IP portfolio management
Maaike van Velzen
Philips Intellectual Property and Standards
April 03, 2011
Agenda
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Introduction to Philips
IP&S in the Philips organization
Philips IP strategy
Value creation from IP in Philips
IP portfolio management
IP scouting & acquisition
Conclusions
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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A well-respected, blue-chip
company for 120 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)
33% of sales generated in emerging markets
Globally recognized brand (world top 50)
Our brand value doubled to $8.7bln since 2004
119,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 6% of sales
50,000 patent rights – 36,000 registered trademarks –
63,000 design rights
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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IP&S in the Philips organization
• IP&S is part of Corporate Technologies
• Organized in business groups that match the Philips sectors
• Working closely with research and the sectors
Redhill
Bothell Cleveland &
Pittsburgh
Burlington
Beijing
Eindhoven
Aachen
Briarcliff
Seoul
Tokyo
Shanghai
Taipei
San Jose
Sao Paolo
Mexico
Buenos Aires
Madrid
Mumbai
Paris
Hong Kong
Shenzhen
Jakarta
Bangalore
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
Singapore
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Facts & Figures
• Philips IP portfolio
– Number of patents (=inventions) filed in 2010: 1300
– 50,000 patents
– 36,000 trademarks
– 63,000 designs
– 3,900 domain names
• Philips Intellectual Property & Standards
– 26 IP&S offices worldwide in 16 countries
– 450 IP&S employees: 300 IP professionals , 150 support
– Founded in 1924
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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Maaike van Velzen
• Responsible for Healthcare IP portfolio activities within IP&S
– Includes all types of IP
– Worldwide
– Portfolio built from in-house inventions and acquired IP
• CV:
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2008 – Philips IP&S IP portfolio manager Innovation and emerging business
2005 – 2008 Philips IP&S IP counsel
1996 – 2005 Unilever IP counsel
<1996: Masters degree in chemistry
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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Philips IP Strategy
Create IP solutions to support growth, competitiveness and profitability of
Philips’ Sectors
1.
2.
3.
4.
Create own IP positions that can be leveraged
in the market for Sector benefits (building IP
control points)
Establish standards together with third parties
to create or support business opportunities for
Sectors
Manage risks w.r.t. third party IP to avoid
businesses being blocked and/or to secure
access at favorable terms
Counsel Sectors in IP matters in transactions
with third parties to safeguard IP interests of
Sectors
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
IP focus is on creating value
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Philips IP Strategy
IP strategy has to be integral part of business strategy :
“A Business strategy without IP strategy is no strategy”
• Strategy alignment with Sectors and
Research through:
– Participation in strategy meetings
Sectors
Execution
Research
– Discussion of IP&S strategy and annual
plans with Sector/BU/CTO
management
Strategy
– Quarterly meetings IP&S BG
management teams and Sector
management teams
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
Sectors
IP&S
Operational Plans
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Value creation from IP in Philips
Royalty income
Royalty
savings
via cross
licenses
Exclusivity
Market
share/margins
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
Assign/license
patents to
obtain share in
JV's / spinins/outs
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IP portfolio management
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Define IP needs of Business
Define IP value model and IP policy per BU
File IP on own ideas and/or acquire IP from 3rd parties
Ensure benchmarking of competition
Make SWOT of own portfolio and major competitors
Build and prune portfolio
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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IP portfolio management
• Annual IP Portfolio Management Plan
per Sector with detailed plans for each
Sector BU
• IP creation follows technology /
product lifecycle
• We look at the different IP rights
together i.s.o in isolation in order to
create optimal protection and
enforcement opportunities for BU’s
Patents
TM
Designs
DN
IP Portfolio
Management Plan
Trade Secrets
Copyrights
Senseo/Philips/ Douwe Egberts
trademark protection
closing mechanism: patent protection
shape: trademark and design protection
shape: defensive design protection
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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IP scouting & acquisition
• Scout market on availability of IP based on IP needs
• Use extensive network of brokers
• If matching IP is found, make business case to assess and
determine value of IP
• Acquire or in-license the IP when price is within predetermined range
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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Lean and mean IP portfolio
• Monitor costs
– biomarker filings with multiple selected groups
generally expensive
• Do not go too fast at beginning
• Review portfolio at least every 3 years
• Go through the cycle
– Add young IP for future of business
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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Conclusions
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Managing IP has to be done with IP value model in mind
No business strategy without IP strategy
IP value creation comes as revenues and cost savings/benefits
Central management of IP is effective and allows to run it as a business
Strengthen IP portfolio through IP scouting and IP acquisition
• Thank you for your attention !
Maaike.van.Velzen@philips.com
Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011
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Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011