The document discusses the potential benefits of non-IP parks, which are specialized parks that help companies focused on open source, open innovation, and expired patents without intellectual property protection. It provides examples of companies in gaming, biotechnology, and public works that could benefit from such parks. Establishing one or a few non-IP parks in a country could increase the success rate of companies using non-IP business models and help create new jobs. The parks could provide services tailored to companies without IP protections, such as assisting with business strategies and identifying opportunities around expired patents.

1. Jan Softa @ Somerco Date: 2014-09-18
Enhance EC member states competiveness
Part 26: Non- IP parks
Abstract
A non – IP park is specialized on helping companies with focus on open source, open innovation and old innovations. To have one or a few non-IP parks in a country as a supplement to traditionally research intensive science- or technology parks will increase the likelihood for more successful companies.
Background
Helping geniuses! Our slogan sums up whom Somerco aims to help. Somerco are a company that target to help researchers and innovators so that these geniuses can create prosperity and jobs in society. In this paper, I focus on how non-IP parks can help companies that focus on innovation without IP-rights become a commercial success and thereby create jobs.
Introduction
Depending on industry sector there are different costs and timeframe for R & D of products. Many of the companies who have high costs and a long timeframe for developing products rely on Intellectual Property (IP) for their incomes, while other companies are less dependent on IP for making profit. Most innovative products and services produced by companies do not have IP protection. Some consider that as many as 90% of all innovations do not have or had any IP- protection.1
Some consider IP-protection dampen innovation, while others claim it is necessary. A third group adopt both of the approaches as a part of their development of innovations. A fourth group of companies does not focus on developing innovations, which might be the largest group of them all. What approach anyone adopts is based on a conviction what is best for their business profile.
It is important for countries and EU to help large companies, SMEs and start-ups to develop their businesses and thereby create new jobs. An excellent way to do this is to create networks or hubs of knowledge for business that companies have easy access too. Science-, technology-, and industry parks have at times a whole array of services they offer companies who establish themselves at their park. It is contacts with IP lawyers, business developers, business incubators, and good access to investors and so on. Besides science-, technology- or industry parks, is there a need for parks that specializes on providing services to companies that manufacture products without IP-protection?
The non – IP parks
I call these parks a non – IP park. These should be specialized on helping companies with focus on open source, open innovation and old innovations. I present four scenarios that highlight the company or governmental institution that fit into these non-IP parks.
1 “Reassessing patent propensity: evidence from a data-set of R&D awards 1977-2004,” by Roberto Fontana, Alessandro Nuvolari, Hiroshi Shimizu, and Andrea Vezzulli (Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon, Working Papers series number 2013/09; Mar. 2013)

2. Jan Softa @ Somerco Date: 2014-09-18
Open source – contemporary innovation
Open source is per se non-IP. Many software companies work with open source code. In this scenario, I look into the gaming industry. There are several open source games available. Some games have been released as open source, some have become open after a commercial release.
Parallel Realities has a number of open source games including Blob Wars: Metal Blob Solid a 2-D arcade game. Alien Trap has released a 3D shooter called Nexuiz, a game that is built on the Darkplaces engine, a fork of the Quake 1 engine. There is a Super Mario Cart clone called SuperTuxKart and the list goes on.2
Using open source libraries is a great way to reduce time in a project, save money and have more developers working on making the best library possible. The many eyes on a project are one of the greatest strength of open source software. Having additional coders for fixing or improving code after an alpha or beta stage can be a great benefit to the project. Often times, as the project comes to a close, there is great pressure to hurry up and get the product finished. This is an area where open source can also be a benefit. The additional coders working on a project will be anxious to see the project finish and potentially increase their productivity.3
Some common ways to increase profit with Open Source is reducing costs by creating titles. A line of titles could be made from open source code, keeping the content of the game protected and making money from that as normal, just the cost of development would go down. Selling libraries with dual licensing is the best of both worlds. This can be a working model for companies who make money from selling libraries. The companies have an open version, licensed with a General Public License (GPL) like license4 that helps with development and finding bugs. With the GPL any additional work by other developers would go back to the project. However, if a company wanted to use the library as a base to start from, but not give back any new development back to the community, then the company charges the developer for the same software under a different license. Selling support doesn't have to be limited to software the company has developed. Many open source projects fall short in documentation and support. A company could step in to offer that service for companies trying to decrease the learning curve.5
As evident from the examples given, open source is an alternative also in the gaming industry that should be acknowledged as increasing in importance. There is also large interest by coders in this industry sector and depending on the game the threshold in order to contribute to coding is all between medium to extremely advance. For many coders, it is a starting point when they bridge over from building websites to do proper coding. Therefore, the gaming industry is in many respects a key to develop highly skilled coders. It is important for Europe to support these companies. Companies who choose to adopt open source coding in game development should be well nurtured. An option for these companies should be to use non-IP parks that can help these companies with implementing and developing suitable business models. A spill-over effect is when many of these coders start to develop business, health-, science- and industry software.
