filippo.zanella@gmail.com                       Nuove Frontiere d’Innovazione nel Mercato della Proprietà                 ...
filippo.zanella@gmail.com       Intellectual Property defined           "Intellectual Property Rights" exist to stimulate...
filippo.zanella@gmail.com       The “perpetual beta”: welcome to the       Information Age                                ...
filippo.zanella@gmail.com       What are the available instruments of       intellectual property protection       Instrum...
filippo.zanella@gmail.com       Emerging instruments of intellectual       property protection            Creative Common...
filippo.zanella@gmail.com       Higher Education System is the       innovation engine           University research depa...
filippo.zanella@gmail.com       Innovation Ecosystem       Technology Transfer is critical                                ...
filippo.zanella@gmail.com       R&D numbers           3% EU target: 2% private, 1% public           The actual state of ...
filippo.zanella@gmail.com       Revenues from License (2007)                    HE-BCI (UK)                               ...
filippo.zanella@gmail.com       Reinforce Technology Transfer: trends                                    Typical budget or...
filippo.zanella@gmail.com       1. Teaching scientist how to raise capital           Il CNR si appoggia a “Rete ventures”...
filippo.zanella@gmail.com       2. Disintermediation of R&D       Emerging ecosystems     InnoCentive connects           B...
filippo.zanella@gmail.com       3. Creating a Capital Market for Research       and Invention           Patent Trolls
filippo.zanella@gmail.com       Qual’è la via italiana?
<< if we learn anything from the history of      economic development, it is that      culture makes almost all the       ...
filippo.zanella@gmail.com       An introduction in Intellectual Property       Rights          "Intellectual Property Rig...
filippo.zanella@gmail.com       Patent           Patent law provides protection for inventions. A patent is the grant, by...
filippo.zanella@gmail.com       Trademarks           Trademark law provides protection for any word, symbol or           ...
filippo.zanella@gmail.com       Copyright           Copyright provides protection for literary and artistic works, being ...
filippo.zanella@gmail.com       Know How           Know-how is a sort of confidential information and is defined for the ...
filippo.zanella@gmail.com       Licensing           The estimated volume of licensing between Research Organisations and ...
filippo.zanella@gmail.com       Collaboration Industry – Research       Organisation           In Europe, the volume of i...
filippo.zanella@gmail.com       Technology Transfer Office           Technology Transfer Office is "a dedicated entity wh...
filippo.zanella@gmail.com       Technology Transfer Mechanism       "Technology transfer" defines the process of transform...
filippo.zanella@gmail.com       Technology Transfer       "Technology transfer" defines the process of transformation of  ...
filippo.zanella@gmail.com       Structural weaknesses of EU technology       transfer: Scale          Europe suffers from ...
filippo.zanella@gmail.com       Structural weaknesses of EU technology       transfer: Positioning        • Technology tra...
filippo.zanella@gmail.com       A Benchmark excercise (FY 2006)
filippo.zanella@gmail.com
filippo.zanella@gmail.com       Higher education-business and       community interaction survey (HE-BCI)
filippo.zanella@gmail.com       America Entrepreneurialism Advantage       First Pillar: Mature Venture-capital industry  ...
filippo.zanella@gmail.com       America Entrepreneurialism Advantage       Second Pillar: universities-industry relations ...
filippo.zanella@gmail.com       America Entrepreneurialism Advantage       Third Pillar: Immigration policy           52%...
filippo.zanella@gmail.com                                                        Monetising inventions.                   ...
filippo.zanella@gmail.com       Common Myths about Inventing       1.       Inventing can’t be a business in its own right...
filippo.zanella@gmail.com       Looking back:       the birth of Venture Capitalists       “Before”; in the 1930’s        ...
filippo.zanella@gmail.com       Looking back:       the birth of the Software Industry       “Before”; in the 1970’s      ...
