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Confidential crafting innovation together Inside Intellectual Property Karthikeyan Iyer Founder Director, Co-crafter Crafitti Consulting Pvt. Ltd. An Innovation Research and Consulting Think Tank

Inside Intellectual Property Excerpts

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Three hour overview session on IPR management - overview, strategy and business implications.

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Page 1: Inside Intellectual Property   Excerpts

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Inside Intellectual Property

Karthikeyan Iyer

Founder Director, Co-crafter

Crafitti Consulting Pvt. Ltd.

An Innovation Research and Consulting Think Tank

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Contents

9/22/2009 2© Crafitti Consulting Private Ltd.

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ValueStrategy

Ideas

Inventions

Learning

Decisions

Productivity

Networks

Complexity

9 arms of Crafitti’s

Innovation Landscape

Today we

are going to

touch upon

And their

intersections

9/22/2009 3© Crafitti Consulting Private Ltd.

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IPR lies at an important intersection

Technology

LawBusiness

Intellectual

Property

Rights

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The world is changing rapidly and so are the

world’s businesses!

Old economy (Weight)

New economy

(Speed)Information travels fast

and wide

Information gets

collected locally,

access is restricted

First mover’s

advantage lasts longer

First mover’s

advantage is a small

window

You can lose your

intellectual advantage

very quickly!

Growth and

expansion is slower

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IPR reflects both current and future potential

Current performance (Capital, assets and earnings including

those from IPR)Future Potential

(Intellectual Capital as a % of market cap)

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Intellectual Property value chain

Idea Expression Intellectual

PropertyTrade secret

Patent

Protect Exploit

Trademark

Copyright

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What are the rights embodied in Copyright?

General Rights Moral Rights

PublicationPaternityIntegrityTranslationReproductionPublic recitationAdaptationBroadcastInalienable rights in original works

PaternityIntegrityAttributionPrivacy

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Patents can

completely

block a

competitor

entering a

market!

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Patents

Patents

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Software and Business Method patent stats

0

500

1000

1500

2000

2500

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Computer Implemented

Business Methods (Left Axis)

All utility patents (Right Axis)

Patent Applications in the US – noticed the spikes?

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Not everybody is filing patents left, right and centre!

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IP Strategy

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IP Strategy attempts to provide answers to some

of these questions

Large Enterprise

• A competitor is suing me for large scale infringement? What should I do?

• I have an existing portfolio of ideas and IP assets, how should I leverage it in the market place?

• Who should I acquire or merge with?

• Someone is trying to make a quick buck with my brand name. What should I do?

Small and Medium Enterprise

• A competitor is blocking my expansion in the market. How should I circumvent?

• How should I compete against the larger players?

• How do I get the best acquisition proposal?

• How do I leverage my assets to strengthen my brand?

Startup

• How do I prevent somebody else from stealing or blocking my idea?

• How do I lock and exploit my first mover’s advantage?

• How do I get more lucrative funding proposals?

• How do I compete with much larger competition with deep pockets?

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Elements of IP Strategy

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Linking IPR with Organizational Strategy

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Opportunity Window

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Preemptive-Reactive Strategy

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Proactive Defense

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Patent Portfolio Management

Block Others from entering your space

Crowd around a competitor patent to render it useless

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9/22/2009 24© Crafitti Consulting Private Ltd.

You don’t have to do it alone . . .!

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Crafitti’s Value Measures for Individual Patents

and Patent Portfolios

Crafitti’s Value

Measures

Comprehensiveness

Criticality

Dependency

Leveragability

Brand perception

Utility/ adoption

Uniqueness/ Novelty

Inventiveness

Diversity

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Crafitti’s value measures for knowledge that

doesn’t qualify for patent protection

Knowledge Value

Velocity

Novelty

RelevanceInfluence

Circulation

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IP Strategy - Decisions

• Should I patent, publish or hide (trade secret)?

– Is my invention easy to copy or reverse engineer?

– Do I need more time to create a tangible first mover’s business advantage?

– Does patent pending status get me more money (funding or deal pipeline)?

– Does publishing preempt a competitor’s product strategy?

• When in my product life cycle should I use patents, trademarks, copyrights and trade secrets?

• Which company should I acquire?

9/22/2009 28© Crafitti Consulting Private Ltd.

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IP Opportunities

In 1982, physical assets constituted 62% of US manufacturing companies’ market value; today, less than 30%

Total revenues from the licensing of patents exceed $ 110 billion (1990: $15b)

IBM’s annual patent licensing royalties exceed $ 1 billion (1990: only $ 30 m)

Texas Instruments earned $4 billion in patent royalties since 1980

Based on Rivette & Kline, 2000

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Idea Invention Patent

Commercialization

Growth

Differentiation

Defense

IP Cell

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Crafitti helps craft

innovation in multiple

contexts.

Karthikeyan IyerCo-crafter, Founder Director

Crafitti Consulting Pvt. Ltd.

[email protected]

9/22/2009 31© Crafitti Consulting Private Ltd.