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Intellectual Property Right in
                   Digital Camera
                               IPR Movie
                                 1m32




                             Lecture by:
                     Djadja.Sardjana@gmail.com
                  http://www.slideshare.net/djadja
23 January 2010                IMT MM-Biztel         1
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
Centrality of Knowledge


       KNOWLEDGE
        underpins
      PERFORMANCE
Knowledge        Capital

                           Knowledge

                                                 Capital



Labour
                             Labour
Pre -industrial era                        Industrial era



                                Capital

                                                The « knowledge
                                                  economy »
  Knowledge
                                  Labour
US COMPANIES’ INTANGIBLE
       ASSETS AS % OF TOTAL ASSETS




                          Intangible assets
                          Physical assets



1982       2000
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
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
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
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
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
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
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
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
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
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
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
Basic Message 3 (More for Less)

     • Own Use
     • Licensing
     • Franchising
     • Merchandising (Mickey
       Mouse, Hello Kitty)
23 January 2010   IMT MM-Biztel        17
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%
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.
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
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
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
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 )
Competitor Analysis


  Kodak


  •   Wrong decision in 2006


  •   Boring color


  •   Appearances are less
      prominent


  •   Quit the digital camera
      industry on August
      1, 2006
Competitor Analysis


   Samsung


      •   Slim appearance and colorful design


      •   Strong capability in electronic technology




                                                  •    Shortage of core technologies
Competition Analysis
Panasonic


•   The leader of electronic products


•   Develops its own CCD sensor device



                       •    Weak fundamental of optical technology



                                        •   Higher prices
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
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.
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
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

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Intellectual Property Right in Digital Camera Lecture

  • 1. Intellectual Property Right in Digital Camera IPR Movie 1m32 Lecture by: Djadja.Sardjana@gmail.com http://www.slideshare.net/djadja 23 January 2010 IMT MM-Biztel 1
  • 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. Centrality of Knowledge KNOWLEDGE underpins PERFORMANCE
  • 4. Knowledge Capital Knowledge Capital Labour Labour Pre -industrial era Industrial era Capital The « knowledge economy » Knowledge Labour
  • 5. US COMPANIES’ INTANGIBLE ASSETS AS % OF TOTAL ASSETS Intangible assets Physical assets 1982 2000
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Basic Message 3 (More for Less) • Own Use • Licensing • Franchising • Merchandising (Mickey Mouse, Hello Kitty) 23 January 2010 IMT MM-Biztel 17
  • 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. 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. 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. 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. 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. 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. Competitor Analysis Kodak • Wrong decision in 2006 • Boring color • Appearances are less prominent • Quit the digital camera industry on August 1, 2006
  • 25. Competitor Analysis Samsung • Slim appearance and colorful design • Strong capability in electronic technology • Shortage of core technologies
  • 26. Competition Analysis Panasonic • The leader of electronic products • Develops its own CCD sensor device • Weak fundamental of optical technology • Higher prices
  • 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. 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. 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. 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