BA making money online
Know Your Intellectual Property Rights
Dr Ed Cole
IP Commercialisation Executive
Enterprise & Innovation
IP Awareness
How important is IP in today’s world? What makes these 3 so valuable ?
Stock Market cap $547B
Founder: 2 Stanford Uni PhD Students
Larry Page Sergey Brin
Developed Android 2007 – free user
bought Motorola for $12.5B, sold it for $2.9B, and called the deal ‘a success
Stock Market cap $320B
Founder: 4 Havard University Students
Mark Zuckerberg
Eduardo Saverine
Andrew McCollum
Chris Hughes
Developed to network friends at Havard, then Stanford
MKT Cap $529B (Rev $233B 2016 )
Founder: 3 computer entrepreneurial geeks
Ronald Wayne
Steve Woznaik
Steve Jobs
Bought Nortel’s patent for $4B
Total Cap value = Physical Assets + Financial + Intangible Assets
2
What is Intellectual Property?
A result of creativity and innovation
An intangible asset
A protector of income streams
A bargaining chip and negotiating tool
A provider of competitive advantage
According to the World Intellectual Property Organization (WIPO), intellectual property refers to "creations of the mind: inventions, literary, and artistic works, and symbols, names, images, and designs used in commerce
Making smart and early decisions about intellectual
property increases our competitive advantages
Types of Intellectual Property?
Intellectual Property
Patents
Trade
marks
Registered designs
Copyright
Know How
Trade Secrets
Plant Varieties
What Intellectual Property Protects
Patents
Patents protect the technical and functional aspects of products and processes
Copyright ©
Copyright protects material, such as literature, art, music, sound recordings, films and broadcasts
Trade Marks ®
Trade Marks protect signs that can distinguish the goods and services of one trader from those of another
Design Right
Designs protect the visual appearance or eye appeal of products
Patents
Protect inventions
Monopoly right
Granted by a national patent office when the requirements met
Copying irrelevant
Can prevent others using the invention even if developed later independently!
Patent applications should be filed before the public disclosure of an invention
Be very careful if disclosing innovations to outside parties (e.g., suppliers, designers, consultants, consumer testing firms, etc.)
Confidentiality agreements often are needed
But – it gives no positive right to use the invention - you might need to licence technology from a third party to manufacture and sell your invention
Patents have offensive and defensive value
Patents are for “technological innovation”, though the
Patents Act 1977 fails to define the word “invention”
How do you get a patent?
Meet Criteria for patentability
Patents are for “technological innovation”, though the
Patents Act 1977 fails to define the word “invention”
Inventions must be NEW - not known
anywhere in the world prior to the filing date
Inventions must have an ‘inventive step’ - NOT
OBVIOUS, a simple adaptation or combination
Inventions must be INDUSTRIALLY APPLICABLE
and have a TECHNICAL EFFECT’
File at national patent office (UKIPO)/ PCT/European Patent Office
20 YEARS – annual renewal
Non Patentable Subject Matter
a scientific or mathematical discovery, theory or method
a literary, dramatic, musical or artistic work
a way of performing a mental act, playing a game or doing business
the presentation of information, or some computer programs
an animal or plant variety
a method of medical treatment or diagnosis
anything immoral or contrary to public policy
Patent Claim1
A separable fastener of the class having two flexible tapes each
carrying an interlocking socket and head member characterised
by the fact that the sockets on one side of each member and
the heads on the opposite side are transversely elongated and
the exterior surfaces of the heads constitute inclined guiding
surfaces for the co-operating socket member with which it is to
engage.
Patent Attorney 3 to 5 yrs Post Grad to Write Patent Spec
Apply first in the UK
May be extended to other countries within 1 year
Global Options
Some countries may allow you to extend your UK patent
Application to individual national patent offices
Application under the European Patent Convention (EPC) to countries in Europe
Application under the Patent Co-operation Treaty (PCT) to countries worldwide
Coventry University Patent filing Strategy
10
Finally, you must aapply first in the UK, it may be extended to other countries within 1 year and it can last up to 20 years - but must be renewed every year at a cost
Cost between 5 – 20k
Patent Costs to Grant
£15K to £20K 1st 5 yrs
At What Stage Do You File a Patent
What’s the potential of your idea?
