Transcript the third guest lecture 24.4.

Immaterial Property System
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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Immaterial Property System
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, entrepreneurship
and 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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Immaterial Property System
National service network
NBPR innovation agents in
Employment and Economic
Development Centres
1 Uusimaa
2 Varsinais-Suomi
3 Satakunta
4 Häme
5 Pirkanmaa
6 Kymi
7 Etelä-Savo
8 Pohjois-Savo
9 Pohjois-Karjala
10 Keski-Suomi
11 Etelä-Pohjanmaa
12 Pohjanmaa
13 Pohjois-Pohjanmaa
14 Kainuu
15 Lappi
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2. Immaterial Property Rights
- Forms of protection and
sources of information
- Formal and informal protection
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Immaterial Property System
”IPRs” consist of
Immaterial Property Rights
Intellectual Property Rights
Industrial Property Rights
Written works
Trade names
Audiovisual works
Patents
Pieces of art
Utility models
Software
Protection of designs
IPR:
Immaterial Property Rights
Intellectual Property Rights
Industrial Property Rights
Trademarks
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Immaterial Property System
Industrial Property Rights in brief:
Protects
Valid for
Patent
Product, equipment or method
20 years (in same cases 25 years)
Utility Model
Product or equipment
10 years (4+4+2)
Trademark
Means to differentiate in a market
Permanent, to be renewed
every 10 years
Protection of Designs
Shape of product
25 years (5+5+5+5+5)
Trade Name
Business (company) name
Permanent (for operational business)
Tool
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Immaterial Property System
Industrial Property Rights are
tools to create competitive edge!
Trademark
• a means to empower marketing
• tools for product development
• protection of inventions
Protection of Design
Utility Model
Marketing
Market research
Patent
R&D
Product Development
Trade Name
Inventions
Establishment of a company
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Immaterial Property System
Industrial Property Rights
• Gives a company an effective competitive tool
- an EXCLUSIVE RIGHT - to utilise the protected
solution commercially
• Every operating business owns Industrial Property
Rights – its trade (company) name if nothing else
• Industrial Property Rights should be used to:
• protect unique competence and know-how
• protect the results of product development
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Intellectual Property Rights:
Right
Protects
Valid for
Copyright
Work (written, audiovisual, Lifetime + 70 years
piece of art)
Trade secret
Information, which has
commercial significance
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Until becomes public
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Immaterial Property System
Formal vs. Informal Protection?
1. Formal Protection (regulated by authorities)
 Patents
 Utility models
 Trademarks
 Protection of Designs
 Trade names
2. Informal Protection




Contracts (partners, customers, employees)
NDAs (non-disclosure agreements: companies, individuals)
Copyrights (note: copyrights are also applied to software)
Trade secrets (confidentiality)
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Methods of Protection:
FORMAL
Patents
Trademarks
Designs
NDAs
Contracts
Protection of Databases
and Networks
Protection of Technology
Short Innovation Cycles
Work Deployment
Partner Management
Sharing of Information
Engagement of Personnel
Commitment by Partners
Customer Relationships
INFORMAL
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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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Immaterial Property System
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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Most patent applications in Finland in 2005
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
Source: NBPR 2006
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Immaterial Property System
Patent documents
• 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
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Patent information
Industrially viable solutions
• Extensive global coverage
•
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Patent databases
Esp@cenet
Golbal 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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Immaterial Property System
Sources for preliminary search of
information on other public IPRs:
• NBPR’s database of trademarks www.prh.fi
• EU trademarks www.oami.eu.int
• Domain names www.ficora.fi, www.whois.com
• Trade names www.ytj.fi
• Family names www.vaestorekisterikeskus.fi
• Words/terms www.google.fi
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3. IP System: what and why?
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Immaterial Property System
Immaterial Property System
• Protection of know-how and competence
(i.e. intellectual property)
and
• Sources of information !
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Why IP system is important?
• 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.
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Why IP System?
