Intellectual Property

Mastering Entrepreneurship – Jeffrey Pittaway

 Overview – mastering entrepreneurship

Here
You
are
More on
business
Intellectual models
Property
Growth
Strategies
Sources of
Finance
Marketing

Sources of
Ideas
Business
Models
Assessing
Opportunities
Ideas

Entrepre-
neurs
Review
Growth Strategies
Internal
growth
strategies

Copyright © 2013 eCornell

External Growth Strategies

Mergers and acquisitions

Licensing
Strategic alliances
Joint Ventures
Franchising
Local or Regional strategy

• Focuses firm’s efforts locally

• Local competitive advantage

• Learn
 Know the regional market well, understand their customers, why they buy the product
 esp. early stage companies

Source: Byers, T, Dorf, R, Nelson, A (2014) Technology Ventures: from Idea to Enterprise. McGraw Hill, New York, NY
Strategies for Globalisation

Source: Byers, T, Dorf, R, Nelson, A (2014) Technology Ventures: from Idea to Enterprise. McGraw Hill, New York, NY
Intellectual property

What Why How

8
What is this?

Value of the Coca-Cola trademark exceeds US$ 50 billion

What is this?

Counterfeit
Do you recognise these?
Types of Property

Physical property – land, money, houses, clothes, food

Intellectual property – ideas (expressed as designs, music, art,

writing, dance, software). Intellectual property is intangible
m

Dr Mila Striukova
Oral-B

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m
Why ip rights?
 Ip rights may…

– support and provide incentive for innovation, creativity

and originality

– protect investment

– protect consumers from deceptive or confusing behaviour

by competing businesses
How to protect ip rights
OVERVIEW OF IP rights
REGISTERED RIGHTS
Patents - inventions
Trade marks - badge of
business, logos, names, smells,
sound
Design rights – product shape
and configuration
UNREGISTERED RIGHTS
Know-how - trade secrets
Copyright - literary, including
digital work, research notes,
software
Design rights - product shape and
configuration
Patents

An exclusive legal right granted for an invention that

is:
New
Involves and inventive step (non-obvious)
Is capable of industrial application

Duration: 20 years from filing date

Territorial right

Requires disclosure of the invention

types of patents

1449 John of Utynam in for a method of making

stained glass

early 1980s -- agricultural biotechnology products and

processes and certain aspects of computer software

1998 business method patents (duration: 17 years) U.S.

Patent No. 5,960,411 granted to Amazon.com: “Method and
system for placing a purchase order via a communications
network."
Business methods: Starbucks

Method and apparatus for automatically reloading a

stored value card
To facilitate the sale of merchandise using a stored value card (SVC), a
method and system are provided to automatically reload an SVC in
accordance with automatic reload preferences associated with the SVC
account. The preferences include the pre-authorized reload amount,
payment method, and the circumstances under which to automatically
reload the SVC with the pre-authorized reload amount. The preferences are
previously specified by a party associated with the SVC when setting up the
automatic reload option. The party is notified when the automatic reload
occurs.
Cost

UK £230 – 280

US $150 filing fee + $250 search fee + $100 examination

fee +$700 issuing fee
+ legal fees (thousands dollars/pounds)
Patents promote Licensing

IBM - US$ 1 billion a year from patent licensing.

Cohen-Boyer patent (Stanford)

$254 million through 468 licenses from $35 billion sales.

Cross licensing usually exist between two parties

Patent war

A device with a touch-sensitive display may be unlocked via gestures performed

on the touch-sensitive display. The device is unlocked if contact with the display
corresponds to a predefined gesture for unlocking the device... The performance
of the predefined gesture with respect to the unlock image may include moving
the unlock image to a predefined location and/or moving the unlock image
along a predefined path. The device may also display visual clues of the
predefined gesture on the touch screen to remind a user of the gesture.

