Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Management of IP > Exam cards > Flashcards

Exam cards Flashcards

1
Q

Dynamic efficiency vs. static inefficiency [w1]

A

 Dynamic efficiency: Provision of more knowledge
 Static inefficiency: Under-utilization of knowledge or
underproduction of protected goods

(there is a maximum at protection/innovation curve tradeoff)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are IP owner rights? [w1]

A

Exclusive right to prohibit third parties to use commercially in the territory, where a protection is granted, one of the following rights:

 Production
 Usage
 Publicity
 Sale
 to put in circulation
 Import / Export / Transit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the Balance (“Contract”) of interests between general public and holder of an IP right? [w1]

A

Innovation and therefor
benefit for the general public vs
Economic benefit for holder
Time-, geographic-, content- limited monopole

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Scope of IPRs Recognized by International Law [w1]

A

Industrial Property
- Patents
- Trademarks
- Designs
- Topographies (Layout-Designs of Integrated Circuits)
- Geographical Indications

Copyright

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

One product under four different spotlights, what are they? [w1]

A

(all include conditions & barriers)
Patent law
Trade mark law
Design law
Copyright law

ATTENTION: The mere idea / the concept is NEVER protected, only its realization!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What Is Protection period for patents? [w1]

A

up to 20 years (+ 5 years SPC [Supplementary protection certificates])

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are Conditions for patenting? [w1]

A

technical solution of a technical problem
novelty
industrial use
involvement of an inventive step

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are Formalities of patenting? [w1]

A

examination
annual fees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What can be patented? [w1]

A

Patents are granted for any inventions in all fields of technology
 Invention = new technical solution to a technical problem
 Products (manufactures, formulations, compositions)
 Processes (e.g. processes for the manufacture of food)
 Methods, uses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

We can patent something if considered inventions are… [w1]

A

 New to the world
 Involve an inventive step (not obvious)
 Have the potential for industrial application (i.e. are useful in some way)
 Disclosed in the patent application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What makes an invention new ? [w1]

A

An invention is considered as “new” if it does not form part of the “state of the art”

The “state of the art” comprises “everything made available to the public no matter where in the world by means of a written or oral description, by use, or in any other way, before the date of filing the patent application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

“Don’ts” when considering filing a patent application: [w1]

A

 No publication prior to filing
e.g. no article, flyer, press release, conference presentation/poster/proceedings or blog entry
 No sale of products incorporating the invention prior to filing
 No lecture or presentation prior to filing
except under a non-disclosure agreement (NDA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What cannot be patented? [w1]

A

 “Inventions” which will not work (e.g. perpetual motion machines)
 Mere ideas
 Discoveries (not inventions)
 Scientific theories
 Mathematical solutions
 Game rules, lottery systems
 Teaching methods
 Computer programmes as such (but algorithms that achieve technical results)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are Exclusions from patentability? [w1]

A

 Inventions whose commercial exploitation would be contrary to morality or public order
* The cloning of human beings
* The use of human embryos for industrial or commercial
purposes
* Processes for modifying the genetic germ line identity of human beings
* Processes for modifying the genetic identity of animals that are likely to cause them suffering without any substantial medical benefit to man or animal
* Unchanged embryonic stem cells
* The human body and all stages of its formation; elements of the human body in their natural environment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Trademarks
- what are they?
- what is the protection period?
- what are Conditions?
- what are Formalities? [w1]

A

 Names / logos / forms to identify goods and/or services
 Protection period:
10 years, indefinitely renewable
 Conditions:
not public domain/misleading/ against morality
(absolute grounds for exclusion)
no identity/similarity with existing trademarks (relative grounds for exclusion)
 Formalities == examination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What can’t be registered as a trademark ? [w1]

A

Signs of public domain
 Descriptive indications
(purpose / quality / nature / origin / etc.) [VOLUME UP for hair care products; WOW for optician’s services]
 Single numbers / letters / colours / forms
Possibility for registration: Acquired distinctiveness through use

 Forms that aren‘t capable of being protected:
- The shape which results from the nature of the goods themselves ()
- The shape of goods which are necessary to obtain a technical result (rails)
No possibility for acquired distinctiveness through use

