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Protecting Intellectual Property


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Protecting Intellectual Property

  1. 1. <ul><li>Protecting Intellectual Property </li></ul><ul><li>By GreyB </li></ul><ul><li>GreyB is a patent research and analytics firm that specializes in assisting companies to use patents as strategic business tools. </li></ul><ul><li>This presentation is aimed to inform the Importance of Intellectual Property Rights (IPR) especially for Startups. </li></ul>
  2. 2. <ul><li>Patents </li></ul><ul><ul><li>Protect an invention in any area of technology which is new, useful, capable of industrial application, and represents an innovative and non-obvious advance. </li></ul></ul><ul><ul><li>New plant variety registration (similar to patent) protects a plant variety which is new, possesses uniform and stable basic qualities that remain unchanged after reproduction </li></ul></ul><ul><li>Trademarks </li></ul><ul><ul><li>Protect a distinctive mark composed of words, images and other signs (as well as sounds and odors in some countries) which indicate the origin of goods or services. </li></ul></ul><ul><li>Designs </li></ul><ul><ul><li>Protect new or original industrial design (outline, shape, model or ornament – such as shoes, bricks, carriage etc.) of a product. </li></ul></ul><ul><li>Copyright </li></ul><ul><ul><li>Protects literary, dramatic, musical and artistic works – including computer software. </li></ul></ul>Intellectual Property Rights- In General
  3. 3. <ul><li>A patent in a territory grants its holder the exclusive right </li></ul><ul><ul><li>to make use of an invention in the territory for a limited time </li></ul></ul><ul><ul><li>by stopping others from the unauthorized </li></ul></ul><ul><ul><ul><li>production, </li></ul></ul></ul><ul><ul><ul><li>use, </li></ul></ul></ul><ul><ul><ul><li>selling or </li></ul></ul></ul><ul><ul><ul><li>importing </li></ul></ul></ul><ul><ul><li>of the invention </li></ul></ul>What rights grants a patents?
  4. 4. <ul><li>Patents </li></ul><ul><ul><li>Registration (Patent Office) required </li></ul></ul><ul><ul><li>Protection - 20 years of full monopoly over the patented invention </li></ul></ul><ul><ul><li>For new plant variety – registration in Plant Breeders Register -15 years of monopoly </li></ul></ul><ul><li>Trademarks </li></ul><ul><ul><li>Registration (Trademark Office) required for full protection of exclusive use </li></ul></ul><ul><ul><li>Protection - (since 2003) 10 years, renewable indefinitely for 14-year periods </li></ul></ul><ul><li>Designs </li></ul><ul><ul><li>Registration (Patent Office) required for full protection of exclusive use </li></ul></ul><ul><ul><li>Protection – 5 years (extendable by 10 years) </li></ul></ul><ul><li>Copyright </li></ul><ul><ul><li>No registration </li></ul></ul><ul><ul><li>Protection from unauthorized copying for author’s lifetime plus 70 years (for phonograms, 50 years) </li></ul></ul><ul><li>Know-how / Proprietary Information (Trade secrets) </li></ul><ul><ul><li>No registration </li></ul></ul><ul><ul><li>Protection by tort legislation not limited in time </li></ul></ul>IPR : Registration and Protection
  5. 5. Importance of IP for startups From Investor perspective To protect own technology To understand the competitive landscape
  6. 6. <ul><li>A potential investor will examine: </li></ul><ul><li>the Company’s registered patents, filed patent applications, other registered or unregistered IP assets </li></ul><ul><li>the value of the Company’s IP assets </li></ul><ul><ul><li>the extent of patent protection </li></ul></ul><ul><ul><li>the risk that such patents may be cancelled by court </li></ul></ul><ul><ul><li>the chance of patent applications to succeed </li></ul></ul><ul><li>the Company’s infringement of third-party IP rights. </li></ul>Importance of IP for startups IP as Asset for Potential Investors Due Diligence Perspective
