“The IP Experts” Inventing the Future The Importance of Inventive & Innovative Activity in Maintaining Competitiveness BY P. KANDIAH KASS INTERNATIONAL SDN BHD
Mar 27, 2015
“The IP Experts”
Inventing the Future
The Importance of Inventive & Innovative Activity in Maintaining
Competitiveness
BY P. KANDIAHKASS INTERNATIONAL SDN BHD
“The IP Experts”
No business remains the same
Unless there is innovation there is certain business death
Unless there is innovation, a business evaporates
“The IP Experts”
Product InnovationSales
Time
1st product
2nd generation
3rd generation
“The IP Experts”
Innovations in Trademarks
Modernizing Trademarks- e.g. Shell, 3M, Starbucks
“The IP Experts”
Inventing Future Products/Process
New Products(Non-existent before)
E.g. Cell phones, Smart phones, iPad, etc.
Reduce Cost
Materials
Operations
Machines/Equipment
Market Needs
“The IP Experts”
Necessity is mother of invention
- Traditional view
(still relevant)
Market survey on unmet needs R&D New Products
“The IP Experts”
New Way Create Needs Then create market
(e.g. Cell phone, etc)
New Challenges Global Warming Increasing cost of labor Modern communication tools etc.
“The IP Experts”
See Challenges e.g. Japan – Small houses/apartments
Miniaturization of domestic appliancesMulti-functional tools
High cost of fuel and reduction in supplyFuel efficient vehicles/equipment/machines
Land High Value Multiple use of land
e.g. Oil palm plantations - Use of biomass- Use of below canopy space- Low sunlight plants- Animal husbandry
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Singapore - Shortage of land and water
- Use of roof tops for commercial gardening
- Create technology for land water management
(Now exporting water management technology)
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Old / Existing Needs New ways of satisfying needs using new technology
E.g. Use of cell phones, multi-functional tasks (Telephone, camera, watch, alarm, storage of images, transmission/reception of images, directory of information), Use of credit-card, etc.
“The IP Experts”
Walkman criteria
Realized need for people to listen to music individually and whilst on the move
Separated location of production of music and the hearing of music by the individual
Now met by several ways:
- MP3 players- iPods- Cell phones- etc
(Aided by digital technology and theminiaturization of devices)
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Creation of Technology To extend wide control of market through patent system
Toyota Cars Robots to make the cars
Gillette Razor Blades Technology to make the blades
Carotino Cooking oil Machinery to produce the oil
Inventor Efficient Production & New/Innovation in equipment
Utilization of Energy to achieve energy efficiencyin oil palm industry
“The IP Experts”
Product Development
Proprietary Rights Patent/Utility Innovation
Industrial Designs
Copyright/Layout Circuit in ICs
Trademark
Unless R&D results claimed as IP rights, they are deemed donated to the public
“The IP Experts”
Sources of Invention/Innovation
From in-house R&D facilities
1. From the marketing and sales departments
2. From QC circles, safety committees, ISO committees, innovation circles, etc
3. From outside of the company
a) Free Source
i) Patent databases
ii) Technology Mining
iii) Non-patent literature
b) Licensing
“The IP Experts”
Anatomy of a Granted Patent Document
Utility Patent (Not Design Patent)
Country of Grant
Title of Invention
Details of Inventor
First filed in Malaysia
Classification of field of Technology
Close Prior Art. Same field of Technology
Start of Patent Rights
Brief of Description
Representative Drawing of Invention
“The IP Experts”
ICT Industry
How is software protected as proprietary rights
Software per se copyright only
Software and hardware patent and copyright
“The IP Experts”
Example of software patent in the US
“The IP Experts”
To be patentable, a software must…
contribute to ‘technical effect’
Laws on software patents vary from country to country.Ingenious way to protect ICT technologyNeed to obtain enforceable patents – because of cross-border operation oftechnology – all integers of a patent claim may not be located in one country.
“The IP Experts”
Why Patent?
1. Competitive edge, market power and earning more money
2. Add new revenue stream- licensing a patent- different product- different market- different country
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Why Patent ? (cont’d)
3. Raise funds and attract potential investorsa) patents may be bought, sold or licensedb) collateral for bank loansc) attract investors
- venture capitalists- investment bankers- financial analysts- others
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4. Bargaining chip for securing ‘Freedom to Operate’Patent right is a negative rightCross licensinge.g. Qualcomm Inc. filed 278 patent applications in Malaysia in 2010, yet it does not have a factory in the country.Microsoft Corp filed 44 patent applications in Malaysia in 2010.
Why Patent ? (cont’d)
“The IP Experts”
5. Selling the InventionPatents, Industrial Designs, etc. are tradable assets- Value add for business if technology is protected by patents
Why Patent ? (cont’d)
“The IP Experts”
6. Strategic Partnership, Mergers and Acquisitions, IPO, and Higher Sales Price- Entering new markets with strategic partnerships or in mergers and acquisitions- Start up company listed on stock exchange- Higher sales price of an established company
Why Patent ? (cont’d)
“The IP Experts”
7. Convoyed SalesAdd on, collateral, derivative, follow-on or convoyed sales
e.g. Improvement in camera lens, but sales of cameras.
Improvement in energy utilisation of factory, but sales in critical equipment which results in energy utilisation
Why Patent ? (cont’d)
“The IP Experts”
8. Basis for Recognition and Rewarding Employees- Rules for rewarding inventor employees
Why Patent ? (cont’d)
“The IP Experts”
9. Part of Branding and Marketing Strategy- Company portrayed as a R & D company and not as a me-too copycat company- Attract quality employees
Why Patent ? (cont’d)
“The IP Experts”
0
200
400
600
800
1000
1200
1400
Year
No
. o
f ap
pli
cati
on
s
Patent and UI filings by Malaysians in Malaysia from 2006 to 2010
2006 2007 2008 2009 2010
[Source: Intellectual Property Corporation of Malaysia (MyIPO)]
“The IP Experts”
Creativity Emotional (Entrepreneurs)
Causal (Structured R & D )
Malaysian Companies and Entrepreneurs need to THINK BIG, THINK GLOBAL
MARKET
“The IP Experts”
for your participation and listening
THANK YOU
P. KANDIAHTel: +603 2284 7872Fax: +603 2284 1125
E-mail: [email protected]