© 2011 IBM Corporation 1 Intellectual Property and Standards Intellectual Property Innovation and...

© 2011 IBM Corporation1

Intellectual Property and Standards

Intellectual PropertyInnovation and IP Infrastructure IP Solutions to Transform Innovation Into Advantage

Saif Aziz – Director of Technology AllianceBM Greater China Group



Agenda

What is IP Service Infrastructure

Introduction– Motivations– IP Management

Innovation and IP Infrastructure Capabilities

“The Optimized Growth of IP Marketplace”

Service Infrastructure for the IP Marketplace



What is IP Service Infrastructure

A tactical infrastructure consisting of processes and tools to help companies unlock the power of global innovation networks and maximize IP value

Delivers comprehensive view of the IP portfolio to decision makers

Empowers employees to participate in the invention process

A Services Infrastructure typically provides– the know how and tools companies can use to define and implement their IP

strategy– Help business leaders assess their existing IP portfolio including

• patents, trademarks, service marks, trade secrets, copyrights, domain names, and publications

– Help companies identify gaps and exposures to align future inventing activities – Improve the quality and value of a company’s IP portfolio

A combination of tools, process and procedures to integrate best practices and manage the entire IP life-cycle



Introduction - The Changing Business Landscape

Top CEO business priority: “Growth driven by innovation”

A new IP marketplace and economy is emerging

The idea has become the product

Increased competition for ideas

Strong, global intellectual property systems encourage innovation

Knowledge-based Economy relies on Innovation andCreation of IP



5

Introduction - IP Central to Economic Growth & Markets

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US investment in intangible assets (>$1T/year)surpasses investment in tangibles

~80% of the value of modern companiescomes from intangible assets

~80% of the value of modern companiescomes from intangible assets

Tangibles

Intangibles

Sources: US Federal Reserve – Nakamura, Ned Davis Research

“The competition of the future world is a competition for Intellectual Property Rights”

Chinese Premier Wen Jiabao

Japan intends to “bring about a nation founded on intellectual property”

Japanese Prime MinisterJunichiro Koizumi

“Intellectual property is the backbone of America's economy”

U.S. Commerce Secretary Carlos Gutierrez



Introduction - New Sources of IdeasInnovation now comes as much from external sources as internal – complicating IP management and leverage

External Innovation Sources Internal Innovation Sources

Source: IBM Global CEO Study 2006

Business partners

Customers

Consultants

Competitors

Assns, trade orgs, conf boards

Academia Internet, blogs, bulletin boards

Think tanks

Other

R&D (internal)

Sales or service units

Employees

5% 15% 25% 35% 45%45% 35% 25% 15% 5%



Introduction - Innovation Model

Proprietary Innovation

Advantages:

Product uniqueness

Speed-to-Market

Open Innovation

Advantages:

Reduces cost

Vendor choice

Differentiation Standardization Company

X

A Shared Foundation of Proprietary and Open



Introduction - Leveraging Intellectual Property

Revenue/ Business Value Income/Cost Savings

Protection Community

Products

Services

Solutions

Freedom of Action

Litigation

Licensing

Alliance/JD

Divestiture

Influence

Open Standards

Intellectual Property

Open Innovation

Technology Leadership

Quality Initiatives

Goodwill

X-Licensing

Assignment

Pruning

Competitive Advantage

Building on Standards

M&A

IP Policy

Regulatory Influence



Innovation and IP Infrastructure Capabilities

Monitor innovation performance

Unite inventor, legal and business teams

Manage IP across geographies

Analyze patent valueCapture IP from global resources

Track monetization opportunities

Innovation and IP

Infrastructure



IP Management Framework

Not just managing a collection of patents– Considers all Facets of Intellectual Property Lifecycle

Informed by corporate objectives – What does the company need from its patent portfolio?– Why and how are inventions generated?– What industries are most relevant?– What is the market strategy?– Who are the competitors?

