Product and Services for Global Markets Finals

Types of Intellectual Property Protection The Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement by the WTO provides a framework of principles and minimum standards for protection of Intellectual Property (IP). Patent  Exclusive rights granted for an invention. ...

Types of Intellectual Property Protection The Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement by the WTO provides a framework of principles and minimum standards for protection of Intellectual Property (IP). Patent  Exclusive rights granted for an invention.  Typically, provides protection for a limited period (for example, 20 years).  Cost must be weighed against competitive advantage. Trade Secrets  Commercially valuable, secret proprietary formulas, processes, computer programs, and business plans that are controlled by limited access to specific people and using non-disclosure agreements.  Protection for unlimited time. Geographical Indications  The protected use of specific geographical locations or appellations of origin that denote specific qualities and value of a product.  Product must be made in the location. Trademarks  Protection and exclusive right to use or authorize any word, name, symbol, device, or combination that identifies company goods.  Trademarks formalize the ‘branding’. Industrial Designs  Protection of new, original, non-functional ornamental, or aesthetic features of a product.  Protection is usually provided for 10 years. Mitigating Intellectual Property Risk  Global outsourcing of manufacturing poses a much higher risk for loss of intellectual property compared to global sourcing of materials or components.  There is a risk that contract manufacturers will appropriate the IP to set up their own export services centre to produce and sell their version of the product, or to produce unauthorized quantities of the product to sell in the grey market.  Organizations must take stock of their IP assets, such as proprietary information and identify critical concerns, such as ownership, and assess regulations for intellectual property protection in the countries of potential contract manufacturers. Organizations can mitigate some IP risk by: o Requiring agreement to intellectual property contract provisions. o Ordering semi-finished goods in a foreign market and finishing the final production with critical components in the domestic market. o Registering intellectual property in other countries prior to contact negotiations. o Monitoring contract manufacturer’s markets for similar goods. o Auditing production and supply records. o Developing strategic alliances and partnerships. o O shoring manufacturing. Trends in Intellectual Property Protection Intellectual property protection is growing due to increased global trade. With TRIPS there is at least a minimal global standard that o ers IP protection. There are also global mechanisms in place to facilitate applications and registration of products. IP protection remains fluid due to technology, and new fields of study (for example, genetic material). Intellectual Property Infringement  The rapid change in technology that allows easily downloadable and shared information such as music, and newer fields of commercial value, such as microorganisms and genetic material, are challenging IP protection frameworks.   When selecting an intellectual property (IP) protection mechanism, it is important to determine what is necessary to protect the product and what it will cost to enforce that protection. A trademark or patent only means something in a market if its holder is prepared to defend it against infringements. In some markets, that may not be feasible. Monitoring Intellectual Property Infringement A lack of surveillance can lead to a loss of patent or trademark protection, for example: o Laches o Equitable estoppel Several Types of Infringement: o Literal infringement o Doctrine of equivalents infringement o Contributory infringement o Inducement to infringement IP infringement monitoring is also an important function in the prevention of counterfeiting:  Can lead to millions of dollars of losses  Potential to be dangerous for consumers  Can undermine an organization’s reputation and brand image  Implement Intellectual Property Protection Strategies o Select method of protection. o Monitor use of their IP. o Ensure proper contractual agreements are in place. o Obtain qualified legal advice. Topic: Service Development and Design for International Markets 1. Service Development Factors Examines how global factors influence and a ect service development and adaptation in international trade 2. Service Development Processes and Designs Describes the processes and tools used in service design, as well ways to determine customer satisfaction and perceived value of the service provided to develop e ective sales and marketing tools Service Development Factors  Types of Services  The Service-Product Relationship  Service Delivery Modes  Regulations  Market Research  Intellectual Property Protection Trade in Services Importance  Trade in services is the fastest growing segment in world trade. In 2014, the services sector accounted for almost 69 percent of global gross domestic product (GDP).  Although it makes up a smaller share of cross-border trade, the current growth rate of international trade in services exceeds that of trade in goods.  Since 1980, exports in services from developing nations have increased from 20 percent to almost one third of total world services exports. Understanding Trade in Services  Unlike goods, services are not tangible.  