technology policy and management course 38e00100 ... · technology policy and management course...
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© Marketing & Business ServicesOlli Ilmarinen
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Helsinki School of EconomicsTechnology Policy and Management Course 38E00100"Immaterial Property Rights", Spring 2008, 1st Period
IMMATERIAL PROPERTY SYSTEM 23 January 2008
WELCOME !Olli Ilmarinen, Product Manager, M.Sc. (Business Administration)National Board of Patents and Registration (NBPR)
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CONTENTS:1. National Board of Patents and Registration in brief2. Intellectual Property Rights
- Forms of protection: formal and informal- Patents as source of information
3. Business implications- IPR Strategy- Case Examples- Exercise
4. Summary
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1. National Board of Patents and Registration (NBPR) in Brief
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www.prh.fi
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NBPR’s mission is:
to advance technological and economic progress
by supporting creativity, entrepreneurshipand cooperation within industrial networks
resulting in improved competitiveness of Finnish industries
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NBPR maintains a wide network of international contacts. Our main co-operation partners comprise:
• the World Intellectual Property Organization(WIPO)
• the European Patent Organization (EPO) • the Office for Harmonization in the Internal Market
(trademarks and designs) (OHIM )• the Industrial Property Offices in Denmark,
Estonia, Iceland, Norway and Sweden
More information can be found in English at http://www.prh.fi/en.html
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REGIONALISED NBPRREGIONALISED NBPR
Local Register Office
Innovation Agents (15)
Enterprise AgencyEnterprise Agency Service PointChamber of CommerceInnovation Agentsat University (12)
InnoFinland regions
Employment and EconomicDevelopment Centre
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2. Intellectual Property Rights• Forms of protection - formal and
informal protection• Patents as source of information
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Intellectual Property RightsCopyright Industrial Property Rights
Written works
Audiovisual works
Pieces of art
Trade names
Patents
Utility models
Trademarks
Protection of designs
IPR: Intellectual Property RightsImmaterial Property Rights(Industrial Property Rights)
Software
”IPRs” consist of
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Industrial Property Rights:Protects Valid for
Patent Product, equipment or method 20 years (in same cases 25 years)
Utility Model Product or equipment 10 years (4+4+2)
Trademark Means to differentiate in a market Permanent, to be renewedevery 10 years
Protection of Designs Shape of product 25 years (5+5+5+5+5)
Trade Name Business (company) name Permanent (for operational business)
Tool
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11Turning an idea into a product
in the market
Trade Name
Patent
Utility Model
Trademark
Protection of Design
Industrial Property Rights aretools to create competitive edge!
InventionsEstablishment of a company
R & DProduct Development
Marketing Market research
• IPRs protect innovations• IPRs support product development• IPRs empower marketing
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• Gives a company an effective competitive tool by giving an EXCLUSIVE RIGHT to utilise the protected solution commercially
• Every operating business owns Industrial PropertyRights – its trade (company) name if nothing else
• Industrial Property Rights should be used to:• protect the results of product development• protect unique competence and know-how
Industrial Property Rights
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Other Intellectual Rights:Protects Valid forRight
Copyright
Trade secret
Work (written, audiovisual, piece of art)
Lifetime + 70 years
Information, which hascommercial significance
Until becomes public
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1. FormalFormal ProtectionProtection (regulated by authorities)PatentsUtility modelsTrademarksProtection of DesignsTrade names
2.2. InformalInformal ProtectionProtectionContracts (partners, customers, employees)
NDAs (non-disclosure agreements: companies, individuals)
Copyright - NOTE: copyright applies to software (code) in EU
Trade secrets (confidentiality)
Formal vs. Informal Protection?
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Methods of Protection:Patents
TrademarksDesigns
NDAsContracts
Protection of Databasesand Networks
Protection of TechnologyShort Innovation Cycles Work Deployment
Partner ManagementSharing of Information
Engagement of PersonnelCommitment by PartnersCustomer Relationships
INFORMAL
FORMAL
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What is required in order to patent?1. Inventiveness (must involve an inventive step)2. Novelty (it has to be a unpublished invention)3. Industrial applicability (Industrial applicability is
understood in a broad sense - besides conventionalindustry, it includes the methods and devices needed in commerce, building industry, farming, forestry, gardening, fishing, handicrafts etc.)
= You can patent a device, a product, a process for making a product, or a new use for a previouslyexisting product (= only the ”embodiments” of ideas, notsolely an idea as such).
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Benefits of formal protection: - why a ”patent” was developed?
1. To maintain and develop technical data ”Development build on development”
2. To publish inventions and new technology to wider audience (globally)
3. To define the invention and specifythe ownership of the property right
4. To stimulate product development
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Patent is public document• Patent is periodical and territorial exclusive right
to utilise an invention commercially= patent has to be renewed (and is valid max. 20 (25) years)= effective only in those countries it has been validated
• Inventor is granted this exclusive right by makingpublic the invention (i.e. the technical solution)
• Once the invention becomes public it cannot bepatented again (since there is no ”novelty” anymore)
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• Patents are public source of information - also for companies who themselves are not involved in patenting
• Each year, over a million new patent documents arepublished in several languages in over 100 countries
• In total, there are over 50 million patent documents, devided into 70 000 patent classes.
