Christian W. Appelt German and European Patent and Trademark Attorney IP in International Business -Patents as Tool for Economic Success- WIPO – Italy International Symposium on IP Competitiveness of SMEs in Textile Sectors December 1, 2005 Christian W. Appelt German and European Patent and Trademark Attorney
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
Patents in Force (Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT
Worldwide Patent Activities (Source: EPO – Trilateral Web Site) 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 1st application delay of further costs (foreign filings, EP, PCT,…)? First protect, then make business! (or “Know How” ?) BOEHMERT & BOEHMERT
Who owns your local market? (Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT
„Textile EP-Activies” BOEHMERT & BOEHMERT
Further Questions ? Christian W. Appelt Appelt@Boehmert.de 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