intellectual property & standards 1...intellectual property & standards 3 intellectual...
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Intellectual Property & Standards 1
Understanding the Patent Strategiesof Companies
WIPO Conference on StatisticsSeptember 17, 2003
Ruud Peters
Intellectual Property & Standards 2
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1800 1830 1840 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2001
years
Numbers ofapplications
Patentsgranted
70 years
10 years
7 x acceleration inthe last decade
U.S. Patents 1802-2002
Grants doubled in: "Everything that can beinvented has been invented."Charles H. Duell, Commissioner,U.S. Patent Office 1889
35 years
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Patent Boom
What is the reason for this explosion inpatents?
• More innovation?• Changes in patent laws?• Convergence of technologies?
Patents have become a strategicweapon in competition
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Return on investments
Products
Before 1985
R&DManu-
facturingMarketing &
Sales
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Global changes in the last 20 years
• Globalization in marketing andmanufacturing:– More companies– More competition, lower margins– Shorter product life cycles– Increased price erosion– Cost of R&D increases
• Return on your R&D investment moredifficult
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Global changes in the last 20 years
• Originally manufacturing created competitive edge– mass production– miniaturization
• Now manufacturing has become a commodity– outsourcing– low wage countries
• Competitive edge of companies shifts fromproduction-based to knowledge-based
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Business redefined
IP
Products
Return on investments
Return on investments
Manu-facturing
TechnologyPatents
R&D
TrademarksDesigns
Marketing &Sales
Manu-facturing
+
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R&D
Philips’ Intellectual Economy
InnovationsProductsto Market
Revenues
Technologylicensing
IPRlicensing
Return on investments
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Building a strong IP/IPR portfolio
IP / IPRCreation
Patents
Trademarks
Designs
Domain names
Standards
Technology
ValueExtraction
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Philips Patent Filings
31443018
2074
1535
130111711164
1022974916877
0
500
1000
1500
2000
2500
3000
3500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
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Current IPR portfolio
• 95.000 patents
• based on 20.000 inventions
• approx.3.000 new filings per year
• 22.000 trademarks
• 6.000 designs
• 2.000 domain names
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Invented by Philips
– Rotating dry shaving (Philishave)
– QL induction lighting, metal halide car lamps
– Audio Compact Cassette
– Compact Disc system
– DVD+RW
– 3D Heart Imager
– One-chip TV
– Portable defibrillator
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IP&S: Activating the Value of PhilipsIP/IPR
Value Extraction
Pro-active
Exclusivity
Exchange
Asset
IP/IPR Creation
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Exclusivity
IPR is a means to create an exclusive positionfor unique products in the market place
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Exchange
• IPR is used to get access to third party technology
• Cross licensing
• Creating freedom of action for Philips
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Pro-active
• IP/IPR is used as a product
• Direct licensing
• Consumers get fasteraccess to new products
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Examples Licensing Programs• CD-Audio Optical Recording Technology
• CD-ROM
• CD-Video
• MiniDisc
• CD-R/RW
• DVD-Video/ROM• DVD+R/RW
• SACD
• Digital cameras
• MP3 players
• Set top boxes
• Car navigation systems
• Digital audio broadcasting
Digital Video/Audio Technology
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Interconnectivity
GSM / UMTS/PDC/PHS
Displays
Examples Licensing Programs
Xenon Car Lamps
UHP Lamps
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Intellectual Property & Standards 19
Asset
• IPR is regarded as capital
• Creating advantage
• Partnerships
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IP&S activates the valueof Philips’ intellectual property