1. Convincing SMEs that intellectual property matters Managing innovation: economic aspects of industrial property Kraków 2-3 September 2010 Jeremy Philpott European Patent Academy

2. What will we discuss today? Brief introduction to the EPO Making intellectual property relevant for SMEs Activities of the European Patent Academy

3. 37 member states European patent applications and patents can also be extended at the applicant's request to the following states: Bosnia-Herzegovina Montenegro Serbia 1 1 Serbia will join the EPO with effect from 1 October 2010 Albania Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Italy Latvia Liechtenstein Lithuania Luxembourg Former Yugoslav Republic of Macedonia Malta Monaco Netherlands Norway Poland Portugal Romania San Marino Slovakia Slovenia Spain Sweden Switzerland Turkey United Kingdom

4. Autonomy Second largest intergovernmental institution in Europe Not an EU institution Self-financing, i.e. revenue from fees covers operating and capital expenditure

5. Number of staff in 2009 Munich3 718 The Hague2 710 Berlin274 Vienna112 Total6 818 Around 60% are patent examiners Brussels4

6. Applications filed Direct European filings Euro-PCT applications entering the regional phase

7. European patents granted The EPO grants only ca 40% of all applications received Poland was designated on ca 40.06% of all granted patents  20 821 Only 33 patents from Poland were granted in 2009: just 0,9 patents per million inhabitants. The European average is 46,9.

8. Applications by residence of applicant (2009) Only 173 patent applications from Poland were filed in 2009, up from 104 in 2007. This equates to just 4.5 applications per million inhabitants. The European average is 116,1.

9. Why does intellectual property matter? IP enables creativity to be protected, and clearly establishes who owns what IP can be licensed or sold It can be a key negotiating tool - a "deal-maker" IP will attract investment IP appears as an asset on the company accounts, even if other parts of the business get into trouble

10. One product – many IP rights image © NOKIA® Reg. Designs for phone shape Reg. Trade Mark - "NOKIA" & start-up tone Copyright - software, ringtones & images Patents - for technology to produce and operate. Some pooled or cross-licensed, others kept exclusive Trade secrets - some technical know-how kept "in-house" and not published

11. "What has IP got to do with me?" SMEs do not see the relevance of IP to themselves - it is only for big companies Most are not active in patentable areas...... but all of them work with copyright and brands! Most regard IP as expensive, complicated and risky Most are ignorant of the money to be made, and the opportunities created From ip4inno Module 6B - "Selling the message"

12. Focus on the easy stuff "Our company does not have any IP" Tell them about copyright and other forms of unregistered IP Once they realise that they are already IP owners, it is easier to convince them of the relevance of IP Even with patents, focus on patent information for strategic intelligence; or explain licensing-in as an alternative to patent ownership From ip4inno Module 6B - "Selling the message"

13. Patents - what not to say Describing patents simply as a way to block competitors is out-of-date and unconvincing Few SMEs can afford litigation to enforce anyway Few SMEs care about controlling a monopoly! Explaining how to apply for a patent is less important than explaining why to apply From ip4inno Module 6B - "Selling the message"

14. Patents in context Knowing patent law is not the same as knowing patent strategy Examples of how patent strategy, as part of overall business planning, can bring commercial advantages, is far more persuasive than lecturing on patent law Speak the language of the SMEs - MONEY From ip4inno Module 6B - "Selling the message"

15. IP can impact SMEs in unexpected ways... A graphic designer has been commissioned by a client to produce publicity material on paper that folds in a very special way. The supplier of this paper states he owns the patent on this particular type of folded paper, and will charge a high price. He threatens the designer that using similar paper supplied by anyone else would be an infringement of his patent rights.

16. The graphic designer and the folded paper Does the supplier really have a patent? No, he doesn't! The public patent database, esp@cenet, shows that he only has a pending application. The number of citations against the application, according to the search report, casts doubt on its likelihood for future success. The database shows over 200 other documents relating to the same technology. Many of these are not in force. The proprietor of one of these other documents (an abandoned application) has no patent rights, but is still able to happily supply the designer much more cheaply.

17. Popular Event Formats SMEs have very little spare time Offer e.g. 2 hour events in the evening Co-ordinate with a respected partner, e.g. Chamber of Commerce, Enterprise Europe Network office, University, Trade Association Use a mix of speakers, e.g. an IP attorney, a business advisor and a case study SMEs often trust messages from the private sector more than from public sector From ip4inno Module 6B - "Selling the message"

21. Publications

23. www.ip4inno.eu

24. ip4inno - twelve teaching modules, each 3-hours long 1APatent basics 1BOther industrial property, e.g. reg. trade marks & reg. designs 2ACopyright & related rights 2B"Soft" IP - trade secrets, know-how, confidential information etc. 3APatent information for supporting business decisions 3Besp@cenet tutorial 4AIP commercialisation (licensing; valuing; strategy) 4BBusiness planning around IP 5AIP enforcement (litigation & ADR; piracy & counterfeiting) 5BIP problem-solving exercises 6AIP issues by sector: Creative Industries; Software & CII; Biotech. 6BPromoting IP to SMEs (running workshops; PR campaigns)

25. Thank you for your attention! Jeremy Philpott Innovation Support jphilpott@epo.org European Patent Academy+49 89 2399 5405 www.epo.org/academy Inventors' Handbook www.epo.org/topics/innovation-and-economy/handbook.html New e-learning modules on computer-implemented inventions: https://e-learning.epo.org -> Open Access modules -> Patent Knowledge More extensive training for business advisors on a range of IP issues is available through the ip4inno project: http://www.ip4inno.eu/