<<Invention is set to become the nextsoftware: a high-value asset that will serveas the foundation for new business models...
filippo.zanella@gmail.com       A New Financial Order for Research and       Inventions       “The primary subject matter ...
filippo.zanella@gmail.com                            Some relvant Issues and Facts                              about Rese...
filippo.zanella@gmail.com       The Issues of Invention           Inadequate funding for applied research           Inef...
filippo.zanella@gmail.com       Fact #1.       Charity is not what “Inventors” ask           Outside the pharmaceutical a...
filippo.zanella@gmail.com       Fact #2.       Cross-disciplinary approach pays back           Most US federal funding go...
filippo.zanella@gmail.com       Fact # 3.       Government Funding is not dependable           US Federal spending on bas...
filippo.zanella@gmail.com       Fact # 3 (cont.).       Government Funding is not dependable  From 1983 to 2007  Investmen...
filippo.zanella@gmail.com                            The barriers to creating a new financial                             ...
filippo.zanella@gmail.com       Manging the Risk           A huge challenge in attracting investors is the highly risky  ...
filippo.zanella@gmail.com       Manging the Risk (cont.)           Difference between investing in invention capital fund...
filippo.zanella@gmail.com       Giving Patents the Respect they Deserve           In affluent nations, product companies ...
filippo.zanella@gmail.com       Giving Patents the Respect they Deserve       (cont.)           Respecting intellectual p...
filippo.zanella@gmail.com       Building a Professional Industry           All complex systems face in their early days t...
filippo.zanella@gmail.com                            Invention Capital Market
filippo.zanella@gmail.com       Benefits of an Invention Capital Market                              INVENTORS            ...
filippo.zanella@gmail.com       Final Take           Research in areas like astronomy and fundamental physics that is    ...
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2010 26 aprile_counterfeit_summary of myhrvold's idea_full

  1. 1. filippo.zanella@gmail.com Nuove Frontiere d’Innovazione nel Mercato della Proprietà Intellettuale e Trasferimento Tecnologico Filippo Zanella - 26 Aprile 2010
  2. 2. filippo.zanella@gmail.com Intellectual Property defined  "Intellectual Property Rights" exist to stimulate artistic and technological F creation and hence to foster economic growth and development
  3. 3. filippo.zanella@gmail.com The “perpetual beta”: welcome to the Information Age F In the Information Age business is increasingly dependent upon knowledge and is no longer “business as usual” Nowadays it is way easier for the folks to “invent” and “start” a new businesses... …and this paradigm shift is challenging the traditional mechanism of IP protection
  4. 4. filippo.zanella@gmail.com What are the available instruments of intellectual property protection Instrument Description Protection Patent •An invention that must be new, it The government grants a temporary must involve an inventive step, it monopoly to the inventor must be capable of industrial Typical duration is 20 years application, and the grant of patent must not be excluded Trademark •The law provides protection for any Negative right to their owner to symbol or distinctive sign prohibit others from using the same or a similar sign to distinguish their own products/services in certain circumstances Copyright •Provides protection for literary and • Not such a strict monopoly as patents artistic works and registered trademarks. • The copyright owner can only prevent actual copying of the work. Know-how •Confidential information, and is Protected by contractually obtained defined for the purposes of confidentiality, recognised via various competition law legal dispositions
  5. 5. filippo.zanella@gmail.com Emerging instruments of intellectual property protection  Creative Commons  Customize your rights  Enforce by law  Enforce by “peer pressure” and through social networks
  6. 6. filippo.zanella@gmail.com Higher Education System is the innovation engine  University research departments have helped to drive innovation in everything from design to entertainment 85 …of all the high-growth business % created in US in the past 20 years were launched by college graduates
  7. 7. filippo.zanella@gmail.com Innovation Ecosystem Technology Transfer is critical Typical budget order of magnitude Technology Transfer Sponsored Education Market Research Budget (start-up, corporations) Budget Contract Licensing Spin-off research with industry • Technology transfer is considered as a marginal and relatively unimportant activity by many Research Institutions • Education and research budgets dwarf the proceeds from technology transfer
  8. 8. filippo.zanella@gmail.com R&D numbers  3% EU target: 2% private, 1% public  The actual state of R&D in EU (Europ Res. Area 2008- 2009)
  9. 9. filippo.zanella@gmail.com Revenues from License (2007) HE-BCI (UK) TechTrans (DENMARK) Respondent 160 Respondent 13 Average Revenue 296,1 K€ Average Revenue 312,4 K€ RedOTRI (SPAIN) Respondent 61 Average Revenue 32,1 K€ NETVAL (ITALY) Respondent 65 Average Revenue 23,8 K€ Fonte: ProTon Europe, 2009
  10. 10. filippo.zanella@gmail.com Reinforce Technology Transfer: trends Typical budget order of magnitude Technology Transfer Education Sponsored Research Market Budget (start-up, corporations) Budget Contract Licensing Spin-off research with industry 1 2 3 TEACHING SCIENTIST DISINTERMEDIATE CREATING A CAPITAL how to raise capital R&D building research and MARKET for Research through schools that cover inventors networks outside and Invention, similar to the issues from regulation to the corporations. Venture Capital Market that entrepreneurship. funds start-ups.