2 Unity starts open source initiative. http://www.gamesindustry.biz/articles/2014-08-20-unity-starts-new-open- source-intiative
3 Open Source and the Gaming Industry. http://www.gamedev.net/page/resources/_/business/business-and- law/open-source-and-the-gaming-industry-r3304
4 General Public License / GPL. http://en.wikipedia.org/wiki/GNU_General_Public_License
5 Open Source and the Gaming Industry. http://www.gamedev.net/page/resources/_/business/business-and- law/open-source-and-the-gaming-industry-r3304

3. Jan Softa @ Somerco Date: 2014-09-18
Open innovation – contemporary innovation
Open innovation is a mindset that has prompted research enterprises from academia to industry to look beyond their institutional boundaries for solutions.6 At times, projects with this approach are crowd sourced as with the mapping of the human DNA. EU and the US administration decided it should not be possible to patent the human DNA.7 It has also been tested by the US Supreme Court in 2013 that issued a ruling that bans the patenting of naturally occurring genes but allows edited or artificially created DNA to be patented. 8
Open innovation that adopt a non-IP policy can be applied to much drug discovery. In particular, the large national and international charity organisations can donate to these networks and companies. Examples on these charity organisations are Sanger Institute and Wellcome Trust who developed the Bermuda principles. These advocated automatic release of sequence assemblies larger than 1KB (preferably within 24 hours), immediate publication of finished annotated sequences, and making the entire sequence freely available in the public domain for both research and development in order to maximise benefits to society.9
For charity organizations as these, it should be interesting to also adopt a policy that embraces non-IP companies. The commercial aspects are important for all charity organisations in the sense that drug discoveries should be widely dispersed to humans and animals in order to generate much income. Generated incomes enable new research discoveries. The obvious benefit with a non-patent drug based on natural genes is it very difficult to successfully challenge in litigation. Moreover, as soon as these drugs have been accepted by national health authorities or the European Medicines Agency these can enter the market.
To also be able to support companies or networks, who have adopted open innovation with a non-IP business model in a controlled environment as in a non-IP park could quickly increase the success rate of these companies or networks.
Perhaps, non-IP parks can also be used when R & D projects adopt a non-IP approach that also includes companies who hold patents. Society will thereby benefit from both the non-IP companies or networks and those companies that file for patents but that in a particular project chosen a non-IP commercial approach.
Public sector – contemporary innovation
Innovation for the public sector is more about solving a societal need and spending money clever, rather than innovate to increase sales. To stimulate innovators who work in this area could prove clever.