• Patent documents are the largest single source of technical infomation in the world
• 4 million of the patents are valid (=exclusive right of the patent holder), i.e. the rest 46 million are free for use
• 80-90 % of the innovations described in patents will notbe published anywhere else
Patent documents
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Patent information
Industrially viable solutionsExtensive global coverage
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Example: number of patentpublications related to hand-held & machine tools by the end of 1990’s
Patentti FI871687
• Worldwide 252 430 • Japan 90 032 • USA 30 754 • Germany 32 727• UK 3 255 • Sweden 1 592 • Finland 477
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Patent databasesesp@cenet at http://www.espacenet.comGolbal patent information (incl. specifications)on Internet, user interface in multiple languages
PatInfo register (in Finnish) Basic information on Finnish patent applications,patents and utility models
FI-EP registerBasic information on European patents in force in Finland
HYMAnetti (Utility model register)Basic information on claim and picture pertainingto each utility model registered in Finland
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fi.espacenet.comfi.espacenet.com
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fi.espacenet.comfi.espacenet.com
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Sources for preliminary search of information on other formal IPRs:
•• NBPRNBPR’’ss databasedatabase of of trademarkstrademarks www.www.prhprh..fifi•• EU EU trademarkstrademarks www.www.oamioami..eueu..intint•• DomainDomain namesnames www.www.ficoraficora..fifi,, www.www.whoiswhois..comcom•• TradeTrade namesnames www.www.ytjytj..fifi•• FamilyFamily namesnames www.www.vaestorekisterikeskusvaestorekisterikeskus..fifi
•• US US PatentsPatents www.www.googlegoogle..comcom//patentspatents
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From an ideainto a product in the market
Trade Name
Patent
Utility Model
Trademark
Protection of Design
Industrial Property Rights are toolsto create competitive edge!
Sources of Competitor Information
Sources of Technical Information
• IPRs protect innovations• IPRs support product development• IPRs empower marketing
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R&D inputs (in EU 15):30 30 -- 50 % is 50 % is redundantredundant!!
In Finland this means 1.5 – 2.5 billion euros annually- allocated wrong, spent ineffectively, or totally wasted(overlapping efforts, inventing something that hasalready been invented AND protected by others, ...)
= Allocation of R&D investments can beimproved by the use of patent information !
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IP System:
1.1. ProtectionProtection of knowof know--how and how and competencecompetence
2.2. SourceSource of of informationinformation
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3. Business implications- IPR Strategy- Case examples- Exercise
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Combined Use of IPRs:
Bottle, registered 3D trademark
Cap, patented
Coca Cola,registered trademark ®
Label text,copyright ©
The Coca Cola Company,trade name
IP System
Brand value - Top Ten Brands 2006
0
10
20
30
40
50
60
70
80
Coca C
ola
Micros
oft IBM GE
Intel
Nokia
Toyota
Disney
McDon
alds
Merced
es-B
enz
Value in Billion US$
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Business cooperation under license:Decoration of elevator car interiors, combining the KONE Deco™ elevator solutionand Marimekko designs
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1. OCCASIONAL• 80-90% of SMEs in Finland !
2. PLANNED• Patent intensive industries
(machine tools, instruments, gadgets etc.)3. STRATEGIC
• Global companies such as Nokia, Kone, Metso, Wärtsilä, Kemira, Outokumpu, Orion, ….
• Biotech and pharmaceutical industries
IPR Strategy Status (2004):
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18 (26)7. Wärtsilä
Numberof appl.
Company
11 (9)10. Beneq12 (6)9. Abloy13 (3)8. Rautaruukki
25 (12)6. Outokumpu Technology26 (30)5. ABB55 (48)4. VTT61 (57)3. Kone Corporation
74 (109)2. Nokia155 (125)1. Metso Corporation
Patent applications in Finland in 2006 (2005)
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Can we manage our IPRs?1. Can we monitor potential infringements (violations)
and defend our IPRs? How and by whom?2. How can we find out if there are any obstacles for
our operations and product development - due to others’ IPRs affecting our production, or marketing?
3. How much should we invest into our own IPRs?4. WHO SHOULD TAKE CARE OF THESE?
IPR Strategy at Company Level:
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Workbook for Management”Immaterial issues in business”
2st edition, 2006Available as a printed copy, downloadversion (pdf) and html.
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Avoidingredundant
R&D?
Monitoringtechnical
development?
Competitors?
Trends?
Markets, surveys
IPRStrategy
EvaluatingR&D project?
ProductdevelopmentPossibilities
to protecttechnology?
Production
Productionmethods?
Technicalsolutions?
Management
Responsibilities?
Implementing?
Protectingpolicy?
FinancingHow to convince
financier?
Risk analysis?