  11. 11. filippo.zanella@gmail.com 1. Teaching scientist how to raise capital  Il CNR si appoggia a “Rete ventures”, società partecipata del CNR per il trsferimento tech ed sviluppo industriale che opera nel campo dei materiali innovativi e tecnologie avanzate  Netval, rete delle università italiane
  12. 12. filippo.zanella@gmail.com 2. Disintermediation of R&D Emerging ecosystems InnoCentive connects BootB is the Pitching crowdSPRING is a network companies, academic Engine that brings Brand of more than [58,770] institutions, public sector Builders and Creative creatives from [170]-plus and non-profit Brains together countries who vie to organizations, with a global provide logo, website and network of more than collateral design to 200,000 of the worlds primarily small and brightest minds medium-size business clients  A new breed of ecosystems sprout to aggregate would-be inventors and creative minds  These systems provide solid rewarding mechanisms to value intellectual products
  13. 13. filippo.zanella@gmail.com 3. Creating a Capital Market for Research and Invention  Patent Trolls
  14. 14. filippo.zanella@gmail.com Qual’è la via italiana?
  15. 15. << if we learn anything from the history of economic development, it is that culture makes almost all the difference.>>* * David Landes: Economic Historian.
  16. 16. filippo.zanella@gmail.com An introduction in Intellectual Property Rights  "Intellectual Property Rights" (IPR) exist to stimulate artistic and technological creation and hence to foster economic growth and development.  IPRs are negative exclusive rights in that they grant the holder the right to exclude others from doing what is their object. Thus they confer a monopoly to their holder and are an exception to freedom of competition and in particular freedom of copying products, services and processes from competitors. This monopoly is however limited in time and the duration of IPRs varies according to their type.  As compensation for granting this temporary monopoly, society reaps the benefits of encouraging innovation and stimulating the economy, either by the creation of artistic works (protected by copyrights or neighbouring rights); by the disclosure of how to carry out inventions (protected by patent law); or by the commercial exploitation of this innovation.  IPRs can therefore be seen as the result of a trade-off between individuals and society: the creator / inventor gets a temporary monopoly over his work / invention, while society gets the economic advantage of innovation.  "Industrial property" generally refers to aspects related to the industrial world and designates, on the one hand, rights protected by patent law, trademark law, industrial design law and plant variety law and, on the other hand, know-how  "Literary and artistic property" generally relates to the "artistic" world and is covered by copyright and copyright related (or neighbouring) rights.  Alternatively, the decision can be taken not to formally protect intellectual property (IP). Intellectual property can be left totally open or, on the contrary, kept secret. The choice of whether and how to protect IP is a strategic decision, depending largely on the nature of the intellectual property and, in the case of IP presenting a commercial potential, the characteristics of the target market.
