intellectual properties
TRANSCRIPT
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INTRODUCTION TO
INTELLECTUAL PROPERTYJAMALUDIN ABU BAKAR
SENIOR MANAGER
MARDITECH CORPORATION SDN BHD
© JAMALUDIN ABU BAKAR (2010)
OBJECTIVES
� To present the overall picture of IP in
comparative manner and in relation to the
governing statutes
� To share the experience in technology
commercialization
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OUTLINE
� PART 1: IP
� What is IP
� IP international regimes
� IP local regimes
� PART 2: COMMERCIALIZATION
� Mode of commercialization
� Case Study
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PART 1: INTELLECTUAL
PROPERTY
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� What is Intellectual Property?
� IPR – Intellectual Property Rights
� IP Protection
� IP exploitation
� IP commercialization
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� Are there IPs in these examples?
� What type of IPs?
1. 2. 3.
4. 5.
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DEFINITION OF IP
� Black’s Law Dictionary: “A commercially valuable product of the human intellect, in a concrete or abstract form”.
� Colston, C in Principles of IP Law: “IP is the results of human creativity” – new ideas applied to as many ways - as human man can conceive – embodied in familiar things (books, designs etc).
� WIPO: “The term intellectual property refers broadly to the creations of the human mind. Intellectual property rights protect the interests of creators by giving them property rights over their creations.
� TRIPS Agreement: IP refers “to rights in creations of the human mind which arise under the laws of patents, copyrights, trademarks, trade secrets, unfair competition and related laws.”
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According to WIPO:
� Intellectual property relates to items of
information or knowledge, which can be
incorporated in tangible objects at the same time
in an unlimited number of copies at different
locations anywhere in the world.
� The property is not in those copies but in the
information or knowledge reflected in them.
� Intellectual property rights are also
characterized by certain limitations, such as
limited duration in the case of copyright and
patents.
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� IP Rights means EXCLUSIVITY & MONOPOLY
� relates to exclusive & monopolistic rights given to the
owner or rights’ holder by the government (the law)
and exclude others from doing the same
� IP documents are public domain except for
Confidential Information/ Trade secret
� However, IP Rights are territorial, except for
Copyright & Confidential Information/ Trade
Secret
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TYPES OF INTELLECTUAL PROPERTY
IP
1. PATENT
S2.
TRADE MARKS
3. COPYRIG
HTS
4. INDUSTR
IAL DESIGNS5.
INTEGRATED
CIRCUIT
6. GEOGRAPHI
CAL INDICATION
S
7. NEW PLANT VARIETI
ES
8. TRADE SECRET
S
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REGULATORY FRAMEWORKInternational level:
Ips International
conventions
1 Patent Paris Convention &
TRIPs Agreement
(Trade Related
Aspects of
Intellectual
Properties)
2 Industrial
Design
3 Integrated
Circuit
4 Trade Marks
5 Copyright Berne’s Convention
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REGULATORY FRAMEWORKNational level:
IP Statutes
1 Patent Patent Act 1983
2 Industrial Designs Industrial Design Act 1996
3 Integrated Circuit Integrated Circuit Act 2000
4 Trade Marks Trade Marks Act 1986;
Passing-off; Trade Description
Act 1972
5 Copyright Copyright Act 1987
6 Geographical
Indications
Geographical Indications Act
2000
7 New plant varieties New Plant Varieties Act 2004
8 Trade secret Common law
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SUBJECT MATTER OF PROTECTION
IP Subject matter
1 Patent An idea of an inventor which permits in practice
the solution to specific problems in the field of
technology; may relate to process or product or
both
2 Industrial Designs Features of shape, configuration, pattern &
ornament that appeal to the eye
3 Integrated Circuit 3-dimensional disposition of an integrated circuit
4 Trade Marks Device, brand, heading, label, ticket, name,
signature, word, letter, numeral, or any
combination
5 Copyright Literary , musical & artistic works; films; sound
recordings; broadcast– irrespective of quality
6 Geographical
Indications
An indication which identifies goods in a
territory whereby the quality or characteristics
attributable to place of origin
7 New plant varieties
8 Trade secret Confidential information, trade secrets© JAMALUDIN ABU BAKAR (2010)
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CONDITIONS OF REGISTRATION/ PROTECTION
IP Conditions
1 Patent i. New/ novel to the world; ii. involves inventive
steps; iii. industrial application; if does not involve
inventive steps: utility innovations/ petty patent
2 Industrial
Designs
New in Malaysia
3 Integrated
Circuit
Original, even if it is identical to others; fixed on
