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Online legal Marketing: How Lawyers Assist in Commercialization of University Research Wan Mohd Hirwani bin Wan Hussain Faculty of Engineering & Built Environment (Researcher, ISIS Innovation Centre University of Oxford) Universiti Kebangsaan Malaysia, Bangi, Malaysia email:[email protected] Noor Inayah Yaakub Deputy Dean for Research, Innovation & Commercialisation Graduate School of Business. University Kebangsaan,Malaysia, Bangi, Malsysia e-mail: email:[email protected] Mohd Nizam Abdul Rahman Faculty of Engineering & Built Environment Universiti Kebangsaan Malaysia, Bangi, Malaysia email: [email protected] Zinatul Ashiqin Zainul Faculty of Law IP Policy Advisor, Universiti Kebangsaan Malaysia Bangi, Malaysia email:[email protected] Wan Kamal Mujani Deputy Director Institute of West Asia Studies, Universiti Kebangsaan Malaysia Bangi, Malaysia email: [email protected] AbstractCommercialization of university’s inventions has become an important topic to Malaysian universities. Important outcomes from this commercialization are patent, spin off company and also how much profits generated from these mechanism. Most of academic writers always argue on the roles of the Technology Transfer Office (TTO), researchers and policy makers as main key players in commercialization process. However, there is still little research debating on the role of lawyers who have been involved as the agent for the university in the process of applying IP rights for researchers. Moreover, lawyers help the university to commercialize university’s research more easily to the public because they are the one who involved in the commercialization process from the start. Another important element is that the nature of their profession which is closely connected to the professionalism, integrity and trust places them as the most relevant referral point to help university in the commercialization process. This paper will look at how lawyers may market the innovations of the university when they simultaneously market their legal skills online. The paper recommends that lawyers who have been appointed as legal advisors for universities may act as the online marketing agent for the university. Keywords lawyers, university technology transfer, professional, law, technology transfer office, marketing. I. INTRODUCTION Nowadays, commercialization of university research has become important topics in Malaysian University. Roles of the university have changes from becoming a place to generate ideas and knowledge to a place to generate income to the university and country. In accepting this new task, universities are said to become part of a coherent system that includes industry and government and underpins innovation and economic progress (Etzkowitz and Leydesdorff, 2000). Implicit in this view is that the role of academics is shifting. Rather than concentrating on ‘blue-skies’ research, academics are seen increasingly to be eager to bridge the worlds of science and technology, in an entrepreneurial way, by commercializing the technologies that emerge from their research (Clark 1998; Shane 2004; Etzkowitz 2003). Issues on patenting, licensing and academic entrepreneurships are important for the commercialization university research but there is only little literature on this subject (Meyer-Krahmer and Schmoch 1998; Ponomariov 2008; Perkmann and Walsh 2007: Martinelli et al. 2008). This is mentioned by Mohar Yusof (2009) that commercialization process in Malaysia university are still at infancy state and there are still paucity research about it. This happened because most of the commercialization processes of the university are focussed on the university in USA and in Europe rather in other countries (Rothaermel et. al., 2007; Yusof and Jain, 2007). This research therefore gives a significant contribution to the literature in commercialization of Malaysian Universities. Most of the TTOs in Malaysia Universities have developed a legal department such as USM (Universiti Sains Malaysia) and UKM (Universiti Kebangsaan Malaysia) to expedite the commercialization process or have lawyers to handle the legal process to protect the innovation made by researchers at university. Most of the task that this lawyer need to do is applying for patent, licensing and advice the parties. Mohar Yusof (2009) mentioned that there is still lack of marketing for the commercialization of university research in Malaysia and someone must take this responsibility to do it. Lawyers are suitable public figures to do the task. Lawyers can commercialize inventions of the university through their online legal marketing. They know about the legal protection of that invention and it will give more confidence to the 2010 International Conference on Education and Management TechnologyICEMT 2010248 978-1-4244-8618-2/10/$26.00 © 2010 IEEE

