Marketing & Business Services Olli Ilmarinen / April 2006 Immaterial Property System 1 Helsinki School of Economics 38C02000 Immaterial Property Rights IMMATERIAL PROPERTY SYSTEM 24th April 2006 WELCOME ! Olli Ilmarinen, Product Manager, M.Sc. (Business Administration) National Board of Patents and Registration (NBPR)
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Marketing & Business Services Olli Ilmarinen / April 2006
Immaterial Property System
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Helsinki School of Economics
38C02000 Immaterial Property Rights
IMMATERIAL PROPERTY SYSTEM 24th April 2006
WELCOME !
Olli Ilmarinen, Product Manager, M.Sc. (Business Administration)National Board of Patents and Registration (NBPR)
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CONTENTS:1. National Board of Patents and Registration in brief
2. Immaterial Property Rights- forms of protection and sources of information- formal and informal protection
3. IP System: what and why?
4. Business implications- Immaterial Strategy - Exercise + case examples- Workbook on IP issues
5. Summary
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1. National Board of Patents and Registration (NBPR) in brief
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www.prh.fi
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NBPR’s mission:
to advance technological and economic progress
by supporting creativity, entrepreneurshipand cooperation within industrial networks
resulting in improved competitiveness of Finnish industries
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NBPR maintains a wide network of international contacts. Our main co-operation partners comprise:
• the World Intellectual Property Organization (WIPO)
• the European Patent Organization (EPO) • the Office for Harmonization in the Internal Market
(trademarks and designs) (OHIM )• the Industrial Property Offices in Denmark,
Estonia, Iceland, Norway and Sweden
More information can be found in English at http://www.prh.fi/en.html
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Copyrights (note: copyrights are also applied to software)
Trade secrets (confidentiality)
Formal vs. Informal Protection?
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Methods of Protection:Patents
TrademarksDesigns
NDAsContracts
Protection of Databases and Networks
Protection of TechnologyShort Innovation Cycles Work Deployment
Partner ManagementSharing of Information
Engagement of PersonnelCommitment by Partners Customer Relationships
INFORMAL
FORMAL
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Benefits of formal protection: - why a ”patent” was developed?
1. To maintain and develop technical data ”Development build on development”
2. To publish inventions and new technology to wider audience (globally)
3. To define the invention and specify the ownership of property rights
4. To stimulate product development
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Patent is public document
• Patent is periodical and territorial exclusive right to utilise an invention commercially
• Inventor is granted this exclusive right by making public the technical solution
• Once the invention becomes public it cannot be patented anymore (no novelty)
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What is required in order to patent?
1. Inventiveness (must involve an inventive step)
2. Novelty (it has to be a new unpublished invention)
3. Industrial applicability (Industrial applicability is understood in a broad sense - besides conventional industry, it includes the methods and devices needed in commerce, building industry, farming, forestry, gardening, fishing, handicrafts etc.)
= You can patent a device, a product, a process for making a product, or a new use for a previously existing product (= only the ”embodiments” of ideas, not
solely an idea as such).
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19Source: NBPR 2006
Company Number of appl.
1. Metso 125
2. Nokia 109
3. Kone Cranes 57
4. VTT 48
5. ABB 30
6. Wärtsilä 27
7. Outokumpu 25
8. Kemira 14
9. M-real 13
9. Sandvik Tamrock 13
10. Elisa 12
Most patent applications in Finland in 2005
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• Patents are public source of information - also for companies who themselves are not involved in patenting
• Each year, over a million new patent documents are published in several languages in over 100 countries
• In total, there are over 50 million patent documents, devided into 70 000 patent classes.
