Maaike van VelzenPhilips Intellectual Property and StandardsApril 03, 2011

IP portfolio management

Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 2

Agenda

• Introduction to Philips

• IP&S in the Philips organization

• Philips IP strategy

• Value creation from IP in Philips

• IP portfolio management

• IP scouting & acquisition

• Conclusions

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A well-respected, blue-chipcompany for 120 years

Founded in 1891Headquartered in Amsterdam, the Netherlands

Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)33% of sales generated in emerging markets

Globally recognized brand (world top 50)Our brand value doubled to $8.7bln since 2004

119,000 employeesSales and service outlets in over 100 countries

€1.6 billion investment in R&D, 6% of sales50,000 patent rights – 36,000 registered trademarks – 63,000 design rights

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IP&S in the Philips organization

• IP&S is part of Corporate Technologies

• Organized in business groups that match the Philips sectors

• Working closely with research and the sectors

BothellCleveland &

Burlington

Redhill

EindhovenAachen

Beijing

SeoulTokyo

Shanghai

Taipei

Hong Kong

Jakarta

SingaporeBangalore

Mumbai

ParisMadrid

Sao PaoloSan Jose

Buenos Aires

ShenzhenMexico

Briarcliff

Pittsburgh

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Facts & Figures

• Philips IP portfolio

– Number of patents (=inventions) filed in 2010: 1300

– 50,000 patents

– 36,000 trademarks

– 63,000 designs

– 3,900 domain names

• Philips Intellectual Property & Standards

– 26 IP&S offices worldwide in 16 countries

– 450 IP&S employees: 300 IP professionals , 150 support

– Founded in 1924

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Maaike van Velzen

• Responsible for Healthcare IP portfolio activities within IP&S

– Includes all types of IP– Worldwide– Portfolio built from in-house inventions and acquired IP

• CV:– 2008 – Philips IP&S IP portfolio manager Innovation and emerging business– 2005 – 2008 Philips IP&S IP counsel– 1996 – 2005 Unilever IP counsel– <1996: Masters degree in chemistry

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Philips IP Strategy

1. Create own IP positions that can be leveraged in the market for Sector benefits (building IP control points)

2. Establish standards together with third parties to create or support business opportunities for Sectors

3. Manage risks w.r.t. third party IP to avoid businesses being blocked and/or to secure access at favorable terms

4. Counsel Sectors in IP matters in transactions with third parties to safeguard IP interests of Sectors

Create IP solutions to support growth, competitiveness and profitability of Philips’ Sectors

IP focus is on creating value

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Philips IP Strategy

• Strategy alignment with Sectors and Research through:

– Participation in strategy meetings Sectors

– Discussion of IP&S strategy and annual plans with Sector/BU/CTO management

– Quarterly meetings IP&S BG management teams and Sector management teams

SectorsResearch

IP&SStrategy Operational Plans

Execution

IP strategy has to be integral part of business strategy :

“A Business strategy without IP strategy is no strategy”

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Value creation from IP in Philips

Royalty income

Royalty savings via cross licenses

ExclusivityMarket share/margins

Assign/license patents to obtain share in JV's / spin-ins/outs

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IP portfolio management

• Define IP needs of Business

• Define IP value model and IP policy per BU

• File IP on own ideas and/or acquire IP from 3rd parties

• Ensure benchmarking of competition

• Make SWOT of own portfolio and major competitors

• Build and prune portfolio

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IP portfolio management

• Annual IP Portfolio Management Plan per Sector with detailed plans for each Sector BU

• IP creation follows technology / product lifecycle

• We look at the different IP rights together i.s.o in isolation in order to create optimal protection and enforcement opportunities for BU’s

Patents TM Designs DN

IP Portfolio Management Plan

Trade Secrets Copyrights

Senseo/Philips/ Douwe Egbertstrademark protection

closing mechanism: patent protection

shape: trademark and design protection

shape: defensive design protection

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IP scouting & acquisition

• Scout market on availability of IP based on IP needs

• Use extensive network of brokers

• If matching IP is found, make business case to assess and determine value of IP

• Acquire or in-license the IP when price is within pre-determined range

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Lean and mean IP portfolio

• Monitor costs – biomarker filings with multiple selected groups

generally expensive

• Do not go too fast at beginning

• Review portfolio at least every 3 years

• Go through the cycle– Add young IP for future of business

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Conclusions

Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011