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Page 1: [IEEE 2010 International Conference on Education and Management Technology (ICEMT) - Cairo, Egypt (2010.11.2-2010.11.4)] 2010 International Conference on Education and Management Technology

Online legal Marketing: How Lawyers Assist in Commercialization of University Research

Wan Mohd Hirwani bin Wan Hussain Faculty of Engineering & Built Environment

(Researcher, ISIS Innovation Centre University of Oxford) Universiti Kebangsaan Malaysia, Bangi, Malaysia

email:[email protected]

Noor Inayah Yaakub Deputy Dean for Research, Innovation &

Commercialisation Graduate School of Business.

University Kebangsaan,Malaysia, Bangi, Malsysia e-mail: email:[email protected]

Mohd Nizam Abdul Rahman Faculty of Engineering & Built Environment

Universiti Kebangsaan Malaysia, Bangi, Malaysia email: [email protected]

Zinatul Ashiqin Zainul Faculty of Law

IP Policy Advisor, Universiti Kebangsaan Malaysia Bangi, Malaysia

email:[email protected]

Wan Kamal Mujani

Deputy Director Institute of West Asia Studies, Universiti Kebangsaan Malaysia Bangi, Malaysia

email: [email protected]

Abstract— Commercialization of university’s inventions has become an important topic to Malaysian universities. Important outcomes from this commercialization are patent, spin off company and also how much profits generated from these mechanism. Most of academic writers always argue on the roles of the Technology Transfer Office (TTO), researchers and policy makers as main key players in commercialization process. However, there is still little research debating on the role of lawyers who have been involved as the agent for the university in the process of applying IP rights for researchers. Moreover, lawyers help the university to commercialize university’s research more easily to the public because they are the one who involved in the commercialization process from the start. Another important element is that the nature of their profession which is closely connected to the professionalism, integrity and trust places them as the most relevant referral point to help university in the commercialization process. This paper will look at how lawyers may market the innovations of the university when they simultaneously market their legal skills online. The paper recommends that lawyers who have been appointed as legal advisors for universities may act as the online marketing agent for the university.

Keywords lawyers, university technology transfer, professional, law, technology transfer office, marketing.

I. INTRODUCTION Nowadays, commercialization of university research has

become important topics in Malaysian University. Roles of the university have changes from becoming a place to generate ideas and knowledge to a place to generate income to the university and country. In accepting this new task, universities are said to become part of a coherent system that includes industry and government and underpins innovation and economic progress (Etzkowitz and Leydesdorff, 2000).

Implicit in this view is that the role of academics is shifting. Rather than concentrating on ‘blue-skies’ research, academics are seen increasingly to be eager to bridge the worlds of science and technology, in an entrepreneurial way, by commercializing the technologies that emerge from their research (Clark 1998; Shane 2004; Etzkowitz 2003). Issues on patenting, licensing and academic entrepreneurships are important for the commercialization university research but there is only little literature on this subject (Meyer-Krahmer and Schmoch 1998; Ponomariov 2008; Perkmann and Walsh 2007: Martinelli et al. 2008). This is mentioned by Mohar Yusof (2009) that commercialization process in Malaysia university are still at infancy state and there are still paucity research about it. This happened because most of the commercialization processes of the university are focussed on the university in USA and in Europe rather in other countries (Rothaermel et. al., 2007; Yusof and Jain, 2007). This research therefore gives a significant contribution to the literature in commercialization of Malaysian Universities.

Most of the TTOs in Malaysia Universities have developed a legal department such as USM (Universiti Sains Malaysia) and UKM (Universiti Kebangsaan Malaysia) to expedite the commercialization process or have lawyers to handle the legal process to protect the innovation made by researchers at university. Most of the task that this lawyer need to do is applying for patent, licensing and advice the parties.

