PROTECTING YOUR INNOVATION How to define an efficient patent strategyneural.dq.fct.unl.pt/qoa/Presentation Novaimo.pdf · 2012-06-28 · of inventions; (b) Pay scales for individuals

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PROTECTING YOUR INNOVATION How to define an efficient patent strategy

DENIS AIVAZIANEUROPEAN PATENT ATTORNEY

[email protected]

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1.Introduction – Industrial Property (IP)2.Why a patent strategy ?3.Which patent strategy ?4.How to valorize patents ?5.Conclusion

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IndustrialProperty (IP)

Technical innovation Birth ofinnovation

AestheticInnovation

Distinctive signs

Copyright Designs Intangible assetTrademarksPatentsSecret

Formalproceedings

Domainname

Commercialdenomination

TrademarksShapeSoftwareInventionsKnow-how

LicencingRoyalties

AssignmentTransfer of technology

ExclusionMarket share

increaseMonopoly

VALUE CREATION

Valorization

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IP rights

• Patents = right to forbid a special technical solution (manufacture, sale, use, importation...)

• Registered with authorities• Limited in time and territory • A company ASSET quite

similar to machines, buildings...

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• A patent does not give a freedom to use

– C and B are infringing A

• A patent gives right to forbid

– B & C might forbid A

to implement their solution

Patent A:Card having a chip

Patent B:contactless Chip card

Patent C:Chip card

with display

Example

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IP right = a monopoly right in a liberal and global economy

=> => strongstrong assetasset

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For the Public

Invention disclosure

Encourage global development of Science,

INNOVATION

For the Patent applicant

Limited exclusive Right

20 years monopoly

Security for investors

Why a patent law ?

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Two direct consequences :

1. Patents provide a large technical publication

2. Patents are a strong legal system

•Invention is published, not kept secret •Reward to the inventor : 20 years right on the invention

A fair system

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Technologywatch

Patent databaseswww.uspto.gov/patft/index.htmlhttp://ep.espacenet.comwww.inpi.fr/brevet/html/rechbrev.htmwww.delphion.com

• By nature, patent system involves huge publication volume

• Represents 80% of technological publishedinformation

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Importance of IP

Source: www.finance.yahoo.com, www.business.com

Net working capital*Fixed assets*Other assets*Intellectual property andintangible assets*

Microsoft6% 1% 1%

92%

IBM2% 19%

6%

73%

* % of the value of invested capital

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Procedure in Europe

PreliminaryExamination

First Filing End Priority

12 months

SubstantialExamination

Publication

18 months

Grant

Up to 20 years

GrantedPatent

National Phase

Opposition9 months

Opposition

Costs* 6000 € 13380 € 6650 € (validation in 6 countries)

*source OEB 2005 >30000 € for 10 yearsUS : 15000 € for 10 yearsJP : 17000 € for 10 years

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BENEFITS > COSTS-Direct return on investment

through licencing / assignments

-Indirect benefit : no copy fromcompetitors,

Monopoly on a technology

-Increase of intellectual capital

-Costs of patent proceedings

-Costs of litigation proceedings

-Costs due to competitors reactions

Patent filing only

if :

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First Part : acquisition acquisition ofof IP IP rightsrights

SME* StrategyFiling of targeted patentsImportant criteria :� Novelty� Commercial interest

Big company’s StrategyIP Budget between 3.5 et 10% R&D budget (benchmark)Or between 0.2 et 1% of turnover

Quantitative approach1% of patents provide a huge return9% of patents provide a significant return

IP strategydefinition

*SME : Small & Medium Entreprises

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First Part : acquisition of IP rightsInvention process

1. Need of an efficient process for internal invention disclosure

2. Invention selection and decision

-secret

-patent filing

-invention publication


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• Remarks– Secret might be

maintained by agreement (NDA) with respect to employees or companies

– Might be sold or licensed, part of know-how

• Drawback– The secret may disappear

with the product selling – Weak to defend and

protect– Against the scientific and

technical progress

The Secret

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The patent system

Contribution to the scientific and technical progress

Monopolyfor 20 years

on territory

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Criteria for PATENTABILITY

• Novelty– Not known from the public, no previous

disclosure to the public

– Small difference is sufficient

• Non-obviousness– To be judged in comparison with prior art

– Appreciation of experts required

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Patentability

• What can be patented– Products (device, part of device, system)– Methods (process, use)