• Patent documents are the largest single source of technical infomation in the world
• 4 million of the patents are valid (=exclusive right of the patent holder), i.e. the rest 46 million are free for use
• 80-90 % of the innovations described in patents will not be published anywhere else
Patent documents
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Patent information
• Industrially viable solutions • Extensive global coverage
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Patent Patent databases
Esp@cenetGolbal patent information (incl. specifications)in Internet
PatInfo register (in Finnish) Basic information on Finnish patent applications,patents and utility models
FI-EP register Basic information on European patents in force in Finland
HYMANETTI (Utility model register)Basic information claim and picture pertaining to each utility model registered in Finland
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Sources for preliminary search of information on other public IPRs:
• NBPR’s database of trademarks NBPR’s database of trademarks www.prh.fiwww.prh.fi• EU trademarks EU trademarks www.oami.eu.intwww.oami.eu.int• Domain names Domain names www.ficora.fi,www.ficora.fi, www.whois.comwww.whois.com • Trade namesTrade names www.ytj.fi www.ytj.fi• Family namesFamily names www.vaestorekisterikeskus.fi www.vaestorekisterikeskus.fi• Words/termsWords/terms www.google.fi www.google.fi
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3. IP System: what and why?
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Immaterial Property System
• Protection of know-how and competenceProtection of know-how and competence (i.e. intellectual property) (i.e. intellectual property)
and
• Sources of information !Sources of information !
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• Over 80 % of the value creation of the companies is based on human capital !
• This capital becomes the company’s intellectual property, which must be managed, utilised effectively, and protected.
Why IP system is important?
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Most competitive countries
2005 2004 2003 2002 2001 Country
6. 8. 1. 2. 1. Finland
1. 1. 2. 1. 2. USA
14. 11. 3. 5. 9. Sweden
7. 7. 4. 10. 14. Denmark
11. 12. 5. 3. 7. Taiwan
3. 2. 6. 4. 4. Singapore
8. 14. 7. 6. 15. Switzerland
15. 17. 9. 9. 6. Norway
9. 4. 10. 7. 5. Australia
5. 3. 16. 8. 3. Canada
Source: International Institute for Management Development (IMD)
Most competitive countries in 2005
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R & D inputs (in EU 15):
30 - 50 % is redundant !30 - 50 % is redundant !
In Finland this means 1.5 – 2.5 billion euros annually -allocated wrong, spent ineffectively, or totally wasted(overlapping efforts, inventing something that has already been invented and protected,...)
Allocation of R & D investments can be improved significantly by the use of patent information !
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Example: number of printed patent specifications related to machine-tools and hand-held tools at the end of 1990’s
Patentti FI871687
• Worldwide 252 430 • Japan 90 032 • USA 30 754 • Germany 32 727• UK 3 255 • Sweden 1 592 • Finland 477
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4. Business implications- Immaterial Strategy
- Case examples + Exercise
- Workbook on IP issues (IdeaPilot project outcome)
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= How to manage our IPRs?1. How to monitor potential infringements (violations)?2. How to defend one’s rights?3. How to find out if there are any obstacles due to others’
IPRs (affecting our production or marketing)?
• These decisions should be answered at the very beginning (at the start-up of the company, each product development project, ...”the earlier the better”)
Immaterial Strategy (of Company)
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Trade Name
Patent
Utility Model
Trademark
Protection of Design
Industrial Property Rights are tools to create competitive edge!
Inventions Establishment of a company
R & DProduct Development
Marketing Market research
• a means to empower marketing• tools for product development• protection of inventions
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Foundation for Finnish Inventions,27+9 innovation managers
Technology Industries in FinlandTechnology Industries in Finland
The Federation of Finnish EnterprisesThe Federation of Finnish Enterprises
The Confederation of Finnish IndustriesThe Confederation of Finnish Industries
Operational environment
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Workbook for Management
”Immaterial issues in business”
1st edition out in November 2005Available as a printed copy, download version (pdf) and html.
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Intellectualproperty?
Fosteringcompany know-how?
Employmentinventions?
Personnel, resources
Avoidingredundant
R&D?
Monitoringtechnical
development?
Competitors?
Trends?
Markets, surveys
ImmaterialStrategy
EvaluatingR&D project?
Product developmentPossibilities
to protecttechnology?
