Innovation Strategy Management Lecture 17 Lecture 18

Programme Part 1 – The basis of Innovation Part 1 – The basis of Innovation Part 2 – Innovation and New Product Development Part 2 – Innovation and New Product Development Part 3 – Innovation and Technology development Part 3 – Innovation and Technology development Part 4 – Innovation and Intellectual Property Part 4 – Innovation and Intellectual Property Part 5 – EU Green paper of Innovation Part 5 – EU Green paper of Innovation Part 6 – Innovation policies in different countries Part 6 – Innovation policies in different countries

Part 4 Innovation and Intellectual Property

Lecture 17: Intellectual Property I An introduction of patents An introduction of patents Trademarks Trademarks Registered designs Registered designs

Intellectual property The notion of two or more separate organizations working together to achieve a common aim is laudable in itself. The notion of two or more separate organizations working together to achieve a common aim is laudable in itself. One needs to remember, however, that those same organizations are also independent and autonomous. One needs to remember, however, that those same organizations are also independent and autonomous. The issues of intellectual property are continually with us and touch us probability more than we realize. The issues of intellectual property are continually with us and touch us probability more than we realize.

One of the dangers with trying to keep your idea a secret is that someone else might develop a similar idea and apply for legal protection and seek commercial exploitation. Independent discovery of ideas is not as surprising as one might first think. One of the dangers with trying to keep your idea a secret is that someone else might develop a similar idea and apply for legal protection and seek commercial exploitation. Independent discovery of ideas is not as surprising as one might first think.

Intellectual property novel idea novel idea secret secret legal protection legal protection commercial exploitation commercial exploitation discovery time discovery time

Thomas Thomas Edison & Joseph Swan Ediswan company light bulbs Trade Trade secrets reciperecipe of Coca Cola Rīgas Balzāms

An overview of the main types of intellectual property Type of intellectual property Key features of this type of protection 1Patents Offers a 20-year monopoly 2Copyright Provides exclusive rights to creative individuals for the protection of their literary or atristic productions 3 Registered designs As protected by registration, is for the outward appearance of an article and provides exclusive rights for up to 15 years 4 Registered trademarks Is a distenctive name, mark or symbol that is identified with a companys products

Patents A patent is a contract between an individual or organization and the state. The rationale behind the granting of a temporary monopoly by the state is to encourage creativity and innovation within an economy. A patent is a contract between an individual or organization and the state. The rationale behind the granting of a temporary monopoly by the state is to encourage creativity and innovation within an economy. If the individual or organization discloses in the patent sufficient details of the invention, the state will confer the legal right to stop others benefiting from the invention. If the individual or organization discloses in the patent sufficient details of the invention, the state will confer the legal right to stop others benefiting from the invention.

The language of government in medieval England was Latin and Latin for open letter is literate patent. The language of government in medieval England was Latin and Latin for open letter is literate patent. For a patent to benefit legal protection it must meet strict criteria: For a patent to benefit legal protection it must meet strict criteria: novelty novelty inventive step inventive step industrial application industrial application

Monopoly for 20 years Monopoly for 20 years Patents are granted to individuals and organizations who can lay claim to a new product or manufacturing process or to an improvement of an existing product or process which was not previously known. Patents are granted to individuals and organizations who can lay claim to a new product or manufacturing process or to an improvement of an existing product or process which was not previously known. Annual fees required Annual fees required The idea must be new and not an obvious extension of what is already known. The idea must be new and not an obvious extension of what is already known. Patent agents Patent agents The role of a patent agent combines scientific or engineering knowledge with legal knowledge and expertise. It is a specialized field of work. The role of a patent agent combines scientific or engineering knowledge with legal knowledge and expertise. It is a specialized field of work.

Exclusions: Exclusions: Discoveries Discoveries Scientific theory Scientific theory Mathematical processes Mathematical processes Literary, artistic works Literary, artistic works Designs Designs

The configuration of a patent: The configuration of a patent: Formal registering system Formal registering system Indexing system Indexing system Formal specification Formal specification Abstract, Drawing Abstract, Drawing References References

European Patent Office European Patent Office (covers Europe) Patent harmonization Patent harmonization First to file and first to invent First to file and first to invent The Paris Convention (1883) 114 countries The Paris Convention (1883) 114 countries European Patent Convention European Patent Convention

In the US the patent goes to the researcher who can provide they were the first to invent it, not – as in Europe – to the first to file for a patent. In the US the patent goes to the researcher who can provide they were the first to invent it, not – as in Europe – to the first to file for a patent. The implications of this are many and varied, but there are two key points that managers need to consider: The implications of this are many and varied, but there are two key points that managers need to consider:

1. In Europe, a patent is invalid if the inventor has published the new information before filing for patent protection. In the US there are some provisions which allow inventors to talk first and file later. 2. In Europe, patent applications are published while pending. This allows the chance to see what monopoly an inventor is claiming and for an objection to be made to the Patent Office if there are grounds to contest validity. In the US the situation is quite different; applications remain secret until granted.