Mohar Yusof (2009) mentioned that there is still lack of marketing for the commercialization of university research in Malaysia and someone must take this responsibility to do it. Lawyers are suitable public figures to do the task. Lawyers can commercialize inventions of the university through their online legal marketing. They know about the legal protection of that invention and it will give more confidence to the

2010 International Conference on Education and Management Technology(ICEMT 2010)

248 978-1-4244-8618-2/10/$26.00 © 2010 IEEE

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public who are potential investors. This is possible in the following scenario:

Firstly, since they have been appointed by the university as the University’s lawyer to deal with some legal aspects of commercialization;

Secondly, that leads and qualifies them to market their legal expertise which extended to the commercialization of university’s research.

In other words, lawyers will market their legal services online that have been extended to cover commercialization of the university. Potential investors will be more confidence to invest in the product and this will assist the university in making its profits.

II. ROLES OF THE LAWYER IN COMMERCIALIZATION PROCESS OF UNIVERSITY RESEARCH

It is fair to suggest that most of the invention made by the researcher that being funded by the university are belongs to the university. When the researcher wishes to commercialize that invention, they will inform the TTO to make an application to patent for it. This process will be done by the lawyer. This is the most important roles of the lawyer and he must make sure that such invention will get proper legal protections before entering the market.

Application processes for the patent take a long time up until 9 years to get the patent being filled. When patent application is being made, the lawyer should identify whether that invention only needs a protection in Malaysia or internationally. In Malaysia, there are two regulations that govern patent protections namely The Patent Act 1983 and The Patent Regulations 1986. It should be noted here, that when applying for the patent, that invention it must be new has not already been on the market.

In addition, lawyers also help for the intellectual property evaluation for the invention before making decision to apply for a patent or not. In evaluating whether that invention worth to get a patent or not depends on the knowledge of people who involved in that commercialization process such as lawyers, researchers, investors and also university. If the university feels that such invention can be applied for patent then the patent application will be made. If that invention does not worth to apply for a patent then the university will go for licensing process. Licensing process is much easier than the spin-off because it does not involve lot of money and no need to find entrepreneur for that process. Spin-off process needs a long time before it will give benefit or return of investment for the university.

III. ADDITIONAL ROLES OF LAWYER IN COMMERCIALIZATION PROCESS

Marketing is the most important thing for the commercialization process of university’s research. After innovations have been identified, the next step is to find the investor who wants to invest moneys on it. This can be done through many types of marketing whether online or offline techniques. Most of the marketing strategies taken by the business person who have knowledge in marketing but here the task to market is carried out by lawyers. As being said by

Mohar Yusof (2009) that marketing activities for universities technology transfer as still lack and need a lot improvement in Malaysia. So, lawyers who have been involved in the commercialization process start from inventions have been disclosed to the university are the suitable person to market the product online.

IV. WHY LAWYER SHOULD DO MARKETING? Malaysia government now has been pushing all

Malaysian Universities to commercialize their invention to the public. This pressure becomes more stressful to the research universities in Malaysia since commercialization process are still new and infancy in Malaysia (Dzulkifli, 2003; Mohar Yusof, 2009). There are 5 research universities in Malaysia which is Universiti Kebangsaan Malaysia (UKM),Universiti Malaya (UM), Universiti Putra Malaysia (UPM), Universiti Sains Malaysia (USM) and Universiti Teknologi Malaysia (UTM)1. Commercialization university research started in United States when at that time the federal has cut the funding to the university because of the Cold War and this make the government deficit budget at that time. When US introduced Bayh Dole Act 1980, this act has made a long of changes and stimulates the commercialization process of most university in US (Einar Rasmusses, 2008). This Act helps the university to get fund from the government faster and also help the patent application. Then in 1986, Federal Technology Transfer has been introduced to govern and control the invention that have commercial value at the market can be commercialized (Rahm, Bozeman dan Crow, 1988).

