Technology LECTURE

Entrepreneurship 9

Intellectual Property
Rights
 Introduction
Every man with an idea has at least two or three followers.
--Brooks Atkinson
Once Around the Sun, 1951

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 Intellectual Property
Intellectual property (IP) refers to
creations of the mind, such as
inventions; literary and artistic
works; designs; and symbols,
names and images used in
commerce.

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 Intellectual Property
The core ideas about
a new product or
service
The only advantages
(most of the time)
entrepreneurs have
over established firms

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Intellectual Property
An intangible personal property
resulting from mental processes
Protection of the owners right to
protect or profit from the use of
his or her property

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 DEFINITION OF IP IN
KPDNKK PERSPECTIVE
Intellectual property refers to the
ownership of intangible and non-physical
goods. This includes ideas, names,
designs, symbols, artwork, writings, and
other creations.
It is called intellectual property because
it is the product of human imagination,
creativity, and inventiveness.
Some examples are Trade Secret,
Patens, Trademark & Copyright.

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 IMPORTANCE OF IP
Protection of ideas, businesses and
individuals and fostering innovations.
Allow your customers to distinguish your
products and services from your
competitors.
Be sold or licensed, providing an
important revenue stream
Form an essential part of your marketing or
branding
Avoid from imitation/ copying

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 Why Is Imitation So Easy?
Competitors have a variety of
methods for imitating intellectual
property:
Reverse engineering
Hiring employees or suppliers from
the entrepreneur
Assigning staff to copy the new
product

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Types of Intellectual
Property

Trade Secrets Patents

Trade Marks Copyright

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 Trade Secrets
A trade secret is a formula, device, process,
method, or compilation of information that,
when used in business, gives the owner an
advantage over competitors who do not know
it.
The Economic Espionage Act of 1996.
This statute prohibits any attempt to steal
trade secrets for the benefit of someone
other than the owner, including for the
benefit of any foreign government.
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 Trade Secrets
A piece of knowledge that confers an
advantage on a firm and is protected by
non-disclosure
Protect a competitive advantage without
disclosing how an underlying technology
works

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 Disadvantages of Trade
Secrets
Must be kept hidden to remain
valuable
Doesnt provide a monopoly right
To enforce and claim damages in
court, must show a loss of
competitive advantage

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EXAMPLES OF TRADE SECRETS

Business methods Manuals

Business plans Notebooks
Business forecasts Computer programs
Market analyses Computer data bases
Marketing plans Calculations & processes
R & D information in computer programs
Business relationships Data compilations
Product information Manufacturing
Pricing information techniques
Financial information Manufacturing methods
Profit margin information Repair techniques
Overhead information Repair methods Patterns
Cost information Processes Drawings
Purchasing information Systems Blue prints
Personnel information Inventions Maps
Office techniques Designs Formulas
Devices Ingredients
Methods
Machine processes 11-13
 Patent
A legal Monopoly granted by government.
Allows the inventor an exclusive right to
make, use, and sell an invention for twenty
(20) years.
Patent applicant must demonstrate to the
patent office that an invention, discovery, or
design is non-obvious, novel, and useful. It
cannot be obvious considering current
technology.
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 Patent
Design patents protects the way
an article looks.
Lesser term protection - 14 years.
consists of the visual ornamental
characteristics embodied in, or
applied to, an article of
manufacture.
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 Patent
A patent holder gives notice that an article
or design is patented by placing on it the
word ``patent'' or ``pat.,'' plus the patent
number.
If a firm make, uses or sells another's
patented design, product, or process
without the patent owner's permission, the
tort of patent infringement exists.

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 Types of Patents
Type of Patent Types of Inventions Covered Duration

New or useful process, machine, 20 years from the

Utility manufacture, or composition of date of the original
material or any new and useful application
improvement thereof

Invention of new, original, and 14 years from the

Design ornamental designs for date of the original
manufactured products application

Any new varieties of plants that can 20 years from the

Plant date of the original
be reproduced asexually
application

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Utility Vs Design

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 Requirements for a Patent
To obtain a patent, the new
invention must be:
Novel not known or used in this
country and not published anywhere.
Nonobvious cannot be an obvious
way to do something.
Useful must have some
application, even if not commercially
practical.

