Intellectual Property & Standards 1 Understanding the Patent Strategies of Companies WIPO Conference on Statistics September 17, 2003 Ruud Peters 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 1800 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2001 years Numbers of applications Patents granted 70 years 10 years 7 x acceleration in the last decade U.S. Patents 1802-2002 Grants doubled in: "Everything that can be invented has been invented." Charles H. Duell, Commissioner, U.S. Patent Office 1889 35 years Intellectual Property & Standards 3 Patent Boom What is the reason for this explosion in patents? • More innovation? • Changes in patent laws? • Convergence of technologies? Patents have become a strategic weapon in competition Intellectual Property & Standards 4 Return on investments Products Before 1985 R&D Manu- facturing Marketing & Sales Intellectual Property & Standards 5 Global changes in the last 20 years • Globalization in marketing and manufacturing: – More companies – More competition, lower margins – Shorter product life cycles – Increased price erosion – Cost of R&D increases • Return on your R&D investment more difficult Intellectual Property & Standards 6 Global changes in the last 20 years • Originally manufacturing created competitive edge – mass production – miniaturization • Now manufacturing has become a commodity – outsourcing – low wage countries • Competitive edge of companies shifts from production-based to knowledge-based
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Intellectual Property & Standards 1...Intellectual Property & Standards 3 Intellectual Property & Standards 13 IP&S: Activating the Value of Philips IP/IPR Value Extraction Pro-active
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Grants doubled in: "Everything that can beinvented has been invented."Charles H. Duell, Commissioner,U.S. Patent Office 1889
35 years
Intellectual Property & Standards 3
Patent Boom
What is the reason for this explosion inpatents?
• More innovation?• Changes in patent laws?• Convergence of technologies?
Patents have become a strategicweapon in competition
Intellectual Property & Standards 4
Return on investments
Products
Before 1985
R&DManu-
facturingMarketing &
Sales
Intellectual Property & Standards 5
Global changes in the last 20 years
• Globalization in marketing andmanufacturing:– More companies– More competition, lower margins– Shorter product life cycles– Increased price erosion– Cost of R&D increases
• Return on your R&D investment moredifficult
Intellectual Property & Standards 6
Global changes in the last 20 years
• Originally manufacturing created competitive edge– mass production– miniaturization
• Now manufacturing has become a commodity– outsourcing– low wage countries
• Competitive edge of companies shifts fromproduction-based to knowledge-based