Case Srudy: Intellectual Property Rights In Digital Camera


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Case Srudy: Intellectual Property Rights In Digital Camera

  1. 1. Intellectual Property Right in Digital Camera IPR Movie 1m32 Lecture by: 23 January 2010 IMT MM-Biztel 1
  2. 2. Spotlight is on knowledge in today’s economy • Knowledge, Weightless, Information, Digital or Service Economy • Factors of production: Land, Labor, Capital, Intangibles (Knowledge) • Knowledge as useful Information (or Service) • Information as a “Public Good” • Information as Property
  3. 3. Centrality of Knowledge KNOWLEDGE underpins PERFORMANCE
  4. 4. Knowledge Capital Knowledge Capital Labour Labour Pre -industrial era Industrial era Capital The « knowledge economy » Knowledge Labour
  5. 5. US COMPANIES’ INTANGIBLE ASSETS AS % OF TOTAL ASSETS Intangible assets Physical assets 1982 2000
  6. 6. Market-oriented Economy • Playing Field: Unfair competition; free riding • National Legal Systems: Diversity (bilateral/regional/ international treaties or agreements) • Adding Value : Meeting or exceeding market needs or expectations • Market research: Consumers’ needs, competing products or substitutes, gaps • Technological innovation as an element of marketing
  7. 7. Challenges in Today’s Economy • Government regulation, market participants and consumers; globalization, deregulation, quotas, tariffs, subsidies, market access or non-tariff barriers • Supply exceeds demand; fickle demand, risk, lean retailing • Trust and relationships: Consistency vs. Innovation • Changing needs: need for creativity and/or innovation • Mass production, custom made, personalization, co- creation/designing • Supply, demand, production, value chain or network • Innovation/creativity: Customer, supplier, consultant, partner, competitor, standards , product liability, risk sharing, ownership
  8. 8. Competition and Cooperation in Today’s Economy • Property: Right to Exclude/use/enjoy • Share/leverage • Physical vs. Intellectual Property • One to one vs. one to many • Physical manifestation/link to carrier/medium or fixation • Nature of competing/substitute products: Functional, equivalent, class, set, related goods
  9. 9. What is intellectual property? • An exclusive • property right • in intangible products • of investment, creative intellect, or labor • owned by the creator or by someone who purchased it from the creator 23 January 2010 IMT MM-Biztel 9
  10. 10. Why does it exist? • Incentive to create – Ability to recoup investment – Control over how a creation is used – Recognition for unique ideas • But without unduly restricting competition – Limited duration – Some public uses are still allowed – Disclosure encouraged so others can improve on the idea 23 January 2010 IMT MM-Biztel 10
  11. 11. Intellectual Property: A Tool for Development “In the age of the knowledge economy, the efficient and creative use of knowledge is a key determinant of international competitiveness, wealth creation and improved social welfare.” “An effective intellectual property (IP) system embedded within a national strategy which anchors IP considerations firmly within the policy-making process will help a nation to promote and protect its intellectual assets, thereby driving economic growth and wealth creation.” Kamil Idris 23 January 2010 WIPO Director General IMT MM-Biztel 11
  12. 12. Types of IP Rights • Trade Secrets • Copyright and Related Rights • Industrial Designs • Trademarks (Brands) • Geographical Indications • Utility Models and Patents • New Varieties of Plants • Unfair Competition 23 January 2010 IMT MM-Biztel 12
  13. 13. The Needs of Each Stage •Recruitment •Business •Corporate and Development Secretarial •A & P $ •Financial •Market Access •Training •PR and Marketing •Networking •Business Expansion •Business Plan Development •Prototype/ POC •International support and •Project Management Mkt. Access •Business Premises Start-Up •Diversification strategies •Project Management and support •Management Training •Recruitment Seed •Training and Incentives Idea / Concept Time IP Management Needed in all stages 23 January 2010 IMT MM-Biztel 13
  14. 14. The Challenges to the IP System • Expand, adapt, fine tune, harmonize • New categories (Sui generis systems) • National, regional or global • National treatment vs. reciprocity • Digital environment and E-commerce • Legal jurisdiction, applicable laws • Fit for purpose: Clear, fast, cheap and effective • Simple and cogent