Patent an idea All you need to know
From visual prototype to design to manufacture
Business Advice: launch a product & raising funds
Smart Search Single word, multi-word searches Quick Search Keyword, inventor, applicant Advanced Search Combination of search terms Number Search Application, publication, priority Classification Search ECLA technical areas
Espacenet – European Patent Office Data Base
To avoid re-inventing the wheel – would stop about 25% of EU funded duplicated research
Because 80 % of all technical data is published in some Over 70 million patents
Establish a freedom to operate position, providing knowledge of any possible licences required
Identification of collaborators and competitors working in the same research and development arena
A patent gives the public access to information regarding new technologies in order to stimulate innovation and contribute to economic growth
Designs
Registered/ unregistered rights
Protects the outward appearance of the goods
Shape, contour, pattern or ornamentation
£60 for your first design
Does not protect materials, function or production method
Unregistered Design Rights
Akin to copyright only protects against copying need to prove ownership/date of creation etc.
Arises automatically
Only for 3D objects
Lasts for up to 10 years (UK) or 3 years (EU)
Registered Design Rights
Protects the outward shape or configuration (2D and 3D)
Registered design protects the appearance if the product is novel and has it’s own character
Physical shape, appearance, configuration, decoration)
Lasts 5 years initially, can be extended up to 25 years
Cannot register a design that is purely functional
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In July 2012 a judge ruled that Samsung’s Galaxy tablet computers did not infringe Apples CRD [Community Registered Design]. “They do not have the same understated and extreme simplicity which is possessed by the Apple Design......They are not as cool”
OHIM have handed down 5 recent decisions, 2 in Samsung’s and 3 in Apple’s favour.
Apple CRD was found invalid due to prior disclosure by fans speculating on the appearance, this occurred prior to the 12 month grace period and the fact that Apple didn’t approve was irrelevant. No “obscure disclosures exception”.
Apple v Samsung
Mannie Garcia (2006) Shephard Fairey (2008)
Associated Press demanded compensation for its use in Fairey’s work
Fairey claimed fair use (his work didn’t reduce the value of the original photograph)
Private settlement in January 2011 - included a split in the profits for the work.
http://99designs.com/designer-blog/2013/04/19/5-famous-copyright-infringement-cases/
Case
Famous street artist Shephard Fairey created the Hope poster during President Obama’s first run for presidential election in 2008. The design rapidly became a symbol for Obama’s campaign, technically independent of the campaign but with its approval. In January 2009, the photograph on which Fairey allegedly based the design was revealed by the Associated Press as one shot by AP freelancer Mannie Garcia — with the AP demanding compensation for its use in Fairey’s work. Fairey responded with the defense of fair use, claiming his work didn’t reduce the value of the original photograph.
Outcome
The artist and the AP press came to a private settlement in January 2011, part of which included a split in the profits for the work.
Significance
Though there wasn’t a court case and an actual verdict, this case created a lot of discourse around the value of work in these copyright battles. It’s unlikely that Garcia’s work could have ever reached the level of fame it did, if not for Fairey’s poster. Garcia himself stated he was ”so proud of the photograph and that Fairey did what he did artistically with it, and the effect it has had,” but still had a problem with the fact that Fairey took the image without permission and without credit for it’s originator.
Credit, credit, credit! On 99designs you cannot use licensed work — but in the right circumstances you can use stock imagery. When doing so, make sure everyone knows the source.
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Copyright
Protection for expression rather than ideas
Arises automatically
Protects only against actual copying this must be proved
Duration for literary, musical, artistic & dramatic works: author’s lifetime plus 70 years
Duration for films: 70 years after the death of the last of the director, composer of the score, the author of the screenplay and the scriptwriter
Duration for sound recordings, TV & radio broadcasts & cable programmes: 50 years from first broadcast
Types of Copyright
Books, technical reports, manuals, databases
Engineering, technical or architectural plans
Paintings, sculptures, photographs
Music, songs, plays, dramatic works
Promotional literature, advertising
Films, videos, cable or radio broadcasts
Computer software
A piece of music found on iTunes will be
copyright protected for the lyrics, sound
recording, music and artwork
How long does Copyright last?
Literary, musical, artistic & dramatic works:
author’s lifetime plus 70 years
TV & radio broadcasts: 50 years from first broadcast
Sound recordings: 70 years from first publication
Published editions(typographical layout):
25 years from first publication
Films: 70 years after the death of the last of:
director, composer of any music specifically created
for the film, the author of the screenplay and the scriptwriter
Uploading a work which is out of copyright to the internet may create new copyright so don't assume it is copyright-free if you want to use it.