In Malaysia, the economic crisis that happened in 2008 force the government to cut research budget to the research universities in Malaysia. As the result, most of the research universities in Malaysia should find alternative fund and budget to fund their research in the future. From the statement made by the Vice Chancellor UKM, Tan Sri Prof Dr. Sharifah Hapsah Syed Hasan Shahabudin in the special edition of the Centre Research For Innovation and Innovation Management (CRIM) mentioned that;

“UKM will continue to invest in human capital and infrastructure in support of knowledge generation and innovation and in their dissemination for social and economic development”. (2010)

The statements made by this prominent Vice Chancellor of UKM show that UKM and all research universities have been looking forward to involve in the commercialization process of the university invention.

As been mentioned by Mohar Yusof et.al (2009) academic entrepreneurs are still new in Malaysian context and scenario. This is true because most of the research in Malaysia traditionally only focussed on the theoretical aspects rather than entrepreneurships. It is difficult to find an entrepreneur that can take the invention from the university to the public. One of the initiatives used by the Isis Innovation University Oxford is by having a collaborative

1 UTM has been awarded as the research university in 14th June 2010. Now it is the 5th research university in Malaysia.

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partner with the Said Business School 2 . Said Business School will provide the potential and reliable entrepreneur that has business background to commercialize invention from Oxford University. This technique also has been used by the UKM by having collaboration with Graduate School of Business (GSB) to provide and teach course related to the commercialization and technology transfer.

V. INTERNET AND MARKETING IN GENERAL Advances in information technology and internet have

constantly impacted upon the global marketing strategies of firms. The emergence of electronic communications and the Internet is rapidly changing traditional marketing methods (Hoffman and Novak, 1996).

Pallab (1996) argues that the Internet facilitates the ease by which organizations can conduct global marketing campaigns, with particular relevance to smaller organisations that previously have been unable to compete on a global scale. With the growth in its user base and its inability to be constrained by either time or location, the Internet has the potential for mass communication and advertising with negligible variable cost per customer (Deighton, 1997). Strauss and Frost (1999) claim that such characteristics will enable the Internet to replace traditional mass media. As a result of this revolution in world- wide communications, easier execution of global marketing strategies is made possible, as a presence on the Web means being international by definition. The Internet has become established as a fully- fledged global marketing and communications channel, and can deliver many aspects of any organisation's global marketing strategies ranging from branding, database building and customer acquisition to providing customer service, forming relationships, building loyalty and installing advocacy in existing customers (Czinkota and Ronkainen, 1990).

The marketing potential of the Internet has been realised by organisations over the past few years, with its popularity as a medium to target consumers increasing and many academics predict it will increase in the future (Hamill, 1997; Mack, 2000; Hoffman et al., 2000). Supported by projections from Forrester Research which indicate that by 2004 companies will be allocating a median of $720,000 to their online marketing budgets, compared with the $240,000 spent in 1999 (Richardson, 2001). Furthermore, Ernst &Young LLP's (2000) survey of Internet shopping indicated the potential of the Internet to inform and influence consumers online, with 57 per cent of online households using the Internet to research products or services. Moreover, anecdotal evidence even indicates that marketing online is more effective than marketing through traditional media channels, with one vendor estimating that his marketing efforts on the Web resulted in ten times as many units sold, with one tenth of the advertising budget (Potter, 1994). This indicates that an organisation perceives the Internet as a major communication tool in promoting corporations, their products and services as well as a means of building brand awareness. However, Samiee (1998) comments that in the

2 http://www.isis-innovation.com

international marketplace, given the limited global access of the Internet at present, traditional channels will still prevail in the near future.

VI. ONLINE LEGAL SERVICE MARKETING In 1977, The U.S. Supreme Court ruled in Bates v. State

Bar of Arizona that the First Amendment protected lawyer’s right to advertise their services. This decision not only upheld a lawyer’s right to advertise, but Justice Blackmun further elaborated that lawyer advertising was both permissible and desirable because it provided a way for lawyers to provide information to potential clients and may offer great benefits. The Massachusetts Rules of Professional Conduct, Rule 7.1, supports the Supreme Court decision and provides reasonable guidelines for maintaining the integrity of legal advertising. Last two years, according to Reuters News Services in 2007 they predicted there would be over nine million legal services searches done on the Internet. One of the most stunning aspects of the past few years has been the speed at which the Internet market has expanded and matured. This rapid rate of Internet adoption has resulted in an extraordinary pace of change in the marketing landscape- and opened up a variety of opportunities for marketers (Pollack 1999).