Marketing
Disclosingbusiness critical
information?
Standing outin the market?
Freedomto
operate?
Make or Buy?Licencing?
Partnerships?
How to protectspearhead-technology?
Key technology?
How to defend
infringements?
Intellectualproperty?
Fosteringcompany know-how?
Employers’inventions?
Personnel, resources
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CASES
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• Company A had invented a new product. After 0-series (”testproduction series”) they found out that their competitor hadalready patents and/or patent applications for the exactlysame product in couple of countries - but not in Finland.
• Because business opportunities were analysed to be good and the product was forecasted to become profitable globally, the company decided to investigate in which countries theircompetitor actually had the patents. They found out that therewas no patents/patent applications in several large markets(i.e.countries) at all. Also, the invention had already becomepublic (no novelty aspect that is required to obtain new patents).
• Therefore Company A was free to market the product in thosecountries where their competitor had no patents in force, being able to make significant profit out of the investment.
CASE 1:
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• Company C was accused by another company because of a potential IPR infringement right after the launch of their new papermill production line machinery product.
• Only at this point Company C found out that their new productincluded some components - supplied by their ownsubcontractor - which had been manufactured without properrights, which were owned by Company B, their competitor.
• This infringement would have been fully avoided if the subcontractor had been aware of the patents of theircompetitor and e.g. aqcuired a licence for the technology.
• Even if the Company C did not offend any IPRs on purpose, Company C was held responsible for the infringement, which they know nothing about before it was too late.
CASE 2:
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CASE 3:
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EXERCISE (in groups of 3-5 persons):
1. Discuss in groups what are:a) Benefits of IPRs and IP systemb) Handicaps / downsides of IPRs
and IP system (if any)2. List your findings and be ready to
present your results
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• Speeding up the product development process(time-to-market)
• Avoiding ”re-inventing the wheel” • Protecting one’s unique competence and know-how
(e.g. deciding how to share information in networks)• Finding potential partners and subcontractors
(make-or-buy, licencing)• Finding companies interested in licencing
(partners, marketing channels)• Differentiating the products• Technical (technology) and competitor surveillance• Avoiding infringements (i.e. violating others’ rights)
Benefits 1: Managing business risks and increasing competitiveness by:
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• Clarifying how the outputs of the R&D projectwill be protected
• Analysing the environment, technology and knowing of existing IPRs – in advance
• Protecting the technology, desing, brandand/or other IPRs (to be developed)
• Supporting technology transfer, technology & knowledge sharing and innovation networks
Benefits 2: Increasing investors’ interest by:
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1.1. ItIt takestakes tootoo muchmuch money to money to getget a a patentpatent??• Compare short-term ”losses” to long-term profits• A patent is an investment into the future!
2.2. ItIt takestakes tootoo muchmuch timetime to to getget a a patentpatent??• Compare short-term wins to long-term profits
(e.g. being able to licence the patented technology)• Start early enough (e.g. to keep the market-window)
3.3. ItIt takestakes tootoo muchmuch efforteffort to to getget a a patentpatent??• Consider using expert services
(NBPR, patent offices, patent agents, etc.)
Some potential downsides of patents:
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4. YouYou dodo notnot wantwant to to publishpublish the the inventioninvention• OK, if you can really keep it secret• In this case, you should still use other forms of
protection - contracts, NDAs,…
5.5. OurOur inventioninvention is is notnot ””inventionalinventional”” enoughenough??• You have to find this out - as a fact• You may consider utility model option instead
Some potential downsides:
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5. Summary
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• Over 80 % of the value creation of the companies is based on human capital !
• This capital should be turned into IPRs, which must be managed and protected- like any other assets of a company.
Why IPRs are important?
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Intellectual Property System:
1.1. ProtectionProtection of knowof know--howhow
2.2. SourceSource of of informationinformation
3.3. BackboneBackbone for IPR for IPR StrategyStrategy-- to to developdevelop and and defenddefend IRPsIRPs!!
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INNOVATIONINNOVATION--FRIENDLYFRIENDLY
ENVIRONMENTENVIRONMENT
IDEAS, IDEAS, ENTREPRENEURSHIPENTREPRENEURSHIP
EMPLOYMENTEMPLOYMENT
EFFECTIVENESS, EFFECTIVENESS, COMPETITIVENESSCOMPETITIVENESS, ,
GROWTHGROWTH
FinnishInnovation
SystemFosteringCreativity
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IP System at National Level
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NBPR’s Business Serviceshttp://palveluverkko.prh.fi/
Esp@cenet (International patent database)
Immateriaaliasioiden huomioiminen liiketoiminnassa• Johdon työkirja
Tehoa tuotekehitykseen • Patenttitiedon hyödyntäminen teknisen ja kilpailijatiedon lähteenä
Tavaramerkkiopas
PRH-ostoskoripalvelut
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THANK YOU !For more information, visit our website at http://www.prh.fior contact:
Olli IlmarinenTel. +358 9 6939 5236Email: [email protected]