Patent #7,657,849
Patent trolls

Patent troll - a person or company that enforces its patents against

one or more alleged infringers in a manner considered unduly
aggressive or opportunistic, often with no intention to
manufacture or market the product
Patent examples

Patent says: "A banana protective device for storing and

transporting a banana carefully."
Copyright

protects intellectual property including:

books motion pictures

music sound recordings

computer programmes
plays
architectural blueprints
Choreography
advertisements
photographs
labels
game boards & rules
maps
art
Copyright

Must be:
Original
Skill involved
Permanent form (not just an idea)
Author qualifies for protection

Unregistered right

Arises automatically
Duration of copyright

Literary, dramatic, artistic, musical, photographs: up to death of

author + 70 years; +95 in the US

Broadcasts/cable programmes: broadcast + 70 years (50 years

until 2011)
Trademark

a word, name, phrase, colour, smell, symbol or design, or

combination of words, phrases, symbols, or designs that identifies
and distinguishes the source of the goods or services of one party
- appears on the product or on its packaging (TM - trademark)

TRADENAME - virtually the same as trademark

Trademark
Trademark registration:
Provides exclusive right to prevent others from making identical or
similar products under the same or a confusingly similar mark
Duration: 10 years. Can be renewed indefinitely.
£200 for one class of goods and services and £50 for every
additional class

The owner of a trademark must protect the mark in other

countries under that countries relevant laws
NeiN!
Registered and unregistered designs

Protects the appearance of the whole product or its part, in

particular contours, shape and texture
In Europe registration (£60) might last up to 25 years, subject to
renewal every 5 years (£130-£450)
in Japan 15 years
In US design is protected by utility patents
Unregistered for up to 15 years after the design was recorded or in
which the article was made to the design
Registered design
Trade Secrets

A trade secret is a piece of information that provides an

organization with a competitive advantage over other
companies
formula for Cola Cola.

It is illegal to reveal a trade secret.

Summary
Legal protection of IP grantS exclusive rights

Innovation - improvement of Patents, Utility Models,

functional aspects or fabrication Trade secrets
process of the product

Design - the product’s Industrial Designs

appearance

Brand - commercialization / Trademarks

marketing of the product
 Example 1

▪ Patent for the fountain pen that

could store ink

▪ Utility Model for the grip and

for injection of ink

▪ Industrial Design: smart design

with the grip in the shape of
an arrow

▪ Trademark: provided on the

product and the packaging to
distinguish it from other pens

Source: Japanese Patent Office

Example 2

Invention of mp3 player

protected by patent
Brand on mp3 player
protected by trademark
Design of mp3 player
protected by industrial
design
Music played on mp3 player
protected by copyright
But what about startups?
Thank you
Images
The majority of images used in this presentation exist in the public domain, have either been
purchased from an agency, or belong to UCL and/or the author. Occasionally other images have
been used to illustrate a particular point. If any images have been used that are in breach of
copyright, the author is provide an acknowledgement, or to remove them from future
presentations. All images have only been used in PowerPoint presentations (or classroom
supporting material) for educational purposes primarily at UCL, and not for any commercial
purposes or on the Internet.

Acknowledgements
Many thanks to Jeffrey Pittaway for allowing their materials to be used for educational purposes in
these presentations.
Assessment Criteria Coursework 2

Distinction Answers (70%+)…

• Demonstrate excellent critical thinking by
 analysing and comparing the most relevant factors/options
 explicitly using the most relevant concepts or theoretical models taught in the module
 linking to logical supporting examples from the case
• State a conclusion that follows logically from the preceding
arguments
 Assessment Criteria Coursework 2
Distinction Answers (70%+)…
▪ Demonstrate excellent critical thinking by
— analysing and comparing the most relevant
factors/options
— explicitly using the most relevant concepts
or theoretical models taught in the module
— linking to logical supporting examples from
the case
▪ State a conclusion that follows logically from the
preceding arguments
High Merit answers (65-69%)…
▪ Demonstrate good critical thinking by
— analysing and comparing the most relevant
factors/options, and emphasising less
relevant factors/options
— explicitly using the most relevant concepts
or theoretical models taught in the module
— along with weak or vague supporting
examples from the case
▪ State a conclusion that follows logically from the
preceding arguments
Low Merit answers (60-64%)…
▪ Demonstrate mediocre critical thinking by
— analysing and comparing the most relevant factors/options,
and emphasising less relevant factors/options
— missing some of the most relevant concepts or theoretical
models taught in the module, or applying them with weak
logic
— along with weak or vague supporting examples from the case
▪ State a conclusion that is vague and/or uses weak logic that may
or may not follow from the preceding arguments
Pass answers (50-59%)…
▪ Demonstrate limited critical thinking by
— missing the most relevant factors/options taught in the
module
— missing some of the most relevant concepts or theoretical
models taught in the module, or applying them with weak
logic
— along with weak or vague supporting examples from the case
▪ State a conclusion that is vague and/or uses weak logic that may
or may not follow from the preceding arguments