  17. 17. filippo.zanella@gmail.com Patent  Patent law provides protection for inventions. A patent is the grant, by a government, of a temporary monopoly to an inventor in return for a written disclosure of how to carry out his/her invention.  There are generally four conditions for the patentability of an invention: the invention must be new, it must involve an inventive step, it must be capable of industrial application, and the grant of patent must not be excluded.  The length of protection granted by a patent is of 20 years as per the date of filing of the application.  For twenty years, the patent owner can exclude third parties from, without his/her consent, manufacturing, developing, selling or offering for sale, using, importing and exporting the patented product, or from using or offering for use the process object of the patent.  The patent owner can also decide to grant third parties the right to accomplish one or more of the above-described activities (through licensing) or to fully transfer his rights to a third party.
  18. 18. filippo.zanella@gmail.com Trademarks  Trademark law provides protection for any word, symbol or other distinctive sign used to distinguish an organisation’s product or service from those of its competitors.  A trademark acts as a "badge of origin" or "badge of quality", which informs the public that the goods or services with which it is associated originate from a certain company and are guaranteed to be of a certain quality. From the trademark owner’s perspective, a trademark is also an important tool of recognition and marketing and can represent an important intangible asset.  As for patent law, trademarks protect these signs by granting a negative right to their owner to prohibit others from using the same or a similar sign to distinguish their own products/services in certain circumstances.
  19. 19. filippo.zanella@gmail.com Copyright  Copyright provides protection for literary and artistic works, being understood that these terms should be read without any implication of aesthetic merit.  Copyright is not such a strict monopoly as patents and registered trademarks.  The copyright owner can only prevent actual copying of the work.  An independent creation of the same work does not infringe.  Nor are the ideas or information contained in the copyright work protected as such since copyright does not protect the idea underlying a work, but rather the form in which it is expressed.  Copyright is the most international of intellectual property rights.  Works are automatically protected by copyright without formalities in almost all industrialised and most developing countries as a result of international agreements.  In all EU countries and in the US the protection granted by copyright lasts for 70 years after the authors death. During that period, and subject to a number of exceptions, the copyright owner is exclusively entitled to a number of rights, including reproducing the whole or a part of the work in any material form ("copying"), putting copies into public circulation, selling, offering for sale or letting the work for hire, performing the work in public, broadcasting the work or including it in a cable programme, making an adaptation of it, or authorising anyone to do any of the above. These rights are called "patrimonial rights".
  20. 20. filippo.zanella@gmail.com Know How  Know-how is a sort of confidential information and is defined for the purposes of competition law, for example, as a package of undisclosed, non-patented practical information, resulting from experience and testing, which is secret, substantial and identified.  "Secret" means that the know-how is not generally known or easily accessible, i.e. that it has the necessary quality of confidence.  "Substantial" means that the know-how includes information which is significant and useful for the production of products or the application of processes.  "Identified" means that it is possible to verify the actual content of the know-how, for example when it is described in any written form.  Classic examples of confidential information include trade secrets, minor innovations to a (even patented) product or process, commercial details such as customer lists, or the know- how which may be necessary to maximise the efficiency of any kind of industrial or commercial operation.  know-how is not protected by a set of dedicated legal provisions that would grant the know-how proprietor a negative right to exclude others from doing predetermined acts.  Rather, know-how can typically only be protected by contractually obtained confidentiality and this obligation of confidentiality is recognised via various legal dispositions.
  21. 21. filippo.zanella@gmail.com Licensing  The estimated volume of licensing between Research Organisations and industry in Europe is around EUR 300 million,47 which represents 1% of the total R&D budgets within Research Organisations.  In the licensing model, the Research Organisation grants user rights to its intellectual property in the form of a license, which enables the industrial partner to develop and commercialise products and / or processes covered under the license in return for license fees and / or royalty income related to its commercial returns.  For Research Organisations, the licensing model has a number of advantages when compared with the collaborative model. The Research Organisation retains a higher level of control over its research. Furthermore, the technology can prove valuable to a broad range of industrial partners in different technical fields. In such cases, the Research Organisation is able to grant licenses to a broader range of partners, and the technology is more widely available to potentially interested users. However, in the licensing model, the Research Organisation typically obtains financial benefits only once its Intellectual Property is commercialised and starts to generate revenues.  For the industrial partner, the licensing model can also be attractive in that the company pays for the tangible results of research. Licensing agreements can be tailored to better satisfy the needs of both parties.
