Intellectual Property and Standards
Intellectual Property
Innovation and IP Infrastructure
IP Solutions to Transform Innovation Into Advantage
Saif Aziz – Director of Technology Alliance
BM Greater China Group
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© 2011 IBM Corporation
Intellectual Property and Standards
Agenda
“The Optimized Growth of IP Marketplace”
Service Infrastructure for the IP Marketplace
 What is IP Service Infrastructure
 Introduction
– Motivations
– IP Management
 Innovation and IP Infrastructure Capabilities
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© 2011 IBM Corporation
Intellectual Property and Standards
What is IP Service Infrastructure
 A tactical infrastructure consisting of processes and tools to help
companies unlock the power of global innovation networks and
maximize IP value
 Delivers comprehensive view of the IP portfolio to decision makers
 Empowers employees to participate in the invention process
 A Services Infrastructure typically provides
– the know how and tools companies can use to define and implement their IP
strategy
– Help business leaders assess their existing IP portfolio including
• patents, trademarks, service marks, trade secrets, copyrights, domain names, and publications
– Help companies identify gaps and exposures to align future inventing activities
– Improve the quality and value of a company’s IP portfolio
A combination of tools, process and procedures to integrate best practices and manage
the entire IP life-cycle
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© 2011 IBM Corporation
Intellectual Property and Standards
Introduction - The Changing Business Landscape
 Top CEO business priority: “Growth driven by innovation”
 A new IP marketplace and economy is emerging
 The idea has become the product
 Increased competition for ideas
 Strong, global intellectual property
systems encourage innovation
Knowledge-based Economy relies on Innovation and
Creation of IP
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© 2011 IBM Corporation
Intellectual Property and Standards
Introduction - IP Central to Economic Growth & Markets
US investment in intangible assets (>$1T/year)
surpasses investment in tangibles
“Intellectual property is the
backbone of America's economy”
U.S. Commerce Secretary
Carlos Gutierrez
GDP Percentage
Tangibles
Japan intends to “bring about a
nation founded on intellectual
property”
Japanese Prime Minister
Junichiro Koizumi
Intangibles
“The competition of the future
world is a competition for
Intellectual Property Rights”
Chinese Premier
Wen Jiabao
~80% of the value of modern companies
comes from intangible assets
Sources: US Federal Reserve – Nakamura, Ned Davis Research
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© 2011 IBM Corporation
Intellectual Property and Standards
Introduction - New Sources of Ideas
Innovation now comes as much from external sources as internal –
complicating IP management and leverage
External Innovation Sources
Internal Innovation Sources
Business partners
Employees
Customers
Sales or service units
R&D (internal)
Consultants
Competitors
Other
Assns, trade orgs, conf boards
Think tanks
Academia
45%
35%
25%
15%
Internet, blogs, bulletin boards
5%
5%
15%
25%
35%
45%
Source: IBM Global CEO Study 2006
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© 2011 IBM Corporation
Intellectual Property and Standards
Introduction - Innovation Model
A Shared Foundation of Proprietary and Open
Proprietary
Innovation
Open
Innovation
Advantages:
Advantages:
Product uniqueness
Reduces cost
Speed-to-Market
Vendor choice
Differentiation
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Company
X
Standardization
© 2011 IBM Corporation
Intellectual Property and Standards
Introduction - Leveraging Intellectual Property
Revenue/ Business Value
Building on
Standards
Freedom
of Action
Regulatory
Influence
M&A
Competitive
Advantage
Intellectual
Property
Quality
Initiatives
Protection
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Pruning
Divestiture
Assignment
IP Policy
Litigation
XLicensing
Licensing
Products
Solutions
Services
Income/Cost Savings
Alliance/JD
Influence
Technology
Leadership
Goodwill
Open
Standards
Open
Innovation
Community
© 2011 IBM Corporation
Intellectual Property and Standards
Innovation and IP Infrastructure Capabilities
Unite inventor, legal
and business teams
Capture IP from
global resources
Innovation
and IP
Infrastructure
Track monetization
opportunities
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Manage IP across
geographies
Analyze patent value
Monitor innovation
performance
© 2011 IBM Corporation
Intellectual Property and Standards
IP Management Framework
 Not just managing a collection of patents
– Considers all Facets of Intellectual Property Lifecycle
 Informed by corporate objectives
–
–
–
–
–
What does the company need from its patent portfolio?
Why and how are inventions generated?
What industries are most relevant?
What is the market strategy?
Who are the competitors?
 A team sport
– Requires active participation from all parts of the company
 A moving target
– Requires constant refinement and evolution
Invention Management is key to creation and leveraging IP for business.
