Strategic IP management
Master Business Economics 2018 – 2019, KU Leuven
Prof. Walter Van Dyck
1
,1. INTRODUCTION TO INTELLECTUAL PROPERTY ........................................................................ 4
THINK BEFORE YOU ACT: AM I DIFFERENT THAN COMPETITION? ....................................................................... 4
INNOVATION ........................................................................................................................................... 4
IP, AN OVERVIEW ......................................................................................................................... 5
COPYRIGHT ............................................................................................................................................. 5
TRADEMARK............................................................................................................................................ 5
WHY REGISTERING TRADEMARKS? .............................................................................................................. 5
INDUSTRIAL DESIGN .................................................................................................................................. 6
PATENTS................................................................................................................................................. 6
TIMELINE FOR INVENTIONS ...................................................................................................................... 10
IP DECISION FLOW.................................................................................................................................. 11
ALTERNATIVES TO PATENTING .................................................................................................................. 12
TRADE SECRET ....................................................................................................................................... 12
PATENTS VS TRADE SECRETS ..................................................................................................................... 12
2. IP STRATEGIES AND PORTFOLIOS ......................................................................................... 14
HOW IMPORTANT IS IP? ............................................................................................................. 14
! PROTECT INNOVATIONS BY IP................................................................................................................. 14
OPTION 1 TO PROTECT INNOVATION: FORMAL IP ........................................................................................ 15
IP BASED BUSINESS MODELS: PATENT SHARKS ............................................................................................. 16
OPTION 2 TO PROTECT INNOVATION: STRATEGIC DISCLOSURE ........................................................................ 17
OPTION 3 TO PROTECT INNOVATIONS: TRADE SECRETS ................................................................................. 18
IP DECISION FRAMEWORK........................................................................................................................ 19
IP STRATEGIES ............................................................................................................................ 19
CROSS-LICENSING AGREEMENTS ............................................................................................................... 20
MEASURING OFFENSIVE AND DEFENSIVE BLOCKING ...................................................................................... 21
DRIVERS OF THE STRENGTH OF AN IP-BASED TECHNOLOGY PLATFORM ............................................................ 22
3. R&D PARTNERSHIPS AND IP ................................................................................................ 23
A SUCCESSFUL IP-BASED COLLABORATION AND EXIT STRATEGY .................................................. 23
WHY COLLABORATE IN R&D? .................................................................................................................. 23
DO R&D PARTNERSHIPS PAY OFF? ............................................................................................................ 24
IP ISSUES IN UNIVERSITY-FIRM COLLABORATIONS: PUBLICATION RIGHTS .......................................................... 24
HOW TO DEAL WITH PUBLICATION RIGHTS? ................................................................................................ 24
INDUSTRIAL IP-BASED COLLABORATIONS .................................................................................................... 25
IP ARRANGEMENTS IN R&D COLLABORATIONS ............................................................................................ 26
IP CONTRIBUTION: WHAT TO SHARE WITH PARTNERS ................................................................................... 27
IP CONTROL .......................................................................................................................................... 28
IP GOVERNANCE: OWNERSHIP OPTIONS ..................................................................................................... 29
PATENT CO-OWNERSHIP ............................................................................................................ 30
THE LEGAL CONTEXT ............................................................................................................................... 30
IMPLICATIONS OF CO-PATENTING .............................................................................................................. 30
EMPIRICAL STUDY ON IP CO-OWNERSHIP ................................................................................................... 31
IP-BASED CONSORTIA AND ECOSYSTEM ORCHESTRATORS .......................................................... 33
COLLABORATING IN INNOVATION ECOSYSTEMS............................................................................................ 33
ECOSYSTEM PARTNERS COLLABORATE AND JOINTLY DEVELOP PRECOMPETITIVE KNOWLEDGE .............................. 34
INDUSTRIAL AFFILIATION PROGRAM (IAP) .................................................................................................. 34
4. IP LIFECYCLES AND PATENT MAPPING ................................................................................. 37
PATENT MAPPING ...................................................................................................................... 37
2
, PATENT SEARCHING ................................................................................................................................ 37
IS MY INVENTION PATENTABLE? ................................................................................................................ 39
PATENT MAPPING .................................................................................................................................. 39
MAKE SURE THAT YOU COLLECT ALL THE NECESSARY IP RIGHTS TO PROTECT YOUR (CORE) TECHNOLOGY ............... 41
MANAGING THE IP LIFECYCLE ..................................................................................................... 42
TECHNOLOGY LIFECYCLE .......................................................................................................................... 42
PATENT POOLS: FRAGMENTED IP LANDSCAPE ............................................................................................. 46
5. TECHNOLOGY LICENSING..................................................................................................... 48
TECHNOLOGY LICENSING: THE RATIONALE .................................................................................. 48
WHAT ARE THE BARRIERS TO OUT-LICENSING .............................................................................................. 49
IP LICENSE-BASED CONTRACT AGREEMENTS ............................................................................... 50
TYPICAL STRUCTURE OF A LICENSE AGREEMENT ........................................................................................... 50
IP VALUATION ............................................................................................................................ 52
3 MAIN METHODS .................................................................................................................................. 52
POPULARITY OF IP VALUATION METHODS ................................................................................................... 52
TYPICAL VALUATION-RELATED PROBLEMS AND SOLUTIONS IN REACHING AN IP-BASED DEAL ................................ 53
SANUS CASE ............................................................................................................................... 53
6. GLOBAL IP STRATEGIES........................................................................................................ 54
NATURE OF APPROPRIABILITY REGIMES AND INDUSTRY ARCHITECTURE ............................................................ 54
IP IN A GLOBAL CONTEXT ......................................................................................................................... 55
INVENTION CAPITAL ................................................................................................................................ 60
3
, 1. Introduction to intellectual property
Think before you act: Am I different than competition?