  22. 22. filippo.zanella@gmail.com Collaboration Industry – Research Organisation  In Europe, the volume of industry – Research Organisation collaboration is estimated at EUR 2.2 billion  This represents 7% of the estimated total European research and development budget in Research Organisations.  It is useful to draw on the usual distinction between two types of research  collaboration.  Contract research where the Research Organisation is typically paid to apply existing knowledge and expertise to a particular situation. This is usually the case in projects aiming at improving technology that is already in existence.  Collaborative research, where parties engage in more wide-ranging collaboration and significant intellectual input is provided by the Research Organisation. This type of research is expected to contribute to the advancement of scientific understanding. The intellectual expertise of the Research Organisation is sought to identify novel solutions or explore new territory and industrial partners are prepared to support the efforts of the Research Organisation, both financially and through other resources.
  23. 23. filippo.zanella@gmail.com Technology Transfer Office  Technology Transfer Office is "a dedicated entity which provides, continuously and systematically, services to publicly funded or co- funded Research Organisations in order to commercialise their research results and capacities“  the bridge between  a technology "push" process aiming to improve the uptake of technology coming from the science base and  a technology "pull" process related to the promotion of the demand for new technology in the business sector.  Encompasses a broad set of activities and development vehicles, aimed at a range of related activities including encouraging invention disclosure, applying for patents, marketing to prospective licensees, managing industry relationships, coordinating research sponsorships, supporting start-up companies, and managing equity stakes in spinouts.
  24. 24. filippo.zanella@gmail.com Technology Transfer Mechanism "Technology transfer" defines the process of transformation of the results of Research and Development (R&D) into marketable products or services
  25. 25. filippo.zanella@gmail.com Technology Transfer "Technology transfer" defines the process of transformation of the results of Research and Development (R&D) into marketable products or services
  26. 26. filippo.zanella@gmail.com Structural weaknesses of EU technology transfer: Scale Europe suffers from a very significant, growing gap compared to US clusters
  27. 27. filippo.zanella@gmail.com Structural weaknesses of EU technology transfer: Positioning • Technology transfer is still often considered as a marginal and relatively unimportant activity by many Research Institutions • Education and research budgets dwarf the proceeds from technology transfer
  28. 28. filippo.zanella@gmail.com A Benchmark excercise (FY 2006)
  29. 29. filippo.zanella@gmail.com
  30. 30. filippo.zanella@gmail.com Higher education-business and community interaction survey (HE-BCI)
  31. 31. filippo.zanella@gmail.com America Entrepreneurialism Advantage First Pillar: Mature Venture-capital industry 10.000 plausible business plan per year A solid business plan scrutiny funnel is a 1.000 meeting reference for “in pectore” entrepreneuers 400 company visits 10-20 investment
  32. 32. filippo.zanella@gmail.com America Entrepreneurialism Advantage Second Pillar: universities-industry relations  America’s universities are economic engines with:  Science parks  Technology offices  Business incubators  Venture funds  Stanford University gained around 200M$ in stock when Google went public  50% of Silicon Valley start-ups have their roots in the university
  33. 33. filippo.zanella@gmail.com America Entrepreneurialism Advantage Third Pillar: Immigration policy  52% of Silicon Valley start-ups have their roots in the university were founded by immigrants  Around 25% of High Tech start-ups, generating 52 billion$ and employing 450.000 people
  34. 34. filippo.zanella@gmail.com Monetising inventions. Is there a new market in the Terra Incognita of modern Finance? Some consideration on the “Intellectual Ventures” model of Nathan Myhrvold
  35. 35. filippo.zanella@gmail.com Common Myths about Inventing 1. Inventing can’t be a business in its own right 2. Inventing is too risky 3. Inventions are too intangible to generate sufficient profits 4. Inventing can’t be separated from companies that turn ideas into products 5. The idea of a liquid market for inventions is absurd
  36. 36. filippo.zanella@gmail.com Looking back: the birth of Venture Capitalists “Before”; in the 1930’s “After”; in 1946 a.f.  George Doriot and an Harvard  Professional venture Business School professor capitalists did not exist founded American Research and Development Corporation  Entrepreneurs had to (ARDC) borrow from  Switched the funding mechanism from debt to equity  rich relatives or  An investor could put the money into an ARDC fund  college friends  An entrepreneur could approach ARDC with a business plan  A scalable and predictable model to raise and invest capital
  37. 37. filippo.zanella@gmail.com Looking back: the birth of the Software Industry “Before”; in the 1970’s “After”; three decades later  In the 70’s the software  Software owes its ascent was deemed valuable only to two crucial to sell mainframes and developments: minicomputers  Respect of intellectual  Very few independent property through user software vendors existed education and lawsuits  Overcoming system  As a business, software incompatibilities, developing was hopeless solutions running on many brands of computer
  38. 38. <<Invention is set to become the nextsoftware: a high-value asset that will serveas the foundation for new business models, liquid markets, and investment strategies>>* * Nathan Myhrvold: CEO and a cofounder of Intellectual Ventures, a company that makes a business out of invention. Former chief technology officer at Microsoft.
