3: Intellectual Property Flashcards

1
Q

The 2=6(+1) Different forms of Intellectual Property Rights

and the 3 alternatives

A

IP rights:
1. copyright

2. Industrial Property
A. patent right
B. trade marks
C. designs and models 
C.1) registered design rights
D. breeding rights
E. chips

Alternatives:

  1. secrecy
  2. complexity & tacit knowledge
  3. speed to market
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2
Q

copyright

  • protects what
  • doesn’t protect what
  • arises how
  • against what
  • needs what
A

§ Protects original literary, dramatic, artistic and other works, including software, photographs, manuals, broadcasts, sound recordings, etc.
§ No protection for concepts or ideas, just the way they are expressed
§ Arises automatically = free
§ Protects against copying, adaptation, etc.
§ Need good records of creation date and author

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3
Q

copyright: material vs moral rights

+ 5 material rights

A

transferable vs non transferable!

§ Assure a compensation to the author for his creation
§ The author holds the exclusive right to
§ reproduce or let reproduce his creation
§ disclose the creation to the public (eg radio or tv) § change or translate his work
§ sell or rent his work

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4
Q

trademark

  • protects what
  • definition
  • needs what
  • arises how
  • valid where & when
A

§ Protect brands
§ A sign capable of distinguishing the goods or services of one
undertaking from those of other undertakings – a distinctive sign
§ Must not conflict with existing registrations for similar goods or services
§ Must be registered in different countries or territories
§ Europe-wide protection available / renewable

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5
Q

2 + 4 types of trademarks

A

§ Visual trademarks

  • House mark
  • Product mark
  • Quality marks
  • ‘Wool mark’, Soil
  • Shapes/ appearance of products

§ Sound-based trademarks

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6
Q

Design Rights

  • protects what
  • needs what
  • arises how, when
  • valid where & when
A

§ Protect appearance of product – shape, colour, texture materials, ornamentation etc.
§ Designs must be “new and of individual character”
§ Unregistered Design Right arises automatically in Europe = free
§ In Europe or USA, application can be filed up to one year from first marketing
§ Registered Design protection lasts longer and is stronger
§ Cost-effective Europe-wide protection available

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7
Q

Registered VS. unregistered design rights

  • protect what
  • how
  • how to register
  • duration
  • excluded
  • owner
A
  • Novel design which has “eye appeal”
  • Monopoly right
  • Registration in designs registry at Patent Office
  • 25y
  • author or employer, if during employment
  • Excluded:
    • Methods or principles of construction (see patents)
    • Features dictated solely by the product’s function,
    • Features dependent upon the appearance of another article of which the design forms an integral part
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8
Q

Patent

  • def.: state-individual deal
  • allows what
  • validity in time, space & conditions
  • diff. vs. other rights
  • cost & time issues
A

§ deal with the state: Fully disclose your new idea and you get a limited-time
monopoly
§ Civil law right to prevent others from using your idea
§ can be challenged by competitors at any time until it expires 20 years later
§ you must file in different countries (or the EU)
- protects effect of product, not image
- a patent gives a product and a company legitimacy in the eyes of prospective investors and partners
- A patent is expensive but there are cheaper preparatory steps
- 3 to 5y in EU

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9
Q

The 3 conditions for a patent:

w defs. & conseqs.

A

Product must be:
§ Novel/ new = Must not form part of the “State of the Art” available to the public
–> keep secret before application (save for local “grace period”)
–> research previous patents first

§ An ‘inventive step’
= Not obvious to a person skilled in the art

§ Capable of industrial application
= Can be made or used in any kind of industry, including agriculture

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10
Q

Excluded from patents:

6 things

A

§ Discoveries, scientific theories, mathematical methods, aesthetic creations
§ schemes, rules and methods for performing mental acts, playing games or doing business (such as management or teaching methods)
§ presentations of information (see copyright)
§ computer programs (source code – see copyright)
§ plant and animal varieties
§ Inventions likely to encourage offensive, immoral or anti-social behaviour

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11
Q

discovery vs invention

A

Discovery
§ Finding something which already exists but was hidden in nature a–> not patentable

Invention
§ A creation by which a technical problem is solved, and the solution is neither trivial nor known
–> patentable

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12
Q

patent vs trademark costs in EU

at 12m, 30m & lifetime

A
@ 12m: 5k vs 1.5k £
@ 30m (next 18m): same
> 30m: >£10,000 vs
£500 a year for monitoring
- lifetime: >£100k vs £1.5k/10y
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13
Q

international patent: how to use

A

get it, but then nationalize it

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14
Q

Trade secrets

  • def
  • 5 ways
  • 2 problems
  • famous counterexample
A
  • idea or process remains a secret

§ Confidential information agreement for employees
§ Non-disclosure agreements (NDAs) with partners, manufacturers, investors, etc.
§ Use simple security such as locked file cabinets, passwords on computers,…
§ Provide escorts for office visitors
§ Train employees to refer any sensitive questions to one specific member of
the company

  • But: difficult to enforce
  • most investors will refuse to sign NDAs

+ Coca-Cola recipe!

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15
Q

patenting vs secrecy:

1 pros & 4 cons of patenting

A

+ Powerful protection enforceable in the courts

- Must be applied for
- Cost
- Cost to enforce
- Publication/disclosure of invention
but this is also often a +

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16
Q

patenting vs secrecy:

2 pros & 3 cons of secrecy

A

+ Cheap in short term
+ Can (perhaps) keep competitors in the dark for ever (Coca-cola)
+ Can also protect info that can’t be protected with patents

  • Once lost, it is lost forever;
  • Susceptible to independent discovery/ reverse engineering
17
Q

Protection through complexity and tacit knowledge

A

§ Protection may lie in the fact that a venture is too difficult to imitate due to complex relationships b/w components or to a piece of the knowledge is hidden
§ Contains built-in safeguards e.g. “black box” self-destructing upon opening
§ Consists of interrelated parts of specialist knowledge held by different people/groups
§ Depends on highly developed processes and/or key implementation skills of employees
§ Requires a lot of resources (time, money) and talent to re-create or imitate

18
Q

Speed to market

  • def.
  • reqs.
  • 2 conseqs.
A

§ Capture attention and market share quickly before your competitors can react: ‘first mover advantage’
§ Usually requires ample quantities of cash and people to market and develop business & whole value chain to size and at speed required, before resource-rich incumbents can imitate you
§ Therefore this protection alone is not advisable
§ with this as your only protection tactic, investors won’t be interested

19
Q

The 2 sides of appropriability regime + conseq.

A
  1. ability to protect
  2. freedom to operate
    => have a protection strategy!
20
Q

Recent 2 devs. against IP, where

A
  1. open source in SW industry, shifting to consultancy for customization
  2. open innovation agreements in tech., to pool capabilities
21
Q

The 5 reasons to patent + the 1 “must” country

A
  1. block competitors
  2. protect your own investment
  3. become free to discuss own tech w potential partners
  4. attract investors
  5. get royalties from licensing (although not so profitable)

=> go to USA, largest unitary jurisdiction => it is worth suing there!

22
Q

Trademarks & internet domain names

comparison, but…

A

register internet domain names first, because they are much cheaper!

but: ICANN allows trademark holder to reclaim them, if they contain a trademark

23
Q

IP in 3 rules for startups

+ 2 IP info clearing houses

A
  1. check your freedom to operate first!
    (by research: World IP Org & Eur. Patent Office are the main IP info clearing houses)
  2. avoid paying others by timely filing for some protection, even just tactically
  3. consider the costs of protection and budget for them