Definition of essential technical featuresBy structural or functional approacheither realised as hardware or software

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Introduction

-Technicalbackground-Technicalproblem-Object ofthe invention

Description

-embodiment(s) of inventions

Claims

- Independant- Dependent

Figure(s)Abstract

Patent

Structure of a patent

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Example

Subject: Device for protectingpersons in vehicles

Patent No.: DE 896 312Priority Date: 06/10/51Assignee: Walter Linderer

Main Claim:A device for protecting persons in vehicles frominjuries in case of collisions, characterized in that in the vehicle, an inflatable, preferablyelastic container which is little permeable or impermeable to air is so disposed near theperson to be protected that if, inflated by a device, lays itself in front of the upper part ofthe body of the person to be protected

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Not patentable

NON INVENTIONS-Discoveries, scientific theories, mathematical methods-Aesthetic creations-Schemes, rules and methods for performing mental acts, playinggames or doing business-Programs for computer-Presentation of information

EXCEPTIONS TO PATENTABILITY -plant or animal varieties (but a process for gene isolation is not excluded)-methods for treatment of the human or animal body by surgeryor therapy and diagnostic methods

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Inventors&

Patent applicants

Fiscal office

Fiduciaire

Investors

EvaluationBenchmark

Third part

Contract(licence,assignment,..)

WIPO INPI

EPO

Acquisition Of IP Rights

Foreigncorrespondants

Management IP worldwide

Attorneys

Judges

Litigation

USPTO

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• A patent has a commercial value

⇒Valorization through commercial strategy likelicencing, technology transfer, monopoly on technology

• A patent has a financial value, is an Intellectual capital, intangible asset

Second Part : valorizationvalorization ofof IP IP rightsrights


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Key issues – Patent coverage, depends on prior art– Easy detection of infringement– Patent portfolio on same topics– Dependence from other patents– Existence of alternative equivalent solutions– Strong technology– Market for products implementing the

technology

legal

technical

marketing

Commercialvalue

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–Gold value chain

–Use of Standard compliant equipmentrequires use of the patent

ANSI

Invention Patent Standard

Standard-relatedinvention

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Patents strategy : valorization

• Agressive strategy⇒Objective : patent business unit⇒Action: attackExclude competitors, often large interpretation of patents, many patents, licence on non core business

• Defensive strategy⇒Objective : freedom to business

⇒Action: attack when attacked

Use of patent portfolio to dissuade others to attack, try to find solution with cross-licences

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Valorization ofIntangible Assets

Patent Portfolio Management – KPI*1. List of patent portfolio held by the company.

2. Distinguish which patents are or will be generating revenues.

3. Historical cost records documenting patents’ development(a) Technical level and workload of people working on development of inventions;(b) Pay scales for individuals and information to determine overhead rate.

4. Identify patents and associated products that now have or are expected to have commercial viability:

(a) Projection of revenues related to patent over the life of thepatent; and(b) Projection of direct expenses associated with producing revenue.

5. Details of licensing transaction(s) of all patents.

* Key Performance Indicators

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Financial evaluation of patents

First step = due diligence

Evaluation methods :

•costs approach

•market approach

•royalty approach

Valorization ofIntangible Assets

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not limited to private nor commercial sectorExample of Albert Fert, Nobel Price of physics in 2007 for the workon « magnétorésitance géante » (GMR)Applications : telecom, electronics, computer science…No strong patents on the technology : no valorization for him and hissearch lab..Strong patents filed by others (Siemens…) : valorization for others

In the USA, the universities manage a systematic patent policy:

InventionsStart-up Products on market

Business angels

Valorization ofInnovation

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Importance of patent Strategy

The IP laws exist wordwilde, thereis no choice possible to protect

your innovation

Conclusion

Documents

PROTECTING YOUR INNOVATION How to define an efficient patent strategyneural.dq.fct.unl.pt/qoa/Presentation Novaimo.pdf · 2012-06-28 · of inventions; (b) Pay scales for individuals