1. Regan Gourley 3 August 2016

2. Outline My goal here is to make you think, to get you to ask questions, not provide answers. Those you find yourself! 1. Theory 2. Practical Spotting the Trouble Tips

3. What is Intellectual Property? The products of the mind or intellect The rights of creative workers in literary, artistic, industrial and scientific fields that could be inventions, trade marks, original designs or the practical application of a good idea. IP rights include: patents, designs, trade marks, copyright, confidential information and know-how

4. Types of Intellectual Property Also require registration Plant Breeders Rights (not discussed) Do not require registration Common law trade marks Other intangibles

5. IP Creates Value in Business IP Rights create or maintain a competitive advantage: By creating a legal monopoly in the marketplace over products / services / methods By positioning your exclusive brand names in the marketplace with trade mark protection By building a wall of protection around business By using your market advantage to raise capital and attract investment By growing your business through licensing agreements By generating additional streams of revenue through start-ups or spin offs By providing a means to protect improvements on unprotectable products Registered IP rights creates a positive image for your enterprise.

6. How much value?

7. Categories of Intangibles

8. Planning Business Plan Partners (capital investors) Licensees Spin-offs Marketing Plan Competitors Current Markets Future Markets Product Life Cycle Distribution Channels (point of manufacturing point of sales) IP Portfolio Ownership Employees, Contractors, Consultants Objective: To maximise IP Output Conception Protection Exploitation Positioning Sharing Value

9. One part of a larger whole

10. Yeah, but how does this apply to me? Given the current popularity of “IP”, a common piece of advice for start-up businesses is: “get some IP” should you or shouldn’t you? what should you try to protect? when should you do it? how much should you spend on it? Two questions: how long are you “in” and what is your exit strategy?

11. Yeah, but how does this apply to me? Whether you do or do not depends on you and your business, but at the very least you should make an informed decision. Start with the end in mind Make decisions that achieve that end

12. Practical Advice or “How to Spot the Trouble?” Understanding the System Using your IP with the System to create advantages Ownership Not doing the research early Expanding your market or product range

13. Understanding the System Company Name/Business Name: Does not confer ownership Statutory requirement in states and territories you trade in Does not confer the right to use it Weak rights through use and restricted to market area. Expensive to enforce, no right outside market area Need reputation to enforce rights Trade Mark Australia wide Confers proprietary rights Prevents others from using it No reputation required to enforce rights

14. Ownership No 1 Apple Computers vs Apple Records (Beatles) Started in 1978 when Apple Records sued Apple Computers who agreed not to use the mark in relation to music. Ongoing until 2006 when Apple Records sued Apple Computers for breach of contract and lose. Cost to Apple Records - £2m to pay Apple Computers legal costs alone.

15. Ownership No 2 Get it in Writing before you start “A” identifies a problem in their field. A goes to “B” to design a solution. B designs the solution. Who owns the solution? GOLDEN RULE – In the absence of an agreement, the person who does the work, owns the IP.

16. ZARA – Spanish Fashion Label Louis Vuitton fashion director "possibly the most innovative and devastating retailer in the world". Louis Vuitton two weeks to develop a new product and get it to stores, compared with a nine-month industry average, and launches around 10,000 new designs each year. zero advertising Customers visit an average of 17 times per year Same store sales increase 5.5% per year HOW … Focus on their branding and image Using your IP to create an advantage

17. Not doing the research early Tsubi jeans and Tsubo shoes Tsubo registered in Aus two years before Tsubi Tsubi retained in Australia but everywhere else became Ksubi Cost of changeover – up to $1mill Not the only one – in 1987 Aesop (beauty products) was founded in 1984 under Emeis Cosmetics. Threatened proceedings resulted in a $150000 bill to change the name.

18. Expanding market or product range iPhone - Apple vs Cisco Apple own iPod, iTunes, iChat, iLife, iWrite marks amongst others Wanted to use iPhone in a product range expansion. Sued by Cisco who owned the mark. Settled. Conditions not disclosed.

19. Tips Understand the system Audit IP regularly Get it in writing first or make sure you own it. Record and file use, disposal, licensing etc Do the Research early. Dedicate in-house skills and structure to manage IP implications Access expert advice early.

20. Thank you. Questions?

21. Mail GPO Box 1074, Brisbane QLD 4001, Australia Email mail@cullens.com.au Web www.cullens.com.au Cullens is a member of IPH Limited group Brisbane Gold Coast Townsville