VII. LAWYERS MARKET THE UNIVERSITY’S INNOVATION THROUGH ONLINE

Online marketing for lawyers is to reflect legal firms to look more professional and appealing to prospective clients. The ultimate of ambition of online marketing add value to law business - to find ways to unlock hidden potential, and bring additional work into legal firm. It makes sense for that to be a shared ambition - the most valuable person in any firm is the one who brings in the clients. With online marketing, this can be done. It is perhaps worth adding that online service marketing may create sustainable growth rather than 'quick fixes' – within the law business. One of the most expansive areas for opportunity is the international marketing environment due to low set-up costs, globalness, ease of entry, time independence, and interactivity (Berthonet al., 1996). Legal Firm also can create an opportunity to create relationship with the client through online marketing. For instance, through public relations, legal firms can provide free legal education and advisory in newspaper columns which aim to build up a client based relationship (Darden et al., 1981) and public awareness. Using online marketing will help the lawyer and law firm to expand their business up to the new level. Once a company decides to develop a Website, it is no longer operating in just a local or national arena, but rather on the global information superhighway. The Internet removes traditional geographic boundaries so that virtually anyone can access a Web page from anywhere in the world at any time. The Internet provides numerous other advantages for companies wishing to expand their overall potential in the international market (Cronin, 1996).

Based on the aforesaid paragraphs, online service marketing for legal firms in Malaysia must not be neglected.

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In today’s business environment, competition among law firms for new business can be fierce. In addition, tough economic times cause consumers to reflect more seriously on financial decisions and examine their options more carefully than at any other economic time. It is essential for firms to review ways to connect deeper with their existing clients and explore the mediums available to prospect for new clients. The upside potential of marketing far exceeds the downside risk. Studies confirm that sales and profits increase when marketing is maintained, even during a recession or business slowdown. In fact, companies that have continued to market during past recessions continued to outgrow their competitors exponentially after that time period. In this increasingly urbanized environment where the world has no barrier, with shifting patterns of using information technology and fierce competition require firms to try and find new avenues for advertisement and marketing practices. Most legal firms are attempting to market their services in a new, different and creative way. The rapid adoption of the Internet as a commercial medium has resulted in more innovative ways of marketing to consumers in computer mediated environments (Ainsough and Lockett, 1996). The Internet has facilitated the ability of firms to reach target audiences more efficiently, displacing undifferentiated mass marketing techniques for more customised practices. By 1998, nearly 400,000 companies had established an Internet presence (Hof, 1998) in hopes of capturing part of the current e-commerce market, currently valued at around $8 billion and expected to grow to around $50 billion by 2002 (Merrill Lynch, 1999). The future for e-commerce looks promising; over 60 million US homes have either e-mail or Internet access (Schwartz, 1998), and the number of households and businesses making online purchases continues to increase.

When lawyers start their online business, they will have to do the followings:

i. Find niche areas ii. Find keyword

iii. Find the targeted customer iv. Building legal firm website v. Outsource work

vi. Building the content vii. Building the appearance of the site.

Issue regarding the website 1. Domain name 2. Copyright.

CONCLUSION

It is suggested in this paper that university now should recognize and consider that lawyers are those professionals not only deal with the completion of the legal process but also capable of promoting and marketing its innovations online through the online legal services marketing.

ACKNOWLEDGMENT Authors would like to thank to the following sponsorships for

this research: Isis Innovation, University of Oxford Ministry of Higher Education,Malayia Universiti Kebangsaan Malaysia

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