This requires a Strategy, Plan and an Infrastructure to support the initiative
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© 2011 IBM Corporation
Intellectual Property and Standards
IP Management Framework
 IP Strategy:
– Establish framework to align and integrate strategic organizational goals with technical community’s
IP generating activities
– Focus R&D efforts toward under-served, high potential market opportunities
 Patent Landscape Analysis:
– Evaluate landscape and provide insight and methodologies to intelligently manage limited resources
– Identify new arenas of patentable subject matter
– Educate technical community on non-traditional patentable subject matter and methods to capture it
 IP Assessment:
– Identify gaps and risks in patent portfolio
– Outline best practices to close gaps
 IP Flight:
– Minimize flight within a dispersed R&D environment
– Identify methodologies to capture and retain IP
 International Expansion:
– Determine IP risks and opportunities for expansion into global markets
– Identify best practices to protect IP in foreign markets
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© 2011 IBM Corporation
Intellectual Property and Standards
Process for Designing a Strategy that Leverages IP
Plan
 Organizational/
IP assessment
 Develop IP
strategy
 Change
Management
 Enable a Culture
of innovation
 Develop IP
policies
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Create
 Drive and
sustain
innovation
 IP lifecycle
management
 IP evaluation
 Protection
mechanisms
 Monitor
performance
Leverage
 Market share
expansion
 Competitive
advantage
 IP Valuation and
licensing
 Influence and
goodwill
 Standards and
open innovation
© 2011 IBM Corporation
Intellectual Property and Standards
Sample Plan of Action – Education and Services
Plan
Create
Leverage
Lay the Foundation
Build the Capability
Mature the Capability
IP assessment and
Audit
Execute IP Strategy
Utilize IP Tools
IP landscape /
SWOT Analysis
Establishing an IP
organization
Develop IP
Strategy
IP Valuation
IP Enforcement
IP
commercialization
Licensing
Build IP
portfolio
Invention
review board
IP Business
Models
IP Promotion
and Marketing
IP portfolio
mgmt
Invention
evaluation
Risk Mitigation
Maximizing ROI
Inventor
Incentives
Comms
program
Open
Innovation
Competitive
Advantage
IP Policies
Quarterly invention mining / brain storming sessions
IP Awareness and
Training
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Targets & Metrics: Measure, Monitor, Adjust
© 2011 IBM Corporation
Intellectual Property and Standards
IBM’s Best Practices for Effective IP Leverage:
Complete Business and Cultural Integration
 Centralized IP Management
 Offensive and defensive IP strategies
 Pro-active vs. reactive
 Continuous performance measurement
IBM Global
Business Units
and adjustments as necessary
 Targets with accountability
 Special IP Budget
 Data and analysis tools
 Documented Policies and Procedures
 IP Expertise
 Continuous education and communication
 Incentives – intrinsic and extrinsic
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R&D
and
Business
Partners
IP
Corporate
and
Legal
© 2011 IBM Corporation
Intellectual Property and Standards
IP Innovation and Solutions
 Set of Strategic IP Services, education and software tools customized to
address bsuiness needs
 At IBM
Services
Experts
IP Software
Tools
IP
Experts
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– IP experts work with clients and business
partners to deliver first hand knowledge of
IBM’s best practices
– Services experts work with clients to
implement the IP solutions and execute IP
strategy
– Range of 3rd party and proprietary software
and tools to build and sustain and build IP
capabilities
© 2011 IBM Corporation
Intellectual Property and Standards
IP Business Cycle & Lifecycle Audiences
Analyze
and
Adjust
Innovat
e and
Capture
Manage and
Monetize
Executiv
es
Inventor
s
IP
Professional
s
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© 2011 IBM Corporation
Intellectual Property and Standards
Inventor Interface
Customizable Snapshot of Inventor Activities
 Empower all employees to participate in IP process
 Submit new inventions via disclosure form
 Monitor progress of submitted disclosures
 Track existing patents and publications
 Tally received incentives and milestones
 Catalog IP history
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Inventors
© 2011 IBM Corporation
Intellectual Property and Standards
Inventor Interface
Incentive and Awards
 Pre-filing
 Post Issuance
 Divisional and Corporate Awards
Inventors
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© 2011 IBM Corporation
Intellectual Property and Standards
IP Professional Interface
Evaluator Interface Streamlines Operations
 Automate workflows to guide and accelerate disclosure
evaluation process
– Automatic disclosure assignment
– Action item alerts
– Deadline reminders
 Access full disclosures for review and evaluation
 Systematic invention valuation scoring
– Consistent decision-making across multiple review teams
– Rapid adjustments to ‘file’ score cut-off as budget changes
– Downstream use for licensing and foreign filing decisions
IP Professionals
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© 2011 IBM Corporation
Intellectual Property and Standards
IP Professional Interface
Portfolio Managers’ Interface Tracks IP Lifecycle
 Manage all aspects of prosecution
–
–
–
–
Patents
Copyright and trademark registration
Trade secrets
Defensive publications
 Follow through to end of life – assignment, expiration, etc.
 Streamline process flow with risk management tools
 Alert all necessary parties of action items, deadlines
 Manage all IP-related contracts and paperwork
 Monitor existing IP for rapid portfolio analysis
Administrators
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© 2011 IBM Corporation
Intellectual Property and Standards
Executive Dashboard
Flexible Reporting of Key Business Metrics
 Pipeline strength
–
–
–
–
Business unit
Technology
Location
Ratio converted to applications / patents
 Portfolio health
– IP in necessary countries / patent jurisdictions
– Appropriately protecting all products
– Alignment with business goals
 IP business strength
Executives
– Budget alignment
– Licensing pipeline and income
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© 2011 IBM Corporation
Intellectual Property and Standards
IBM IP Leadership
 IBM - 100 years of innovation leadership
– One of the world’s top ranked brands – 2010 Revenue $99.9B
– 18 consecutive years of US patent leadership – 5,896 in 2010
– More than $1B in annual IP income
– Model culture of innovation throughout global technical
community of 250,000
– US IP policy leader
– Comprehensive processes and tools streamline IP management
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© 2011 IBM Corporation
Intellectual Property and Standards
IBM US Patent Leadership
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© 2011 IBM Corporation
Intellectual Property and Standards
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© 2011 IBM Corporation