They produce essentially intangible benefits on their own or as elements of tangible products that satisfy an identified need.  Most of these services are valued and exchanged for a price  The fundamental service design process for domestic or international services is essentially the same, but the inputs di er significantly when considering international trade Types of Services Main service sectors:  Business and professional services  Technology  Communication services  Energy services  Construction and related services  Environmental services  Distribution services  Financial services  Education services  Health and social services  Information  Tourism services  Communications  Transport services The Service-Product Relationship  Most businesses provide a continuum of service and products.  Service providers exist along the spectrum: from those that provide only the service and no tangible output, to those that build their service o ering around a product.  Understanding how services are tied to products is an important part of service development. Service Delivery Modes Market Entry Strategy  Service o erings can also employ more than one type of service delivery model.  Regardless of the service, the market entry strategy will to some degree dictate the modes of delivery and will be influenced by regulations in the domestic and target markets, as well as the schedule of commitments. These factors can a ect the design, cost, and ability to customize the service for international clients. Regulations Service providers must operate in accordance with domestic regulations and export requirements or a schedule of commitment limitations. Service providers must understand market regulations such as:  Restricted or open markets  Protected sectors in a market  Trade policies of markets  Market entry restrictions To minimize risk, organizations may:  Research laws and regulations, scheduled commitments, dispute resolution mechanisms and unwritten business practices.  Research domestic laws and regulations.  Research required processes and costs of exporting services.  Explore appropriate financial safeguards.  Negotiate detailed codes of conduct, acceptable practices, key performance indicators, and penalties and incentives. Intellectual Property Protection  Determine the Intellectual Property (IP) protection mechanisms in the target market:  Patents provide exclusive rights to a product or process.  Copyright grants exclusive use of a work to its creator.  Service Marks identify a service and formalize its branding.  Trade Secrets protect confidential information if secrecy is maintained. Contracts and service agreements should specify:  Security measures to protect customer’s private and proprietary information  Licence agreements for third-party IP being used by customers or by the service provider  Allowable use of licenced IP and the number of licences permitted  Copyright ownership over material produced  Copyright ownership over material produced collaboratively  Share of patent protection  Sales and territorial restrictions Service Development: International Trade in Services Service Development and Design Service Characteristics General characteristics:  Intangible, but can have tangible outputs and measurable factors of performance.  Tend to be delivered and consumed immediately; highly perishable  Tend to be more heterogenous Inseparability:  The strength of a product linkage  The linkage between the service and service provider Reasons for Service Development Di erentiation tends to focus on quality and improvement to the customer experience and may also include examining opportunities for complementary services, for example:  Consistent high-quality service  Ease of access  Quality of online interaction  Quick and e ective resolution of service issues  Development of accompanying products  Delivery of on-call services based on partnership with other businesses Service Development Process Idea generation Tools for Service Design: Idea distillation or screening  Mapping  User diary Concept definition and development  Field research Test marketing  User shadowing  User personas Service launch  Focus groups  Design brief  Design scenarios  Experience prototyping Using Tools for Service Design  Mapping  User Diary  Field Research  User Shadowing  User Personas  Focus Groups  Design Brief Operational Strategies and Performance Indicators Key performance indicators can identify if changes to service delivery improve customer service and the service’s value:  Quality of delivery of the service  Service delivery times  Quality of the service Service Features There are unique features to consider when developing services:  People  Product/Outcomes  Key performance indicators  Systems  Technology  Time frames Service Adaptation and Customization Adaptation and customization can occur in response to:  Changing customer preferences  Compliance with target market regulations  Di erentiation from other service providers  Cultural norms in a target market Standardized Services Standardization of service design and outcomes provides opportunities to reduce costs through economies of scale. Typical barriers to standardization:  Customer preferences and income  Local brand campaigns and brand recognition  Regulations and scheduled commitments protecting local brands or government interests  Local competition and substitutes  Higher costs of trade across di erent foreign markets Disruptive Innovation Something that displaces an established way of conducting business and forces change within an industry, or a ground-breaking service that creates a completely new industry:  Mobile apps  Email and social networks  Online shopping  Airbnb  Cloud computing