  7. 7. <ul><li>Technology </li></ul><ul><ul><li>Protection currently available for the technology </li></ul></ul><ul><ul><ul><li>What patent applications / registered patents currently protect the technology? </li></ul></ul></ul><ul><ul><ul><li>Which patents are most important and which, if any, considerably “block” other companies ? </li></ul></ul></ul><ul><ul><li>Does the Company’s technology infringe the IP rights of competing companies? </li></ul></ul><ul><ul><li>Possibility that competing technologies be licensed to the Company </li></ul></ul><ul><ul><li>Procedure of documenting the Company’s know-how upon development – the risks inherent in concentrating all know-how with an individual founder </li></ul></ul><ul><li>Goodwill </li></ul><ul><ul><li>Are the Company’s trademarks and domain names in use and therefore adequately protected? </li></ul></ul><ul><ul><li>What are the chances for the Company’s trademarks to be registered abroad in jurisdictions in which it is not yet operating? </li></ul></ul><ul><ul><li>Do customers in the target markets associate the Company’s product with the Company? </li></ul></ul>The Company’s Technology and Goodwill Importance of IP for startups
  8. 8. <ul><li>What impediments to the market entry of your technology exist? </li></ul><ul><ul><li>Competition: </li></ul></ul><ul><ul><ul><li>Who are your competitors? </li></ul></ul></ul><ul><ul><ul><li>What are the competitive technologies? </li></ul></ul></ul><ul><ul><ul><li>What impact does your invention have on the competitor and the other technologies? </li></ul></ul></ul><ul><ul><ul><li>Will new technologies leapfrog yours? </li></ul></ul></ul><ul><ul><li>Blocking technology of competitors: </li></ul></ul><ul><ul><ul><li>Are you free in your design around the IPR portfolio of your competitors? </li></ul></ul></ul><ul><ul><ul><li>Can you license or buy the necessary technology? </li></ul></ul></ul><ul><ul><ul><li>What is your strategy in case of a law suite with a competitor who owns a blocking patent? </li></ul></ul></ul>Evaluate the competitiveness of your technology Importance of IP for startups
  9. 9. IPR strategy Aspects IPR Strategy Element - and what it involves Innovation management Harvesting inventions, tapping their full potentials as to the IP strategic goals IPR Filing Strategy Focus areas for new intellectual property rights (market segment, countries, …) IPR Portfolio Management Management of intellectual property assets as an investment portfolio IPR Asset Managment Patent licensing, sale, exchange or pooling Enforcement and legal strategy Business strategy IPR Environment IPR communication strategy; Influencing future IP laws
  10. 10. <ul><li>Have answers to these questions before filling for patents </li></ul>
  11. 11. <ul><li>What is the concrete purpose of the patent (application)? </li></ul><ul><ul><li>Support marketing for selling or creating interest in a product or service </li></ul></ul><ul><ul><li>Warn others to provide a similar product or service </li></ul></ul><ul><ul><li>Protect your product from being imitated </li></ul></ul><ul><ul><li>Block competitors from providing work around solutions </li></ul></ul><ul><li>What are the limits of your invention? </li></ul><ul><ul><li>Is the idea really new (not published)? </li></ul></ul><ul><ul><li>What is the big picture of your invention? </li></ul></ul><ul><ul><li>What differentiates it from known competitive technology? </li></ul></ul><ul><ul><li>How difficult is it to circumvent the invention? </li></ul></ul>Innovation evaluation – patent scope
  12. 12. <ul><ul><li>What are the opportunities in foreign markets? </li></ul></ul><ul><ul><ul><li>In which countries do you need to protect your technology? </li></ul></ul></ul><ul><ul><ul><li>Dealing with EU and US patents essentially differs! </li></ul></ul></ul><ul><ul><li>How can you monitor infringements? </li></ul></ul><ul><ul><ul><li>What are the monitoring costs? </li></ul></ul></ul><ul><ul><li>What is the value of your invention? </li></ul></ul><ul><ul><ul><li>Check your business model </li></ul></ul></ul><ul><ul><ul><li>Estimate the size of the market affected by the invention </li></ul></ul></ul><ul><ul><ul><li>Contemplate costs of the patent application and patent and compare them to the estimated revenue of product sales/licenses </li></ul></ul></ul><ul><ul><ul><li>Consider higher initial costs in favor of a higher quality of the patent </li></ul></ul></ul>Innovation evaluation – value proposition
  13. 13. <ul><li>Traditional models of innovation: competition </li></ul><ul><ul><li>Start-ups innovate for entry into product markets and displace incumbents </li></ul></ul><ul><li>New models of innovation: cooperation </li></ul><ul><ul><li>Start-ups have options to engage in cooperative commercialization (e.g., licensing, acquisitions) rather than compete in product markets </li></ul></ul><ul><ul><li>Advantages in saving on duplicative complementary assets or softening of product market competition </li></ul></ul>Markets for Ideas