Misleading signs
Signs that create expectations about origin, content or quality, which can‘t come up with the relevant requirements:
 Danger to be mislead because of objective impossibility [e.g. TITAN for Cases, travelling bags, vanity cases, cosmetics bags, all goods]
manufactured without using titanium
 Geographical indications

Trademarks which are contrary to public policy or to
accepted principles of morality
 Violation of existing law (e.g.: flags and amorial bearings / bilateral treaties)
 Violation of religious feelings (of minorities as well)
e.g. BUDDHA-BAR for discotheque services
No possibility for acquired distinctivness through use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Relative Grounds – „Opposition“ for trademarks
With an opposition a trade mark‘s owner is able to prevent the unauthorized filing of a mark which creates a likelihood of confusion.

what are the conditions? [w1]

A

cumulative requirements:
 owner of an older trademark
 trademarks are similar and
 both trademarks are registered for similar goods and/or services
in this case a likelihood of confusion is generally accepted

Attention: Not every national trademark office informs neither the applicant nor the owner of a trademark about possible infringements!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Industrial Designs

  • what are they?
  • what is the protection period?
  • what are Conditions?
  • what are Formalities? [w1]
A

 Aesthetic outer shape of products, patterns or packaging
 Protection period: 5 x 5 years
 Conditions:
- New (within the country)
- Character (clearly distinctive from existing designs)
 Simple formalities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What are steps for design registration [w1]

A

 Easy!
 deposit application in duplicate
 reproduction
 pay deposit fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are barriers of protection apply to design registration? [w1]

A

No design deposited
Lack of novelty and character
Design is preset by its technical function
Contrary to existing law or bilateral treaties
Contrary to public policy or to accepted principles of morality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Copyrights

  • what are they?
  • what is the protection period?
  • what are Conditions?
  • what are Formalities? [w1]
A

 Artistic, literary,
scientific, photographic works
 Protection period:
Life plus 70 (50) years after death of the author
 Conditions:
creation done by human beings individual character
 No formalities
Protection does NOT apply to the contents of a work

Special Case: Software
procedures to solve specific tasks
algorithmic programmes
specifications protection period
50 years after death of the programmer (!)
conditions
“individual character” ”not trivial”
no formalities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are Neighboring Rights in Copyright and how long is the protection for them? [w1]

A

Rights of:
 Performers (Musicians, Actors) in their performances
 Producers of Phonograms/Videograms in their recordings (CD, DVD etc.)
 Broadcasting Organizations in their broadcasts Term of protection:

50(70) years after performance/publication/fixation or broadcast

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Protection is excluded if: (may be neighbouring rights, may be just patents overall) [w1]

A

Lack of individual character
Official texts such as decisions, protocols, and reports by authorities and public administrations
Patent documents and published patent applications
For teaching matters
Copying for personal use (not applicable to software!)
Copying for internal use in business, administration department, or committees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are Undisclosed Information (Trade Secrets)?
What are conditions and formalities for them? [w1]

A

 Any information relevant for business (positive or negative)
 Conditions:
Must be secret (not generally known nor readily accessible to persons within the circles that normally deal with the kind of information in question)
Must have a commercial value because it is secret
Must be subject to reasonable steps taken by its owner in order to keep it secret
 No formalities, indefinite in time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Alternatives to patent protection [w1]

A

If you want a patent keep the innovation confidential, else keep it secret
or
Defensive publication
Guaranties freedom to operate, destroying novelty Protection against future blockades

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is innovation? [w1]

A

“Application of new ideas to the products, processes, or other aspects of the activities of a firm that leads to increased value.”

§ Value is defined in a broad way to include higher value added for the firm and also benefits to consumers or other firms.
§ Product innovation: introduction of a new product, or a significant qualitative change in an existing product. May be tangible manufactured goods, intangible services, or a combination of the two.
§ Process innovation: introduction of a new process for making or delivering goods and services (includes organizational change within the firm).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What are Challenges and Opportunities in patenting? [w1]

A

Principle of Territoriality
 Property rights are effective only in those countries where they are registered
So
Application Strategy
 Worldwide protection isn’t necessary!
Two main questions: Where is/are my market/s? Where are my competitors?