material form or incorporated into integrated circuit
4 Trade Marks ‘New’ in Malaysia, not identical or similar to well-
known marks
5 Copyright Original to the world; reduced to material form; no
registration
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DURATION OF PROTECTION
IP YEARS
1 Patent 20 , from date of filing
2 Industrial Designs 5+5+5
3 Integrated Circuit 10 years
4 Trade Marks 10 years, renewable (almost forever)
5 Copyright (a) Content of literary, musical & artistic
works: author’s life + 50;
(b) Published works: 50
(c) Sound recordings, broadcast, films; works
of government: 50
6 Geographical
Indications
10 years from date of filing, renewable
7 New plant
varieties
25 years from date of filing for registration; 15
years fro traditional and farmers’ varieties
8 Trade secret Forever if it remains as trade secret
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PATENTS
� Nationally governed by Patents Act 1983
� At international level by TRIPs (Trade Related
� Relates to INVENTION
� Definition of INVENTION (s12)
� (1) means an idea of an inventor which permits in
practice the solution to a specific problem in the field
of technology
� (2) may be relate to a product or process [or both]
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� Patentable inventions (s 11):
� An invention is patentable if
� It is new,
� Involves an inventive step and
� Is industrially applicable
� New means novel to the world, not anticipated by
prior arts (s14)
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� Non-patentable invention (s13)
� Discoveries, scientific theories and mathematical
methods;
� Plant or animal varieties…………………… other than
man-made living micro-organisms, micro-biological
processes and the products of such micro-organism
processes;
� Schemes, rules or method for doing business,
performing purely mental acts or playing games;
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� Grace period/ priority period
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GRACE PERIOD PRIORITY PERIOD
12 MONTHS
WHERE PUBLIC
DISCLOSURE IS ALLOWED
12 MONTHS
FILING TO OTHER
COUNTRIES WITH
SAME FILING DATE
FILING DATE
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� PATENT
APPLICATION &
GRANTING
PRODEDURE
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PART 2:
TECHNOLOGY COMMERCIALIZATION21
ROUTES OF COMMERCIALIZATION
B
A
D
C
1. Making & selling end products
2. Service provider
3. Leasing equipment & components
4. Joint-venture
5. Makings & selling with license to use
6. Licensing rights to make, use and sell
7. Franchising technology-based services
11. Publication
10. Multiple non-exclusive
licenses
8. Value-added reseller relationship
9. Exclusive distributorship
HIGH THE EXTENT OF CONTROL OVER
TECHNOLOGY UTILIZATION
LOW
COMPLETE
NONE
TH
E E
XT
EN
T O
F
TE
CH
NO
LO
GY
SH
AR
ING
B
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Intellectual Capital Management: Composite View
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CASE STUDY: OMEGA-3 EGGSOmega-3 Formula Designer Eggs
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A kind of Essential Fatty Acids. It is polyunsaturated
- Widely researched by scientist all over the worldsince
20-30 years ago (Eskimo and Japanese)
- In 1982 Nobel Prize was awarded to threescientists, Sune, K. Bergstrom, Bengt. I.Samuelsson and John R Vane on the physiomechanism of unsaturated fatty acids informingprostagladins.
CASE STUDY: OMEGA-3 EGGSWhat is Omega-3?
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- Found mostly in cold water fish (such as salmon, tuna, cod)
mackerel ,etc.) and some plants (walnut, flaxseed, soya bean,
green leafy vegetables etc.)
- Helps to reduce risks of heart attack, stroke, hypertension,
rheumatoid arthritis, triglyceride and some cancers
- Vital to the development of cells in our eyes and brain
especially children at the stage of development.
- Mother milk contains Omega-3 but not cow’s milk
CASE STUDY: OMEGA-3 EGGSWhat is Omega-3?
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The technology commercialization partner to produce and markettheir latest product - Omega 3 eggs after 5 years of research
MARDI needsA ready production facility, marketing strength andchannel of distribution.
MARDI has i) Years for research in agro-science
ii) Pool of scientists
iii) Reputable organization in agriculture sector
The technology commercialization exercise was represented byMARDI through Marditech Corporation Sdn Bhd
CASE STUDY: OMEGA-3 EGGSOmega-3 Project Development
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200-400 mg Omega 3 (5 x more)
2.5-3.0 mg Vitamin E (4 x more)
20-25 mcg Selenium (2 x more)
Natural caretenoids
(No synthetic colouring in the yolk)
CASE STUDY: OMEGA-3 EGGSLTK Omega Plus Eggs
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- Before 1998 there wasn’t any branded and value added eggs
- Highly fragmented, big farms such as LTK, Huat Lai, Leong Hup,Confarm, Lay Hong, TPC does not command more than 5-6% then.
