WIPO-WASME Special Program on Practical Intellectual Property … · 2007-05-29 · 1 WIPO-WASME...
Transcript of WIPO-WASME Special Program on Practical Intellectual Property … · 2007-05-29 · 1 WIPO-WASME...
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WIPO-WASME Special Programon
Practical Intellectual PropertyIssues
Geneva, October 6 to 9, 2003
Ownership of IP Assets
Christopher M. Kalanje, Consultant,WorldIntellectual Property Organization (WIPO)
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OVERVIEW IP Ownership
Decisions on IP Ownership
IP Ownership and its Strategic Use
Challenges in IP Ownership
Conclusions
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IP Ownership • IP ownership facilitates creation of IP
portfolio (a useful tool for business strategy)
• IP ownership is important in deciding business strategy e.g – future plans for diversification – acquisition plans – growth strategy (i.e organic growth,
franchising, strategic partnership, joint venture)
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IP Ownership Contd. • Decision on IP ownership should be
based on a broader picture of business strategy
• IP ownership strategy would normally consider – Costs – Target market (coverage) – Strength of underlying IP
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IP Ownership Contd. – Existence of competitors – Legal framework – IP enforcement mechanism
• The use of patent information is necessary
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Decisions on IP Ownership • Procedures leading to IP ownership
differs depending on the type of underlying IP asset e.g. – Non-procedural ownership of trade
secrets – Patent application – Registering trademark or industrial
designs
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Decisions on IP Ownership Contd. – Automatic ownership/registration of
copyright and related rights • IP ownership can result from
purchasing an IP asset • Merger and Acquisition process • Joint venture • Strategic alliances
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Decisions on IP Ownership Contd. • Whatever procedure of IP
ownership is pursued, it is important to ensure that the result can successfully be defended in a court of law
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Decisions on IP Ownership Contd.
• strategic use of the underlying IP asset should also be considered when choosing the procedure for owning IP
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IP Ownership and its Strategic Use
• IP smart enterprises are also extending the use of IP from a defensive tool to a wider embracing corporate strategy
• Increasingly interdependence of technology/business is becoming central to business survival
• Proactive approach to IP Ownership and use is imperative
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IP Ownership and its Strategic Use Contd. • Effective use of IP assets requires
knowledge on ownership of underlying IP assets i.e IP audit – the type of IPRs it owns – other people/enterprises IP that it uses
or intend to use • Such knowledge would influence
decision on IP strategy to be pursued
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IP Ownership and its Strategic Use Contd.
• Ownership of IP facilitates implementation of several business strategies such as, – Market entry barrier
• trade secrets or patents can be very effective in pursuing this strategy.
• A broad portfolio of patents can also be used as a tool to discourage potential threat infringement threats
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IP Ownership and its Strategic Use Contd.
– Cost saving • Maintenance of IPRs involves costs. A
prudent business strategy should also involve the identification of IPRs which can be allowed to expire
• donated in return of tax rebate (where available)
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IP Ownership and its Strategic Use Contd. – Source of income
• Licensing of technology or franchising can also be an effective way earning income directly from IPRs.
• Some companies generate huge amount of income through this strategy e.g IBM and Texas Instruments (TI) generate $ 1 billion and $ 800 million per year in patent royalties
• Some innovative enterprises concentrate in developing of technology and then licensing the same to others.
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IP Ownership and its Strategic Use Contd. – Competitive tool
• IP provide opportunities for enterprises to have competitive advantage in the marketplace
– Profit maximization • IP provides an opportunity for enterprises to
increase their profit margins e.g the case of Lotus Development Corporation and its introduction of Lotus 123 spreadsheet.
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IP Ownership and its Strategic Use Contd. – Strong negotiation position
• Well managed IP portfolio strengthens enterprise’s bargaining position in cross-licensing discussions, in discussions with potential litigants and in a broad range of business negotiations
– Business expansion • IP provide opportunities for joint-ventures,
out-licensing and market intelligence on potential strategic alliances
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IP Ownership and its Strategic Use Contd. • SMEs can benefit from effective use
of IP. – Baby Jogger Co. a small company with
70 employees established in 1984 in a garage. by Mary Baechel and her then-husband Phil. • The company used retailers to establish a
distribution network (and building its brand name)
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IP Ownership and its Strategic Use Contd.
• By 1994 its sales stood at US $ 5 million • By 2000 sales leapt to US $ 15 million • Baby Jogger has become a household
name in some parts of the globe!
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IP Ownership and its Strategic Use Contd.
– Story of Pliva (Croatian pharmaceutical company) • Started as a relatively a small player • Innovation (developed original antibiotic
named azythromicin in 1970) • Patent protection (worldwide in 1981) • Pfizer Inc. learned about Pliva while
searching USPTO database (Use of patent information)
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IP Ownership and its Strategic Use Contd.
• Pliva and Pfizer entered into licensing agreement
• Pliva maintains right to sell the product in Central and Eastern Europe under the its own brand name Sumamed.
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IP Ownership Challenges • General IP awareness • SMEs worldwide under-utilize the
intellectual property system • Few have attempted to extend the
traditional boundaries of IP use
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IP Ownership Challenges Contd. • Inadequate enforcement mechanism • Difficult in placing actual value on IP
assets hence failure to appreciate potential benefits
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Conclusions • Decision on IP ownership should be
considered as part and parcel of overall business strategy
• Identification of ownership and careful selection of procedure for IP ownership is central to successful IP exploitation
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Conclusions • Owners of IP have several options
open to them in deciding optimal use of their IP assets
• Inadequate awareness of IP has lead to its Underutilization
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Conclusions Contd. • Effective legal framework and
enforcement mechanism enhances the potential benefits of IP ownership
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Finally • THANK YOU FOR YOUR KIND
ATTENTION