6: Protecting Intellectual Property (IP)

Question 1

Why do we care about Intellectual Property Rights? (IPRs)

Answer 1

• IPRs can increase incentives to innovate.
• IPRs can help to appropriate profits from innovation.
• The IPRs of others (competitors, suppliers, customers…) can make a firm’s life and innovative activity difficult.
• The IPRs of others contains valuable information.

Question 2

What are the most important formal protection mechanisms?

Answer 2

• Patent
• Registered designs
• Registered trademarks
• Copyrights

Question 3

How long does a patent last?

Answer 3

Usually 20 years, extendable to 25 in pharmaceuticals.

Question 4

What is the difference between the last of the property right of Registered Designs and Patents?

Answer 4

• Registered designs are just for five years, but much cheaper.

Question 5

How do you get a copyright?

Answer 5

You get it automatic.

Question 6

How long does a copyright last?

Answer 6

70 years after authors death.

Question 7

What is a patent?

Answer 7

A patent is a right of ownership over an invention, granted to an inventor by a government for a specified period of time. A patent allows the patent owner, or patentee, to prevent others from making, using or selling the invention.

Question 8

Are patent territorial rights?

Answer 8

Yes. A German patent relates only to Germany.

Question 9

What is patentable?

Answer 9

To be patentable, an invention must

• be new
• contain an inventive step
• be capable of industrial application

Question 10

What’s the main reasons for firms to use patent?

Answer 10

• To prevent copying

Question 11

What’s the disadvantage of the application for a patent?

Answer 11

The application is made public after 18 years. Your invention is being revealed to competitors.

Question 12

What is registered designs?

Answer 12

The two-dimensional or three-dimensional appearance of the whole or a part of a product. The design of a flat surface - for example, a textile or wallpaper - or the appearance of a three-dimensional object is protected by a registered design.
- F.eks. registrere en ny form på en gitar, sjokolade (toblerone).

Question 13

How long does it take to registrer a design?

Answer 13

About 3-4 months.

Question 14

How long is the term for registered design?

Answer 14

25 years.

Question 15

What is a trademark?

Answer 15

A trade mark is any sign which can distinguish the goods and services of one trader from those of another. A sign includes, for example, words, logos, pictures, or a combination of these.
Relates to a brand and reputation, not individual advances.

Question 16

Why does small firms in service sectors rarely use formal IP protections to defend innovations?

Answer 16

• Because IP protection can only be enforced if a firm is willing to take legal action – expensive and uncertain
• Because the most potentially powerful IP protection (patenting) relates to tangible technologies, and services rarely produce these.

Question 17

Mention some other (strategic) forms of protections.

Answer 17

• Confidentiality agreements
• Non-compete clauses.
• Secrecy
• Complexity of designs
• Lead-time advantages (being ahead of competitors)
• Revealing (make your IP accessible for others).

Question 18

What is the best protection mechanism?

Answer 18

Depends on how an innovation shall be commercialized (e.g. use in own products or licensing).