This document discusses different levels of IP strategies that organizations can adopt and provides examples. It begins by explaining why every organization needs an IP strategy to ensure freedom to operate, protect assets, manage employees, and compete effectively. It then outlines five levels of IP strategies from zero (no strategy) to five (visionary). Lower levels focus on defensive protection and cost control, while higher levels actively generate revenue from IP and integrate IP into corporate strategy. The document provides examples of different types of IP strategies organizations use and concludes with discussing tools for building flexible IP strategies.

1. IP
strategies

2. Why does every organization
need an IP strategy?
 To ensure freedom to operate
 To protect own assets
 Manage employees
 Relationships with alliances, suppliers, customers, etc.
 To compete effectively

3. Levels of IP strategies
 Level zero – No IP strategy
 Level one – Defensive
 Level two – Cost control
 Level three – Profit center
 Level four – Integrated
 Level five – Visionary

4. Level zero – No IP strategy
 How come there are firms with virtually no IP strategy?
 Ignorance
 Inertia
 Think it is too costly
 Think they are at a low risk or low yield situation
 Lack of skilled personnel
 Worst strategy
 Every organization needs an IP strategy - why?

5. Level one – Defensive
 Build a portfolio of patents and other IP assets
 To protect itself and maintain freedom to operate

6. Examples of IP strategies
 Minimalist
 Slightly better than doing nothing
 Reactive and opportunistic
 Tight budget
 Mostly defensive
 Preserve the scope of protection for the longest possible
time period at minimum cost

7. Examples of IP strategies (cont’d)
 Burning stick
 Build a “campfire”
with strong IP rights
on key assets to scare
off predators

8. Level two – Cost control
 In addition to building a portfolio of patents and
other IP assets to protect itself
 It also prioritize its IP protection
 Evaluating its IP

9. Examples of IP strategies (cont’d)
 Suit of armor and shield
 Avoid IP conflicts where possible
 Shift activities to avoid exposure to
infringement
 Prepare for litigation in advance
 Sword and shield
 Strike competitors and stop them
from infringing
 Weapons: strong portfolio of IP
rights

10. Level three – profit center
 In addition to building a portfolio of patents and
other IP assets and prioritizing its IP,
 It acts proactively to extract value from its IP portfolio
 Actions include:
 Looking for infringers
 Looking for licensing opportunities
 Selling off or donating noncore IP assets

11. Examples of IP strategies (cont’d)
 Bargaining chips
 IP can serve as bargaining chips to ensure freedom to
operate
 Often lead to cross-licensing deals: portfolios of current and
future patents in a field-of-use
 The first one’s free
 Give away IP but gain elsewhere
 Adobe
 Red Hat

12. Examples of IP strategies (cont’d)
 IP thickets
 Grow as many different
types of IP rights as
possible around a product
or method
 E.g., Coca-Cola
 Pharmaceutical companies
(variants of a drug, methods,
dosage, etc. )
Domain names:
Coca-cola.com, .org, .net, .biz, .info, .ca
Coke.com, org, etc.

13. Examples of IP strategies (cont’d)
 IP forests
 Broader IP rights on many
different innovations
 May include IP rights on
technology, brands, supply and
distribution channels,
marketing, endorsements, and
customer base
Nike obtained about 1500
patents, 350 trademarks,
and a similar number of
copyright on commercials
in ten years, 10 times of
the IP obtained by Reebok,
its competitor in the athletic
footwear market.

14. Level four – Integrated
 There is a thorough integration of IP strategy with
corporate strategies
 IP management is not just an isolated department

15. Examples of IP strategies (cont’d)
 Patent troll
 These patent holding companies have no activities
except to acquire patents and enforce them against
companies with substantial activity
 NTP vs. RIM (Blackberry)?
 Patent aggregator
 E.g., Intellectual Ventures has aggregated 30,000+
patents in a wide variety of fields and has generated over
$2 billion in licensing revenues.

16. Level five – Visionary
 At the highest possible level, the organization looks
into the future to discern trends in IP (changes in laws,
government policy, and business practice, etc.) and
 Uses its prognosis to shape its strategy
 May even influence laws and create new trends

17.  Headquarters: Qingdao, China
 Industry sector: Household appliances
 Spirit of Innovation
 8,000-plus patents
 IP an integral part of its corporate strategy.
 An IP team was set up as early as 1992
 The IP function has veto power over many strategic decisions,
especially those relating to overseas operations.
 IP activities:
 Leading and participating in setting industry standards , at
both national and international level
 Acquisitions of Panasonic’s Sanyo Electric units in 2011 and
Fisher & Paykel in 2012 further enhanced its IP portfolio

18. Building a flexible IP strategy:
One size does not fit all
 Full exclusion: sword and shield
 Limited exclusion: revenue stream
 Open access: loss leader

19. Strategy tools
 The six Ps
 Policy on managing IP
 Personnel Practices
 Portfolio management
 Procurement practices
 Partnering practices
 Policing

20. Policy on managing IP
 Components of a general IP policy
 Recognize the importance of IP management
 Protects its own IP
 Respects the IP rights of others
 Confidentiality program
 Copyright program
 Patenting program
 Trademark program

21. Personnel Practices
 Goal:
 Maximize IP inflow and minimize IP outflow
 Employment contract
 Best place to state personnel practices
 Pre-assignment; confidentiality; disclosure; non-compete.
 Part-time and consultant: written agreement on IP
 At each stage of employment
 Recruiting: respect rights of former employer
 During employment: disclosure
 Termination of employment

22. Portfolio management
 Carrying out the general IP management policy
 Confidentiality; Copyright; Patenting; Trademark
program
 Evaluating various types of IP
 Registered IP
 Unregistered IP
 Value as a core asset or peripheral asset
 Protecting and policing IP assets

23. IP strength in three dimensions
 Three-dimensional assessment of
IP strength
 Legal scope: what is the scope of
the exclusive rights? What
activities and products do they
cover? How easily can they be
enforced? What weaknesses or
exceptions in exclusivity?
 Duration
 Geographical range
 This is the starting point of
further evaluation
Legal
scope
Duration
Geographical
range

24. Procurement practice
 What we procure
 Tangible things, legal rights, information, etc.
 May acquire “hot” goods that infringe an IP right
 Ensure freedom to operate
 Public domain
 Own the asset
 Obtain a license

25. Partnering practices
 Partners:
 Collaborators, suppliers, customers, users, clients, etc.
 Relationships:
 Joint venture, affiliate, franchise, license, etc.
 Key questions:
 Who owns existing IP rights?
 What rights are shared and what rights are retained?
 What about new IP rights?

26. Policing
 Notify competitors of IP rights
 Monitor the marketplace
 Confront suspected infringers