Harry Hutchinson
HGF
Case Study
Intellectual Property
Harry Hutchinson
Senior Partner
Harrison Goddard Foote
Patent and Trade Mark Attorneys
Harrison Goddard Foote
• Intellectual property law firm (HGF and HGF-Law)
• 7 offices
• Sheffield, Glasgow, Leeds, London, Manchester, York, Aberdeen
• 60+ professional staff, 150+ staff in total
• Top 5 firm of IP attorneys
Content & Aims
• Provide an indication of countries investing in Intellectual Property Rights
(IPRs)
• Provide examples of how intellectual property rights are used in business
IPRs as Basis of Competition
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Intellectual property is recognised globally as a key economic
driver
In 2003, Junichiro Koizumi, the Japanese prime minister, said
“[we will] bring about a nation founded on intellectual property”
In 2004, Wen Jiabao, the Chinese premier said “the future
world competition will be for intellectual property rights”
Source: “The Invisible Edge” by Ralph Eckhart
Closer to Home
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George Osborne said in the 2011 Budget
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"We want the words, 'Made in Britain', 'Created in Britain',
'Designed in Britain', 'Invented in Britain' to drive our nation
forward.”
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Hargreaves Report, “Digital Opportunity: A Review of
Intellectual Property and Growth”
– “Intellectual Property is important to growth...
International patent applications
(PCT)
International patent applications
(PCT)
Patents : what and why?
OECD Patent Statistics Manual
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“A patent is a legal title protecting an invention” – TRIPS
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“Patents grant their owner a set of rights of exclusivity over an
invention (a product or process that is new, involves an inventive step
and is susceptible of industrial application) as defined by the “claims”.
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“…a patent gives its owner the rightto exclude others from making,
using, selling, offering for sale or importing the patented invention for
the term of the patent, which is usually 20 years from the filing date,
and in the country or countries concerned by the protection.”
Patents : what and why
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“The stated purpose of the patent system is to encourage invention and
technical progress by providing a temporary period of exclusivity over
the invention in exchange for its disclosure.” (OECD Patent Statistics
Manual)
My definition
A patent is a business tool the purpose of which is to secure a
commercial advantage for its owner
Patents in action - conventional
– Secure patents to gain market monopoly
– Police competitors
– Seek redress
• sue for infringement
• injunction
• damages
– Mexican stand-off
Patents in action
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Motorola
– The DynaTAC – ’80’s brick phone
– The StarTAC – ’90’s flip top phone
– 2007-2009 Motorola lost over $4bn
– January 2011, Motorola split into two businesses
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Google bought the unprofitable business!
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$12.5bn
Patents in action
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Nortel
– Former Canadian teleco had a portfolio of over 6000
patents for sale
– Initial bid of $900m by Google; later bids of $1.9bn, $2.6bn
and $3.14bn
– Bought for $4.5bn by a consortium of Apple, Microsoft, RIM,
EMC, Ericsson and Sony
– $750,000 per patent
Patents in action
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Patents can be used to open doors
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Exit Strategy
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Venture Capitalist
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Source of income/profit
Patents in action
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Share price
– Micron versus Rambus
– Share price increase of $5 to over $35
– 15% share price drop on final revocation
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PatentBox
– Corporation tax is 20% (small profits) or 26%
– Profits linked to patents are taxed at 10%
Patents in action
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More on PatentBox
– Profit arising from UK or European patents attracts 10% corporation
tax as of April 1st 2013 in place of current rates
– Relief has a four year phase-in period commencing at 60%, with
100% relief being available from April 1st 2017
– Companies can potentially enjoy an annual tax saving of up to
£130,000 on qualifying patent profits of up to the £1 million per
annum limit under a simplified small claims procedure.
– Greater annual saving are possible subject to meeting various
requirements
Engineering and patents
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Babcock
– Babcock International Group plc
– 1300+ patents and applications at the EPO
Rolls Royce
– 2100+ patents and applications at the EPO
BAe Systems
– 1900+ patents and applications at the EPO
What about us?
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Pyronix Limited
– Rotherham based security equipment security manufacturer.
– Technical director has a strong belief in his products and protecting
their market using patents
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The Medical House Limited
– Bought by the Consort Medical Group
– Patents relating to parenteral injection devices were a significant
reason for the purchase
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Toolbox Drillings Solutions Limited
– Bought by National Oilwell (UK) Ltd
– Patents relating to drilling stabilisers fundamental to the deal
What about us?
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Badger Limited
– Patented technique and pocket design to facilitate stitching badges
onto blazer pockets
– 3M+ pockets produced using their technique
How can we help?
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Commercial view
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IP Audit
– TSB funding http://www.innovateuk.org/
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Without relevant IPRs, PatentBox will not assist
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Establish an IPR programme
Harry Hutchinson
Thank
you
hhutchinson@hgf.com
+44 114 274 3700
www.hgf.com
Harrison Goddard Foote
Fountain Precinct
Sheffield S1 2JA