Usability: The structure of the IP-workbookUsability: The structure of the IP-workbook
Production
Productionmethods?
Technicalsolutions?
Management
Responsibilities?
Implementing?
Protectingpolicy?
Financing
How to convincefinancier?
Risk analysis?
Marketing
Disclosingbusiness critical
information?
Standing outin the market?
Freedomto
operate?
Make or Buy?Licencing?
Partnerships?
How to protectspearhead-technology?
Key technology?
How to defend
infringements?
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Tiedonhakuopas
Tehoa tuotekehitykseen-patentti-informaation hyödyntäminenteknisen ja kilpailijatiedon lähteenä.
Ensimmäinen painos 29.10.2005.Saatavilla painettuna kirjana ja verkkosivustona (pdf ja html).
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CASES
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• Company A had invented a new product. After 0-series (”test production series”) they found out that their competitor had already patents and/or patent applications for the exactly same product in couple of countries - but not in Finland.
• Because business opportunities were analysed to be good and the product was forecasted to become profitable globally, the company decided to investigate in which countries their competitor actually had the patents. They found out that there was no patents/patent applications in several large markets (i.e.countries) at all. Also, the invention had already become public (no novelty aspect that is required to obtain a patent).
• Therefore Company A was free to produce and market the product in/into those countries where their competitor had no patents in force. Thus Company A was able to make profit out of their investment.
CASE 1:
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• Company C was accused by another company because of a potential IPR infringement right after the launch of their new paper mill production line machinery product.
• Only at this point Company C found out that their new product included some components - supplied by their own subcontractor - which had been manufactured without any right to do so: this was because Company B owned the patent rights to those components.
• This infringement would have been fully avoided if the subcontractor had been aware of the patents of their competitor and e.g. aqcuired a licence for the technology.
• Even if the Company C did not offend any IPRs on purpose it was held responsible for the infringement, which they know nothing about before it was too late.
CASE 2:
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EXERCISE (in groups of 3-5 persons):
1. Discuss in groups what are:
a) Benefits of IPRs and IP system
b) Handicaps / downsides of IPRs and IP system (if any)
2. List your findings and be ready to present your results
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• Speeding up the product development process (time-to-market)
• Avoiding ”re-inventing the wheel” • Protecting one’s unique competence and know-how
(e.g. deciding how to share information in networks)• Finding potential partners and subcontractors
(make-or-buy, licencing)• Finding companies interested in licencing
(partners, marketing channels)• Differentiating the products • Technical (technology) and competitor surveillance• Avoiding infringements against others’ rights
Benefits 1: Managing business risks and increasing competitiveness by:
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• Clarifying how the outputs of the R&D project will be protected
• Analysing the environment, technology and knowing of existing IPRs – in advance
• Protecting the technology, desing, brand and/or other IPRs (to be developed)
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1.1. It takes too much money to get a patent?It takes too much money to get a patent?• Compare short-term ”losses” to long-term profits• A patent is an investment into the future!
2.2. It takes too much time to get a patent?It takes too much time to get a patent?• Compare short-term wins to long-term profits
(e.g. being able to licence the patented technology)• Start early enough (e.g. to keep the market-
window)
3.3. It takes too much effort to get a patent?It takes too much effort to get a patent?• Consider using expert services
(NBPR, patent offices, patent agents, etc.)
Some potential downsides:
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4. You do not want to publish the inventionYou do not want to publish the invention• OK, if the decision is reasonable
(compare short-term wins to the business risks, such as decrease in long-term profits)
• Instead, you must use other forms of protection (like contracts, NDAs,...)
5.5. Our invention is not ”inventional” enough?Our invention is not ”inventional” enough?• You have to find this out - as a fact• You may consider utility model option instead
Some potential downsides:
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5. Summary
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2.2. Basis for Immaterial Strategy Basis for Immaterial Strategy - how to - how to develop and defenddevelop and defend company’s immaterial rights company’s immaterial rights
3.3. Important and extensive Important and extensive source of source of valuable technicalvaluable technical information information ! !
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