  15. 15. Basic Message 1 IP adds value at every stage of the value chain from creative/innovative idea to putting a new, better, and cheaper, product/service on the market: Patents / Trademarks/ GIs Utility Models/Trade secrets Ind. Designs/Patents/Copyright All IP Rights Patents / Industrial Designs/ Utility models Trademarks/GIs Invention Commercialization Marketing Financing Product Design Exporting Literary / artistic Licensing creation Copyright/Related Rights 23 January 2010 IMT MM-Biztel All IP Rights 15
  16. 16. Basic Message 2 • IP Strategy should be an integral part of the overall business strategy of an Enterprise • The IP strategy of an Enterprise is influenced by its creative/innovative capacity, financial resources, field of technology, competitive environment, etc. • BUT: Ignoring the IP system altogether is in itself an IP strategy, which may eventually prove very costly or even fatal 23 January 2010 IMT MM-Biztel 16
  17. 17. Basic Message 3 (More for Less) • Own Use • Licensing • Franchising • Merchandising (Mickey Mouse, Hello Kitty) 23 January 2010 IMT MM-Biztel 17
  18. 18. Camera Industry Analysis • Fierce competition between camera makers Market Share in the Digital Camera Industry, 2006 Canon 18,70% Sony 31,50% Kodak Olympas 15,80% Samsung 7,60% Nikon 10% 7,80% Other 8,60%
  19. 19. Camera Industry Analysis The Tendency of Digital Camera Industry: • The designs of the digital cameras become more classic and stylish. • A higher level of face detection technology and intelligent scene recognition technology make shooting easier. • Intellectual Property Rights become matters as many patents and licensing involve.
  20. 20. Camera Data Structure & IPR Elements • Image Creation metadata – Camera capture, scanner capture, image source, creator, <capture settings>, <scanner capture>, <captured item> • Content Description metadata – Caption, capture time, location, person, thing, organization, event, audio, di ctionary reference • Metadata History metadata – Processing summary, processing hints (cropped, transformed, retouched) • Intellectual Property Rights metadata – Names, description, dates, exploitation, identification, con tact point, IPR history To Have and To Hold: Metadata and Institutional Repositories, 18 May 2004
  21. 21. Challenges of Camera Maker • The continuous price reduction - the brand image - lead to a shortage of capital • The image of is too complicated - In India, SPE - In Japan, an electronic company - In U.S., an Entertainment company
  22. 22. Competition Analysis Canon • The number one company in the digital camera industry • Strong technical strength and marketing ability • Produces the best cameras for shooting portraits • Not as fashionable as Sony’s • Relies on its brand recognition
  23. 23. Competition Analysis Nikon • Top-ranking SLR digital cameras • High-end consumer digital camera market • Not well accepted by low-end market users • No self-produced CCD (Charge-coupled device, an electronic light sensor used in digital cameras )
  24. 24. Competitor Analysis Kodak • Wrong decision in 2006 • Boring color • Appearances are less prominent • Quit the digital camera industry on August 1, 2006
  25. 25. Competitor Analysis Samsung • Slim appearance and colorful design • Strong capability in electronic technology • Shortage of core technologies
  26. 26. Competition Analysis Panasonic • The leader of electronic products • Develops its own CCD sensor device • Weak fundamental of optical technology • Higher prices
  27. 27. Camera Maker SWOT Analysis (Sony Case) Strengths • Brand image: new and high quality, CCDs • Global operations: 204 countries. Sales(2007): US(26.9%), Japan(25.6%),Europe(26.6%). Global producing ability: Japan(50%). • Professional design and R&D team. Survey: 30% customers; Technology
  28. 28. Camera Maker SWOT Analysis (Sony Case) Weaknesses • SG&A expenses. Operating profits 69.3% (2007) • Legal proceedings. In 2004, Eastman Kodak VS Sony for 10 patents. • Not easy to operate. Survey: 24% customers.
  29. 29. Camera Maker SWOT Analysis (Sony Case) Opportunities • Business reorganization: $1.2 billion and $0.3 billion in 2006 and 2007. • Partnership with FIFA (Federation International de Football Association), 2007,8,40,2
  30. 30. Camera Maker SWOT Analysis (Sony Case) Threats • Integration of alliances and joint ventures. S-LCD(Samsung) 2004. SONY BMG (Bertelsmann) Cultures and Interest Conflicts. • Intellectual Property Rights • Raw material prices. $350 (2008). • Intense competition. Patent Wars 4m32