− I and My company
Different persons: I = natural person vs. my company = legal person
− Domain name check
− What is a good tradename? ®
− Are my contracts oké? Who owns what? ©
− Patents
− Is my functionality different, how to outperform competition?
− Subventions/Sponsorship regions
− Patentbox Innovation 33% lowered to 6%
Innovation income deduction (tax relief, it lowers tax income)
(inkomsten gegenereerd van patent aftrekken van belastbaar inkomen)
− Are trade secrets safe within my company?
Innovation
→ New developed tools
− A new knowledge resulting in (commercial) progress
Innovation is not carpooling with Tesla’s or working on Apple iPad
− “How to protect these real Innovations”
Good artists copy, great artists steal (war for monopoly)
− in 2015, 84% of the value of a company is IP (intangible assets)
There is an upward trend
4
,IP, an overview
Copyright
− Creations – expressible form of an idea
− Originality
− Owner = author
− No registration requirement – burden of proof
Easy to acquire a copyright, but important to use a date stamp to prove that you are the first
− The right to copy/adapt/transmit…
Ex. You don’t have the right to take a picture of the atomium because this is a copyright that
belongs tot he architect of the atomium
− Long duration: EU: 70 years after † author
Trademark
− Any sign distinguishing the goods from an undertaking
− Any sign which a consumer can perceive as identifying the goods originating from a company
− Words, devices, shapes, trade dress, packagings, colours, combinations of the aforegoing
− Eligible for registration? Distinctive? E.g. slogans
− Descriptive? If the mark exclusively consists of signs which may describe the product or its
characteristics
− Available for use / registration?
• Earlier registered trademarks? Benelux – EU (+ 28 member states) – international
• Earlier trade names – company names
• Domain names
• ! Important: define territory and related products/services!
− Linguistic search in case of international activities
Why registering trademarks?
Reserving the market for your activities
− Only protection through registration
− Use as such does in general not offer any protection
− E.g. X is using the mark XYZ in France since 2010 but did not register the TM; Y registers XYZ
in France(2016), Y will be in a position to oppose against the further use by X of the mark XYZ
− Trademark to protect a tradename in a first stage
− Later (when finance is acquired) you can register your tradename
Vb. Louboutin red sole, Adidas 3 stripes, Capri Sun packaging
5
,Protection against
− Counterfeiting / imitations
− Reputation damage
− Unfair advantage
− Other abuses
Industrial design
− Visual appearance of a product (2D – 3D):
new / individual character / not solely dictated by its technical function
− Registration: prior to disclosure!
− Owner = designer
− Protection against counterfeit / imitation
− Country by country (exception: EU)
− Limited duration (EU: max. 25 years; US: 14 years)
Patents
Senate of Venice, 1474 "Any person in this city who makes any new and ingenious contrivance, not made
heretofore in our dominion, shall, as soon as it is perfected so that it can be used and exercised, give notice of
the same to our State Judicial Office, it being forbidden up to 10 years for any other person in any territory of
ours to make a contrivance in the form and resemblance thereof".
