IP strategy tk

IP strategy tk

Create effective IP coverage for our businesses efficiently

2017 | Dr. Stephan Wolke

thyssenkrupp | CO-TIS Intellectual Property and Services

2 | IP within tk – S. Wolke

thyssenkrupp: 41bn EU rev., 155.000 employees in nearly 80 countries


IP strategy tk: Create effective IP coverage for our businesses efficiently

Effective IP coverage to secure our businesses

Efficiently created IP

Have the business decide on IP

Build IP community & create awareness

Manage brands strategically as part of IP

Manage external services and insource

Create a common IP shield

Stimulate & Incentivize IP creation

Give direction and IP focus

Understand competitive IP environment


IP situation tk has been improved

Effective IP coverage


DPMA

(Rank 39)

Reduction of prices for IP servicesReimburse-ment to BUs

in % in Mio EUR

Price 17/18

Price 15/16

-x% -x%-x%

16/1715/1614/15First

Filing

Pre-

check

PCT

National

.

EP

Region

EP

Validat.

PCT

Basis

(Rank 14 of German applicants)

14

EPO

+45%

16

/17

18.765

17.73016.984

16.284

15.679

20

12

12.968

+55%

16

/17

475449409

389370

20

12

306

Portfolio

optimization

started

First filings Patent stock

5

16

/17

20

12

-13%

16

/17

20

12

in Mio EURPatent

lawyers

Trademark lawyers

Insourcing &

IP law firm

managemen

t

IP

coverage

extended

IP professionals IP Costs

If ranked as

one instead of

two owners

39

15

Partially by

price reduction



Representation

at patent office

(patent filing)

TK AG

Inventing

legal entity

Representation

at court

(infringements)

Representation at

customers / partners

(licencing)

Trustee

contract

Patent

office

Court of

law

Customer / competitor / LE

Model

How

it w

ork

s

Legal entityTK AGTK AG and LE

have declaratoric

ownership

Only legal entity

has economic

ownership

TK AG represents

legal entity at

patent office

In most cases TK

AG represents legal

entity in court of law

Internal and

external licencing

agreements need to

be signed by legal

entity & TK AG

External

Implemented now in all relevant countries


Use of IP shield - we started to use our IP to defend our businesses:

tk won dispute at Chinas highest IP court

thyssenkrupp built and delivered product –Tianda filed Chinese patent

Tianda filed law suit against us, won severalinstances, but tk finally prevailed

Outcome for tk

• tk has won the case because of its persistance to

go all the way to the last instance

• The victory is important to tk because negative image

as infringer was avoided

• Legal certainty for tk was achieved regarding „prior

use defense“ as defined in Chinese Patent Law of

2009

Higher general significance of the case

• Supreme Court has issued a „judicial interpretation“

clarifying the concept of „prior use defense“

• Legal certainty for companies doing business in CN

2001 2004 2010 2011 2012 2014 2016

• 13th annual WIPO conference together with SIPO

November 2016 in Beijing

• thyssenkrupp invited as industry speaker

("Building up an effective IP shield efficiently in an

international engineering conglomerate“ – S.

Wolke)

tk built and delivered

the product in the US

- no patents filed in CN

or elsewhere

Competitor

Tianda filed CN

patent for this

product

tk built and

delivered the

product in

CN

Tianda filed

patent

infringemen

t law suit

against tk

1.

instance

decision

in favour

of Tianda

2.

instance

decision

to uphold

decision

of 1.

instance

3. instance decisionof Supreme People‘sCourt to reverseprevious decisionsand dismiss all claims

Ranked as TOP 1 case

among the top 50

cases of Chinese

Patent Office SIPO for

2016

Additional success:

UIF won over Technip

Zimmer at Board of

Appeal of the EPO

(2011 – 2017), AZ R 01/16


Stimulate & Incentivize IP creationIP trainings for all groups

Flat fee remuneration

> 50 workshops

conducted so far

• 5 – 20 engineers

• ½ - 1 day


• 1 – 2 days


• 1 day


• Marketing & Sales

• 1 day


• Service employees

• 1 day


• IT experts

• 1 day

Setup

TRIZ

Idea

Harvesting

KBF IP

Spare part

IP

Software Hardware

IP

own IP

Workaround

Idea Workshop

Depending on• Revenue• Proportion of invention in product• Industry specific license rate

1,30

CN0,37IN 0,05AS 0,03

0,66

EU

0,71NA

Inventiveness (= # InvRep / # R&D-FTE)

#R

&D

F

TE

s

229

Inventiveness Potential



Technology

tree Own IPCompetitor

IP

IP gap

to competitors

Technology focus

of Innovation Dialogue

IP goal

Target

portfolio

future IP focus

future IP focus

How can our technologies be sorted ?