In the Netherlands, the Ministry of Infrastructure and the Environment is responsible for the technical realisation of the sand motor initiative. The province of Zuid-Holland is responsible for the management of the area. The national government is contributing € 58 million and the provincial government € 12 million to the project.10
6 “More Shots on Goal” http://harvardmagazine.com/2013/12/more-shots-on-goal
7 Early advocates for not being able to patent the human genome is Wellcome Trust and Sanger Institute. http://www.wellcome.ac.uk/About-us/Policy/Policy-and-position-statements/WTX037150.htm 8 7 Takeaways From Supreme Court's Gene Patent Decision. http://news.nationalgeographic.com/news/2013/06/130614-supreme-court-gene-patent-ruling-human-genome- science/
9 Early advocates for not being able to patent the human genome is Wellcome Trust and Sanger Institute. http://www.wellcome.ac.uk/About-us/Policy/Policy-and-position-statements/WTX037150.htm
10 Sand motor. http://www.government.nl/issues/water-management/documents-and- publications/videos/2009/01/01/sand-motor.html

4. Jan Softa @ Somerco Date: 2014-09-18
The sand motor is a sand mass that has been deposited off the coast near Ter Heijde. The wind, waves and sea currents will gradually distribute this sand along the coast of Zuid-Holland. This principle of “harnessing nature to construct” a coastline will result in a natural expansion of the coast over the years to come. The arrival of the sand motor eliminates the need to supplement coastal sand every five years. This reduces the costs of the coastal defence and disturbs the life in the soil much less.11
Since being deposited, the sand motor has grown to cover 128 hectares. Along the beach, it is approximately 2 kilometres wide. The peninsula projects into the sea for a distance of approximately 1 kilometer. Sand spraying started in January 2011. The first milestone, creating a peninsula with a surface area of approximately 100 hectares, was achieved in October 2011. The sand motor is expected to produce 35 hectares of new beaches and dunes in ten to twenty years’ time. According to the Dutch Government, there is a large international interest in this innovative project.12
How can the public sector work to get more great minds to solve societal challenges? In this example, there is set frames by the Dutch government for what challenges the project should solve. The government provide grants to the innovators projects so these can be implemented in full-scale.
In addition, to this traditional grant approach, it is possible for the government to also have a policy that enables a free innovation approach. Instead of providing grants the government offer a business model that let the innovator get 1-3% of the savings made. The government then choose and implement the innovations that benefit the challenges the public sector faces.
How can the savings the government achieves be measured? There is no one fit solution for every situation. But if we would assume that the sandbank motor innovation was not developed with grants, the innovators could during ten years be given 1,5% of the savings this method has in comparison to the yearly replenishments of the sand. The innovators could also form a consultant company an export the knowledge of the sandbank motor with the same business model to other countries than Holland that face the same problems with erosion.
The sand motor idea highlights it is not possible to IP-protect all the many innovations society needs in order to be improved. Still, there is a need for the innovators to have future incomes. Also, theOpen innovatuiore is a need for innovators with these ideas to get guidance and develop these into real projects in society. To support companies or institutions that have innovators with this focus is essential and a non-IP park with much experience about business models for non-IP innovations could be a great starting point.
Start-ups – old innovation
In this fictive scenario, we have a start-up company that do not conduct any science and that will focus on manufacturing products in materials. The entrepreneurs have known for a while about recently expired patents for a technology for how to develop materials used in the aviation industry. The company that held the patents has a high profit margin on their products. However, the start-up has tested this material on applications in the boat industry sector that is not penetrated by the patent holding company. According to their calculations they can both
11 Sand motor. http://www.government.nl/issues/water-management/documents-and- publications/videos/2009/01/01/sand-motor.html
12 Sand motor. http://www.government.nl/issues/water-management/documents-and- publications/videos/2009/01/01/sand-motor.html

5. Jan Softa @ Somerco Date: 2014-09-18
decrease the prices by 15 – 18% depending on product and have a good profit margin. It is due to that they do not need to pay license fees and that they will have a modern machine park.
The entrepreneurs have pitched their idea for a non-IP park that liked their idea. The entrepreneurs want to establish themselves at the non-IP park in order to get help from them to take the right steps and minimize unnecessary mistakes.
Together, the company and the non-IP park develop a strategy to become a sub-contractor who focuses on supplying goods to boat manufacturers and to specialized boats shops in their home country Greece and South Italy. When they have established themselves here they will target boat shops based around the Adriatic Sea.
