1. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Intellectual Property Agenda: Intellectual Property Law: the basics Eight components in the protective shield: 1. The Patent 2. The Utility Model 3. Design 4. Trademark/Brand 5. Secrecy 6. Niche Protection 7. Speed Protection 8. Brain drain plumming Valuation of IPR Buying and selling IPR The Capital Conflict Protection Strategies

2. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ IP By Definition: Intellectual Property is the ownership = the exclusive right to commercially exploit intellectual achievements = a specific monopoly You need to specify your claim Protection against other parties exploitation is governed by national law and international conventions

3. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ The American constitution determines that “The Congress shall have the power to promote the progress of science and the useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.” Investments are encouraged by protection against competitors - conditionally: Insight is provided to society, to industry and to inventors through publishing industrial inventions and processes WHY IPR?

4. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Protecting IP (The Protective Shield) 1. PATENT Global, efficiant, expensive, ressource consuming 2. UTILITY MODEL (Poor Man’s Patent) National - local, cheaper, risky (no novelty search) 3.DESIGN PROTECTION National/EU, mandatory in certain business areas 4.TRADEMARKS, BRANDS National, need-to-have when leaving your niche 5. SECRECY Can be cost/efficiant, risky, requires secrecy agreements with employees = extra payments 6.NICHE PROTECTION Patent not worthwhile 7.SPEED PROTECTIONPatent does not work

5. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ THE PATENT A geografically and time limited monopoly on sales and production of products, whose function rely on processes, procedures or constructional embodiments, which are descriped in the patent claims. To obtain a patent requires NoveltyUnknown to Mankind UsefulnessIn a commercial-industrial context InventivenessNot obvious to the skilled but unimaginative specialist Not offensive to public moral

6. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll PATENT PROCESSING Rejection PATENT! Rejection PATENT! Filing 6 month 12 months PCT – International Patent 18 – 36 months National Patent FILING DATE = Priority Date – Globally! Published = Public Domain (USA, CAN, JAP: grace period)

7. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Patents – interaction and impact Any one may file a patent on an invention, which improves an existing and patented invention No one is allowed to exploit the subsidiary patent without the permission of the owner of the existing patent Subsidiary patents are door-openers to cooperation and license revenues

8. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ The Novelty Search: Your key to Freedom-to-Operate Look your competitors over their shoulders Find yourself a domain: make your claim The Danish Authorities: http://www.dkpto.dk/int/http://www.dkpto.dk/int/ European Free Search Facility: http://www.espacenet.com/index.en.htm http://www.espacenet.com/index.en.htm http://www.freepatentsonline.com/ http://www.google.com/patents

9. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Valuation of Patents Accumulated costs versus perceived value of a patent Accumulated costs Value of Patent KiloDKK Yrs 250 500 P-day 1 2 3 4 POP (Principle) POC (concept) POB (business)

10. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Selling Patents (Tech-trans) 1.Valuation Commercial verification increases valuation – a lot! 2.Tactics of Negotiation - Hire professionals – when the going gets tough - Non-disclosure agreements before hand outs. Include response deadlines, and non-attack obligations - Keep a distance to major expenses - Beef up your staying power 3.Sales procedure - Serial or parallel contacts to potential buyers? - Exclusive or non-exclusive licensing agreements? - Hybrids? (Regional exclusive licensing agreements)?

11. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ The Capital Conflict Running Patent Expenses Cashflow € Yr P Time of Filing is essential Timing is case sensitive! Very hard – to impossible to assess the right time, since other people’s patents are not disclosed until one year from filing at the earliest

12. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ Protection Strategies, IP 1.Production Secrecy agreements, niching, stock options, Non- compete obligations, patents, design, trademarks 2.Consultancy Non-compete obligations, stock options 3.ICT Speed protection, niching, stock options, secrecy agreements, lock up – and patents 4. Biotec Patents, stock options

13. Institut for Produktion og Ledelse Danmarks Tekniske Universitet John Heebøll Greenhouse+ ENOUGH for today! 7. lecture on Tuesday, 8 January: financing Time to finalize market research and start work on business model/plan Merry Christmas, everybody