The document discusses the importance of intellectual property (IP) strategy and management for driving business advantage and innovation. It outlines how IBM uses IP to generate income, influence policies, differentiate offerings, and promote open standards. It also notes that IP will be a key geopolitical issue as the focus shifts to maximizing intellectual capital through shared ownership and collaboration.

1. IP Strategy and Management “ Transforming Innovation Into Business Advantage” Arvin Patel, JD, LL.M Global Leader, IBM Intellectual Property Strategy T: 408.962.4835 | Email: patel@us.ibm.com

2. IBM Leading IP Transformation in 21 st Century IP Income – Harvest Open Standards – Integrate IP Policy – Lead Use standards for new opportunities Growth in emerging markets Freedom of Action Culture of Innovation Differentiate IBM offerings IP value in IBM solutions Influence IP policies Enhance IP regulatory actions Leadership in industry standards Pledged 500 patents to Open Source Led in US patents 15 th year in a row Generated $1 billion in IP income Open Collaborative Innovation IP development with Business Partners Policy leadership Led NII and GIO Global initiative for open standards Business Growth – Launch

3. Importance of Intellectual Property Top CEO business priority: “Growth driven by innovation” A new IP marketplace and economy is emerging The idea has become the product Increased competition for ideas Strong, global intellectual property systems encourage innovation

4. Innovation Central to Organizational Prosperity Growth Profitability Competitive advantage Freedom of action Influence Innovation

5. IP Drives Business Advantage Sustainable Profitability Intellectual Property Innovation Ownership Distinction Price Marketshare Direct Income Cost Influence

6. IP Central to Economic Growth & Competition “ The competition of the future world is a competition for Intellectual Property Rights” Chinese Premier Wen Jiabao Japan intends to “bring about a nation founded on intellectual property” – Japanese Prime Minister Junichiro Koizumi “ U.S.-generated intellectual property is valued at $5.5 trillion – nearly 40% of our economy.” – US Commerce Secretary Carlos Gutierrez “ US firms annually waste $1 trillion in underused IP assets by failing to extract full value through partnerships.” – Navi Radjou, Forrester Research

7. Intellectual property will become one of the key geopolitical issues of the 21 st century. Already, focus has begun to shift from protecting IP to maximizing intellectual capital, which is based on shared ownership, investment, and capitalization.

8. IP Strategy and Management Plan Create Leverage Invention workshops IP lifecycle management Portfolio management Protection mechanisms Product / service ecosystem Collaboration strategy Filing strategy Culture of innovation Market / share expansion Performance measurement IP licensing Standards and open innovation