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 Patents
To obtain a patent, an invention
must:
Be novel
Not be obvious to a person in the
field
Be useful
Be secret at the time of patent
application
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 What Can You Patent?
YES NO
Process Business idea
Machine Something that
Manufacture doesnt work
Chemical formula
Design
Piece of software
Plants

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 The Patent Process
File a Provisional
Patent Application
File an application
with the U.S.
Patent and
Trademark Office
Determine prior
art
Determine the set
of claims

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 PATENT REGISTRATION - PROCEDURE
FLOWCHART from the MyIPO
[STAGE 1] APPLICATION STAGE
Filing with the MyIPO and secure a Filing Date
and an Application Number
[STAGE 2] PRELIMINARY EXAMINATION
Application is examined on formalities.
Received Certificate of Filing and Clear
Formalities Report
[STAGE 3] SUBSTANTIVE EXAMINATION
(SE)
Need to request for this examination within 18
months (or 2 years for PCT National Phase
Entry) from the Filing Date (or a deferment is
filed - otherwise the application will be deemed
to be abandoned)
Can request for a MODIFIED SE, if patent is
granted in USA / EPO / UK / Australia / Japan
/ Korea for the same invention.
http://www.myipo.gov.my/paten
http://www.iplcca.com/patent-registration-in-malaysia#Procedure
http://www.biotechcorp.com.my/wp-
content/uploads/2011/11/downloads_aboutmalaysia/IP_Guidance_Paper_V1.pdf
RESULT 1: ADVERSE REPORT
Objection raised, if any. Decide
whether to counter or to give up. If the
MyIPO maintains on the objection, can
appeal to the High Court of Malaya
RESULT 2: CLEAR REPORT
Certificate of Grant issued
[STAGE 4] RENEWAL STAGE
Upon grant, the invention will be
retrospectively protected for a period
of 20 years calculated from the filing
date. Renewal fees need to be paid
after grant, annually
IMPORTANT NOTE
Any protection before the patent is
granted?
Power to caution and to place others
on notice.
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 Advantages of Patents
Helps to raise capital by
demonstrating competitive
advantage
Raises the cost of imitation
Provides a monopoly right
Prevents a second party from using
the invention as a trade secret

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 Disadvantages of Patents
Requires disclosure of the invention
Provides only 20 year monopoly
Can be circumvented
Difficult and costly to defend
Less effective for most types of
technology
Can be irrelevant if technology is fast
moving
Requires world-wide patent application

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 Patent Application &
Issuance
Priority Between Two Inventors
generally, the person first to invent and
use the product is given the patent,
even over an earlier filer.
Prior Sale must apply for a patent
within one year of selling the product.
Provisional Patent Application a
shorter, cheaper way to file for a patent
temporarily, to determine if the invention
is commercially practical.
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 TRADE MARK
Trade mark is a sign which serves to
distinguish the goods and services of
one organization from those of another.
Any distinctive words, letters,
numerals, drawings, pictures, shapes,
colours, logos, labels or combinations
used to distinguish goods or services
may be considered a trademark.

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 Trademark
Any word, phrase, symbol, design,
sound, smell, color, product
configuration, group of letters or
numbers, or combination of these,
adopted and used by a company to
identify its products or services, and
distinguish them from products and
services made, sold, or provided by
others
A distinctive mark, motto, device, or
implement that a manufacturer stamps,
or prints on its goods.
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FUNCTIONS OF TRADEMARK
Distinguish one's goods from
those of another
Allow consumers to distinguish my
goods from another's by affixing a
trademark to the goods
Indicate the origin
Inform consumers that products with
the same trademark originate from
the same source
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 FUNCTIONS OF TRADEMARK
Guarantee quality
Guarantee consumers that all products
with the same trademark have the
same quality
Advertising
Remind consumers of the goods
associated with a trademark as a
promotional method in commercial
transactions
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 Types of Trademarks
(1 of 2)

Type of Trademark Types of Marks Covered Duration

Any word, name, symbol, or

device used to identify and Renewable every
Trademark 10 years, as long as
distinguish one companys goods
from another. the mark remains
in use
Examples: Dell, Nokia, Oracle,
Palapa Azul, Flavorx

Similar to trademarks; are used Renewable every

Service mark to identify the services or 10 years, as long as
intangible activities of a business, the mark remains
rather than a businesss physical in use
products.
Examples: Amazon.com, Orbitz,
eBay, Overstock.com, Pandora

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 Types of Trademarks
(2 of 2)

Type of Trademark Types of Marks Covered Duration

Trademarks or service marks used

by the members of a cooperative, Renewable every
Collective mark 10 years, as long as
association, or other collective
group. the mark remains
in use
Examples: Rotary International,
International Franchise Association

