu.edu Presented at the 2013 AoM PDW “Intellectual Property Management and Innovation Appropriation: Towards a New Research Agenda,” Lake Buena Vista, FL August 10, 2013
  2. 2. • Elements of Value Proposition • Integration – Central Aspects • The Value Articulation Framework • The Dolby Case • Case Summaries • Discussion Today’s Agenda 2
  3. 3. Expression Brand Function Story Source Benefit Elements of Value Proposition 3
  4. 4. Expression Brand Function Copyright Mark, Dress Patent, TS IP Regimes Reconciled 4
  5. 5. Brand (Trademark) Function (Patent/Secret) Story about Benefit Source of Benefit Technical Benefit Expression (Copyright) Unique Selling Proposition Rosser Reeves circa 1960 IP Atomic Model and the Unique Selling Proposition 5
  6. 6. Integration – Central Aspects • Understanding that IP includes a breadth of rights regimes such as patents, copyrights, trademarks, trade dress, registered designs etc. • Unique Characteristics of each IP regime such as lifetime of protection, the requirements for ownership, exclusivity etc. Patents Copyrights Trade Marks Trade Names 17-20 years 70-100 years Indefinite Life of Property Protection Functionality No FunctionalityHigh Functionality © James G. Conley and Peter M. Bican, 2013. All rights reserved. 6
  7. 7. Value Time Patent Value Trademark Value Adopted from Keith Bockus, 2000 !!The dreaded “Shark Fin” Curve!! © James G. Conley and Peter M. Bican, 2013. All rights reserved. Value Transference: Dynamics of Value Transference 7
  8. 8. Value Translation Extend to New / Emergent Markets Expand in Existing Markets Value Transportation time Initial limited life patent or copyright Options to leverage IPRs to expand current market share and/or facilitate entry to new markets The Value Articulation Framework (Conley, Bican and Ernst, 2013*) © James G. Conley and Peter M. Bican, 2013. All rights reserved. *James G. Conley, Peter M. Bican & Holger Ernst (2013). Value Articulation - A Framework for the Strategic Management of Intellectual Property. California Management Review 55 (4): 102-120.
  9. 9. © James G. Conley and Peter M. Bican, 2013. All rights reserved. Source of Benefit Copyright© Expression Original Expression Scalable Media Content Derivative Use in New Markets Story about Benefit Trademark® Source Identifier Branded Offering Brand Expansion Category Extension Technical Benefit IP Right Uniqueness Value Transference Value Translation Value Transportation Impact / USP Patent Function Differentiated Function Incremental Product Attributes Technology Platform Projection to New Markets The Centrality of IP within the Value Articulation Framework (Conley, Bican and Ernst, 2013) 9
  10. 10. Case Study: Dolby Laboratories From: © James G. Conley and Peter M. Bican, 2013. All rights reserved. 10
  11. 11. To: Case Study: Dolby Laboratories © James G. Conley and Peter M. Bican, 2013. All rights reserved. 11
  12. 12. The Ray Story: Case Study: Dolby Laboratories © James G. Conley and Peter M. Bican, 2013. All rights reserved. 12
  13. 13. Dolby Laboratories 1973: 2nd B-Type Patent US3846719 1980: 1st C-Type Patent US4490691 0 100 200 300 400 1965 1975 1985 1995 2005 Global Patent Appl. as to Priority Date 1965: A-Type Patent 1968: 1st B-Type Patent US3631365 1966: & & DOLBY System: 009 Electrical + scient. apparatus 1970: & DOLBY: 016 Paper goods and printed matter 1968: Dolby B Type for Consumer Market: exclusive License to KLH 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film SoundMarket 1966: Dolby A-Type Noise Reduction for Professional Studio Recording Value Transportation 1970 Dolby move into Film SoundMarket Patent Appl. © James G. Conley and Peter M. Bican, 2013. All rights reserved. 13