Finnish
Innovation
System
Fostering
Creativity
EMPLOYMENT
EFFECTIVENESS,
COMPETITIVENESS,
GROWTH
IDEAS,
ENTREPRENEURSHIP
INNOVATIONFRIENDLY
ENVIRONMENT
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Most competitive countries in 2005
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)
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R & D inputs (in EU 15):
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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Immaterial Property System
Example: number of printed patent
specifications related to machine-tools
and hand-held tools at the end of 1990’s
•
•
•
•
•
•
•
Worldwide
Japan
USA
Germany
UK
Sweden
Finland
Patentti FI871687
252 430
90 032
30 754
32 727
3 255
1 592
477
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4. Business implications
- Immaterial Strategy
- Case examples + Exercise
- Workbook on IP issues
(IdeaPilot project outcome)
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Immaterial Property System
Immaterial Strategy (of Company)
= 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”)
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Immaterial Property System
Industrial Property Rights are tools
to create competitive edge!
Trademark
• a means to empower marketing
• tools for product development
• protection of inventions
Protection of Design
Utility Model
Marketing
Market research
Patent
R&D
Product Development
Trade Name
Inventions
Establishment of a company
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Immaterial Property System
IP Strategy Status (2004):
1.OCCASIONAL
•
80-90% of SMEs in Finland !
2.PLANNED
•
Patent intensive industries (machine tools,
instruments, gadgets etc.)
3.STRATEGIC
•
Global companies such as Nokia, Metso, Orion
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Immaterial Property System
Status of Awareness and Usage of IP-system (2004)
Usage of Patents according to company size
Strategic use
101-250
Planned use
Occasional use
51-100
No use
21-50
11-20
5-10
0%
25 %
50 %
käytetään strategiatasolla
Käytetään satunnaisesti
12.2
75 %
100 %
Käytetään suunnitelmallisesti
Ei käytetä lainkaan
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Immaterial Property System
Usage of the IPRs (2004)
Usage of different IPR types
Liikesalaisuus
Trade
secret
Strategic use
Trade name
Toiminimi
Planned use
Trademark
Tavaramerkki
Occasional use
Patent
No use
Patentti
Protection
of Design
Mallisuoja
Tekijänoikeus
Copyright
Hyödyllisyysmalli
Utility Model
0%
käytetään strategiatasolla
Käytetään satunnaisesti
25 %
50 %
75 %
100 %
Käytetään suunnitelmallisesti
Ei käytetä lainkaan
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”IDEAPILOT”
IP SYSTEM SUPPORT
PROJECT 2004-2006
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Why?
 Accelerating growth in SMEs
 Fostering entrepreneurship and
employment
 Creativity of SMEs
 Competitiveness of SMEs
Finnish
Innovation
System
Fostering
Creativity
”IdeaPilot”:
IP System Support
Project for SMEs
PRH-TOOLBOX
What?
 PRH-TOOLBOX - IP-tools for SMEs to
improve their competitiveness and
productivity
 Research results – IP-tools integrated
with innovation process of SMEs
 Workbooks, training, brochures,
booklets, …
How?
 Network of IP-brokers
 intermediate organizations
 Distribution channel for the package
 consultants, associations for
SME´s
 Regional IP-service development
SMEs, business
advisors and
consultants,
science parks,
universities
And?
 Consistant development
 Influence on the business
performance of SMEs
 Monitoring and follow-up
Route to Success
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To Whom?