In order to reduce future development costs, the start-up and the advisers at the non-IP park has decided that professionals outside the company will be able to contribute to the development of the boat materials for a fixed fee. It enables the company to have more money to spend on marketing its products in the boat industry.
In common
All these different scenarios, shows companies or innovators that have adopted a non-IP approach that would be commercially successful. Three of these scenarios work with R & D of contemporary innovations, while the last discuss old innovations. In a non-IP park, the discussed companies and innovators can get help to put together a strategy that has a focus on being commercially successful without being dependent on income from IP protected products and services.
Relevance
Science-, technology- and industry parks have many times a tradition to help companies file for patents in order to commercialize their products. In principle, the parks business incubators and professionals could help companies in commercializing products with a non-IP approach,
So is there any relevance with a specialized non-IP park?
I believe it would be much appreciated among companies that advocate open source and open innovation. Here they find professionals with a deep understanding of developing business models around products that do not hold IP protection. It mean business advisers in these non-IP parks need to have knowledge about turning ideas into profit quicker, how to meet competition sooner from others.
Especially, in some parts of the world the cost for filing patents and its protection is inhibiting the development of successfully commercial companies. The costs for filing patent and translation of patents will not be a financial post.
A service, professionals at a non-IP park could provide is knowledge about soon to or recently expired patents on products that has proven to be a commercial success. These products can then be adopted by the tenant companies at the non-IP park.
Supplement
To have one or a few non-IP parks in a country as a supplement to traditionally research intensive science- or technology parks that generate many patents will increase the likelihood for more successful companies. Job growth could be created among these innovators, entrepreneurs and all other supporting staff as sales people and in administration.

6. Jan Softa @ Somerco Date: 2014-09-18
Draft proposals
Enhance the competitiveness of EC member states Part 1 - Designated tax to science
Enhance the competitiveness of EC member states Part 2 – Strategy to support the software industry
Enhance the competitiveness of EC member states Part 3 – Actions to support women in ICT
Enhance the competitiveness of EC member states Part 4 – Going abroad–Competitive assets
Enhance the competitiveness of EC member states Part 5 – Business incubators, financial recycling and incentives into reward
Enhance the competitiveness of EC member states Part 6 – Standardization as a tool to increase competitiveness
Enhance the competitiveness of EC member states Part 7 – Different types of innovations
Enhance the competitiveness of EC member states Part 8 – Open source from science to society
Enhance the competitiveness of EC member states Part 9 – Crowd sourcing and crowd funding
Enhance the competitiveness of EC member states Part 10 – Green VAT for business
Enhance the competitiveness of EC member states Part 11 - Keep talent in Europe
Enhance the competitiveness of EC member states Part 12 - Research leftovers
Enhance the competitiveness of EC member states Part 13 - Science Parks-Specializations
Enhance the competitiveness of EC member states Part 14 - Patent trolls
Enhance the competitiveness of EC member states Part 15 – Science e- Parks
Enhance the competitiveness of EC member states Part 16 – Expansion options
Enhance the competitiveness of EC member states Part 17 – The locally developed infrastructure.
Enhance the competitiveness of EC member states Part 18 – Treaty (Knowledge transfer)
Enhance the competitiveness of EC member states Part 19 – Different types of infrastructure
Enhance the competitiveness of EC member states Part 20 – Build infrastructure (In progress)
Enhance the competitiveness of EC member states Part 21 – Energy infrastructure (elsewhere) (In progress)
Enhance the competitiveness of EC member states Part 22 – Quick market entry (Medical)
Enhance the competitiveness of EC member states Part 23 – Innovation, Commercialization, Growth
Enhance the competitiveness of EC member states Part 24 – External energy dependencies (In progress)
Enhance the competitiveness of EC member states Part 25 – Old innovations
Enhance the competitiveness of EC member states Part 26 – The non-IP Parks
Enhance the competitiveness of EC member states Overview – Old and new key areas in order to increase the competitiveness of the industry (In progress)
Input on threats against information society