Mikk Putk Patent attorney

Sarap & Putk Patent Agency

Startup companies &

Intellectual Property

Estonian Intellectual Property and Technology Transfer Centre

What to consider regarding IP protection?

About the topic

14.05.2015 2

Why startups & intellectual property and not just what to consider

regarding company’s IP protection?

DEFINITION of 'Startup' A company that is in the first stage of its operations. These companies are often initially bank rolled by their entrepreneurial founders as they attempt to capitalize on developing a product or service for which they believe there is a demand. Due to limited revenue or high costs, most of these small scale operations are not sustainable in the long term without additional funding from venture capitalists. Read more: http://www.investopedia.com/terms/s/startup.asp#ixzz3a3Qszs7P

Some startup characteristics • Young & fast growing companies

‒ High risks ‒ Limited resources ‒ Unclear future ‒ Mostly active on emerging markets

• Rapid technological progresses ‒ Software/Internet based products and services ‒ Relatively short product life time

• Unconsidered actions – Product/service name randomly selected – Selected product or service name generic, descriptive or

already registered trademark – Intense pitching & networking

o publishing too early/too much secrets reveled

• No agreements between founders, employees, partners

14.05.2015 3

Some IP characteristics to consider

• What type of IP my company has?

• What is the most valuable IP to protect?

• Who actually owns the IP?

• What is the product life-time?

• How easy is to reproduce or copy my product?

• Where are the main markets?

• What is the business model?

• Who are the competitors?

14.05.2015 4

5

Some characteristics of new technologies and business models

http://www.forbes.com/sites/gartnergroup/2014/10/21/gartners-top-10-strategic-technology-trends-for-2015/

• Wearable technologies & sensors

• Autonomous vehicles

• Smart environments, smart machines

• Smart & Self healing materials, Bionics

• Augmented reality

• Big, Open & Linked data

• Virtual & digital currency

• Crowdsourcing, crowdfunding

• User/Client created content

• 3D drawing , scanning, printing, copying

http://edtechfrontier.com/2012/08/21/copyright-and-personal-transformation/

Some myths and mistakes 1. Thinking that you don’t have any intellectual property

2. Thinking that patents are the only intellectual property

3. Relying on one type of intellectual property protection

4. Failing to conduct prior art search

5. I want to patent/trademark it everywhere!

6. Publishing your IP before securing your rights

7. Doing It Yourself

8. No planning - The IP protection is not linked to your business plan

9. Relying on a single patent

10.Failing to create original trademark

11.Believing that nothing is going to happen

12.Requesting everyone to sign NDA

13.Using Outsourcing/Crowdsourcing: Freelancer, 99designs, Kickstarter etc

14.No budgeting - Underspending or Overspending on IP protection

15.Ignoring a Competitor's Patent/Registered trademark or design 6

14.05.2015 7

Some specifics of interdisciplinary IP

• Very broad prior art More complicated patent applications • New technologies become rapidly public domain Inadvertent patent infringing • Specific jargon • More and more patent lawsuits

http://www.ipwatchdog.com/2013/04/09/the-rise-of-patent-litigation-in-america-1980-2012/id=38910/

Thinking that you don’t have any IP

14.05.2015 8

Every company has at least:

• Domain name

• Trademark

• Know how,

• Copyrights,

• Trade secret

• etc

14.05.2015 9

See more examples https://oami.europa.eu/knowledge/course/view.php?id=1507

Thinking that you don’t have any intellectual property

14.05.2015 10

http://blog.thomsonreuters.com/index.php/apples-patent-claims-graphic-of-the-day/

http://www.imsmart.com/

Startups & IP strategy

1. How many different types of intellectual property belonging to company i’m S.p.A. can you count?

Read also: http://www.imsmart.com/en/contacts/press-centre/im-spa-press-release-19-september-2014

http://www.imsmart.com/en/contacts/press-centre/im-spa-press-release-19-september-2014

http://www.bodymedia.com/

Massive Health

Jawbone/Aliph

Jawbone/Aliph

Acquisitions

Patent, Trademark Litigations

& Patent Trolls

Partnerships &

Open platforms for developers

Who will acquire Jawbone? Google? Apple? Facebook?

