1. IP portfolio management
Maaike van Velzen
Philips Intellectual Property and Standards
April 03, 2011

2. Agenda Introduction to Philips IP&S in the Philips organization
Philips IP strategy
Value creation from IP in Philips
IP portfolio management
IP scouting & acquisition
Conclusions

3. A well-respected, blue-chip company for 120 years
Founded in 1891
Headquartered in Amsterdam, the Netherlands
Sales over EUR 25.4 billion in 2010 (USD 33.8 billion)
33% of sales generated in emerging markets
Globally recognized brand (world top 50) Our brand value doubled to $8.7bln since 2004
119,000 employees
Sales and service outlets in over 100 countries
€1.6 billion investment in R&D, 6% of sales
50,000 patent rights – 36,000 registered trademarks – 63,000 design rights

4. IP&S in the Philips organization
IP&S is part of Corporate Technologies
Organized in business groups that match the Philips sectors
Working closely with research and the sectors
Bothell
Cleveland &
Burlington
Redhill
Eindhoven
Aachen
Beijing
Seoul
Tokyo
Shanghai
Taipei
Hong Kong
Jakarta
Singapore
Bangalore
Mumbai
Paris
Madrid
Sao Paolo
San Jose
Buenos Aires
Shenzhen
Mexico
Briarcliff
Pittsburgh

5. Facts & Figures Philips IP portfolio
Number of patents (=inventions) filed in 2010: 1300
50,000 patents
36,000 trademarks
63,000 designs
3,900 domain names
Philips Intellectual Property & Standards
26 IP&S offices worldwide in 16 countries
450 IP&S employees: 300 IP professionals , 150 support
Founded in 1924

6. Maaike van Velzen
Responsible for Healthcare IP portfolio activities within IP&S
Includes all types of IP
Worldwide
Portfolio built from in-house inventions and acquired IP
CV:
2008 – Philips IP&S IP portfolio manager Innovation and emerging business
2005 – 2008 Philips IP&S IP counsel
1996 – 2005 Unilever IP counsel
<1996: Masters degree in chemistry

7. Philips IP Strategy
Create IP solutions to support growth, competitiveness and profitability of Philips’ Sectors
Create own IP positions that can be leveraged in the market for Sector benefits (building IP control points)
Establish standards together with third parties to create or support business opportunities for Sectors
Manage risks w.r.t. third party IP to avoid businesses being blocked and/or to secure access at favorable terms
Counsel Sectors in IP matters in transactions with third parties to safeguard IP interests of Sectors
IP focus is on creating value

8. “A Business strategy without IP strategy is no strategy”
Philips IP Strategy
IP strategy has to be integral part of business strategy :
“A Business strategy without IP strategy is no strategy”
Strategy alignment with Sectors and Research through:
Participation in strategy meetings Sectors
Discussion of IP&S strategy and annual plans with Sector/BU/CTO management
Quarterly meetings IP&S BG management teams and Sector management teams
Sectors
Research
IP&S
Strategy
Operational Plans
Execution

9. Value creation from IP in Philips
Royalty income
Royalty
savings
via cross
licenses
Exclusivity Market share/margins
Assign/license patents to obtain share in JV's / spin-ins/outs

10. IP portfolio management
Define IP needs of Business
Define IP value model and IP policy per BU
File IP on own ideas and/or acquire IP from 3rd parties
Ensure benchmarking of competition
Make SWOT of own portfolio and major competitors
Build and prune portfolio

11. IP portfolio management
Annual IP Portfolio Management Plan per Sector with detailed plans for each Sector BU
IP creation follows technology / product lifecycle
We look at the different IP rights together i.s.o in isolation in order to create optimal protection and enforcement opportunities for BU’s
Patents TM
Designs DN
IP Portfolio
Management Plan
Trade Secrets
Copyrights

12. IP scouting & acquisition
Scout market on availability of IP based on IP needs
Use extensive network of brokers
If matching IP is found, make business case to assess and determine value of IP
Acquire or in-license the IP when price is within pre-determined range

13. Lean and mean IP portfolio
Monitor costs
biomarker filings with multiple selected groups generally expensive
Do not go too fast at beginning
Review portfolio at least every 3 years
Go through the cycle
Add young IP for future of business

14. Conclusions Managing IP has to be done with IP value model in mind
No business strategy without IP strategy
IP value creation comes as revenues and cost savings/benefits
Central management of IP is effective and allows to run it as a business
Strengthen IP portfolio through IP scouting and IP acquisition
Thank you for your attention !