ABC of Intellectual Property Rights
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Transcript of ABC of Intellectual Property Rights
12/19/14 1
ABC of Intellectual Property ABC of Intellectual Property RightsRights
| Kiran Bettadapur || Kiran Bettadapur |
12/19/14 2
Story #1Story #1
Tech GiantTech Giant ≈≈100K employees100K employees Rev.: US$ 30 b.Rev.: US$ 30 b.
Market Cap:Market Cap: FY2000: FY2000:
≈US$ 300 b.≈US$ 300 b. 2009: <US$ 2 b.2009: <US$ 2 b.
Ch. XI: Ch. XI: BankruptcyBankruptcy
6000 patents6000 patents
Stalking Horse Bid: Stalking Horse Bid: US$ 0.9b.US$ 0.9b. US$ 1.9 b.US$ 1.9 b. US$ 2.6 b.US$ 2.6 b. US$ 3.1 b.US$ 3.1 b.
Sold: Sold: US$ 4.5 b.US$ 4.5 b. US$ 0.75 m. p.p.US$ 0.75 m. p.p.
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Story #2Story #2 HomeHome Arris Arris
1K Patents 1K Patents US$ 2.35 b.US$ 2.35 b.
Cut 6K jobsCut 6K jobs Bleed: $1 bil. p.a.Bleed: $1 bil. p.a.
2011: Set-top + C. 2011: Set-top + C. Modem + Mobile Modem + Mobile Rev.: US$ 4 b.Rev.: US$ 4 b. Inc.: US$ 0.16 b.Inc.: US$ 0.16 b. 20K employees20K employees No Market LeaderNo Market Leader [17K+8K] Patents[17K+8K] Patents
MobilityMobility Lenovo Lenovo US$ 2.91 b.US$ 2.91 b. IP with GoogleIP with Google
IP ≈ US 4.0 b.IP ≈ US 4.0 b. US$ 0.2-20 m. p.p.US$ 0.2-20 m. p.p.
Sold: Sold: US$ 12.5 b.US$ 12.5 b. Android ProtectionAndroid Protection
80X80X MultiplierMultiplier 65% premium65% premium
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More CasesMore Cases
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More ProofMore Proof
P.I.L (Patent P.I.L (Patent Infringement Infringement Litigation)Litigation) Arthritis DrugArthritis Drug 1 Patent1 Patent
Award: Award: US$ 1.67 US$ 1.67 billionbillion
MP3 Technology MP3 Technology InfringementInfringement 2 Patents2 Patents
Jury Award: Jury Award: US$ US$ 1.54 b.1.54 b.
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TakeawayTakeaway
IntellectualIntellectual
Property Property
= =
LOADSLOADS
OFOF
WEALTHWEALTH
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I.P. ElementsI.P. Elements
Creations of Mind, Creations of Mind, Skill & IntelligenceSkill & Intelligence
GoodwillGoodwill ReputationReputation
Artistic: Artistic: CopyrightsCopyrights Pictures, Paintings Pictures, Paintings Video, AV, Movies, Video, AV, Movies, Jingles, SoundJingles, Sound Literary WorksLiterary Works Dance & Drama Dance & Drama
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I.P. ElementsI.P. Elements MarketingMarketing
TrademarksTrademarks (logos; (logos; trade/brand namestrade/brand names
Domain NamesDomain Names Customer: Customer:
Trade SecretsTrade Secrets; Conf. ; Conf. Info.Info.
Client DatabasesClient Databases ContractContract
Licenses, royalties, Licenses, royalties, permits, franchise permits, franchise agreements, use agreements, use rights, etc.rights, etc.
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I.P. ElementsI.P. Elements
TechnologyTechnology PatentsPatents Software CodeSoftware Code Industrial DesignsIndustrial Designs IC LayoutsIC Layouts
CommunityCommunity Geographical Geographical
IndicationsIndications Plant VarietiesPlant Varieties
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Why Protect?Why Protect? Business ValueBusiness Value
PremiumPremium Revenue / Margins Revenue / Margins TrustTrust Competitive Edge Competitive Edge
Major Asset Class
Shield / Sword
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Just Brand ValueJust Brand Value
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Criterion #1Criterion #1
Any Unique Idea... Any Unique Idea... OKOK
NOVELTY & NOVELTY & ORIGINALITYORIGINALITY
TM Litigation:TM Litigation: Christian Louboutin v. Christian Louboutin v.
Yves Saint LaurentYves Saint Laurent Protection:Protection: Red Sole Red Sole Not all colorNot all color
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Criterion #2Criterion #2 Patent Litigation:Patent Litigation:
Perfect Web v. Perfect Web v. InfoUSAInfoUSA
Bulk E-mailBulk E-mail Profiling + GroupingProfiling + Grouping
INVENTIVE STEP; INVENTIVE STEP; NOT OBVIOUSNOT OBVIOUS Flash of GeniusFlash of Genius Teaching-Suggestion-Teaching-Suggestion-
MotivationMotivation No CommonsenseNo Commonsense
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Criterion #3Criterion #3 Apple Smart Shoe Apple Smart Shoe
PatentPatent Nike + iPodNike + iPod Outdoors EnduranceOutdoors Endurance Real-time FeedbackReal-time Feedback Speed, distance, Speed, distance,
slope, elevation, etc.slope, elevation, etc.