How are these technologies covered with own IP ?

How do competitors cover these technologies with IP ?

In which tech-nologies do we have IP gaps ?

In which technolo-gies do we want to invest strategically ?

Thus, where to focus our IP ?

Technology

landscape tk

IP focus of all

Business

Units


Embedded within the annual Innovation Dialog

Ensuring IP effectiveness & IP efficiency as results of the annual IP dialog

Goals Input/discussions Results

• Innovation dialog

• Top 5 todays & top 5 future products

• New IP foci

• IP portfolio • Portfolio decisions(families, countries)

based on Coreness Detectability

• Licensing (int./ext.)

• Competitor observation results

• Invention on demand workshop planning

• Overview licensing income

• Licensing strategy

• Ambition setting

• IP budget

x

x

x

Countries

TK A B C

0

10

20

30

40before

after

Patent

families

# of countries of

a patent family

Effective IP coverage

"Are ourbusinessesprotected?"

Efficientlyused IP

"Do we use our IP-resources wisely?"



* as for patents and trademarks, all IP-/patent related researches need to be conducted by /

ordered thru IPS in order to ensure quality and consistency

Get freedom to operate

Understand

risk and

probability

Decide necessity and

degree of FTO

Develop

around or

take licence

Destroy competitor IP

Patent

not

publishe

d

Publicatio

n of patent

filing

Gra

nt

Grante

d

patent

Public

ation

Fili

ng o

f pate

nt

File

opposition

File nullity

plea

18 months

Rationals for IP competitor observation

Implemented for ca. 700 users

IP intelligence as a service

From <5 to 30 .. 50 p.a.

From < 3 to 40 .. 80 p.a.


Toolset for infringement detection

Reverse Engineering

Public Material Analysis Structured & prepared Trade Fair Visits

Sales-/Service Field Force Approach


Understand competitive IP environment Overview of Methods for IP Valuation

• M&A

• Licencing

• Accounting

• Controlling / KPI

• Purchasing

• Sales

• Cooperations

• Investor

Relations

• Liquidation /

Insolvence

Cost-based methods

Income-based methods

Market-based methods

Option pricing

typically used for

young patents

typically used

for

mature patents

or portfolios

typically used for

larger portfolios

typically used

for

IP in pharma

Patent value = Advantages / Disadvantages Effort needed

Sum of historic costs

for filing and

maintaining

+ simple to apply, clear value

Not related to income, very

imprecise (costs ≠ value)

• Cost controlling of application

• Low effort for determination


WACC-discounted sum

of future internal and

external cash flows

+ well-established

many parameters to be

determined

• Knowledge about possible

income

• Influenced by many

parameters


Value of recent other

portfolio transaction

adjusted by multiples

+ Future use is considered

Deep knowledge about his-

torical transactions

needed

• Offer patent to market

• Collect information about

comparable transactions


Real option value of

patent taking into

account future options

+ Low starting cash-flows

and high risks can be

assessed

Raw data difficult to assess

• Difficult calculation, many

parameters

Why IP Valuation ? Methods for IP Valuation


Have the business decide on IP: Within the Operative Patent Councils all

IP decisions are taken by the Business Units, then handled by IP

ServicesBUs

• Own IP economically

• Decide about IP coverage

IPS• Conducts IP filing

• Ensures IP protection

Head of R&D Head of M&S

IP CoordinatorTM

Coordinator *

Typical organizational

embedment

Main contact points

within BU

Responsibility

within OPC

Primary contact with

IPS-organization

• Part of R&D/TIS

organization

• Part of M&S, COM or

PLM organization

• Contact to all

inventors

• Contact to M&S,

COM & PLM people

• Proposes patent

decision to OPC

• Proposes trademark

decision to OPC after

approval from BA/COM

• Acts with patent

lawyer within IPS

• Acts with trademark

lawyer within IPS

• Generating new

Intellectual Property

Rights

• Transfer of IP

• Disputes relating to

Intellectual Property

• Amendments of IP

clauses in contract

templates

(also embedded in

TRA catalog)

* responsible for trademarks and domains

Operative Patent Council

Standard

OPC tool

& discussion

process

Fully automizedwith OPC 2.0


Build IP community & create awareness: IP Coordinator Meeting

WE build the IP community@tk

Discussion about what IP communities needed Sessions at IP Coordinator Meeting 2017

Building the IP community of tk

IP effectiveness IP efficiency

PatOrgIP shield

IP

decisio

n

IP

observation

R&D

IP

coord.