  14. 14. 1973: 2nd B-Type Patent US3846719 1980: 1st C-Type Patent US4490691 Dolby Laboratories 0 100 200 300 400 1965 1975 1985 1995 2005 Global Patent Appl. as to Priority Date Patent Appl. 1965: A-Type Patent 1968: 1st B-Type Patent US3631365 1966: & & DOLBY System: 009 Electrical + scient. apparatus 1970: & DOLBY: 016 Paper goods and printed matter 1995: Dolby Digital: Move to Consumer “Home” Market 1968: Dolby B Type for Consumer Market: exclusive License to KLH 1982: Dolby Surround- Stereo for Consumer Market 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film SoundMarket 1966: Dolby A-Type Noise Reduction for Professional Studio Recording 1992: Move to Digital: Batman Returns: 1st movie with Dolby SR-D (now: Dolby Digital) Prof. Film Sound 1997: Dolby Digital mandatory for DVD Prof. Recording 2000: Dolby Headphones for Consumer Market Value Transportation Value Translation Total Revenue in ‘000 USD 1970 Dolby move into Film SoundMarket D V D D V D 0 200 400 600 800 1,000 2009: 009 Computer software platform 038 Providing online telecommunications services, 041 Entertainment services …for interactive online gaming 2003: Acquisition of Lake Tech. Ltd: developer of Dolby Headphone technology 1978: 009 Electrical + scient. apparatus 1985: DOLBY SURROUND: 009 Electrical + scient. apparatus 2007: Dolby 3D Digital Cinem a Prof. Film Sound 1992: 009 Electrical + scient. apparatus 1995: 009 Electrical + scient. apparatus 1999: 009 Electrical& scient. apparatus Nr. of Patents featuring “Digital” © James G. Conley and Peter M. Bican, 2013. All rights reserved. 14
  15. 15. 1973: 2nd B-Type Patent US3846719 1980: 1st C-Type Patent US4490691 Dolby Laboratories 0 100 200 300 400 1965 1975 1985 1995 2005 Global Patent Appl. as to Priority Date Patent Appl. 1965: A-Type Patent 1968: 1st B-Type Patent US3631365 1966: & & DOLBY System: 009 Electrical + scient. apparatus 1970: & DOLBY: 016 Paper goods and printed matter 1995: Dolby Digital: Move to Consumer “Home” Market 1968: Dolby B Type for Consumer Market: exclusive License to KLH 1982: Dolby Surround- Stereo for Consumer Market 1977: Star Wars breakthrough: Dolby Stereo for Prof. Film SoundMarket 1966: Dolby A-Type Noise Reduction for Professional Studio Recording 1992: Move to Digital: Batman Returns: 1st movie with Dolby SR-D (now: Dolby Digital) Prof. Film Sound 1997: Dolby Digital mandatory for DVD Prof. Recording 2000: Dolby Headphones for Consumer Market Value Transportation Value Translation Total Revenue in ‘000 USD 1970 Dolby move into Film SoundMarket D V D D V D 1978: 009 Electrical + scient. apparatus 1985: DOLBY SURROUND: 009 Electrical + scient. apparatus 2007: Dolby 3D Digital Cinem a Prof. Film Sound 1992: 009 Electrical + scient. apparatus 1995: 009 Electrical + scient. apparatus 1999: 009 Electrical& scient. apparatus Nr. of Patents featuring “Digital”40,000100,000 120,000 161,868 289,041 391,542 482,028 719,503 922,713 955,505 Explicit Licensing Revenue: 2002 till 2011 Total Revenue in ‘000 USD © James G. Conley and Peter M. Bican, 2013. All rights reserved. 15
  16. 16. © James G. Conley and Peter M. Bican, 2013. All rights reserved. Company Product Value Transference Value Translation Value Transportation Business Impact AstraZeneca Pharmaceutical preparations for GERD and heartburn, PPI Patent on Omeprazole molecule, trademarked as the Rx Purple Pill Prilosec Prilosec to Nexium, new patent on compound; same purple color on pill but w/ gold racing stripe accents Entering the OTC market by cooperating with P&G building on FDA exclusivity (accrued from the patents on omeprazole) Sustained top line revenue (approx. $6 billion/year) in PPI category for AZ, even 10 years past patent expiry & generic entry Nespresso Encapsulated coffe&machines; portioned coffee segment Patents on capsule and machines under the Nespresso home enjoyment TM Advancing into coffee machines accessories under the Nespresso TM Extending the coffee technology platform into out-of-home coffee experience via hospitality/office Substantial growth to more than CHF 3 billion in 2011 Dolby Lab. Professional and Consumer Sound enhancement A-type noise reduction patent trademarked w/ DD and "Dolby" Noise Reduction Film Sound to Stereo Film Sound Technique, protected by proprietary patents Cooperate