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87 Cards in this Set
- Front
- Back
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Which are the production factors? |
Traditionally: - Land - Labor - Capital Goods
Now also Knowledge/Organisation/Entrepreneurship |
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Presumptions for association (3) |
Knowledge should be: - Discrete - Able to be codified - Static |
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Definition of innovation |
The successful commercialization of an invention. |
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What do IPRs do? |
Intellectual Property Rights provide identity by defining object relations between individuals and/or organizations. |
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Factors of collaborative networks that impact Innovation Output |
- Partner quality - Knowledge heterogeneity - Relational strength |
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Most common IPRs |
- Patents - Copyrights - Trademarks - Designs |
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What are patents used for? |
Inventions. - Disclosed to public. - Patent office examines application to determine if requirements are met. |
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What are copyrights used for? |
Original creative/artistic forms. - Exists automatically in NL |
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What are trademarks used for? |
Distinctive signs or indicators of the source of a product or service which distinguish them from their competitors. - Apply through BOIP or OHIM |
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What are registered designs used for? |
To protect the external appearance of a product. - Designs must be original and distinctive - No protection for technical aspects |
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What are unregistered deigns? |
A free, automatic right you get by showing a design to the public. - Has limited duration but stops people from copying your design |
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What are trade secrets? |
- An alternative to patents - If the possessor is careful to keep information hidden, he can sue anyone who steals it. - No protection against reverse-engineering or competitors who independently make the same invention - ONLY CONTRACTABLE IN UK/US |
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Definition of technology |
Theoretical and practical knowledge, skill and artifacts that can be used to develop products, services, production and delivery systems. Not the product or the service in itself, but the knowledge to produce them. |
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What factors influence an entrepreneur to want to exploit an independent invention? |
1. Business interests, risk perception and capabilities and experiences of the entrepreneurial team. 2. Characteristics of the industry 3. Characteristics of the invention: - Importance - Radicalness - Patent protection |
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Innovation Strategy |
Builds on creativity, invention and technology, acting within a value network to commercialize new goods/services effectively. |
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Elements of an innovation strategy. |
- Well defined customer - Key customer benefit in € - Short period until payback point - High benefit price ratio per customer - Proprietary advantage that can be maintained and defended - Competencies required to exploit new tech - Access to necessary resources |
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How do you conduct a competition analysis? |
Porter's 5 forces: - Rivalry amongst existing firms - Bargaining power of suppliers - Bargaining power of buyers - Potential entrants - Technology substitutes |
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Definition of product
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A good or a service that is the result of a technology process. |
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Definition of FTO (Freedom to Operate) |
For a given product or service, at a given point in time, in respect to a given market or jurisdiction, no IPRs from another party are infringed. |
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FTO analysis as a service |
- Strategic planning tool - To be used before investing in technology development - Based on analysis from patent entry |
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Why is FTO analysis important for HTSF? |
- Many tech-based startups don't own patents - They use + develop third party proprietary knowledge - Liable when infringing - Increased risk of litigation |
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HTSF characteristics. |
- Relatively low resources - Management has a relatively short time horizon - Inactive or reactive patent management protocol - Lack patent expertise |
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Technology venturing issues. |
- Competitive disadvantage to large firms - Increased risk management pressure = professionalized patent management practice - Increased tech interweavement due to open innovation - Business model differentiation means smaller firms are exploiting their patent portfolios increasingly |
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Innovation mechanisms for technology protection. |
For inventions: - Keep secret - Publish - Apply for patent For innovations - Time-to-market (lead time advantage) - Exclusive contracting |
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CRITERIA FOR PATENTING DECISION - Market |
Timing: - Further research to broaden claims vs. risk of losing first-to-file race - Patent enforcement until expiration & monitoring infringement - Patent litigation is 2 to 4 years Competition: - Knowledge and behavior of competitors - Opportunities and strategy for cooperation - Opportunities for "similar products" + broadening scope of protection
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CRITERIA FOR PATENTING DECISION - Procedural |
Legal: - Publication of patent after 18 months, withdrawal up to 12 - Postponing = possibility of a competitor patent Technology: - Technical advantage (patent height) - Possibilities of keeping it secret - Technical alternatives |
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CRITERIA FOR PATENTING DECISION - Technological |
Appropriability regime: 1. Nature of the technology: - Cumulativeness of the knowledge - Accessibility 2. Strength of legal barriers against innovation - Inclusion in law - Safeguards for exploitation |