28
Q

Why Product and process innovations are interrelated? [w2]

A

Often, it is the introduction of a new process that permits the design and development of a range of new products, while the introduction of a new intermediate product permits a purchasing firm to change is production process.

Innovation measurement at the level of the firm suggests that product innovations are in the majority. However, in the context of an economy, product innovations result in a large amount of process innovations.

29
Q

How to distinguish innovation from imitation? [w2]

A

imitation: the adoption of a new technique or design that is already in the market.
An innovation is new to the firm AND new to the relevant market.

30
Q

What is Knowledge? [w2]

A

“Whole body of scientific evidence and human expertise that is, or could be, useful in the production and supply of commodities and in the invention and design of new products and processes.

Codified knowledge (chemical formula or computing algorithm) vs. tacit knowledge (knowledge that is not written down).

31
Q

What is Technology? [w2]

A

Current set of production techniques used to design, make, package, and deliver goods and services in the economy.

Technology can be the knowledge of techniques, processes, and the like, or it can be embedded in machines to allow for operation without detailed knowledge of their workings.

32
Q

What is Importance of a “Market” in patenting? [w2]

A

Market Introduction: Products/processes must be introduced into the market for consumer/firm benefit.
Invention/Discovery: Adds to knowledge but doesn’t immediately become a marketable product.
Innovation: Bringing new products/processes to market from existing and new knowledge.

33
Q

Incremental, Radical and Truly Radical innovations [w2]

A

Incremental - As consumers, or other firms, start using the innovation, they often adapt or improve them, or relay information on how to do so back to the innovating firm.

Radical - Introduce a completely new type of production process with a wide range of applications and gives rise to a whole new genre of innovation products. [Semiconductor]

Truly radical technologies(innovations)
echnologies that can affect an entire economy (usually at a national or global level). They have the potential
to drastically alter societies. [internet]

34
Q

The effects of process innovation [w2]

A

cost reduction in production (total production costs = fixed costs + variable costs.)
- average cost
- marginal cost

35
Q

In a World with and without IPRs [w2]

A

Without IPRs:
- No profit in a competitive market.
- No financial incentive for innovation.
- Innovations may occur by chance or without financial motivation.

With IPRs:
- Innovating firm can patent and undercut competitors.
Innovator can dominate market by selling at price P_1 - e

36
Q

what equals marginal revenue? [w2]

A

marginal cost

37
Q

What are The effects of product innovation? [w2]

A
  • The introduction of a new product creates a new demand curve.
  • Assuming IPRs (= monopoly on the new product), we are in a scenario that resembles that of process innovation in a monopoly.
38
Q

What is Deadweight loss? [w2]

A

Basically, it is lost sales
In practice

Consider an important new drug that can treat a serious disease. During patent protection, it is sold at a price higher than its marginal cost of production.

39
Q

INNOVATION AND (AT LEAST FOUR) MARKET FAILURES [w2]

A

Case 1: Knowledge as a public good
Case 2: Externalities from innovative activity
Case 3: Indivisibilities, uncertainty, and capital markets
Case 4: Patent races and duplication

40
Q

Patent claims [w3]

A
  • The most important and valuable part of the patent application
  • Claims need to be as broad as possible and as narrow as necessary.
  • Importance of patent attorneys who draft the claims.
40
Q

RESTORING INCENTIVES TO INVENT AND INNOVATE [w2]

A

Solution 1: Public provision of a public good
Basic science is a public good. Funding is provided from general taxation and the result of the research are distributed freely without the need for the users of the knowledge to pay more than the marginal cost of its reproduction.

Solution 2: Club provision of a local public good
(One example is imec, an international R&D and innovation hub active in the fields of nanoelectronics and digital technologies.)

Solution 3: Pigovian(*) subsidies
Taxes and subsidies can be used to correct negative or positive externalities.