with movie studios to extend sound enhancement from the "Analogue World" to the (w/ addtional) patents protected “Dolby Digital” World Sustained revenue growth between 2001 and 2011 (10X) Monsanto Herbicides and Seeds Patent on Glyphosate - an agricultural herbicide - to RoundUp TM Use new patents/packaging to move RoundUp to all market segments, professionals or green thumb garden hobbyists Combine powerful RoundUp TM w/ patented advances in biogenetic engineering & strategic M&A to market “RoundUp Ready” branded, herbicide resistant seeds Transformed itself from a herbicide manufacturer to the high yield seed firm at the heart of global agribusiness Apple Digital Music, Smartphone iTunes utility patents/iPod design patents to iPod TM & product marks Upgrade software utility and expand product design (both involving new patents) to modified products e.g. Mini, Nano Using powerful i**** TM, new developed patents and dominant design capabilities (patent protected) to contract into the mobile phone space Sustained top line revenue growth since 2001 over all segments from iPod to iTunes to iPhone to iPad to iCloud etc. Disney Entertainment Media Copyright on stories & characters to trademarks on characters Advancing derivative copyrighted works within the media space Contract the Disney copyrighted characters and TMs into new markets like merchandise, health care products and consumer durables etc. Disney Consumer Products generates $28.6 billion in licensed product sales annually (Nr.1 in the world), compared to global box office sales of $31.8 billion (2010). Value Articulation - Case Summaries Selected Case Studies (Conley, Bican and Ernst, 2013) 16
  17. 17. © James G. Conley and Peter M. Bican, 2013. All rights reserved. Discussion The Value Articulation Framework… • … is complementary to other contemporary innovation strategy frameworks such as the ‘blue/red ocean’ and the ‘three horizon’ frameworks,* but… • ... differs in that the role of all the IP regimes and their utility as management levers is central to the articulation construct. • … advances a fresh and integrating perspective about pursuing and leveraging intangibles such as IP to realize sustainable competitive advantage in almost any market environment and or resource based disposition. * See with W. C. Kim and R. Mauborgne, "Blue Ocean Strategy: From Theory to Practice," California Management Review, 47/3 (Spring 2005): 105-121; Mehrdad Baghai, Steve Coley, and David White, The Alchemy of Growth (New York, NY: Perseus Publishing, 2000). 17
  18. 18. © James G. Conley and Peter M. Bican, 2013. All rights reserved. Discussion Integration of IP • Integrated view using multiple IP regimes increases firms’ competitive advantage. • Trademarks could serve as a good indicator, for example illustrating the process of value transference, translation and transportation. • Access to sophisticated data has improved, for example patent and TM data at the USPTO -> further avenues for empirically testing the integration of IP and its impact • Implementation of a cross-functional management approach: IP needs to be plucked from the jaws of engineers and lawyers. • Value Articulation Strategy work requires input from top management (Top-Down?). • Create a culture of IP awareness and IP-related matters being well- integrated into the firm’s processes. 18
  19. 19. © James G. Conley and Peter M. Bican, 2013. All rights reserved. Discussion Further Research Questions • How to measure the interaction of integrative activity? • What are the interdependencies (if any) of proactive patent/TM maneuvers? • What hypotheses can be drawn from the framework and its elements, and how could those best be empirically tested? • On what level could integration be tested? Firm, product, individual/team (cross-functional) level? • Generalizability of theses tests? 19
  20. 20. Thank you very much! Questions? j-conleya@kellogg.northwestern.edu peter.bican@whu.edu 20

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