From Invention to Patent Patents as Tool for

From Invention to Patent -Patents as Tool for Economic Success. WIPO – INSME International Training Program IP and Management of Innovation in SMEs May 11, 2005 Christian W. Appelt German and European Patent and Trademark Attorney BOEHMERT & BOEHMERT

What is IP – Why do we need IPRs? Intellectual Property / Immaterial Goods • No „physical entity“ („idea“) • Realizable / easy to copy/multiply • Value when multiplied? (rises/falls) • Aggregate Value added (by whom? ) • Amendments possible • control? BOEHMERT & BOEHMERT

Major Effects of Patents • Patents control a product or market segment • Patents disclose knowledge to public • Patenting requires “money” – Costs for application and prosecution – Renewal fees → To patent or not to patent? ? ? BOEHMERT & BOEHMERT

Criteria for IP decision - market • Factor “time” – Patent prosecution 2 -4 years – Patent enforcement 1 -2 years (longer? ) • Market/competitor situation – “behavior” of competitors – Possibilities for cooperation – Possibilities for “other products”, circumventing scope of protection BOEHMERT & BOEHMERT

Criteria for IP decision - procedural • Legal (Patent Law) – Publication after 18 months – Possibly patenting by competitor • Technological aspects – Technical advantage – Possibilities for keeping secret – Technical alternatives BOEHMERT & BOEHMERT

Criteria for IP decision - financial • Costs for a patent – European Patent: EUR 10. 000 to 40. 000, depending on no. of designated countries – National Patent: EUR 5. 000 to 10. 000 – Renewal Fees • Costs for enforcement/litigation (national) – Depending on country (DE ↔ US) – Cost “risk” DE: EUR 60. 000 to 200. 000 BOEHMERT & BOEHMERT

Defensive/passive Strategies • Keeping secret – Non-disclosure of technical knowledge • Due Diligence – Search and evaluation of IPRs of Third Parties • Publication (“Secret” Publication) – Preventing patents of Third Parties BOEHMERT & BOEHMERT

Active Strategies • Application strategy – Which technology where to patent ? • Market • Place of business of competitor • Enforcement systems (legal, time, costs) • Enforcement Strategies – Litigation / Monopoly – Cooperative strategies BOEHMERT & BOEHMERT

Application Strategies • Application of “basic patents” – Patents with broad scope of protection – Already very few (single) patents effective – However, often not possible (in “third hands”) • Application of “enhancement” – Smaller scope of protection→ more patents necessary – “holes” in protection of basic patent by alternative solution – Stopping further enhancement of basic product – Dependent patents → cross licensing BOEHMERT & BOEHMERT

Basic Technology vs. Further Enhancement BOEHMERT & BOEHMERT

Patent or Know How ? • Can invention be kept secret for “absolute reasons“? • Can invention be kept secret for “relative reasons“? – Persons involved internally – External cooperation – Secrecy agreement – “Secret“ publication BOEHMERT & BOEHMERT

Advantages of IPRs (Patents) • Protection of own business – – Control of own Technology (Start Ups, SMEs) Freedom to market (!!) Access to external Technology Currency: “technology” • Licensing (and Technology Transfer TT) • Medium term goals BOEHMERT & BOEHMERT

IPR – Generating Process • • • State of Art / Problems / Searches R&D, Manufacturing, Ideas, … „Finalization“ of an invention? Confidentiality Agreements / no publication/use Early Filing of 1 st application – delay of further costs (foreign filings, EP, PCT, …)? • First protect, then make business! (or “Know How” ? ) BOEHMERT & BOEHMERT

Patents in Force (Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

Worldwide Patent Activities (Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

Who owns your local market? (Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

Further Questions ? Contact me at: Appelt@Boehmert. de Christian W. Appelt Boehmert & Boehmert Pettenkoferstr. 20 -22 D-80336 Munich Germany Tel. : + 49 – 89 – 55 96 80 Fax: + 49 – 89 – 34 70 10 BOEHMERT & BOEHMERT