Innovation Management Chapter 6

3/9/2024 Innovation Management Chapter 6 Managing intellectual property Arsalan Safari Associate Professor 1 Learning Objectives - Introduction Type of IPs Patent Design Patenting Trademark Copyrights Trade Secret Summary 2 1 3/9/2024 Introduction Intellectual Property (IP) is any product of human i...

3/9/2024 Innovation Management Chapter 6 Managing intellectual property Arsalan Safari Associate Professor 1 Learning Objectives - Introduction Type of IPs Patent Design Patenting Trademark Copyrights Trade Secret Summary 2 1 3/9/2024 Introduction Intellectual Property (IP) is any product of human intellect that is intangible but has value in the marketplace. It is called “intellectual” property because it is the product of human imagination, creativity, and inventiveness. Traditionally, businesses have thought of their physical assets, such as land, buildings, and equipment as the most important. However, a company’s intellectual assets are more important these days. 3 Introduction The main idea from IP is to protect the assets and innovations we have developed from being used by others without our permission. This provides a core competency and competitive advantage by having something that is not available to others. Firms can also generate significant financial returns by licensing my IP to others. 4 2 3/9/2024 Need for a Lawyer If you have any type of IP, you need to seek a legal advice from a specialized lawyer to find the best course of action. In most cases, you can not undertake this kind of legal protection alone, as it is complicated and any mistakes could lead to serious financial loses. Having a good IP can enhance your position in market, as the sole owner of a specific asset. 5 Common Mistakes Common Mistakes in Protecting IP of Small Businesses Not properly identifying all of their IP Not fully recognizing the value of their IP Not legally protecting the IP that needs protecting Not using their IP as part of their overall plan for success 6 3 3/9/2024 Types of IP Forms Patents Trademarks Copyrights Trade Secrets 7 Patent A patent is contract between the government and an inventor It grants protection and prevent others from making, using, or selling the same idea/technology for the term of the patent Issued by the patent and trademark offices. For example, in US: www.uspto.gov They provide protection for a period of time (usually 20 years), after granted which becomes available to anyone. 8 4 3/9/2024 Patent Conditions To obtain a patent, the following conditions must be met: Novelty: something new. Non-obviousness: something unique, not obvious to find Industrial application (Usefulness): can be produced as a product or process in market. A patent is granted to the inventors or discoverers of novel devices, products, processes, equipment, materials, or those who substantially improve them. 9 Can we Patent this Product ? 10 5 3/9/2024 Filling a Patent Application The patent application must include: Evidence of being first to market Establish date of starting the invention Complete history and description of the invention Lists claims for the product’s usefulness(applications) Example: Fire alarm technology (airplane, ships, hotels, etc …. ) 11 Process of Patenting 12 6 3/9/2024 Strategic Motives for Patenting Access to new knowledge that no one has it Ability to open new markets, and control competition Establishing technological leadership Enhancing reputation Setting standards Blocking similar development (putting barriers) Converting competitors into defenders 13 Patenting Facts ▪ Same rights and protection for all contracting states PARIS Convention Provisions (for Worldwide Patenting) National Treatment ▪ Standardization ▪ Patent legislation Common Rules ▪ Country interactions for patenting ▪ Other common rules Right of Priority ▪ Priority for the first patent application (in all contracting states- for 12 months) ▪ Patenting family 14 7 3/9/2024 Design Patenting To protect the visual appearance of a product, not the product features It prevents others from using the same design Issued by the Patent and Trademark Offices (e.g., in USA: www.uspto.gov It provides protection for 20 years, after that it becomes available to anyone 15 Design Patenting (Examples) 16 8 3/9/2024 Design Patenting (Examples) 17 The Cost of Patent Infringement Example: RIM settles NTP patent fight with $612.5 M payment 18 9 3/9/2024 Trademarks A trademark is any word, name, symbol, or device used to identify the source or origin of products or services and to distinguish those product or services from others. Trademarks also provide consumers with useful information. Registering the trademark can be through: the Patent and Trademark Offices (for example: in US: www.uspto.gov) It must be selected carefully from the beginning, as it represents the successful story of the firm in customer minds Steps include: selecting→ searching→ Applying 19 Trademarks Coca-Cala Entel Starbacks Tony Any attempt to imitate a similar trademark will be rejected, as it constitutes an attempt to mislead customers. 20 10 3/9/2024 Trademarks Infringement Between 1978 and 2006 there were a number of legal disputes between Apple Corps and the computer manufacturer Apple Computer (now Apple Inc.) over competing trademark rights. The companies reached a final settlement, as revealed on 2007. 21 Trademark Change over Time 22 11 3/9/2024 Trademark Change over Time Main reasons: Rebranding Modernization Mergers and Acquisitions International Expansion Repositioning Crisis Management Legal Reasons 23 Copyrights A copyright is a form of IP protection that grants legal rights to the owner of a work of authorship It prevents others from printing, copying, or publishing any original works of authorship (e.g., adds, music, books, computer software, articles) Increasingly relevant due to growth in use of Internet Registered with Copyright Office www.copyright.gov Applicable for duration of ~ 70 years (in Qatar?) 24 12 3/9/2024 Copyrights General conditions of copyright: Original work and unpublished Recorded on a published physical tool It has some creativity compare to previous work Example: you can read 100 book on any topic and write a new book, by rephrasing ideas from all other books/add new ideas. You can redraw any figure by modifying it. Example: student exam paper is protected by copyright law, without any need to register the work. 25 Copyrights – What is Protected? Literary works Musical compositions Computer software Dramatic works Pantomimes and choreographic works Pictorial, graphic, and sculptural works 26 13 3/9/2024 Trade Secrets Protection against disclosing information that could be damaging to firm (if stolen by others) Applicable as long as the idea or process remains a secret (not placed in a common area) The secret idea must have economic value Example: Coca-Cola recipe, KFC spices, search engine algorithms, … 27 Trade Secrets – Measures to Protect! Restricting access Labeling documents Password protecting confidential computer files Maintaining logbooks for visitors Maintaining logbooks for access to sensitive material Maintaining adequate overall security measures 28 14 3/9/2024 Summary Firms need to protect their IPs to preserve their core competences and maintain competitive advantages These days, a company’s intellectual assets are often more important than their physical assets A firm should develop an inventory of its existing IPs (registration of patents, trademarks, copyrights, etc.). The firm should also identify works in progress to ensure that they are being documented and protected in a systematic, orderly manner. 29 Exercise 30 15