Today: New to the world and up to 20 years of protection
− Incentive to innovate (grant protection)
− Incentive to share knowledge (publish the invention’s details)
− The social contract: reveal invention, get exclusivity
6
, 7
Master Business Economics 2018 – 2019, KU Leuven
Prof. Walter Van Dyck
1
,1. INTRODUCTION TO INTELLECTUAL PROPERTY ........................................................................ 4
THINK BEFORE YOU ACT: AM I DIFFERENT THAN COMPETITION? ....................................................................... 4
INNOVATION ........................................................................................................................................... 4
IP, AN OVERVIEW ......................................................................................................................... 5
COPYRIGHT ............................................................................................................................................. 5
TRADEMARK............................................................................................................................................ 5
WHY REGISTERING TRADEMARKS? .............................................................................................................. 5
INDUSTRIAL DESIGN .................................................................................................................................. 6
PATENTS................................................................................................................................................. 6
TIMELINE FOR INVENTIONS ...................................................................................................................... 10
IP DECISION FLOW.................................................................................................................................. 11
ALTERNATIVES TO PATENTING .................................................................................................................. 12
TRADE SECRET ....................................................................................................................................... 12
PATENTS VS TRADE SECRETS ..................................................................................................................... 12
2. IP STRATEGIES AND PORTFOLIOS ......................................................................................... 14
HOW IMPORTANT IS IP? ............................................................................................................. 14
! PROTECT INNOVATIONS BY IP................................................................................................................. 14
OPTION 1 TO PROTECT INNOVATION: FORMAL IP ........................................................................................ 15
IP BASED BUSINESS MODELS: PATENT SHARKS ............................................................................................. 16
OPTION 2 TO PROTECT INNOVATION: STRATEGIC DISCLOSURE ........................................................................ 17
OPTION 3 TO PROTECT INNOVATIONS: TRADE SECRETS ................................................................................. 18
IP DECISION FRAMEWORK........................................................................................................................ 19
IP STRATEGIES ............................................................................................................................ 19
CROSS-LICENSING AGREEMENTS ............................................................................................................... 20
MEASURING OFFENSIVE AND DEFENSIVE BLOCKING ...................................................................................... 21
DRIVERS OF THE STRENGTH OF AN IP-BASED TECHNOLOGY PLATFORM ............................................................ 22
3. R&D PARTNERSHIPS AND IP ................................................................................................ 23
A SUCCESSFUL IP-BASED COLLABORATION AND EXIT STRATEGY .................................................. 23
WHY COLLABORATE IN R&D? .................................................................................................................. 23
DO R&D PARTNERSHIPS PAY OFF? ............................................................................................................ 24
IP ISSUES IN UNIVERSITY-FIRM COLLABORATIONS: PUBLICATION RIGHTS .......................................................... 24
HOW TO DEAL WITH PUBLICATION RIGHTS? ................................................................................................ 24
INDUSTRIAL IP-BASED COLLABORATIONS .................................................................................................... 25
IP ARRANGEMENTS IN R&D COLLABORATIONS ............................................................................................ 26
IP CONTRIBUTION: WHAT TO SHARE WITH PARTNERS ................................................................................... 27
IP CONTROL .......................................................................................................................................... 28
IP GOVERNANCE: OWNERSHIP OPTIONS ..................................................................................................... 29
PATENT CO-OWNERSHIP ............................................................................................................ 30
THE LEGAL CONTEXT ............................................................................................................................... 30
IMPLICATIONS OF CO-PATENTING .............................................................................................................. 30
EMPIRICAL STUDY ON IP CO-OWNERSHIP ................................................................................................... 31
IP-BASED CONSORTIA AND ECOSYSTEM ORCHESTRATORS .......................................................... 33
COLLABORATING IN INNOVATION ECOSYSTEMS............................................................................................ 33
ECOSYSTEM PARTNERS COLLABORATE AND JOINTLY DEVELOP PRECOMPETITIVE KNOWLEDGE .............................. 34
INDUSTRIAL AFFILIATION PROGRAM (IAP) .................................................................................................. 34
4. IP LIFECYCLES AND PATENT MAPPING ................................................................................. 37
PATENT MAPPING ...................................................................................................................... 37
2
, PATENT SEARCHING ................................................................................................................................ 37
IS MY INVENTION PATENTABLE? ................................................................................................................ 39
PATENT MAPPING .................................................................................................................................. 39
MAKE SURE THAT YOU COLLECT ALL THE NECESSARY IP RIGHTS TO PROTECT YOUR (CORE) TECHNOLOGY ............... 41
MANAGING THE IP LIFECYCLE ..................................................................................................... 42
TECHNOLOGY LIFECYCLE .......................................................................................................................... 42
PATENT POOLS: FRAGMENTED IP LANDSCAPE ............................................................................................. 46
5. TECHNOLOGY LICENSING..................................................................................................... 48
TECHNOLOGY LICENSING: THE RATIONALE .................................................................................. 48
WHAT ARE THE BARRIERS TO OUT-LICENSING .............................................................................................. 49
IP LICENSE-BASED CONTRACT AGREEMENTS ............................................................................... 50
TYPICAL STRUCTURE OF A LICENSE AGREEMENT ........................................................................................... 50
IP VALUATION ............................................................................................................................ 52
3 MAIN METHODS .................................................................................................................................. 52
POPULARITY OF IP VALUATION METHODS ................................................................................................... 52
TYPICAL VALUATION-RELATED PROBLEMS AND SOLUTIONS IN REACHING AN IP-BASED DEAL ................................ 53
SANUS CASE ............................................................................................................................... 53
6. GLOBAL IP STRATEGIES........................................................................................................ 54
NATURE OF APPROPRIABILITY REGIMES AND INDUSTRY ARCHITECTURE ............................................................ 54
IP IN A GLOBAL CONTEXT ......................................................................................................................... 55
INVENTION CAPITAL ................................................................................................................................ 60
3
, 1. Introduction to intellectual property
Think before you act: Am I different than competition?
