IP: THE CURRENCY OF CREATIVITY AND INNOVATION

Anwar Imam 18 June 2012, DIC Excellence Series

Media technology consulting

Commodities vs. Knowledge

How Do These Companies Create Value?

Widgets

Widgets are tangible goods/products purchased by consumers to serve a particular purpose.

Depending on the purpose, consumers are willing to spend a particular amount of money to own the widget

Widgets Are Valued Through Negotiated Exchanged

In knowledge based economies, however, we run into the problem of perceived value

But What If Im Selling Knowledge?

We Value Knowledge Output

But How Do We Value Knowledge Output?

??

Disregarded IP

Embraced IP

Intellectual Property 101

The Different Classes of IP

Patents
Trademarks Copyright

Prevents use of inventions without prior consent

Distinguishes business products or services

Allows creators of works receive credit and benefit from their creations

Protects information that has Trade Secrets commercial value

10

IP is typically traded and valued through licenses

A License is an agreement between an owner of intellectual

property (a Licensor) to a Licensee allowing the Licensee to use the owners intellectual property as part of a bargained-for exchange

Licenses can come with limitations: - Non-Exclusive/Exclusive - Term - Territory - Type of use - Etc.
Licenses are typically a matter of contract, but are sometimes imposed by law through a compulsory or statutory license.

Trademarks

Trademarks: The Basics

Basics

Any word, name, symbol or device that identifies and distinguishes the source of goods of one party from another
Can be a word, logo, slogan, package design or other indicator of source

Infringement

The use of a mark so similar to anothers mark for the same or related goods or services that confusion, mistake or deception is likely to occur

Examples of Value: Franchises

Exclusive Territorial Licenses

Examples of Value: why pay more?

~235 HP 3.5 Liter V6

~260 HP 3.5 Liter V6

AED 95,000

AED 150,000

Copyrights

Copyrights: The Basics

Basics

Provides protection for original works of authorship for the life of the author and after his/her death for 50 years (70 in the US) .
You have the exclusive right to: -Make copies of you work -Distribute your work -Perform you work publicly -Display your work -Make derivative works When you create a work in your capacity as an employee, your employer is typically considered the author and copyright holder.

The Rights

Works Made For Hire

Copyrights: Advanced
Compilations Collecting preexisting material or facts and selecting or arranging them in an original way

Derivative Works

A work directly based on preexisting work. Factors include: purpose of the work The amount of the original work used; and the effect on the market.

Fair Use
DOWNFALL PARODY

Public allowed to use works for purposes such as criticism, comment, news reporting, teaching, scholarship, and research.*

See UAE Federal Law No 7 for Year 2002, Articles 22-23

Extracting Value: Copyright Royalties

Copyright owners are typically paid via royalties assessed on each use of their work across various media.

ORIGINAL DAY-O (1952)

BEETLEJUICE (1988)

Same logic goes for photographs, movies, books paintings, sculptures, ,etc.

Extracting Value
Performance/Mechanical Rights Organization

Because things can get complex in music performance rights organizations were created to monitor and audit the use of copyrighted materials and handle the collection and distribution of royalties to copyright owners

Patents

Patents
A Patent is a set of exclusive rights granted by a government to an inventor for a limited period of time in exchange for a public disclosure of his or her invention
Utility
In order to be patentable, an invention needs to be functionally useful in some way You cant patent something that already exists Shouldnt be an obvious improvement or modification on something that already exists

These exclusive rights include the right to prevent others from making, using, selling, or importing the patented invention

Novelty

Nonobviousness

What is Patentable?

Yes

Products: things Processes: ways to make things Methods: ways to do things Improvements: better things

No

Laws of nature (wind, gravity) Physical phenomena (sand, water) Abstract ideas (mathematics, philosophy) Inventions which are offensive to public morality or designed for an illegal activity

Patents: Evolution of a Can

FEATURES

Durable Long lasting Secure

Patents: Evolution of a Can

FEATURES

Durable Long lasting Secure Ready-made drink

Patents: Evolution of a Can

FEATURES

Durable Long lasting Secure Ready-made drink Easy to open

The inventor of the ring-pull licensed his invention to soda companies for nearly $.0006 per can, eventually earning him nearly USD $90M per year.

Patent Licensing: Driving Innovation

Goodyear Tire and Rubber Company developed a fibrous material, five times stronger than steel, for NASA to use in parachute shrouds to soft-land the Viking Lander spacecraft on the Martian surface. Recognizing the durability of the material, Goodyear expanded the technology and went on to produce a new radial tire with a tread life expected to be 10,000 miles (16,000 km) greater than conventional radials.

32

In Summary: Its Not That Complicated

THANK YOU.
For further enquiries or questions, please contact:

Anwar@viral.ae

Media technology consulting