(current scenario has changed as some farms have expandedgreatly through leverage and acquisition, and one big farm ceasedoperation)
- Rather saturated, but developed in terms of technology for bigfarms
-Smaller farms (daily production of below 50,000 eggs) facedmodernization and successor problem.
CASE STUDY: OMEGA-3 EGGSCharacteristics of the Egg Industry
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LTKM Berhad was listed on KLSE Second Board 28th Mac 2000
Wholly owned subsidiaries,
1) LTK (Melaka) Sdn BHd
- Fully integrated layer farm atDurian Tunggal, Malacca
- 448 acres of land
- Established in1984
- Current daily production slightlyless than 1 million eggs a day.
2) LTK Bio-Fer Sdn Bhd
Turning chicken manure into fullyfermented organic ferliser
YE 31 Mac 05, group revenue ofRM76 million, PAT RM4.57m.
CASE STUDY: OMEGA-3 EGGSThe Commercializer
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� Daily output - 18.8 million eggs(est year 2004)
of which about 2.2 million isexported to Singapore daily
� Annual market value estimateRM1.4 billion
� Matured and very low growth(2%-3%)
� Up to 1998,it was a totalcommodity product
( no brand and pricedifferentiation)
CASE STUDY: OMEGA-3 EGGSBackground of the Egg Industry
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- Eggs are just basically a commodity. One price One product
- 1998 - Two medium size farms launched ‘low’ cholesterol eggscaught the attention of the authorities (Ministry of Health)
- One was told to stop and the other survived with the change to ‘Lower Cholesterol eggs’.
- LTK began to explore the possibility of added value eggs todiversify the product range.
CASE STUDY: OMEGA-3 EGGSCharacteristics of the Egg Industry
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LTK’s Predicament
�Lack of technical know-how in nutritionalresearch
�Needs credibility for product claims
�Time is running out
CASE STUDY: OMEGA-3 EGGSBusiness Opportunity
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Asset available
� A farm ready for production
� Experienced management in layer hen farming
� Established marketing channels
CASE STUDY: OMEGA-3 EGGSOmega-3 Project Development
Farm Wholesalers Retailers Consumers
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As a Results,
After 6 months of discussion, mutual visits and negotiation
A licensing agreement was signed on 1st August 28.
LTK Omega Plus
was launched on14 July 1999
CASE STUDY: OMEGA-3 EGGSOmega-3 Project Development
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PROJECT SCHEDULE
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SALE OF LTK OMEGA PLUS EGGS
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ROYALTY
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� LTK has to ensure that.
• Separate feed for separate flock of hens
• Omega-3 eggs are separated from the regular ones
• Omega-3 eggs are ‘stamped’ and marked separately
• Omega-3 eggs are packed separately
• Consumers know what they are paying for
• The products benefits have to be communicated to the consumers
through PR exercise promotion and advertisement.
CASE STUDY: OMEGA-3 EGGSHow was it Done?
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•MARDI /Marditech has to ensure that
• the nutritional value in the eggs are consistent with years of
research (with special feed formulation - flaxseed added in
additional to corn, soybean and palm oil)
•LTK Omega Plus is a trustworthy / products
CASE STUDY: OMEGA-3 EGGSHow was it Done?
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• For LTK
• The first branded eggs for the company - Market leadership
• the first widely published eggs - market leadership
• it more predictable margin per egg - profitability
• attract new wholesaler/customers - market share
• maintain wholesalers’ loyalty - market share
• creating new market share - revenue
CASE STUDY: OMEGA-3 EGGSAchieving a Win-Win Situation
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• For MARDI/Marditech
• The research could be put into commercial use.
• Generate revenue for the organisation for future
research etc.
• The research results could actually benefit the
consumers
• Further recognition from the public through the
promotion and
advertisement that LTK carried out.
CASE STUDY: OMEGA-3 EGGSAchieving a Win-Win Situation
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• It has created a new segment in the egg market and at the
same time provides additional value to the consumers
• The launch of LTK Omega Plus eggs has brought
excitement
to the egg industry
• Other than additional revenue to LTK and MARDITECH
it has attracted other farms to have the ‘me-too’ products.
• It has helped to spur the supporting industries in the
economy
such as advertising and packaging.
CASE STUDY: OMEGA-3 EGGSLTK-Marditech - > 11 years Technology Partnership
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• Intellectual Property drives innovation and national
economy
• IP Rights protection is in place through various acts and
statutes
• IP registration is important for success of
commercialization, although it does not ensure success
• Various routes of commercialization can be considered by
IP owner
• To ensure success, IP owner need to undertake three
important assets:
•Intellectual Capital
• Structural Capital
• Business assets
SUMMARY
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