CGIP: MANAGING CONSUMER-GENERATED INTELLECTUAL PROPERTY

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CGIP: MANAGING CONSUMER GENERATED INTELLECTUAL PROPERTY

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

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Twitter: @Toffeemen68BASED ON RESEARCH IN THE FOLLOWING PAPER:

TWO RELATED TRENDS CHARACTERIZE THE RECENT PAST: Value propositions are migrating from the physical to the informationalValue creation is shifting from firms to consumers

THESE TRENDS COMBINE TO PRODUCE THE PHENOMENON OF: CONSUMER GENERATED INTELLECTUAL PROPERTY (CGIP)How should firms manage the CGIP that consumers create?What important dilemmas does CGIP present for managers?

THE DILEMMA OF CGIPIn 2009, Facebook was amazed to discover that Vin Diesel had over one million likes (he now has well over 86 million). The traffic Vin Diesels content alone attracted, undoubtedly contributed to the social networks phenomenal growth. Vin Diesel later remarked: Facebook owes me billions of dollars for boosting its profile.He received not a single cent from Facebook, but did get a phone call from Facebook demanding that he reveal the secret of his page.He also found out that the content he posted on his page now belonged to Facebook.

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

CGIP DILEMMA SPECTRUM, THE SONY AIBO CASESimpleComplex2Hacking AiboIn communityCode instructions

Care about ownershipConsumer mdFirm - lo

3Hacking Aibo& broadcasting onlineGive code away free(program exe bundle)

Care about ownershipConsumer mdFirm - hi

4Hacking AiboSelling the hacksprogram exe bundle$

Care about ownershipConsumer hiFirm - hi

1Hacking AiboAt home

Care about ownershipConsumer loFirm - lo

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

QUESTIONIf we live in the information age, what or is there a correspondence between type of information and type of intellectual property?

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

3 TYPES OF INFORMATION - BORGMANNInformation about reality = information that in some way reflects or reproduces some aspect of reality, and includes such things as reports, photographs, or, more abstractly, mapsthese are representations of reality.Information for reality = injunctions such as musical scores, recipes, and blueprints these are instructions on how to shape or change reality.Information as reality = information about information (meta-information) such as a dictionary, and on the other hand information for information such as a computer program.

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

3 TYPES OF INFORMATION AND INTELLECTUAL PROPERTYCopyrights = unique sequence, pattern or gestalt of words, notes, images or symbols (information about and for reality)Patents = instructions for creating a unique phenomenon (information for reality)Trademarks = recognizable signs, designs, or expressions that identify products or services of a particular source(information about and for reality)

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

SO WHAT IS THE LEGAL STATUS OF SHARED IDEAS?None!Someone can come along and patent your idea!First to develop and protect owns the creation

Facebook versus the Winklevoss twinsBut what if you WANT your idea shared?

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

LEGAL OPTIONS FOR SHARING CREATIONSCopyleftLicensing used to maintain copyright conditions for works such as computer software, documents and art. An author may give every person who receives a copy of a work permission to reproduce, adapt or distribute it Resulting copies or adaptations may also be bound by the same licensing agreement.Open patentPatented inventions that can freely be distributed under a copyleft-like license. These works could be used as is, or improved, in which case the patent improvement would have to be re-licensed to the institution that holds the original patent, and from which the original work was licensed. Frees all users who have accepted the license from the threat of lawsuits for patent infringement, in exchange for their surrendering the right to build up new patents of their own (in the specific domain for which the original license applies)Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

TYPES OF INFORMATION AND IP OPTIONS

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

WHY CREATIVE CONSUMERS SHARE?Symbolic capitalPrestige, status etc.Which can be exchanged for other types of capital e.g., social capital, economic capitalIntrinsic enjoymentCreation of communitySharing is the lifeblood of community

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

CGIP Strategies PositiveNegativeConsumerFirmControl of CGIPBerthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

EMOTIONAL PROPERTYEmotional property can be defined as the emotional investment in an act of creation, and the attachment to the creation itself, such that the creator feels ownership of the creation. (Berthon et al. 2015: 46)Whilst a company may legally appropriate the intellectual component of a consumers creation, the creator less easily divests their emotional investment. It is the consumers emotional investment in the creation that drives their subsequent decision-making and behavior in response to the firms actions. Recent research: emotional value that is the primary driver of consumer decisions (Loewenstein, et al., 2001; Dolcos, Iordan, and Dolcos, 2011).

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

EMOTIONAL PROPERTYExclusive to the consumer, and its value can range from low to high.Firms usually only care about intellectual property, and their control over it e.g. Michael Powell and Home DepotThe next slide combines the value of the emotional property to the consumer and the firms potential to control the intellectual property potential control, as there is always a cost and an uncertainty element in the attempt to exercise controlWe term the resulting grid the EPIP (Emotional Property-Intellectual Property) matrix.

Berthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62

Firms Potential Control of CGIPConsumers Emotional Property

LowLowHighHighCultivateCoordinateCooperateCaptureCondoneCondemn CrushCopyBerthon, P., Pitt, L.F., Kietzmann J.H., and McCarthy I. P. (2015). CGIP: Managing Consumer Generated Intellectual Property. California Management Review, 57/4 (Summer): 43-62 EMOTIONAL PROPERTY-INTELLECTUAL PROPERTY (EPIP) MATRIX