1. Società Italiana Brevetti – Roma-
How to maximize the Exploitation of Intangibles: Going Beyond the Protection of Intellectual Property Rights to Business Strategies based on Licensing, Franchising and/or Merchandising
by Fabrizio de Benedetti
Caserta, November 30, 2005

2. IP rights are Business Assets
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Beyond the protection of IP
IP rights are assets having no value per se. Rather they are expenses accounted at cost.
IP rights are Business Assets
At what time the shift from one category to another takes place ?
Use vs. value extraction

3. Which Assets New Traditional Patents Utility Models Know-How
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
New
Traditional
Business Patents
Topographies of integrated circuits registrations
Computer-implemented inventions
Software
Data Compilation / Databases
Business Identifiers (domain names)
Geographical indications
Slogans
Sounds
Distinctive packaging / Trade dress
Person’s identity
Properties from characters (pictures, cartoons, TV, radio)
Lifestyle properties
Graphic symbols and computer icons
Graphic user interfaces
Website designs
Patents
Utility Models
Know-How
Trade Secrets
Plant Varieties
Designs
Trademarks
Copyright
Expansion trend

4. Agreement on Trade-Related Aspects of Intellectual Property Rights
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
TRIPs
Agreement on Trade-Related Aspects of Intellectual Property Rights
15 April 1994
… taking into account the need to promote effective and adequate protection of intellectual property rights…
…Recognizing that intellectual property rights are private rights…

5. Which business Direct use Indirect use Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Which business
Direct use
Indirect use

6. Direct use No real business without innovation
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Direct use
No real business without innovation
Either traditional manufacturing companies or new start-up or spin-off companies need an innovative idea in order to plan their business and to focus their strategies around it.

7. Direct use Protecting the idea
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Direct use
Protecting the idea
The idea, being the seed from which the business should develop, needs to be protected.
It will then turn into an asset.

8. Direct use Extracting value
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Direct use
Extracting value
Direct exploitation not limited to traditional use of a patented innovation, a design, a trademark, a copyright, etc.
Includes creative recognition of all potentialities (e.g. business expansion areas, geographical expansion, additional protectable items such as simplifying or enhancing technology, new design, new graphics, new colors, new slogans, creative use in advertising, etc.).
The phenomenon of no factory companies.

9. Indirect use Licensing Joint Venture Franchising Merchandising
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Indirect use
Licensing
Joint Venture
Franchising
Merchandising
Creation of a new business

10. Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Fund Raising
Public loans or capital contributions for start-up innovative business
Securitization (bank – private investors - venture capitalists)
Equity financing
IP valuation

11. Intangibles Tangibles Value-in-use Fair market value vs.
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Fair market value
Value-in-use
vs.
Tangibles
Intangibles

12. Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Valuation of IP
The value of an intangible depends on its context
Potentialities, strategies, capabilities influence the IP value
Proprietor’s business plan determines the value-in-use

13. Valuation problems IP may be employed for different uses
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Valuation problems
IP may be employed for different uses
IP is unique even in the same area of activity the corresponding market being more difficult to define
IP may include a number of rights of different nature
IP should be considered with respect to its legal status

14. Valuation methods Cost approach (principle of substitution)
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
Valuation methods
Cost approach
(principle of substitution)
Market approach
(reference to transactions involving similar assets in similar markets)
Royalty income
(anticipation of future income relating to use of IP)

15. From Cognitive property (knowledge) Intangible economy (profit) to
Fabrizio de Benedetti
Società Italiana Brevetti – Roma -
From
Cognitive property (knowledge) to
Intangible economy (profit)

16. Thank you! Fabrizio de Benedetti Società Italiana Brevetti – Roma-
Thank you!