Strategy Workshop July 2013
Strategy Workshop
July 2013
Outline
• Recap• Strategy Overview• IP Audit• Searching• Strategy formation• Implementation
Patent Space
Monetize
Exclude Interact
LicenceSell
Collateralise
EnforcementThreat
Access other innovationLeverageStandards
Interoperability
Defensive Patents Trade Marks Know-How Relationships
Conflict Avoidance/Resolution
• Protection (exclude others)• Design Freedom• Cross-licensing (defensive)• Litigation bargaining power
• Protection (exclude others)
• Protection (trade secret)
N/A
Offensive
Revenue Generation• Products and Services: Sales, Licensing, JV, Optimisation of core tech, Value from non-core tech, Integration• Patents: Sales, Licenses, Infringement policing• Increased bargaining power (e.g. suppliers, customers, affiliates, JV partners)• Market penetration• Increased speed to market
• Products and Services: Sales, JV, Alliance• TM: Sales, licensing, co-branding, Infringement policing
• Sales• Licenses• JV• Strategic Alliances• Integration• Increased speed to market
• Product and services sales
Cost Reduction• Litigation avoidance• Access to technology of others• Improved knowledge transfer• Reduce knowledge gaps
• Litigation avoidance• Access to tech of others
• Litigation avoidance• Improved knowledge transfer
• Reduced marketing costs
Strategic Position• Reputation/image• Exclusivity/blocking• Barrier to competition• Supplier control• Customer control• Optimization of core technology
• Name recognition• Customer Loyalty• Barrier to comp• JV• Alliance
• Reputation/image• Barrier to entry
• Reputation/Image• Customer loyalty• Barrier to entry
Adapted from “Edison in the boardroom revisited” S Harrison and P Sullivan 2012
Hambrick and Fredrickson
Hambrick and Fredrickson
Strategy Overview
Objective Information Strategy Implementation
Example: Juniper Networks
• Juniper is not in the business of IP it is in the business of selling products
• IP strategy has to support the business strategy by:– Counter assertion against operating companies– Sustaining competitive advantage– Preventing copying/reverse engineering
Strategy Overview
Objective Information Strategy Implementation
Categories of Information
• Business• Technology• Existing IP• IP Landscape• Resources
www.newmorningip.com +353 1 254 2340
IP AuditExternalInternal
www.newmorningip.com +353 1 254 2340 Source: WIPO
Source: WIPO
www.newmorningip.com +353 1 254 2340
External
• Patent searching and landscape• TM databases• Design right filings• Competitive intelligence
Strategy Overview
Objective Information Strategy Implementation
Hambrick and Fredrickson
– first 15 years• 1991 startup• 2002 Launches first GPS navigation product• 2004 first standalone portable device• 2004-2005 7x growth• 2005 NYSE/Euronext Amsterdam listing• 2006 TomTom aggressively enters US
threatening Garmin’s 50% market share
State of Play 2006
0
50
100
150
200
250
300
Garmin TomTom0
100
200
300
400
500
600
Garmin TomTom
US revenues ($M) Granted US Patents
– what happened next
• Crisis in the company• Hired a Director of IP Strategy (Peter Spour)• Bought three patents• Countersued against Garmin• 2007 Settled all WW litigation with Garmin• Developed a patenting strategy• Began targeted patenting
- now thriving• 2009 Sued by Microsoft Corp• Settled with cross-licence• 4X US revenue increase 2006-2010• Firmly established as #2 in US with
appropriate patent portfolio • Approx. 5-10 patent litigations in progress
TomTom’s patenting activity
020406080
100120140160180200
WW Patenting Activity
2003 2005 2007 2009G
arm
in s
uit 2
006
Strategy Overview
Objective Information Strategy Implementation
Protecting the Core
New Initiatives
Growing the core
IAM
Conservative Progressive Aggressive
Protect 75% 60% 45%
Grow 15% 20% 25%
New 5% 12% 20%
IAM 5% 8% 10%
Adapted from “Harvesting Intangible Assets” A Sherman 2012
Priorities
Review Criteria• Is there existing prior art?• Does the invention have commercial potential• Is the invention patentable?• Can it serve or strategic purpose?• Will a patent on this deliver a business advantage?• Do we have other competitive advantages that reduce or enhance the need for a patent?• Does a patent on this invention support our position in the technology space• Are willing to litigate over this patent if challenged• Can we detect an infringement of this patent?• Are the business, legal and technical risks acceptable?• Would the invention be useful to someone else?• Does it relate to a standard?• Does it align with filing targets?
Prepare for Implementation
• 6 P’s– Policy for IP management– Personnel practices– Portfolio management practises– Procurement practises– Partnering practises– Policing activities
Resources
• Are you sure you have a strategy?– http://bit.ly/hRxc0w
• INTIPSA TIPS series– http://www.intipsa.com/45-resources/briefing-notes/95-briefingnote
s.html• Books
– Driving Innovation by Micael A Gollin– Edison in the Boardroom Revisited by Suzanne S Harrison and Patrick H Sullivan– Burning the Ships by Marshal Phelps and David Klein– The Defense of the Mieza Chip by Robert Cantrell and Duncan Bucknell
APPENDIX
Source: Ocean Tomo
SO - WHAT NEEDS TO BE DONE?
Rationale
• Patent risks for growing business
• Move from service to product based model
• Signalling value to investors
The Business Model Investors Prefer, MIT Sloan Management Review June 22 2011
Business Value
• Defence
• Cost avoidance
• Revenue Generation
• Strategic
37
What needs to change?
Business Value
Business
IP Technology
Valuation
Man
agem
ent
Creation
Business
Technology
Now
Future
CTO
CIPO
CIPO
CTOCTO
Valuation
Valuation
New Processes
Proposal Phases
Phase 1: Consolidate Position
• Strategy capture• Initial positioning landscape• Preliminary portfolio specification• Process development• IP awareness training and development
Phase 2: Managed Portfolio
• More detailed patent landscape• Mapping and planning patent portfolio• Screening criteria & process development• IP office development, metrics & reporting• Prototype “make vs buy”• Begin systematic innovation training
Phase 3: Value Capture
• Go beyond purely defensive forms of value• Define what value means for Openet• Relate to business strategy• Define IP office support• CIPO role becomes defined• Build a credible IP value proposition for investors
Phase 4: Synthesis
• More productivity throughout entire patent value chain• Deepen impact on Openet• Regular use of patents for CI• Patent attorney on staff• Difference between invention and innovation• Expand systematic innovation capabilities
Phase 5: Create the Future
• Patents used as strategic options• Value of all elements of portfolio understood• Patent strategy and process reviewed regularly
[email protected] +353 (0)1 254 2340 l www.newmorningip.com l @newmorningip