IP Strategy Flashcards
What is Intellectual property
This having rights to the clever mechanism of a product that is capable of being exploited
Give a few examples of intellectual property rights
- Patents
- Copyrights
- Trade Names
- Trade Marks
- Licenses
Why is owning IP so important to innovators?
- Prevents people copying your idea/brand
- Secures your market position
- Its normally required to raise venture capital or get investment loans
- IPs and IPRs have commercial value, so companies have been bought and sold for their IP alone
- IPR ownership allows you to issue licenses
- Innovative companies like RR apply to 500 annually
How long do patents last for?
20 years max
Give all the types of Intellectual property rights with an example for each
1) Trade Marks so branding (Nike swoosh or apple logo)
2) Trade names so company names (Playstation, Walkman)
3) Copyright so creative work (Software, films, music)
4) Trade secrets rather than patents because they dont want it to be public knowledge (coke formulae, tech)
5) Contracts - Making someone sign a NDA so that they cant reveal the secret
6) Patents so inventions (any new unique technology)
Explain the 3 point seatbelt IP strategy
- Volvo created the 3 point seatbelt to increase driver safety and patented it
- However they released the patent so that other car manufacturers could use this life saving tech in their vehicles
- Volvo got a good reputation and millions of lives have been saved
Explain Toyotas hybrid vehicle IP strategy
Toyota decided against patenting their hybrid vehicle, since the market was moving toward fully E-vehicles
- This meant that other manufacturers would use this hybrid tech to create competitor products and keep this market going
- Securing the vehicles market position by creating competition
Can you patent a public invention?
No you cannot patent an invention that has been published on a large scale
What’s the difference between owning and using an IP?
- To be able to use an IP you don’t have to own it, you just need a license to use it
- Eg microsoft technology, nobody owns microsoft word but we all use it
What are the benefits of licensing an IP over owning it
- When you license it you are not responsible for it, and also its cheaper to license
Give an example of a patent infringement?
- Hoover infringed on the Dyson no bag hoover technology, because the cost of going to court and losing was still less than the market share and revenue lost.
- eg2, Aldi started making a Cuthbert caterpillar cake, which infringed on M&S, but instead of going to court they had a public battle on twitter which brought in more profits for both
What do investors look for?
- Passionate and capable people
- A proven market need
- A business with a clear USP and IPR to that tech
- A clear business plan and exit strategy
- A product or business that aligns with their sector of interests
What are the 4 steps of innovation?
- Create the technology
- Check it meets market demand
- Protect the invention
- Exploit it for profits