Marks, words, names, symbols, Renewable every

or devices used by a person other 10 years, as long as
than its owner to certify a the mark remains
Certification mark
particular quality about a good in use
or service.
Examples: Florida Oranges, ISO
9000, Underwriters Laboratories

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What is Protected Under Trademark Law?
Subject to Certain Restrictions

Words Fragrances

Numbers and letters Shapes

Designs or logos Colors

Sounds Trade dress

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 Trade Names
Identifies a company, partnerships
or business.
Cannot be registered under federal
law unless they are also used as
trademarks or service marks (used
to identify services).
Common law protection.

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Trade Name

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 Trademark

Assists customer in identifying a

product without confusion.
If a business uses the trademark
of another, consumers are misled
as to who made the goods.

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 Trademarks
Types of Marks
Trademarksaffixed to goods
Service marksidentify services, not goods
Certification marksmarks used by an
organization to attest that products meet
certain standards
Collective marksmarks that identify
members of an organization

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 Trademark
What can be trademarked
Words that are used as part of a design or
device or words that are uncommon or
fanciful may be trademarked.
What cannot be trademarked
Personal names, descriptive or generic
words, or place names
Books
Pencils
Carper
Hawaii

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 Trademarks
A word, phrase, symbol, design that
distinguishes the goods and
services of one company from those
of another
Obtained by using the mark or filing
an application

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Video on Trademarks

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 Copyright
An intangible right given to the author or
originator of certain literary or artistic
productions.
Works created after January 1, 1978, are
automatically given statutory copyright
protection for the life of the author plus
seventy years.
Copyrights owned by publishing houses
expire ninetyfive years after publication or
a one hundred-twenty-years from the date
of creation, whichever is first.
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 Copyright
If multiple authors, expiration is
seventy years after the death of the last
surviving author
Facts are not copyrightable
The employer is the owner of works for
hire-work created within the scope of
employment unless otherwise agreed
The Berne convention provides
international protection for copyright
for citizens of the 96 signatory
countries http://www.cerebalaw.com/Berne.htm

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 Copyright
Exists automatically upon
creation of an original work but
Placement of copyright symbol
gives notice and to
judicially enforce copyright
requires Registration with the US
Copyright Office

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 Copyright Fair Use
Doctrine

Reproductions of copyrighted
works for, "criticism, comment,
news reporting, teaching
(including multiple copies for
classroom use), scholarship, or
research."

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What is Protected By a Copyright?
Subject to Certain Restrictions

Literary works Musical compositions

Computer software Dramatic works

Pantomimes and Pictorial, graphic, and

choreographic works sculptural works

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 Infringement
To prove a violation, the plaintiff
must show that the work was
original, and that either:
The infringer actually copied the
work, or
The infringer had access to the
original and the two works are
substantially similar.

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 Infringement
A court may:
Prohibit further use of the material
Order destruction of infringing
material
Require infringer to pay damages

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 Copyrights
A form of intellectual property
protection provided to the authors of
original works or authorship
Protect the right to reproduce,
further derive, copy, or display the
protected item
Extend 100 years after the death of
the author

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 Copyright
Fair use determination
1. the purpose and character of use,
including whether such use is of a
commercial nature or for nonprofit
educational purposes;
2. the nature of the copyrighted work;
3. the amount and substantiality of the
portion used in relation to the copyrighted
work as a whole; and
4. the effect of the use upon the potential
market for or value of the copyrighted
work.
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 Computers
Software copyrightable aspects:
Codes both source and object
codes
Structure how a program
accomplishes a task
Look and Feel the way a program
looks and uses symbols

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 Internet
Digital Millennium Copyright Act
Makes it illegal to delete copyright
information, such as the authors
name, and then distribute the work
via the internet.
It is also illegal to circumvent
encryption or scrambling devices.

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 Copyright Remedies
Registration with the US Copyright Office is a
condition precedent to judicial enforcement
of copyright.
Actual damages including profits
Statutory damages (ranging from $250 to
$10,000) imposed at the court's discretion
Lawyer fees
Injunctions
Criminal proceedings for willful violations
(may result in fines and/or imprisonment).
Need not profit from invasion

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 Copyright Examples
Writings (novels, textbooks etc.)
Computer Software
Song writing
Song recordings
My PPT slides (although some parts
included fair use copyrighted
material from textbook authors).

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Video on Copyright

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THE END

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