IPS

IP DialogOPC2.0

IP Research advisory

board

PatOrg advisory board

PatOrg

Wiki

Role / Target:• Involvement of IP Coordinators• Increase of usability

Staffing: • ~ 5 IP

coordinators• 1 per BA


Create IP awareness: IP in every contract

Aspects to be considered

• Exclusion of liability

regarding patent

infringement

• No licenses for tk

IP except in special

sit.

• Regulations

concer-ning

sublicenses

("no" as default)

• Prevent second

sources via IP

• Limit licenses to

product

geograph.

region(s)

time span

partner (in

coop.) kind of

use

• Include "hold-

harmless-clause"

regarding infringe-

ment of 3rd parties

IP, e.g.

other suppliers

all pre-suppliers

other customers

• Freedom to assign

2nd source to

deliver goods using

suppliers IP

• Defined fractions of

ownership

• Clear rules and

clauses who is

allowed to use the

results (what,

when, how, where)

• Ideally freedom for

tk regarding

IP generation

country portfolio

licensing

• Clear rules for

background IP

foreground IP

• Cost allocation

• Responsibility for

filing & prosecution

• Inventor remunerat.

• Close 2 contracts

with

institute/univ.

academic

personnel

in order to avoid

"negative publication

right" of professors

for "Diensterfindgen"

(§42 ArbEG)

• Set up publication

rules regarding

timeframe

• Define price for

buying inventions

from university /

professors

• Regulate "rights of

use" for development

results

• Include IP

clauses to ensure

ownership of

inventions for tk

legal entity in

CEO contracts

contracts with

graduands

contracts with

interns

contracts with

every person

not covered

by German

"Law on

Employee

Inventions"

Group Employees SuppliersCooperation

partnersAcademic partners,

specifically in Germany Customers


Create IP awareness: KPIs measure achievement of strategic IP goals

R&D spend

R&D

yield

# first filings

# inventions

Selectivity

# country files

# first filings

Country

spread

# stock of

patent families

# first filings

Innovation

rate

IP density

Revenue

# stock of

country files

ProcessInvention

development

First filing Country filing Stock of

patent families

Stock of

country files

IP

KPIs

Quarterly standard IP reporting

• Quarterly

reporting

• Yearly full

reporting of

all IP KPIs

for

discussion

with CTOs &

R&D headsBasic figures Annual IP reporting

OPC

Create

inventions

Ensure

IP quality

Develop

IP shield

Renew

IP shield

Benchmark

IP shield

Strategic

IP goals

# inventions


Manage brands strategically as part of IP: Our new trademark department

Filing of our company

brand thyssenkrupp

Filing of all tk trademarks (legal entities & products)

Securing our traditional brands

Brand management processes

Day1: IP coord., Day2: Brand

protect.

GLOBAL: 15.-17. of May,

Landsberg

NAFTA: 26./27. Sept: Chicago

LATAM: 17./18. Oct: Sao Paulo

INDIA: 7./8. Nov: Mumbai

ASIA: 13./14. Nov: Singapore

CHINA: 28./29. Nov: Beijing

* = issued office actions incl. single classes


Manage external services: Consolidation of IP law firms and

systematic purchasing of services

Germany30+ 11

75 10

20 6

20 6

• Xx

• Xx

• Xx

• Xx

• xx • xx

• Xx

• Xx

• Xx

• Xx

• Xx

• Xx

Australia:

Brazil:

Canada:

India:

Japan:

Korea

(S):

Lat.

Amer.