  14. 14. <ul><ul><li>Your idea or invention should be: </li></ul></ul><ul><ul><li>Novel </li></ul></ul><ul><ul><li>Non-obvious </li></ul></ul><ul><ul><li>Enables </li></ul></ul><ul><ul><li>Written Description </li></ul></ul><ul><ul><li>Clear Claims </li></ul></ul><ul><ul><li>Best Mode </li></ul></ul>Remember…………. Statutory requirements to obtain patents
  15. 15. <ul><li>What to patent </li></ul><ul><li>potential commercial products of company </li></ul><ul><li>methods of making and using the products </li></ul><ul><li>systems utilizing the company’s products </li></ul><ul><li>made by company’s customers </li></ul><ul><li>parts of your product made by vendors </li></ul><ul><li>commercially important inventions </li></ul><ul><li>blocking patents to block competitors </li></ul>Patent priorities – Keep in mind
  16. 16. <ul><ul><li>Identify new and unobvious ideas </li></ul></ul><ul><ul><li>Prepare invention disclosure </li></ul></ul><ul><ul><li>Forward disclosure to patent committee </li></ul></ul><ul><ul><li>Committee decides whether to pursue invention </li></ul></ul><ul><ul><li>Patent drafter prepares first draft of application </li></ul></ul>The Next steps- Patent Process
  17. 17. <ul><ul><li>Inventor reviews & revises draft </li></ul></ul><ul><ul><li>Patent drafter sends final draft to inventor </li></ul></ul><ul><ul><li>Inventor provides copies of material prior art to patent attorney </li></ul></ul><ul><ul><li>Inventor signs assignment and declaration </li></ul></ul><ul><ul><ul><li>Assignment signature is notarized </li></ul></ul></ul><ul><ul><li>Patent attorney files application and forms in patent office </li></ul></ul><ul><ul><li>Application is examined by patent office </li></ul></ul>The Next steps- Patent Process
  18. 18. <ul><li>Small portfolio of pioneering patents </li></ul><ul><ul><li>Market leadership & advantage </li></ul></ul><ul><ul><li>Licensing </li></ul></ul><ul><ul><li>Deal & merger leverage </li></ul></ul><ul><li>Small to medium size companies </li></ul><ul><li>Reasonable cost </li></ul><ul><li>Market monitoring </li></ul>Points to focus in your patent strategy
  19. 19. <ul><li>Large portfolio of patents of various scope </li></ul><ul><ul><li>Protect products from copying </li></ul></ul><ul><ul><li>Cause competitor design around </li></ul></ul><ul><ul><li>Reduce risk of patent infringement suit by competitors - mutually assured destruction </li></ul></ul><ul><ul><li>Cross licensing - market entry </li></ul></ul><ul><li>Medium to large size companies </li></ul><ul><li>High cost </li></ul>Points to focus in your patent strategy
  20. 20. <ul><li>General recommendations </li></ul><ul><li>focus on few quality patents regarding key products and technologies in conformance with business objectives </li></ul><ul><li>cost-effective high-quality patent portfolio </li></ul><ul><ul><li>indicator for superior technology and to be expected higher turnover growth rate </li></ul></ul><ul><ul><li>decisive to be funded by venture capitalists </li></ul></ul><ul><ul><li>quantity not relevant </li></ul></ul><ul><li>regular and systematic patent filing to build a strong patent position </li></ul><ul><li>seek fast patent grants (avoid slower PCT-route) </li></ul><ul><li>US venture capitalist usually pass on start-ups with long lasting patent infringement suits </li></ul>Recommendations for startups
  21. 21. <ul><li>Patents are of vital importance to the commercial success of techno start-ups </li></ul><ul><li>A patent is a shield for competitors </li></ul><ul><li>A patent gives a strong position to negotiate with investors, an investor provides the conditions for a swift growth </li></ul><ul><li>Licensees </li></ul>Conclusions
  22. 22. <ul><li>For any queries contact </li></ul><ul><ul><ul><ul><ul><li>Dilip </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Co-Founder | GreyB </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Technology & Patents </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>(0)9216789067 | (0) 9891272287 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>[email_address] | [email_address] </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li> </li></ul></ul></ul></ul></ul><ul><li>Our goal is to help companies develop innovative products and technologies by better </li></ul><ul><li>understanding emerging technologies, opportunities and intellectual property strategies. </li></ul><ul><li>We strive to provide our clients with practical knowledge and understanding of their IP </li></ul><ul><li>landscape which in turn helps them make informed decisions about R&D planning and </li></ul><ul><li>business strategy development. </li></ul>