10th Jan 2009

CII-DIPP, Indore
Dr Rajiv Bhirud
Chief R&D and Environment
TATA International Ltd

What is Intellectual Property ?

Property created as a result of intellectual
creative effort or commercial reputation and
goodwill.
Basic Form : Intangible
Territorial
Statutory/Common law Prov.s

FORMS OF INTELLECTUAL PROPERTY

COPYRIGHT
TRADEMARKS
PATENTS
INDUSTRIAL DESIGNS

INTEGRATED CIRCUITS
UNDISCLOSED INFORMATION

Copyright
Exclusive privilege to authors to reproduce,
distribute, perform, or display their creative
works.

Trademark
Word or symbol used by manufacturers to
identify goods.

Intellectual Property : Patent

Patent Rights are the limited rights to the profit
from excluding others
Inventor is given
the exclusive right to prevent others from
making, using, and selling a patented invention
for a fixed period of time

in return for the inventor's disclosing the details

of the invention to the public.

Patent systems encourage the disclosure

of information to the public by rewarding an
inventor for his or her endeavors.

Intellectual Property : Patent

Patent bargain:
Inventor Fully discloses invention for all the
world to see
Government Limits competition by
enforcement of right to exclude others from
practicing the invention for a defined time
period
Result: Supercompetitive profits because of
limits to competition
Result: At the end of patent life, everyone can use
the invention freely

Intellectual Property : Patent

Subject Matter
Anything under the sun made by man

New
Cant take something out of the public and get a patent
on it; novelty

Useful
More than for further research

Non-obvious
Obvious : May not be quite the same as what is known,
but close

Full disclosure
enablement, written description, best mode

Intellectual Property : Patent

Super-competitive profit encourages
invention, R&D investment.
Encourages early disclosure of information.
Discourages inefficiencies of duplicative R&D
and costs associated with keeping secrets
Encourages collaborations where information is
transparent

Stimulates markets by reward of premium

pricing.

Why bother then?

Protect your
own ideas

Modify
others ideas
legitimately

Let others
know your
boundaries

Dont
become a
trespasser

IPRs are necessary no matter which side of the wall you are on!!

IPR becomes popular with technology

Technology enhances and diminishes the value of IPR

The Emerging Importance Of IPR

GROWING AWARENESS
ECLIPSE OF NATIONAL BOUNDARIES
HARMONISATION OF LAWS

THE NEXT ECONOMY OF IDEAS

The Emerging Importance Of IPR

A IPR is a license to sue
Protects competitive advantage
Negotiation tool
Marketing PR value
Build partnerships
Attract capital
Market Exclusivity
Premium pricing
How important is your patent to premium pricing?
Market Entry
Barriers to entry
Are third party patents potential threats to your market
entry?

The Emerging Importance Of IPR

What IP can do for you

Wealth creation
Legitimate ownership
Monopoly market advantage
Entry into the big league
Bargaining power
Talent attraction
Collaborations
Image of a trustworthy organisation
Stay in business and keep others out!

Business strategy
Marketing strategy
Product strategy
Competitor strategy
Partnership strategy
Sales channel strategy

Operational Excellence

Value creation

Value capturing

Intellectual Capital
Human Capital
- Experience
- Know-how
- Skills
- Creativity

Intellectual Assets
- Processes, Methodologies
- Databases, Knowledge
bases
- Designs, Blueprints
- Concepts
- Inventions

Intellectual Property
- Trade secrets
- Patents
- Trademarks
- Designs
- Copyrights

Business strategy
Before 1985 world was simple

R&D

Manufacturing

Marketing
& Sales

Return on investments

Products

Business strategy
Now: Business redefined
Return on investments

Technology
Patents

Trademarks
Designs

IP

+
R&D

Manufacturing

Marketing &
Sales

Return on investments

Products

Business strategy
Intellectual Economy
IPR
exploitation
R&D

Innovations

Products
to Market

Revenues

Technology
exploitation
Return on investments

IPR is important to create value from R&D

Status of Business-focused Patent Strategy Today

Best in class companies (e.g., UL, P&G, GE, J&J) incorporate patent
issues into business decision-making at all stages at the enterprise
level

Why do they do this?

To maximize long-term firm value for shareholders
By ensuring that financial projections for products or technology are not
derailed by unexpected competition by developing appropriate patent rights
Reduce competitors ability to maximize their firm value by restricting freedom
of action
Create additional revenue streams through patent licensing/sale

Business leaders own or share decision-rights for matters traditionally

residing with legal functional leads
But, enterprise-wide transformation of mature organizational
processes like those of Client patent operations require significant
resource commitment and management involvement
Proof of concept on a project scale likely is necessary for adoption by Client

The Stages of a Robust Business-Driven Patent

Strategy Focused on Long-Term Value Creation
Best in Class

Better
Better

Passive
Monetization:
License or sale
of non-core
patent rights for
Value Preservation limited revenue
through Strategic stream and cost
Good
Defensive
recovery
Patenting: Align
patent rights with
Discovery: Extract business strategy to
actionable business protect market
share
intelligence from
internal and
external patent info
to identify alignment
points
Good

Maximizing
Value Creation
through
Offensive
Patenting:
Reduce
competitors
freedom of action
in marketplace

Active
Monetization:
Develop and
exploit patent
rights for the
purpose of
ongoing
licensing
revenue stream

IPR to Economic Development

A large number of venture industrialists in Japan used the
patent system and, along with developing the companies they
established, also caused the Japanese economy to develop.
Soichiro Honda, Founder the Honda Group.
Honda himself acquired 115 patents and 359
utility models. Total No. of patents 97,000+

Sony, Masaru Ibuka, Co-Founder Sony.

Sony himself acquired 50 patents and 53 utility
models. Total No. of patents 20,000+

Sakichi Toyoda Founder, Toyoya.

Toyoda himself acquired 84 patents and 35 utility
models. Total No. of patents 99,000+

Our country
- rich in genetic resources and traditional knowledge
- we have more or less failed to protect this knowledge
- The area of management of Intellectual Property Rights
(IPRs) has great significance in the present world of
explosive technological developments.
- With the rapid growth in diversified fields of
technology, with the new scientific inventions and
innovations,
- IPR protection and IPR exploitation is the key to
globalisation.