Welcome to the Intellectual Economy

2Intellectual Property & Standards Return on investments Before 1985 Products R&DManufacturing Marketing & Sales

3Intellectual Property & Standards Global changes in the last 20 years Globalization in marketing and manufacturing: –More companies –More competition, lower margins –Shorter product life cycles –Increased price erosion –Cost of R&D increases Return on your R&D investment more difficult

4Intellectual Property & Standards Global changes in the last 20 years Originally manufacturing created competitive edge –mass production –miniaturization Now manufacturing has become a commodity –outsourcing –low wage countries Competitive edge of companies shifts from production-based to knowledge-based

5Intellectual Property & Standards IPR developments in last 20 years IPR laws and enforcement strengthened –1982 establishment of single patent appeal court created pro-patent climate in the US –TRIPS: harmonization of patent laws –Areas for patenting broadened : software, business methods IPR became a strategic weapon in competition

6Intellectual Property & Standards US Patents

7Intellectual Property & Standards IPR changes in the last 20 years Increasingly more companies recognize that IPR is an asset that can create significant value Many companies are building up large IPR portfolios More companies are trying to generate revenues out of their IPR portfolio

8Intellectual Property & Standards Business redefined IP Products Return on investments Manu- facturing Technology Patents R&D Trademarks Designs Marketing & Sales Manu- facturing +

9Intellectual Property & Standards Licensing Revenues globally (not Philips) B$

10Intellectual Property & Standards Welcome to the Intellectual Economy

11Intellectual Property & Standards The Intellectual Economy Where ideas and technologies are ingredients Where intellectual property is the merchandise Where people expect smarter products with more convenience Where technology leaders fuel the innovation

12Intellectual Property & Standards Use IP Invest in innovation Share new technology Develop new markets Delight customers

13Intellectual Property & Standards Philips activates the value of its intellectual property in the Intellectual Economy