  39. 39. filippo.zanella@gmail.com A New Financial Order for Research and Inventions “The primary subject matter of finance is the management of risks. Unfortunately, the insights of finance have been applied in only a limited way” * “We need to extend finance beyond our major financial capitals to the rest of the world” ** *) and **) Prof. Robert J. Shiller – The New Financial Order 2003 – Princeton University Press
  40. 40. filippo.zanella@gmail.com Some relvant Issues and Facts about Research & Invention
  41. 41. filippo.zanella@gmail.com The Issues of Invention  Inadequate funding for applied research  Inefficient market for connecting companies with the inventions they need and for monetizing inventions  Balkanization of the inventors and inventions required to tackle big problems  Enforcement and arbitration system that:  permits too much infringement  relies too heavily on lawsuits to determine price
  42. 42. filippo.zanella@gmail.com Fact #1. Charity is not what “Inventors” ask  Outside the pharmaceutical and biotech industries, few companies consider inventing, or producing patented intellectual property, to be their primary mission  At universities and government agencies  Published research is rewarded, but invention usually is not  Research grants are gifts, not investments  At corporations  Their leaders rarely run research as a business in its own right  They fund research as an act of faith, that the ideas produced will somehow create value
  43. 43. filippo.zanella@gmail.com Fact #2. Cross-disciplinary approach pays back  Most US federal funding goes to traditional research programs focused on individual disciplines.  Innovative cross-disciplinary teams are much better equipped to come up with solutions to the increasingly complex challenges the world faces
  44. 44. filippo.zanella@gmail.com Fact # 3. Government Funding is not dependable  US Federal spending on basic and applied research, adjusted for inflation, declined by 14% from 2003 to 2007, according to the National Science Foundation  From 1983 to 2007  Federal spending on academic research rose by 60% (Inflation adjusted)  Investments in the business sector by the U.S Venture Capital and Private Equity Industries soared by 1,140% and 1,940%, respectively  $1.6 trillion (in 2008 US $) invested by Venture Capital and Private Equity Firms is three times the $537 billion that the U.S. government spent on academic research
  45. 45. filippo.zanella@gmail.com Fact # 3 (cont.). Government Funding is not dependable From 1983 to 2007 Investments in the business sector by the U.S Venture capital and % private equity industries soared by 1,140% and 1,940%, respectively 60 In the same period, Federal % spending on academic research rose by only 60% (inflation adjusted)
  46. 46. filippo.zanella@gmail.com The barriers to creating a new financial order for Research & Invention
  47. 47. filippo.zanella@gmail.com Manging the Risk  A huge challenge in attracting investors is the highly risky nature of inventions However…  Other industries have found ways to manage high risk.  Insurance companies dilute risk by aggregating policies into large portfolios  A single invention is typically very risky.  If you build a diversified portfolio of 10.000 of inventions that span a wide range of technologies, the aggregate risk becomes quite manageable  Upside potential – Some inventions will be successful - and a few will be blockbusters :  If only one patent in a portfolio of, say, 2,000 patents is really successful, it could generate $1 billion in revenues, returning many times the cost of the entire portfolio
  48. 48. filippo.zanella@gmail.com Manging the Risk (cont.)  Difference between investing in invention capital funds and investing in venture capital and private equity funds:  Typical VC or PE fund lasts 10 years and often generates handsome returns within 5 years  Invention capital funds require much greater investor patience: the lifetime of a patent is 25 years  What investors has that kind of patience?  Pension funds, university and foundation endowments, and wealthy families and individuals who see invention capital similar to derivatives, hedge funds, private equity, and real estate  Strategic investors because, more than just a direct financial return, are seeking help in coming up with game-changing ideas, or they want early licenses to the patents