Xx

Xx

Xx

Xx

Xx

Xx

Xx

Review

talksReview

talks

Review

talks

Review

talks

Review

talks

Review

talks

Review

talks

China

US

Brazil,

Canada,

India, Japan,

South Korea

Instru-

ments of

IP law

firm

manage-

ment

For Trademarks

• Xx

• Xx

Standardized list of services Systematic qualitative review Systematic quantitative review

New highly specializedlaw firms for computerimplementedinventions

• Xx

• Xx

• Xx

• Xx


thyssenkrupp Intellectual Property GmbH• Contains all IP activities of ThyssenKrupp

• With locations in Essen and Duisburg

• Patent lawyers in RHQs Beijing & Chicago

Insource: After 120 years IP at tk moves into new organizational

setup

Source: Historisches Archiv Krupp

Patent for seamless wheel tire filed 21st of March

1853

IP department founded 2nd of March 1895

The new

tk IP GmbH


Confidential For Team Meeting

For Information

CF TIS IPS tk IP GmbH, Status 15.11.2017

• IP law firm management

• IP finance• IP reporting• Projects &

Admin

• IP strategy• Invention

stimulation• Competitor

observation• IP analytics

• First filings & Subsequent filings for teams ET/IS

• First filings & Subsequent filings for teams SE/CT

• America/Asia coordination

• IP creation• IP decision

support• IP contracts• IP advice• Patorg• IP risks

• tk brand• Product

brands

• Local nationalizations• Local first filings

• Inv. incent.• Inv. remun. • Flat fee


support• IP contracts• IP advice





• IP in contracts

Wolke

IP

Operation

s

IP

Strategy /

Research

Schulze

IP Admin

ET/IS

Sow

IP Admin

SE/CTAmericas

Cassin

CT / CO

Adams

König

IS

Pflughoefft

Klinkert

Langen-bach

Siemasz-ko

von Scheidt

ET

Ossmann

Erdogan

SE / MX

Groth

Rösgen

Ulrich

Trade-

marks

Hang

Asia

Yu

Feld-mann

HörichHampel

Pangsy

Schnei-derCoye

Mahler

Pings-mann

Kurth

Uhrhan

Placzek

Ising

Wycisk

Kroll

Baade

Wege-

ner

Hollet-schek

Kirch-heim

Braun

Kreutzer

Harazim

Turow-

ski

Roschy

Ranft

Lange

Ambor

Jacobi

Frank

HarmerMänz

Kohlhof

Filips

Stein-busch

Weis-gerber

Kauff-mann

Albrecht

Hong-mei Ma

Sunying

Bram-bach

Gierlings

Held

Becke-herm

Pappas

Kou-kounisLively

Pixberg

Kong

Monken-

busch

Thüner

Selimaj

Wojczyk

Heinrich

Bäcker

Kolbe

Meyer-

Gramann

Bartholo

-mäus.

Brune

>1.1.

Weiß

Stöw-hase

Daolio

Volk

Krüger

Zeciro-vic

Zhang

Wanke

Fischer

Fonder-

mann

Bier-brauer

> 1.1.

Hanft

> 15.12.

Friedrich

> 1.2.

Ziems

> 1.12.

Just reached

100+


We started communication with and participation in the IP world

TK

internally

(WE, ..)

"Official"

IP bodies

Inter-

national

experienc

e

exchange

VDMA

IP group

Wirtschafts-

Vereinig Stahl

BDI

IP Group

Global

Patent

Congress

9/2015

Copenhagen

Patente

2016

1/2016

Munich

Build up IP

departmt /

FTO-search

Inv. Incentive

WE 2/2014

120 years IP within tk

WE 4/2015

Founding tk IP GmbH

WE.lead 11/2015

Campaign "Inventors"

on tk webpage

techforum

China, USA, India

2015, 2016, 2017

Quality Brands

Protection Com-

mittee China

IP department

WE 5/2014

Patent Docu-

mentation

Group

VDA

IP Group

Strategic IP

Forum

Cambridge

5/2016

Global

Patent

Congress

Brussels

10/2016

Association of

Europ. Trade-

mark Owners

Federal

Circuit Bar

Association

SMPG /

WIPO

Shanghai

11/2016

Global IP

Convention

New Delhi

1/2017

IP

Service

World

Munich

11/2016

World IP

Forum

Bangalore

4/2017

Pat-Tech

Exchange

Dublin

6/2017

PatInfo

Ilmenau

6/2017

CEPS

Round

Brussels

5/2017

DIN IP

Group

EPO Acad.

Advisory B.

Intn.

Tradm

Assoc


Questions welcome

Dr. Stephan Wolke

thyssenkrupp Intellectual Property GmbH

(CEO)

thyssenkrupp AG

Corporate Function Technology, Innovation & Sustainability

(Head of Intellectual Property & Services)

+49 173 205 6772

[email protected]

IP strategy tk

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