Who owns Copyright?
The employer will own the copyright of a work
if an employee produces it in the
ordinary course of their employment
However, a contractor, a consultant or other
third parties will retain ownership
unless their contract is explicit to the contrary
Ownership of copyright
Important that author "leaves his mark"
"only human creations are protected, which can also include those for which the person employs a technical aid, such as a camera."
ECJ: Advocate General
Who owns copyright?
Taken by the prince’s executive chef, Carolyn Robb wearing their ‘new set of tweeds’.
Settlement later reached with Robb involving a four figure fee for the use of the photograph and use by the Royal Mail.
Infringement of Copyright or Passing off?
T-Shirt sold by Topshop
Rihanna unhappy with image being used as deal with River Island
Photo is licensed from photographer
No image rights in UK
Judge ruled that the T shirt was infringing via passing off.
True or False
If it doesn’t have a copyright notice, it’s not protected
I can copy 10% without it being an infringement
If I acknowledge the original work, I can use it
I have bought the book/painting/photograph so I can use it as I wish
False
False
False
False
Top Dead Earners 2013
2. Elvis Presley- $55m
3. Charles Shultz - $37m
4. Elizabeth Taylor - $25m
5. Bob Marley - $18m
6. Marilyn Monroe - $15m
7. John Lennon- $12m
8. Albert Einstein - $10m
8. Bettie Page - $10m
10. Theodor Geisel - $9m
Source Forbes.com
1. Michael Jackson – $160m
Top Grossing iOS Games
Source Thinkgaming.com
Values are estimated daily revenue
1. Clash of Clans $ 1.415m
2. Candy Crush Saga $ 989k
3. Game of War – Fire Age $ 844k
4. Farm Heroes Saga $ 343k
5. Hay Day $ 270k
6. Boom Beach $ 227k
7. Kim K: Hollywood $ 190k
8. Pet Rescue Saga $ 160k
8. Double Down $ 137k
10. Cookie Jam $ 121k
Trade marks
Any sign which distinguishes your goods or services from that of another
Name, logo, colour, shape or combination
£170 for an application, lasts initially for 10 years
Should not describe the goods or services
Trademarks
KODAK
WINDOWS
HARRY POTTER
BA
501
No 5
XXXX
The future’s bright the future’s orange
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1979: Dyson’s first UK patent application filed
1993: Dyson DC01 launched
1998: Dyson sold 1.4m units generating revenues of £190m
1999: Hoover launched the “Triple Vortex” vacuum cleaner
1999: Dyson instigated patent infringement proceedings
2000: High Court orders Hoover to stop supplying the Triple Vortex and awards Dyson £4m damages
Dyson v Hoover
DC01 also protected by registered design
Dyson trademark is registered
To date Dyson has filed:
>3600 patent applications
>380 European Community design applications
>80 European Community Trademark applications
IP Issues and use for on Online Business
TAKING STOCK OF YOUR IP ASSETS RELEVANT TO E-COMMERCE
Design
Patent
Copyright
Trademark
IP ISSUES WHEN YOU DESIGN AND BUILD YOUR WEB SITE
Do you own website presentation, content and all aspects
Check license terms on database, ecommerce trading platforms, search engine and other technical internet tools
Get permission to photos, music, video, artwork, software etc
Do not distribute or download contents on your website that do not belong to you without permission
IP ISSUES RELATED TO INTERNET DOMAIN NAMES
Check domain name
Distinctive names can be trademarked
Harder to build reputation on generic name – “good-software.com”
Do not one’s trademark as domain name. registration of a trademark as domain name is trademark infringement “Cyber squatting” you may have to transfer or cancel domain, and pay damages
HOW YOUR E-COMMERCE BUSINESS IS AFFECTED BY PATENTS
Increase valuation of your company for investment, acquisition etc
Support increase in price by giving your company products exclusive feature your competitor can’t use
Source of royalties in licence transaction
Can sell it
Use defensively if accused of infringement by others
IP ISSUES IN THE DISTRIBUTION OF CONTENT ON THE INTERNET
Protect your content, copyright sign, encryption, watermarking,
and respect other’s IRP
Remedies to Unauthorised use of IP
Injunctions – prohibiting an act or ordering an act
Delivery up – an order that the infringing copies are given to the plaintiff
Accounts (of profits) – prevent unjust enrichment of
the defendant
Damages – Putting the plaintiff in the position
he would have been had the tort not been
committed
Enterprise & Innovation Group
Research Office
2015/16
Internal support for research, knowledge transfer, IP, partnerships, consultancy and CPD provision across the University Group
Your Ideas - From Concept to Cash
And then what?...