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CRITERIA FOR PATENTING DECISION - Financial |
Cost of application: - Home market (NL € 6000 - 8000 incl. patent attorney fees) - Regional (€ 30000 - 60000 for EP) - Worldwide (at least € 125000) - Renewal Fees Cost of enforcement + litigation: - Depends on country - Cost of litigation damage €60000 to 200000 in Germany |
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Procedures after publication and granting of patent. |
- Opposition - Litigation - Enforcement |
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Opposition |
- European Patent Office - It is the revocation or maintenance of the patent - Rivals try to stop you from obtaining the patent |
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Litigation |
- Court - Nullity or maintenance of patent - You try to stop suspected infringers |
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Enforcement |
- Court - Claim of damages - Compensation for loss of revenues |
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Components of patent management |
Strategic perspective: - Planning for patent positions (managing creation of proprietary knowledge) - Exploiting patent positions (generating cashflow from proprietary knowledge) Planning and control - Corporate level responsibility of IP function at LTBFs is organized at all levels - Corporate level responsibility of IP function at STBFs is at fewer levels or one hand/mind |
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What is the problem with moving from closed to open innovation? |
Uncertain research outcomes make it hard to allocate future returns |
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What is the problem with collaborative projects? |
They require proactive planning, and there's a lack of knowledge and resources for IPR especially n STBFs |
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What's the open innovation paradigm? |
Firms practicing open innovation strategically manage inflows and outflows of knowledge |
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What's the problem with open innovation for STBFs? |
Patents are often misperceived and undervalued |
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Definition of exploitation |
To develop and use resources for industry or commercial activities. |
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Definition of commercialisation |
To use or change in such a way that it makes money or profits |
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Definition of valorisation |
Exploiting project learning and outcomes with a view to optimise their value and impact in existing and new contexts |
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Definition of patent exploitation |
It is the same as patent valorisation. It is the act of creating value from patents in capturing and extracting their latent economic potential by having the underlying technology commercialized. |
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Definition of patent commercialisation |
To invest at own risk in the development of the technology into good and services to be sold. |
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Possible IPR transactions (4) |
- Co-patenting - Pooling - Buying and selling - Licensing |
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Licensing definition |
A private contract to exploit a third party's IPR - free but limited by law - Patents aren't necessary for licensing, but exclusive positions are (e.g. trade secret or know-how) |
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ADVANTAGES OF LICENSING - Licensor Perspective |
- Additional revenue - New product/market opportunity - Specialising in technology development - To exploit license complementary resources - To deter the entry of new competitors - Cross-licensing - No commercial capability (e.g. hospital) - Limited resources - Limited scope - Outside own scope - To settle/avoid dispute |
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ADVANTAGES OF LICENSING - Licensee Perspective |
- Need for new tech - To diversify - To catch up with competition - To prevent infringement - To gain access to essential patents - To provide company with tech alternative |
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Patent license definition |
Right to use, have used, make, have made, sell, have sold products/services for the license granted which would infringe one or more claim of the licensed patent rights. Can be limited by: - Field - Territory - Exclusivity - Duration |
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Common elements in a patent license |
- Sub-licensing - Performance obligations - Improvements - Warranties - Reporting - Confidentiality - Liability - Applicable law - Settlement of disputes |
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Financial terms in a patent license |
- Royalties on sales - Minimum annual royalties - Up-front payments - Mlestone payments |
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Definition of Intangible Assets |
An identifiable, non-monetary asset without physical substance |
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Definition of Value |
The amount people are willing to pay. NOT THE SAME AS PRICE. |
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Why value intellectual property? |
- Company valuation - Sale and license transactions - Raising finance (e.g. bank loan) - Tax - External reporting & accounting - Litigation support and dispute resolution - Internal management |
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Cost-based valuation method |
Pricing is based on the cost of developing the asset. - Involves capitalisation of historical costs - R&D costs can be hard to attribute - Useful at very early stages of development - Useful when IP is easy to circumvent - Suitable for accounting |
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Market-based valuation method |
Pricing is based on transactions of other purchasers and sellers in the marketplace - Useful when there is sufficient transaction information - Data can be found in places like company websites, annual reports, online databases... |
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Income-based valuation method |
Pricing is based on the ability of technology to generate future income. Key parameters are: - Amount of income stream - Duration of income stream - Risk associated with the realisation of the income |
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Discounted cash flow method |
Value is determined by computing the present value of cashflows from the IP over its useful life. |