Solution 4: Introduction of IPRs

41
Q

Patentability ≠ [w3]

A

Non-infringement

42
Q

About the structure of claims. What do Independent claims contain? What do Dependent claims do? [w3]

A

Independent claims contain limitations that infringing products will be judged by

Dependent claims add more limitations

43
Q

Four broad scenarios regarding IP position [w3]

A
  1. You can commercialise a product and can protect it
    Your product does not infringe an in-force third party patent and is not disclosed in the
    prior art and is therefore patentable.
  2. You cannot commercialise a product but can protect it
    Your product would infringe an in-force third party patent that covers broadly a technology included in your product, but at the same time the product/part of it is patentable because it is novel and inventive over the prior art.
  3. You can commercialise a product but cannot protect it
    Your product does not infringe an in-force third party patent however is disclosed or anticipated in the prior art and is therefore not patentable.
  4. You cannot commercialise a product and cannot protect it
44
Q

What are the steps of Freedom to Operate (FTO)? [w3]

A

Analyze Product/Process: Identify innovative and potentially protected aspects.
Identify Third-Party Rights: Conduct patent and IP searches.
Analyze Protection Scope: Relate to product characteristics.
Take Actions: Monitor, validate, oppose, or modify as needed.

45
Q

The appropriability problem [w4]

A
  • Innovators often lament that competitors/imitators have profited from the innovation more than the firm first to commercialize it (social return&raquo_space; private return).
  • A fast second or slow third mover might outperform the innovator (e.g. Apple over Nokia).
  • Why should new technology-based firms innovate then?
46
Q

What are Three building blocks to explain and understand who is profiting from an innovation? [w4]

A
  1. Regimes of appropriability
  2. Dominant design paradigm
  3. Complementary assets
47
Q

Regimes of Appropriability [w4]

A

Key Points:

Definition: Environmental factors that govern an innovator’s ability to capture profits from innovation.

Important Dimensions:
Nature of the technology (product/process, tacit/codified)
Efficacy of legal protection mechanisms (patents/copyrights/trade secrets)

Codified Knowledge: Easier to transmit and receive, but more vulnerable to industrial espionage.

Regime Types:
Tight Regime: Strong protection (e.g., Coca-Cola, Mentos, pharmaceuticals)
Weak Regime: Difficult to protect (e.g., algorithms, fashion)

48
Q

Dominant design paradigm [w4]

A

Importance: Helps understand profit distribution between innovators and followers.

Pre-paradigmatic Stage:
No established design, concepts, or theories.
Firms compete over designs and standards.

Paradigmatic Stage:
Established theory, dominant design, and standards.
Competition focuses on prices and quality.
Scale and specialized capital become important.

Note: The standard may be set by followers.

49
Q

What are Complementary assets? [w4]

A

The tacit and codified knowledge must be used in conjunction with other capabilities or assets for a successful commercialization:

  • Marketing
  • Manufacturing
  • Sales force
  • After sales services - Distribution
50
Q

Implications for profitability [w4]

A

The regime of appropriability, the complementary assets and the dominant design
- Are related concepts

Tight appropriablity regimes
§ Better to be a leader
§ A good ownership of the innovation (patents, trade secrets, etc.) gives the innovator time to identify the dominant design and access the complementary assets

Weak appropriablity regimes
§ The most frequent case: innovator must turn to business strategy to profit from its innovation

§ Pre-paradigmatic phase: search for design: probability to enter the paradigmatic phase is higher the lower the relative cost of prototyping (technology specific) and the closer the innovator is to its market.
§ Paradigmatic phase: in search for economies of scale, process innovation, lower production costs: specialized assets matter.

51
Q

Appropriate Control Structure [w4]

A

Partly Integrated Structure:

Low Risk: If assets are IP and competitive or generic.
Contractual Hazards:
Risk if assets are specialized.
Partner may not perform as expected.
Partner may imitate the invention, creating a competitor.

Diagram:
Core technological know-how and innovation are centrally controlled.
Surrounding assets like competitive manufacturing, distribution, service, and complementary technologies are under common ownership.

52
Q

Use value and exchange value [w6]

A

Use value
The material uses to which the object can actually be put. Tied to the physical properties of the commodity.

Exchange value
The value at which the commodity can be traded. Value determined by supply and demand.

53
Q

A fundamental insights about IP assets [w6]

A

An IP asset is not a typical commodity. It is a proprietary ‘technology’ that is traded (usually) once from a unique buyer to a unique seller. → Traditional supply and demand law does not apply.