Will it make a profit?
Is the technology any good?
Is there a market for it?
Who’s going to develop it?
How’s the development going to be funded?
Competitive edge of the technology
Readiness of the technology
Uniqueness of the technology
Disruptive game changers
Evolution step improvement changes Games
IP Support
Support includes:
Registered designs and patents filed
Marketing offer produced
Elevator pitches supported
Funding applications
Business plan support
Company incorporation procedures
Negotiate licence agreements
Proof of Concept Funds
Funding via HEIF5
Up to £5,000 available per grant
Apply through IP Disclosure form
Nick Rutter, Managing Director A co-founders of Sprue; Prior to co-founding Sprue, Nick achieved a BA in Industrial Design from Coventry University
Sprue Aegis plc CU Startup to £56M Lon Stock Market international business – Smoke & Carbon monoxide detectors
58 Patents
34 Employees
24 Territories
Coventry University Spin-out companies – Diversity
Sprue Aegis Plug-in fire alarms £80M
Microcab Micro fuel-cell powered cab
Exilica Absorbent micro shells & spheres
Cavisys Water purification equipment
Health Behaviour Research Health related software products
Truck Trains High speed small freight trains
Future Armour Construction worker fashion PPE
UK Unplugged WiFi enabled PDA’s
Natural8 Cosmetics and medical
CNUK TV World’s first China-UK internet channel
Ownership Reward and Recognition - Licensing
| Revenue (£ Sterling) | University | Inventors |
| < 10,000 | 10% | 90% |
| Next 20,000 | 25% | 75% |
| Next 70,000 | 50% | 50% |
| Over 100,000 | 75% | 25% |
IPR Owned by CU – Inventor named
CU Protects and Defends IP
CU responsible for costs
COVENTRY APP COMPETION
Open to all CU students
£20K to winner for APP development
Open now
Look out for digital signage, staff/student intranet message
Reporting Your Ideas
Inventor(s):
Name of invention
University Staff involved: Funding Source:
External involvement:
Description
Has a patent search been done? Yes/No
Known, related prior art (i.e.: documents you have had published in journals, papers, conference papers etc, including those produced prior to joining the University)
What, if any, further work is planned?
Evaluating the Commercial Potential
SCORING – 0 to 5 in each of the following categories:
Uniqueness of the technology
Readiness of the technology
Value of Market
Anticipated Profit Margins
Intensity of Competition in the Market
Competitive Edge of your product or service
Ease of access to the Market
Customer conservatism
Commitment of the team
Commercial experience of the team
Thank you Any questions? www.coventry.ac.uk/ipr
Typical Costs - European patent application
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0412182436485460
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| 0 | 3000 | 0 | 3000 | ||
| 4 | 300 | 4 | 400 | ||
| 12 | 400 | 12 | 1700 | ||
| 18 | 500 | 18 | 300 | ||
| 24 | 300 | 24 | 2100 | ||
| 36 | 1500 | 36 | 1600 | ||
| 50 | 150 | 48 | 1600 | ||
| 54 | 2500 | ||||
| 60 | 4500 | ||||
| PCT application | |||||
| PCT application | Europe (GB FR DE) | USA | Japan | ||
| 0 | 3000 | 0 | 0 | 0 | |
| 4 | 300 | 0 | 0 | 0 | |
| 12 | 3500 | 0 | 0 | 0 | |
| 18 | 500 | 0 | 0 | 0 | |
| 24 | 500 | 0 | 0 | 0 | |
| 30 | 0 | 3000 | 3000 | 5000 | |
| 36 | 0 | 2000 | 2000 | 2000 | |
| 48 | 0 | 2000 | 2000 | 2000 | |
| 51 | 0 | 3500 | 0 | 0 | |
| PCT application with renewals - by year | |||||
| 0 | 3000 | ||||
| 1 | 4000 | ||||
| 2 | 1200 | ||||
| 3 | 12500 | ||||
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| 5 | 10250 | ||||
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| 8 | 2140 | ||||
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| 16 | 4200 | ||||
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| 19 | 4800 | ||||
| 20 | 5500 |