 Segmentation of SME-sector
 Profile of target group based on
research
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Immaterial Property System
Parties of the IdeaPilot project:
Finnish
Innovation
System
Fostering
Creativity
• Ministry of Trade and Industry
• The Central Chamber of Commerce
• Jobs and Society
• Technology Industries in Finland
• Ministry of Foreign Affairs
• The Federation of Finnish Enterprises
• Ministry of Labor
• The Confederation of Finnish Industry
and Employers
• National Board of Patents and
Registration in Finland
6
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• Entrepreneurship policy 2003
• Finnvera, Finnish state owned
financing company
• Foundation for Finnish Innovations
• Employment and Economic
Development Centres
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Accessibility: Intermediate organizations
Immaterial Property System
Operational environment
Technology Industries in Finland
Finnish
Innovation
System
Fostering
Creativity
Foundation for Finnish Inventions,
27+9 innovation managers
The Confederation of Finnish Industries
Tekes (National Technology Agency)
15 outlets
Regional development
companies
appr. 160
The Federation of Finnish Enterprises
EED-Centres
15 outlets
SME´s
Jobs and Society
33 outlets
Regional BSP:s
50 outlets
Consultants,
experts
appr. 100
Start-up´s
Regional financiers
appr. 100
Centres of Expertise
covers 3 000 companies
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R&D networks
4 + 11
Universities, 21
vocational high-schools, 31
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Immaterial Property System
Workbook for
Management
”Immaterial issues in business”
1st edition out in November 2005
Available as a printed copy, download
version (pdf) and html.
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Usability: The structure of the IP-workbook
Immaterial Property System
Management
Personnel, resources
Fostering
company know-how?
Employment
inventions?
Protecting
policy?
Implementing?
Responsibilities?
Intellectual
property?
Trends?
Markets, surveys
Competitors?
How to convince
financier?
Financing
Immaterial
Strategy
Risk analysis?
Disclosing
business critical
information?
Standing out
in the market?
Freedom
to
operate?
How to
defend
infringements?
Evaluating
R&D project?
Make or Buy?
Licencing?
Technical
solutions?
Partnerships?
How to protect
spearheadtechnology?
Key technology?
Possibilities
to protect
technology?
Product
development
Production
methods?
Marketing
21.1
Monitoring
technical
development?
Avoiding
redundant
R&D?
Production
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Immaterial Property System
Tiedonhakuopas
Tehoa tuotekehitykseenpatentti-informaation hyödyntäminen
teknisen 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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CASE 1:
•
•
•
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.
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CASE 2:
•
•
•
•
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.
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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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Benefits 1: Managing business risks and
increasing competitiveness by:
•
•
•
•
•
•
•
•
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
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Benefits 2: Increasing investors’ interest by:
•
•
•
•
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)
Supporting technology transfer, technology &
knowledge sharing and innovation networks
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Immaterial Property System
Some potential downsides:
1. 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. 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. It takes too much effort to get a patent?
• Consider using expert services
(NBPR, patent offices, patent agents, etc.)
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Some potential downsides:
4. You 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. Our invention is not ”inventional” enough?
• You have to find this out - as a fact
• You may consider utility model option instead
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5. Summary
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Immaterial Property System:
1. Protection of know-how
2. Basis for Immaterial Strategy
- how to develop and defend
company’s immaterial rights
3. Important and extensive source of
valuable technical information !
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Immaterial Property System
National service network
NBPR innovation agents in
Employment and Economic
Development Centres
1 Uusimaa
2 Varsinais-Suomi
3 Satakunta
4 Häme
5 Pirkanmaa
6 Kymi
7 Etelä-Savo
8 Pohjois-Savo
9 Pohjois-Karjala
10 Keski-Suomi
11 Etelä-Pohjanmaa
12 Pohjanmaa
13 Pohjois-Pohjanmaa
14 Kainuu
15 Lappi
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New Services for Business
http://palveluverkko.fi/
New services and materials (materials in Finnish):
Esp@cenet (International patent database)
Immateriaaliasioiden huomioiminen liiketoiminnassa
• Johdon työkirja
Tehoa tuotekehitykseen
• Patenttitiedon hyödyntäminen teknisen ja kilpailijatiedon lähteenä
PRH-ostoskoripalvelut
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Mirja Lehikoinen
Marketing & Business Services
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THANK YOU !
For more information, please visit NBRP’s
website at www.prh.fi
or contact:
Olli Ilmarinen
Tel. +358 9 6939 5236
Email: [email protected]
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