IP Flashcards
What is a patent and what are the key attributes that determine whether this form of protection is appropriate for a specific invention? If an innovation is not patentable what other forms of intellectual property are available to the inventor?
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1.a. What are the principal mechanisms by which an innovative firm can protect its IP? b. In return for disclosure of an invention the UK Patent system grants, limited term, monopoly rights to an inventor. Explain the rationale which underlies this contract between the state and the inventor highlighting the areas of contention within the current patent system.
Patents
- new inventions
- technology
Copyright
- original creative or artistic forms
- e.g. software
Trademarks
- distinctive identification of products or services
Registered designs
- external appearance
- e.g. arrangement of buttons
Trade secrets
- valuable information information not known to the public
Implicit social contract involved in the UK Patent System whereby revealing information gives you exclusivity but also allows others to see and improve on it! Therefore there is contention in the following areas;
- exclusivity does not last as others can clearly see how to improve upon your design.
Steve Jobs 1996 -
“Picasso had a saying – ‘good artists copy; great artists steal’ – and we have always been shameless about stealing great ideas.”
- big corporations can more easily protect thier patents, putting startups and smes at a disadvantage.
- patent trolls buy patents cheaply, and then sue infringers that do not take out licenses. Most companies will choose to pay for a $100,000 license fee than to face high legal fees in a battle.
What is the rationale that underpins the current patent system and why do some critics argue that it is broken?
Disclosure can lead to innovation and public benefit. Inventir gets temporary competitive advantage.
Patent trolls - acquire patents with no intention to ever develop the products or processes: they simply aim to collect licensing fees or blackmail companies into settlements.
Patent wars - Loose definitions mean that companies spend money protecting themselves and suing others rather than on R&D and innovation. e.g. the “smartphone wars”
Patent holder is required to defend themselves against patent misuse (which can be highly expensive and makes smaller companies vulnerable).
Patents last 20 years which is criticised as being too long given the rate of innovation
What is the difference between physical and intellectual property?
physical property is rivalrous meaning that consumption by one individuals prevents consumption by another. however intellectual property is non-rivalrous meaning that one person’s use of the good is not diminished by another’s use of the good. Therefore IP needs to be protected, especially as it often constitutes a company’s competitive advantage.
Registered rights
patents trademarks registered design rights
Unregistered rights
know-how copyrights design rights
What distinguishes intellectual property from other types of property,such as land, buildings and inventory?
8 marks
2011
Intellectual property is Intangible whereas physical assets are tangible
Costs of creation and reproduction.
Physical property is expensive to create and to reproduce; for example, houses, automobiles, diamonds.
Most physical property can be copied without legal repercussions, although industrial design applies to say automobiles.
Intellectual property may take a lot of effort to create (e.g., a book) but is easy to reproduce at minimal cost.
IP may not, generally be freely copied. IP is protected.
Three examples are: patents in the case of biotechnology, automatic copyright in the case of literature and registered trademarks in the case of logos
**Multi-use - **With physical property, it can only be used by one firm at a time, whereas with IP many firms could use it simultaneously.
Depreciation. Physical assets will depreciate over time (although property tends to appreciate), whereas there is no wearing out of IP. It may simply become less useful over time if new technologies overtake an existing patent.
Registered IPRs are…
Trademarks - logos, smells, sounds,
Patents - inventions
Design rights - product shapes and configurations
Unregistered IPRs…
Know-how (trade secrets)
e.g. coca-cola formula
Copyright - software, literary, research notes
Design rights - product shape and configuration
What are patents?
Definition:
A patent is an exclusive legal right
granted for an invention that is:
New
Involves and inventive step (non-obvious)
Is capable of industrial application
Duration: 20 years from filing date, in the territory.
Requires disclosure
Patent market is estimated to be worth $100bn annually
A strong set of patents can discourage competitiors and attract investors
Different types of patents:
Design - new, original, nonobvious designs for articles of manufacure
Utility - new, useful, nonobvious manufacturing processes and machines
Business method - utility e.g. amazon
Licensing:
The author may authorise others to use the invention through granting a license and recieving royalties
At IBM, patents and licenses represent 15% of revenues
Misuse:
If anyone uses the patented IP without a license in the territory, the patent holder can bring the case to court
But it is the responsibility of the patent-holder to protect their patent so must have a strategy to monitor its use and label the patent
Examples of patents
1902 - Gillette disposible razor
1974 - Stanley Cohen and Herbert Boyer gene splicing technology has earned over $250m
Dell computers has 77 patents protecting its built-to-order business method
Amazon has patent for one-click buying method patent (controversial)
What is copyrighting used for?
= the right of an author to prevent others from printing, copying or publishing any of his/her original work
The life of a copyright is the life of the author + 70 years
Relates to the form of expression and not the subject matter (i.e. the ideas may be used elsewhere)
books, music, plays, art
Must be:
Original
Skill involved
Permanent form (not just an idea)
Author qualifies for protection
Unregistered right
Arises automatically
What are trademarks?
Any distictive word, name, symbol, slogan, shape, sound or logo that identifies the source of a product or service.
Once a trademark it registered, the owner can bring legal action to any infringement use and recieve damages
Duration: 10 years and can be renewed indefinitely
Registered and unregistered designs
Protects the physical features of the whole product or its part, in particular contours, shape and texture
In Europe registration (£60) might last up to 25 years, subject to renewal every 5 years (£130-£450)
Advantages and disadvantages of patents
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- A firm can maintain is competitive advantage
- Encourages R+D
- Attracts investment
- Licenses can be sold to generate revenue
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- Expensive to monitor/regulate/maintain
- The cost of the patent may out-weigh the financial advantages of the invention.
- Inventors may choose to capitalise on inventions that could benefit the wider public, such as a new low carbon emitting energy source, rather than allowing the inventions to be used widely.
- Loose descriptions and jargon used to widen the scope of the patent