The exchange value is much more tied to the use value than for commodities → A very important aspect of a deal is to find the ‘best’ buyer.

Differences in use value across buyers and sellers is actually the reasons there is room for an exchange.

54
Q

What is a is a prerequisite for trading a patent? [w6]

A

Difference in valuation
S_max - seller use range
B_min - buyer use range

§ Value to society without trade < Smax and with trade > Bmin
§ Value to seller without trade < Smax and with trade = Smax + (Bmin - Smax)/2

55
Q

What are the components of Value of IP asset (IPA) [w6]

A

= f(TECH, IPR) TECH: value of the underlying technology IPR: value of the IP right as such

Not all of the TECH is covered by IPR. Role of know-how.
→ Licensing usually involves the transfer of knowledge not codified in the patent document(s)

Sometimes, having IPR
increases the value of the
asset.
→ But if the patent gets
invalidated, IPA shrinks to

56
Q

Several approaches to patent valuation [w6]

A
  1. Replacement cost: Cost to develop similar functionality to the subject IP outside the scope of the legal protection.
    How did you proceed to value Goolk’s invention?
  2. Income based on the ability of the asset to directly or indirectly generate a positive cash flow.
  3. Transactional: Price paid for a similar intangible under similar circumstances—require transaction data (pricing, scope, terms and conditions).
  4. “Stochastic” methods that consider potential outcomes and their probabilities (Monte Carlo simulation, real option approach, decision tree)
57
Q

Premises: How will the IP assets be used? [w6]

A

The IP exploitation model affects the valuation.
§ In the case of licensing:
* Exclusive vs. non-exclusive, geographic or industry limitations * Goal of establishing a standard (you may want to price low)
* Rights to improvement
* …
§ Create market: offer for free and then charge using installed base (e.g., software free for a limited number of users per site)
§ Open source / freeware / shareware and then charge for improvements or help (e.g., open source software with dedicated support)
§…

58
Q

What role do patents play in securing initial financing for new innovative firms? [w5]

A
  • Patents enhance the ability to attract initial financing by acting as tangible proof of potential.
  • They signal to investors the novelty and potential profitability of the firm’s technology, reducing perceived investment risks.
59
Q

How do patents influence the valuation of new innovative firms during funding rounds? [w5]

A
  • Owning patents can lead to higher firm valuations as they indicate a proprietary market position and potential for exclusive benefits.
  • Patents demonstrate to investors a firm’s capacity for innovation and potential to secure a competitive advantage in the market.
60
Q

What are some concerns related to the costs of patenting mentioned by firms? [w5]

A
  • High costs of obtaining and enforcing patents, which can be prohibitive, especially for startups and SMEs.
  • Financial burden includes application fees, maintenance fees, and potential legal costs in enforcement scenarios.
  • Concerns that high patenting costs might not justify the benefits, considering the enforcement challenges.
61
Q

What strategic considerations should firms evaluate before deciding to apply for patents? [w5]

A
  • Assess whether the technological innovation is superior enough to warrant patent protection.
  • Evaluate if the benefits of patenting, such as improved funding opportunities and firm valuation, outweigh the costs.
  • Consider the firm’s overall strategic goals and the market potential of the technology.
62
Q

What impact do patents have on subsequent investment rounds for new innovative firms? [w5]

A
  • Patents facilitate not only initial financing but also subsequent rounds by continuously signaling innovation.
  • They help maintain investor interest and momentum in the startup’s growth trajectory by demonstrating ongoing innovation and market potential.
63
Q

What is the role of patents in reducing financing costs for new firms? [w5]

A
  • Patents can reduce the cost of finance by providing a form of collateral, which may lower interest rates or improve other financing terms.
  • In equity financing, patents may reduce the equity share that needs to be surrendered, showing investors lower risk and higher potential returns.
64
Q

How do patents mitigate risks for investors in new innovative firms? [w5]

A
  • By legally protecting the firm’s innovations, patents mitigate competitive risks, making investments more secure.
  • This legal protection makes the investment appealing by providing a clearer path to market dominance and reducing the likelihood of costly infringement disputes.

Management of IP (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions