1) The document discusses 5 intellectual property management strategies: exercising market power, selling, licensing, collaborating, and donating. 2) It provides examples of how different companies have implemented these strategies, such as Apple initially locking out developers before opening its app store, and Google donating the basic Android version and licensing the premium version pre-installed with Google apps. 3) Google's strategy of donating, collaborating, and licensing Android achieved strategic victory by directing mobile search traffic and collecting user data while spreading Android widely through collaborators.

1. 5 vital IP
management
strategies
How to make the most
of your intellectual
property (IP) &
innovation idea
Learn from
Apple’s epiphany
and Google’s
brilliant strategy

2. Patents
Copyrights
Trademarks
1
Trade secrets
2
3
4
What is
Intellectual Property?
IP law aims to
balance interests
Inno
vator
Wider
public

3. Had John Pemberton patented the Coca Cola
formula, it would have expired after 20 years,
anybody would know the formula … But it has
remained a trade secret for over 100 years
A formula,
pattern,
compilation,
program,
device,
method,
technique or
process.
4
3
2
1
8
7
6
5
Trade secrets can be:
Trade secrets can be very
powerful and are protected too
(depending on jurisdiction)

4. Exercise market
power
Sell
License
1
Collaborate
2
3
4
5 IP management
strategies
Donate5
5
Note: I will reference to
these strategies on the
next slides (in this way)

5. Netpatentpremium
-1.2 -0.6 0 0.6 1.2
Patents work … sometimes
Food, tobacco
Electronics
Drugs
Med. instruments
Biotech
Total
Patents
don’t work
Patents
work
Food, tobacco: Trade secret often better
than patent (see Coca Cola)
Electronics: license out (with delay) to
disincentivise imitation
Medical: patents work. Regulatory process,
R&D cost, duration add extra protection
when used to exercise market power1

6. Appropriabil
ity regime
Comple-
mentary
assets
Profits go
to…
weak
generic consumer
specialised
owner of
complemen
tary assets
strong
innovator
specialised
innovator +
complemtry
asset owner
Who will reap the profits of
(your) invention?
If you are not likely to profit from
your innovation, consider selling
or licensing out
2
3
generic

7. Nortel (post-bankruptcy)
6000 patent pack auction:
• 4 days
• 20 rounds
• Sales price:
• Buyers: group of 6, incl
Apple, Microsoft, RIM
• E.g., Microsoft used
purchased patents to seek
licensing fees from Android
phone manufacturers
$4.5 billion
Selling your IP2

8. Licensing your IP3
Revenues from licensing
are increasing
30.3% in 8 years*
Licensing can spur collaboration
between companies
Example: cross-licensing to exchange
mutually valuable IP (Intel - AMD)
Licensing can generate revenues
Example: ARM Ltd licensed out IP
found in 30 billion micro chips in
smartphones/tablets without ever
manufacturing one chip themselves

9. 2008: App Store
Strategy: “collaborate”
Apple opened the iPhone
to developers
Number of apps for
iPhone:
1983: Apple Lisa
Strategy: “Exercise
market power”
Apple locked out
developers
Number of apps
available on Lisa:
2,200,000
Apple’s Epiphany: collaborate
1
4
7

10. The case for collaboration
“There is no reason anyone
would want a computer in
their home.” Ken Olsen*,
founder of Digital Equipment
Corporation (DEC), 1977.
Market potential is hard to predict.
Collaborative approaches can
accelerate its growth trajectory.
Steve Jobs never imagined there
would be >2m apps on their store.
* Ken Olsen has claimed to be quoted out of context,
Thomas Watson has made significant contributions in the
early computer days. Both gents have our great respect.
“I think there is a world
market for maybe five
computers.” Thomas
Watson*, president of IBM,
1943.

11. Google’s brilliant
IP management
2003 Android, Inc. founded
2005 Google acquires Android
2007 Apple iPhone 1G
released
2007 Open Handset Alliance
founded by Google with
34 founding members
agreeing to collaborate
with Google on Android
2008 First handset using
Android released and
then thousands of other
models over time
2016 Google Pixel
smartphones announced
Colla-
borate
License
Donate

12. AOSP
GMS
Android’s premium
version is free to license.
But licensee accepts to pre-
install Google Mobile apps.
License
Donate
Google donates the basic
version of Android with all
its source code. This helps
with Android’s massive
spread. This option is very
popular in China.

13. Google’s amazing strategic
victory
Pre-installed Google Mobile apps:
- direct search traffic to Google,
- collect valuable user data,
- display targeted ads,
- “lock-into” Google ecosystem,
- generate ancillary revenue
- and more
Google bought Android and
founded the Open Handset
Alliance to counter the risk of
losing out on mobile search
traffic by users being directed to
other search engines. Google
achieved this and much more

14. Strategic IP & innovation
management success
Donate,
collaborate +
license (free)
Colla-
borate
License
for $$$
Android’s massive success is
based on the chosen IP and
innovation management
strategies.
Of course, they keep a lot of
their IP as trade secret but
collaborate on other value-
adding IP.

15. Free downloads:
[Presentation & Infographics]
Android’s brilliant IP management
[5 Ebooks] IP management
strategies and business models
[Workbooks] How to apply these
strategies on your innovation ideas
Click here to download:
www.InnovationTactics.com/
strategic-IP-management
Learn more about strategic
IP & innovation management
and apply to your ideas
Dr Murat Uenlue,
PMP, PgMP
managing >$1b projects