UTILITY / UTILITY / USEFULLNESSUSEFULLNESS Better (Non-obvious)Better (Non-obvious)
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Criterion #4Criterion #4 Dr. Bearden Patent:Dr. Bearden Patent:
MEG: Motionless MEG: Motionless Electro-Magnetic Electro-Magnetic GeneratorGenerator
Papadakis Perpetual Papadakis Perpetual Motion DeviceMotion Device
NOT ABSTRACTNOT ABSTRACT Capable of Capable of
ManufacturingManufacturing E.g., Metallic Film... 1 E.g., Metallic Film... 1
atom thickatom thick
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Rejection #1Rejection #1
Bulb-changing Bulb-changing MachineMachine
Chin Pump:Chin Pump: Piston-Powered Piston-Powered
PumpPump Resistance exercises Resistance exercises
& jaw muscles& jaw muscles
SILLY; FRIVOLOUSSILLY; FRIVOLOUS
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Rejection #2Rejection #2
Industrial DesignIndustrial Design Skull-shaped bottleSkull-shaped bottle Appealing to Appealing to
Underage DrinkersUnderage Drinkers Banned in CanadaBanned in Canada
AGAINST PUBLIC AGAINST PUBLIC POLICY & POLICY & MORALITYMORALITY
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Rejection #3Rejection #3
Awarded PatentAwarded Patent Centrifugal Birth Centrifugal Birth
MachineMachine Patient Strapped & Patient Strapped &
Rotated Rotated
AGAINST PUBLIC AGAINST PUBLIC HEALTHHEALTH
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Rejection #4-7Rejection #4-7 DISCOVERIESDISCOVERIES
E.g., gravityE.g., gravity ATOMIC ENERGY ATOMIC ENERGY
RELATEDRELATED E.g., fusion deviceE.g., fusion device
AGRICULTURAL AGRICULTURAL METHODMETHOD E.g., Black RoseE.g., Black Rose
MATHEMATICAL MATHEMATICAL ALGORITHMALGORITHM E.g., SimplexE.g., Simplex
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SummarySummary 20-yr. Exclusivity20-yr. Exclusivity Acceptance CriteriaAcceptance Criteria
Novelty & Novelty & OriginalityOriginality
Inventive Step & Inventive Step & Not ObviousNot Obvious
Utility / UsefulnessUtility / Usefulness Not AbstractNot Abstract
Rejection ReasonsRejection Reasons FrivolousFrivolous Against Public Against Public
Policy, Health & Policy, Health & MoralityMorality
DiscoveriesDiscoveries Atomic EnergyAtomic Energy AlgorithmAlgorithm New Agricultural New Agricultural
MethodMethod
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I.P. Rights: EssenceI.P. Rights: Essence
Government Government CreatedCreated
Asset Asset SpecificitySpecificity
Patents Patents &&
ProprietaryProprietaryKnowledgeKnowledge
Internal Internal Economies Economies
of of ScaleScale
MARKET-ENTRYMARKET-ENTRY
BARRIERSBARRIERS
Market Capture & Market Capture & RetentionRetention Globalisation Globalisation
(GATT/WTO)(GATT/WTO) TraditionalTraditional Removed Removed IP Fence: EvergreeningIP Fence: Evergreening Creative DestructionCreative Destruction
Holy Grail: Holy Grail: NationalismNationalism
Competitive Competitive AdvantageAdvantage
Sustainable ValueSustainable Value
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Patenting ProcessPatenting Process Prior Art ResearchPrior Art Research
Reactive: Idea-Reactive: Idea-drivendriven
Proactive: Area-Proactive: Area-drivendriven
Culture of Culture of Innovation Innovation Market OrientationMarket Orientation
I.P. = Catalyst for I.P. = Catalyst for Economic GrowthEconomic Growth
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I.P. ValuationI.P. Valuation QuantitativeQuantitative
IncomeIncome Cashflows; Cashflows; Savings (Royalty, Savings (Royalty, Litigation, Work-Litigation, Work-around costs)around costs)
MarketMarket Similar Similar transactionstransactions
CostsCosts R&D; R&D; Opportunity Opportunity
OptionsOptions Right to Right to exploit asset in future exploit asset in future
QualitativeQualitative CharacteristicsCharacteristics Potential UsesPotential Uses Market? Impact? Market? Impact?
Expiration? Who Expiration? Who Developed? Developed?
BlendedBlended
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State of AffairsState of Affairs
Vital Cycle (Vital Cycle (‡ ‡ Vicious):Vicious): InnovationInnovation Startups (Entrepreneurship) Startups (Entrepreneurship)
GrowthGrowth Jobs Jobs Wealth Wealth Investment Investment
North-South Divide
12/19/14 25
““I.P. Protect or Perish!”I.P. Protect or Perish!”
... Sir MV (tweaked)... Sir MV (tweaked)