Market leader & IP strategy

Relying on a single patent

14.05.2015 14

Competitor

P1

Competitor

Competitor

P2 P3 Pn P1 P2 P3 Pn

i’m S.p.A. Jawbone/Aliph

14.05.2015 15

http://edtechfrontier.com/2012/08/21/copyright-and-personal-transformation/

Thinking that patents are the only IP

Relying on one type of IPprotection

Patent = Intellectual Property

One single product can be protected for example by: Copyrights, Patent, Trademarks, Trade secrets; Know-how, Design registrations

http://www.slideshare.net/mtarrant/valuing-intellectual-property

Failing to conduct prior art search

14.05.2015 16

- Prior art - Novelty - Freedom to operate - Freedom to use - Competitors - Product/service/

business/domain name

• Do you have the rights? ‒ Conduct freedom to operate search! ‒ Conduct freedom to use search! ‒ Avoid infringement of other’s IP rights!

14.05.2015 17

Patent search example: Jawbone/Aliph

NB!

Failing to conduct trademark search

14.05.2015 18

Failing to create original trademark

14.05.2015 19

Failing to conduct design search

14.05.2015 20

14.05.2015 21

Background

searches Idea

Idea

generation

Brainstormi

ng

Selection

of ideas

Drawings

Construction

Prototype

Development

Patent

applications

Communication

with experts

Patented

end product

Evaluation Development Production

Background search

Prior art analysis

Infringement search

Patentability search

Competitors search

FTO/FTU

Monitoring

Monitoring:

- Competitors

- New patents

- infriners

When you may need background searches

I want to patent it everywhere – The product has global market!

Stop! There is no world-wide patent nor you are going to commercialize your product in every single country!

14.05.2015 22

No planning - The IP protection is not linked to your business plan

• Publishing your IP before securing your rights – Disclosure of the invention – Publishing a research paper – Relying on grace-period

• Wrong timing – Filing too early – Filing too late

• No budgeting – Underspending on IP protection – Overspending on IP protection

14.05.2015 23

http://www.humorburst.com/internet-vs-intellectual-property/

The IP protection is not linked to your business plan

14.05.2015 24

Fujitsu: “We are promoting an intellectual property strategy closely integrated with our business and R&D strategies. ”

http://www.fujitsu.com/global/about/tech/intellectualproperty/

Idea Development Production Selling

14.05.2015 25

Source: http://i-to-m.com/product-development/

Author

Colleagues

Management

Partners

Researchers

Engineers

Programmers

Marketing

Designers

Dealers, resellers

Licensees

Media, publishers

Manufacturers

Who owns your intellectual property? ‒ Check your contracts!

14.05.2015 26

Some recommendations

• Raising awareness

• Identify your IP!

• Regulating ownership

• Evaluating your IP

• Patent/Trademark search (prior art, novelty, FTO, FTU)

• Risk analysis

• Monitoring competitors

• Budget

• Planning the IP protection according your business plan

• Start protecting your IP step by step!

http://global.epson.com/innovation/topics/201310_01.html http://global.epson.com/innovation/intellectual_property/

27

Thank you!

14.05.2015

Contact Sarap & Putk Patent Agency, http://www.patent.ee, patent@patent.ee Tartu: Margus Sarap, margus.sarap@patent.ee, tel 747 7058 Tallinn: Mikk Putk, mikk.putk@patent.ee, 53 039 088, Skype: mikkputk

https://www.facebook.com/Patent.ee

Presentations: http://www.slideshare.net/patent/presentations/

27

Is the class half empty or half full?

Answer: Liquid H20 bisects an open cylindrical vessel