The Utilization of Patent Information Inner Mongolia Yili Industrial Group Co., Ltd. September 2010 Yili Group Profile Development of Intellectual Property Rights The Role of Patent Information Yili Group Profile Inner Mongolia Yili Industrial Group Co., Ltd. is the flagship of China's dairy industry with the largest and the most complete product line, as well as the only one of Chinese enterprises which supplies dairy products for the Olympics and the World Expo successively on a basis of a standard quality. Yili Group Profile More than 1,000 series of Yili brand products, such as: popsicle, ice cream, milk powder, milked tea powder, asepsis milk, yoghurt, and cheese are made by affiliated enterprises of Yili Group. Among them, Classic Milk, LowLactose Nutrition Milk, Chang Qing Probiotics Yoghurt, “Jinlingguan”Formula Powder for babies and infants, Chocliz Serials, etc. are highly welcomed by consumers. Yili Group Profile Main business income of Yili Group reached 24.208 billion yuan in 2009, a year-on-year growth of 12.4 percent. In the first quarter of 2010, Yili's sales volume was up to 7.014 billion yuan, an increase of 37 percent. Yili Group's brand value has surged to 20.545 billion in 2009 , and ranked first in the dairy industry for the sixth time with absolute advantage. Development of Intellectual Property Rights Strategic goals of IPRs are: Respect the IPRs of others, create, protect and use our own intellectual property rights to improve the enterprise’s core competence. Development of Intellectual Property Rights IP Organization Chart of Yili Group Ice Division Quality Management Department Milk Powder Division DecisionMaking Level Legal Department Security Department Yoghourt Division Raw Milk Division Liquid Milk Division Development of Intellectual Property Rights IP Organization Chart of Yili Group Quality Management Department Ice Division Milk Powder Division DecisionMaking Level Legal Department Yoghourt Division Mainly make decisions to all maters relating to intellectual property rights in internal organizations, such as IP strategy, mechanism, system, building and management of the system, etc. Raw Milk Division Security Department Liquid Milk Division Development of Intellectual Property Rights IP Organization Chart of Yili Group Ice Division Quality Management responsible for the group’s IP matters, including management, Department application, analysis, plan, protection scheme, practice, etc. Milk Powder Division DecisionMaking Level Legal Department responsible for IP litigation Security responsible for IP Department infringements) protection Yoghourt Division Raw Milk Division (cracking down on IP Liquid Milk Division Development of Intellectual Property Rights IP Organization Chart of Yili Group Quality Management Department Ice Division Milk Powder Division Decisionmaking Level Legal Department Five divisions have IP relevant administrative departments and designate staff for intellectual property work. Security Department Yoghourt Division Raw Milk Division Liquid Milk Division Development of Intellectual Property Rights Intellectual Property System of Yili Group 1. Intellectual Property Management Regulations of Inner Mongolia Yili Industrial Group Co., Ltd. 2. Commercial Secrets Management Regulations of Inner Mongolia Yili Industrial Group Co., Ltd. 3. Instruction Manual for Intellectual Property of Inner Mongolia Yili Industrial Group Co., Ltd. Development of Intellectual Property Rights As of December 31, 2009, Yili Group has applied for 1017 patents, among which 221 are inventive patents. Since 2005, the number of inventions and utility model applications of Yili Group has maintained an increasing trend for years. Development of Intellectual Property Rights In December 2005, Yili Group established China’s first and the only Patent Information Service Platform for dairy industry. In May 2006, Yili Group was awarded as the Second Batch of National Advanced Unit of Enterprise and Public Institution Patent Experimentation. Development of Intellectual Property Rights In September 2009, Yili Group was awarded as the National Model Unit of Enterprise and Public Institute IPR, which is unprecedented in domestic dairy industry. The Role of Patent Information Risk Analysis of IPRs Patent search, Patent analysis Patent Application Monitoring and Warning Grasp market trends, consolidate market position The Role of Patent Information • Yili Group always adhere to pinciples of driving business development with independent innovation and protecting market position with intellectual property in the process of market developing. • Risk Analysis of IP for New Products before R&D – Ensure new products not infringe IPRs of others – Find the innovation in the invention of new product and technology and make an application to protect product, technology and the future consumer market. The Role of Patent Information • Starting from the patent application, R&D and IP personnel will search patents according to relevant regulations, and put search results in the patent application notice. The Role of Patent Information • In the patent search, Yili Group has its unique search channel, the Patent Information Service Platform for Foreign and Domestic Dairy Industry, jointly established with the State Intellectual Property Publishing House. – initiated in 2005 – upgraded in 2008 The Role of Patent Information • The upgraded service platform can be searched more efficient and faster to the expectation of R&D personnel. – enhance the work efficiency of R&D personnel – help R&D to timely and effectively grasp technical trends in the industry, adjust the line of products and learn more about the market momentum. The Role of Patent Information • Patent search, monitoring and risk analysis are not only used in the process of product R&D, but also play their unique role in product marketing and market planning. • Yili Group issues Quarterly IP Analysis Report to each division. • IP conditions within the company and suggestions and opinions upon them – Yili Group issues timely IP early warnings and the latest trends of the industry to its production division based on IP monitoring. Thank you for your attention!