Some famous patent cases 1880 – Ediswan 1880 – Ediswan 1930 – Whittles jet engine 1930 – Whittles jet engine 1943 – Penicillin 1943 – Penicillin

Patents in practice Apple Microsoft Apple Microsoft for windows oper. sys. for windows oper. sys. SME is 99 % of companies SME is 99 % of companies 10 % of patents in % of patents in 1997

Effective patents depend on the depth of your pocket! Effective patents depend on the depth of your pocket! Patent expiry Patent expiry Brand development! Brand development! The use of patents in innovation management a patents open for public The use of patents in innovation management a patents open for public

% market share of ICIs Tenormin

Trademarks Trademarks have particular importance to the world of business. Trademarks have particular importance to the world of business. For many businesses, especially in less technology-intensive industries where the use of patents is limited, trademarks offer one of the few methods of differentiating a companys products. Coca-Cola is an example. For many businesses, especially in less technology-intensive industries where the use of patents is limited, trademarks offer one of the few methods of differentiating a companys products. Coca-Cola is an example.

The Trade Marks Act 1994, defines a trademark as: The Trade Marks Act 1994, defines a trademark as: being any sign capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of other undertakings. being any sign capable of being represented graphically which is capable of distinguishing goods or services of one undertaking from those of other undertakings.

There are certain restrictions and principles concerning the use of trademarks. In particular, a trademark should: There are certain restrictions and principles concerning the use of trademarks. In particular, a trademark should: satisfy the requirements satisfy the requirements be distinctive be distinctive not be deceptive not be deceptive not cause confusion with previous trademarks. not cause confusion with previous trademarks.

Registered designs A new product may be created that is not sufficiently novel nor contain an inventive step which satisfies the exacting requirements for the granting of a patent. A new product may be created that is not sufficiently novel nor contain an inventive step which satisfies the exacting requirements for the granting of a patent. The registered designs system is intended for those designs intended to have some form of aesthetic appeal. The registered designs system is intended for those designs intended to have some form of aesthetic appeal. A design as protected by registration is the outward appearance of an article. A design as protected by registration is the outward appearance of an article. To be registered, a design must first be new at the date an application for its registration is field. To be registered, a design must first be new at the date an application for its registration is field.

Lecture 18: Intellectual Property II Copyright Copyright Remedy against infringement Remedy against infringement

Copyright This area of the law on intellectual property rights has changed significantly over the past few years, mainly because it now covers computer software. This area of the law on intellectual property rights has changed significantly over the past few years, mainly because it now covers computer software. For the author of creative material to obtain copyright protection, it must be in a tangible form so that it can be communicated or reproduced. It must also be the authors own work and thus the product of his or her skill or judgement. For the author of creative material to obtain copyright protection, it must be in a tangible form so that it can be communicated or reproduced. It must also be the authors own work and thus the product of his or her skill or judgement.

Copyright is recognized by the following symbol © and gives legal rights to creators of certain kinds of material. Copyright is recognized by the following symbol © and gives legal rights to creators of certain kinds of material. Copyright protection is automatic and there is no registration or other formality. Copyright protection is automatic and there is no registration or other formality.

Copyright may subsist in any of nine descriptions of work. These are grouped into 3 categories: Copyright may subsist in any of nine descriptions of work. These are grouped into 3 categories: 1. Original literary, dramatic, musical and artistic works. 2. Sound recordings, films, broadcasts and cable programmes. 3. The typographical arrangement or layout of a published edition.

Remedy against infringement There are some forms of infringement of a commercial nature, such as dealing with infringing copies, that carry criminal penalties.Also a civil action can be bought by the plaintiff for one or more than one of the following: There are some forms of infringement of a commercial nature, such as dealing with infringing copies, that carry criminal penalties.Also a civil action can be bought by the plaintiff for one or more than one of the following: damages damages injunction injunction accounts. accounts.

SSD sales over the past five years