− I and My company
Different persons: I = natural person vs. my company = legal person
− Domain name check
− What is a good tradename? ®
− Are my contracts oké? Who owns what? ©
− Patents
− Is my functionality different, how to outperform competition?
− Subventions/Sponsorship regions
− Patentbox Innovation 33% lowered to 6%
Innovation income deduction (tax relief, it lowers tax income)
(inkomsten gegenereerd van patent aftrekken van belastbaar inkomen)
− Are trade secrets safe within my company?
Innovation
→ New developed tools
− A new knowledge resulting in (commercial) progress
Innovation is not carpooling with Tesla’s or working on Apple iPad
− “How to protect these real Innovations”
Good artists copy, great artists steal (war for monopoly)
− in 2015, 84% of the value of a company is IP (intangible assets)
There is an upward trend
4
,IP, an overview
Copyright
− Creations – expressible form of an idea
− Originality
− Owner = author
− No registration requirement – burden of proof
Easy to acquire a copyright, but important to use a date stamp to prove that you are the first
− The right to copy/adapt/transmit…
Ex. You don’t have the right to take a picture of the atomium because this is a copyright that
belongs tot he architect of the atomium
− Long duration: EU: 70 years after † author
Trademark
− Any sign distinguishing the goods from an undertaking
− Any sign which a consumer can perceive as identifying the goods originating from a company
− Words, devices, shapes, trade dress, packagings, colours, combinations of the aforegoing
− Eligible for registration? Distinctive? E.g. slogans
− Descriptive? If the mark exclusively consists of signs which may describe the product or its
characteristics
− Available for use / registration?
• Earlier registered trademarks? Benelux – EU (+ 28 member states) – international
• Earlier trade names – company names
• Domain names
• ! Important: define territory and related products/services!
− Linguistic search in case of international activities
Why registering trademarks?
Reserving the market for your activities
− Only protection through registration
− Use as such does in general not offer any protection
− E.g. X is using the mark XYZ in France since 2010 but did not register the TM; Y registers XYZ
in France(2016), Y will be in a position to oppose against the further use by X of the mark XYZ
− Trademark to protect a tradename in a first stage
− Later (when finance is acquired) you can register your tradename
Vb. Louboutin red sole, Adidas 3 stripes, Capri Sun packaging
5
,Protection against
− Counterfeiting / imitations
− Reputation damage
− Unfair advantage
− Other abuses
Industrial design
− Visual appearance of a product (2D – 3D):
new / individual character / not solely dictated by its technical function
− Registration: prior to disclosure!
− Owner = designer
− Protection against counterfeit / imitation
− Country by country (exception: EU)
− Limited duration (EU: max. 25 years; US: 14 years)
Patents
Senate of Venice, 1474 "Any person in this city who makes any new and ingenious contrivance, not made
heretofore in our dominion, shall, as soon as it is perfected so that it can be used and exercised, give notice of
the same to our State Judicial Office, it being forbidden up to 10 years for any other person in any territory of
ours to make a contrivance in the form and resemblance thereof".
Today: New to the world and up to 20 years of protection
− Incentive to innovate (grant protection)
− Incentive to share knowledge (publish the invention’s details)
− The social contract: reveal invention, get exclusivity
6
, 7