A team sport – Requires active participation from all parts of the company

A moving target– Requires constant refinement and evolution

Invention Management is key to creation and leveraging IP for business. This requires a Strategy, Plan and an Infrastructure to support the initiative



IP Management Framework

IP Strategy: – Establish framework to align and integrate strategic organizational goals with technical community’s

IP generating activities– Focus R&D efforts toward under-served, high potential market opportunities

Patent Landscape Analysis:– Evaluate landscape and provide insight and methodologies to intelligently manage limited resources– Identify new arenas of patentable subject matter– Educate technical community on non-traditional patentable subject matter and methods to capture it

IP Assessment: – Identify gaps and risks in patent portfolio – Outline best practices to close gaps

IP Flight:– Minimize flight within a dispersed R&D environment– Identify methodologies to capture and retain IP

International Expansion: – Determine IP risks and opportunities for expansion into global markets – Identify best practices to protect IP in foreign markets



Process for Designing a Strategy that Leverages IP

Drive and sustain innovation

IP lifecycle management

IP evaluation

Protection mechanisms

Monitor performance

Organizational/ IP assessment

Develop IP strategy

Change Management

Enable a Culture of innovation

Develop IP policies

Market share expansion

Competitive advantage

IP Valuation and licensing

Influence and goodwill

Standards and open innovation

LeverageCreatePlan



Sample Plan of Action – Education and Services

IP landscape / SWOT Analysis

IP assessment and Audit

Develop IP Strategy

IP portfolio mgmt

Invention evaluation

Establishing an IP organization

Build IP portfolio

IP Awareness and Training

IP Policies

Utilize IP Tools

Inventor Incentives

Quarterly invention mining / brain storming sessions

Targets & Metrics: Measure, Monitor, Adjust

Licensing

Invention review board

Comms program

Risk Mitigation

IP commercialization

Maximizing ROI

LeverageMature the Capability

CreateBuild the Capability

PlanLay the Foundation

Execute IP Strategy

IP Promotion and Marketing

IP Enforcement IP Valuation

IP Business Models

Open Innovation

Competitive Advantage



IBM’s Best Practices for Effective IP Leverage:Complete Business and Cultural Integration

Centralized IP Management

Offensive and defensive IP strategies

Pro-active vs. reactive

Continuous performance measurement and adjustments as necessary

Targets with accountability

Special IP Budget

Data and analysis tools

Documented Policies and Procedures

IP Expertise

Continuous education and communication

Incentives – intrinsic and extrinsic

Corporate and

Legal

IBM GlobalBusiness Units

R&Dand

Business Partners

IP



IP Innovation and Solutions

At IBM– IP experts work with clients and business

partners to deliver first hand knowledge of IBM’s best practices

– Services experts work with clients to implement the IP solutions and execute IP strategy

– Range of 3rd party and proprietary software and tools to build and sustain and build IP capabilities

IP SoftwareTools

IPExperts

Services Experts

Set of Strategic IP Services, education and software tools customized to address bsuiness needs



IP Business Cycle & Lifecycle Audiences



Inventor Interface Customizable Snapshot of Inventor Activities

Empower all employees to participate in IP process

Submit new inventions via disclosure form

Monitor progress of submitted disclosures

Track existing patents and publications

Tally received incentives and milestones

Catalog IP history



Inventor Interface Incentive and Awards

Pre-filing

Post Issuance

Divisional and Corporate Awards



IP Professional InterfaceEvaluator Interface Streamlines Operations

Automate workflows to guide and accelerate disclosure evaluation process– Automatic disclosure assignment– Action item alerts– Deadline reminders

Access full disclosures for review and evaluation

Systematic invention valuation scoring– Consistent decision-making across multiple review teams– Rapid adjustments to ‘file’ score cut-off as budget changes– Downstream use for licensing and foreign filing decisions



IP Professional InterfacePortfolio Managers’ Interface Tracks IP Lifecycle

Manage all aspects of prosecution– Patents– Copyright and trademark registration– Trade secrets– Defensive publications

Follow through to end of life – assignment, expiration, etc.

Streamline process flow with risk management tools

Alert all necessary parties of action items, deadlines

Manage all IP-related contracts and paperwork

Monitor existing IP for rapid portfolio analysis



Executive DashboardFlexible Reporting of Key Business Metrics

Pipeline strength– Business unit– Technology– Location– Ratio converted to applications / patents

Portfolio health– IP in necessary countries / patent jurisdictions– Appropriately protecting all products– Alignment with business goals

IP business strength– Budget alignment– Licensing pipeline and income



IBM IP Leadership

IBM - 100 years of innovation leadership

– One of the world’s top ranked brands – 2010 Revenue $99.9B

– 18 consecutive years of US patent leadership – 5,896 in 2010

– More than $1B in annual IP income

– Model culture of innovation throughout global technical community of 250,000

– US IP policy leader

– Comprehensive processes and tools streamline IP management



IBM US Patent Leadership

© 2011 IBM Corporation 1 Intellectual Property and Standards Intellectual Property Innovation and...

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