  49. 49. filippo.zanella@gmail.com Giving Patents the Respect they Deserve  In affluent nations, product companies too often see inventors and other patent holders as adversaries, and vice versa  Product companies should see inventors as wellsprings of innovation and should trust them - and invention capitalists- enough to tell them what new technology the companies actually need  Inventors should see manufacturers and invention capitalists as customers and should trust them to pay fair prices for the ideas they use  In Asia rights to patented inventions and other intangible property are too often simply ignored
  50. 50. filippo.zanella@gmail.com Giving Patents the Respect they Deserve (cont.)  Respecting intellectual property rights is a cornerstone of some high-tech industries branded pharmaceuticals, biotech, medical devices, and wireless  Not the case in software, computing, and other internet- related sectors  Extreme competitive pressure on young firms to increase their market share by any means necessary, even copying the ideas of others  Patents as a defensive weapon to be used mainly in retaliation against any competitors that sue them for infringement  This strategy of mutually assured destruction usually resolves itself in cross-licensing or a stalemate  It breeds a disdain for inventors
  51. 51. filippo.zanella@gmail.com Building a Professional Industry  All complex systems face in their early days the need to achieve a critical mass of key players  Key Success Factors  mass of expertise  more liquidity  greater pricing visibility  better set of options for inventors and patent users alike  Clear rules and a timely Justice system  Dealing with IP is a cross-disciplinary game  Scientists  Engineers  Patent analysts  Attorneys  Finance experts  Licensing sales agents  Judiciary
  52. 52. filippo.zanella@gmail.com Invention Capital Market
  53. 53. filippo.zanella@gmail.com Benefits of an Invention Capital Market INVENTORS ACADEMIC INSTITUTIONS •Provide funding • Provide funding •Ident ify fertile topics for inventions • Match areas of scientific discovery with •Assess the marltet for specific inventions industry needs •Establish market rates for inventioos • Structure deals when multiple organizations •Provide reliable compensation have a stake in a patent •Help produce strong patents • Help monetize inventions •Market and license inventions • Enforce patent rights •Bundle inventions from multiple sources to increase their value Invention Capital Market PRODUCT MANUFACTURERS SOCIETY AT LARGE • Provide one-stop shopping for patents • Accelerate progress in technology • Bring together outside inventors to meet • Reduce dependence on government funding company specific needs for research • Lower the risk of lawsuits by providing access • Foster respect for intellectual property rights to patents • Efficiently recycle good ideas offailed ventures • Serve as a ready market for patents a • Increase competition and consumer choice company wants to license or sell
  54. 54. filippo.zanella@gmail.com Final Take  Research in areas like astronomy and fundamental physics that is very long range and has diffuse benefits for society that’s right, it should be funded by the government  HOWEVER…  the funding of the invention of useful technology that can make money in a relatively short period of time say, 10 years, shouldnt be the governments job only. The private sector must play a pivotal role (in the proper regulatory environment)  A functioning Invention Capital Market and The Industries can well interplay and enable inventors around the globe to create hundreds of thousands more inventions each year than are being made today  Some of those inventions will be silly or useless…  HOWEVER …  what matters is the top 1% of those inventions. Those that will make our lives vastly richer and better

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