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Excess earnings method |
Total value of business - value attributable to net tangible assets = value of intangible assets |
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Relief from royalties method |
Logic: If company owns an IP asset, you're saving the cost of licensing it. Volume of sales x royalty rate = royalty revenue saved |
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How do you choose a valuation method? |
Depending on: - Industry - Degree of maturity of the technology - Degree of risk - IPR - Available information Best to combine methods and do it regularly. |
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LIABILITY DEFINITION |
Sum of money that is owed or being legally responsible for an act. |
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LIABILITY - Legal Perspective |
Owner's perspective: - To make patents "work" by litigating against infringers - To meet regulatory standards - To assess litigation risk when conflicts have been identified Non-Owner perspective - If IPR is respected you will not be held liable - To secure FTO |
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LIABILITY - Financial Perspective |
To secure loans |
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LIABILITY - Organisational Perspective |
Liability of newness - Greater mortality risk to new ventures (entrants) that existing ventures (Incumbents) |
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LIABILITY - Enforcement perspective |
Infringement identification is hard. Things to consider: - Employee tasks to identify infringement - Information systems to support ^^^ - Who should be involved in it - Incentives - Follow-up procedure - Strength of case - What policy to pursue (warning? License? prosecution?) |
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Legal considerations on enforcement |
- Type - Procedure - Jurisdiction |
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Business considerations on enforcement |
- Strategic - Financial - Technological - Organisational |
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Strategic considerations on enforcement |
- Effect on existing and future relationships - Relation to business model |
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Financial considerations on enforcement |
- Can we afford it? - Cost-benefit calculations of alternatives - Risk analysis |
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Technological consderations on enforcement |
- Dependency on the disputed invention for continuing the product - Technological alternatives |
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Organisational considerations on enforcement |
- Learning from experience - How to prevent litigation - What changes should be done in tasks, responsibilities and mandates of our employees |
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Business Method Patents |
- Not possible under EPC (yes in US) - Mostly software-based/oriented, including methods of combining databases to perform business operations |
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Patent portfolio management considerations |
- What to do with commercialisation time lag? - Innovation strategy - Patent position vs market position - Portfolio analytics (how to group patents) |
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Copyright Definition |
The exclusive rights, subject to the limitations included in the law, of the author or the assignee to publish and reproduce a work. Protects a work of: - Science - Literature - Art |
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Value of copyright |
- Prevention of others using the work by requesting a prohibition or seeking compensation after infringement. - Exploitation of copyright |
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Author definition |
The person who creates a work |
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Assignee |
The third party who is assigned and transferred the copyright in writing |
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Exceptions to "Copyright holder" |
- Joint copyrights - Creation under supervision and in conformity with instructions of another party - Employer's copyright |
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Exceptions to "Exclusive rights" |
- Citations - Own use - Educational purposes |
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Additional rights |
Moral rights: - The right to object to modifications of the work - Replication or reproduction without reference to the author |
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Duration of copyright |
70 years after death of last author |
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Trademark Definition |
Any sign that is or can be expressed with a graphical representation and can be used to identify a good or service |
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Legal sources for trademarks |
- Benelux treaty (no individual for NL) - European directive on trademarks |
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Process of application for trademarks |
Applications are filed in Benelux Office for Intellectual Property or Office for Harmonisation of the Internal Market Office. 1. Formalities (e.g. payment) 2. Check on absolute grounds for rejection of the application 3. Check on possible relative grounds |
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Absolute grounds for rejection of trademark application |
Sign: - Illegal signs - Religious signs - Other improper signs (swearing) Lacking distinctive power: - Words that just refer to the goods being sold or services being delivered - Sign that just refers to the shape of the goods sold - Sign that just refers to the quantity the goods may be sold in Misleading trademarks: - Territory (Champagne) - Actual product (Duff Beer) |
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Relative Grounds |
Similar to an existing trademark in a way that is: - Confusing - Detrimental to distinctiveness of registered trademark |
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When is the registration of a trademark completed? |
- Upon completion of formal elements - Positive results of checks by BOIP or OHIM on absolute grounds - No opposition by holder of a prior trademark during the opposition period OR an opposition had a positive result |
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Duration of trademark |
- 10 years after the date of filing - Extension of 10 year periods after the end of the initial (or any subsequent) term |
