1. BUILDING COMPETITIVE EDGE Practical Strategies for SMEs in the Use of Utility Models and Patents PRESENTATION for WIPO July 2005 Suriname & St. Lucia by WILLY MANFROY President Licensing Executives Society International and Bornivall, LLC Jamaica & Dominican Republic by LAWRENCE J. UDELL Executive Director Intellectual Property International, Ltd.

2. 2 Characteristics of a SMALL to MEDIUM SIZE ENTERPRISE Any entrepreneurial venture with limited employees, assets, sales and profits An SME is dependent upon and influenced by which country and the geographic location within that country, based upon this criteria and the subject title, we need to focus on models and their IP value as an asset Typically the same individual will have responsibilities for multiple tasks and functions

3. 3 COMPETITIVE EDGE? Competitive edge is far more than IP It also consists of: + The management team + Key employees + Strategic short term and long term planning + Investment and additional funding potential + Resources and access to new sources + Growth and the ability to expand + Flexibility to meet the demands + A realistic time-line for success

4. 4 The Changing Competitive Environment Trends towards globalization Changing competitive environment Increasing customer power Regulation Changing Trade policy

5. 5 The Changing Base of Competition Examples of changes include: More variety More customization More frequent model change Higher quality Faster delivery Better service Advanced design Speed of obsolescence

6. 6 What Intellectual Assets should you consider Marketing Trademarks Trade Names Brand Names Logos Technical Patents Patent applications Technical Documents Know How Trade dress docs Trade secrets Customer Lists Contracts Relationships Open purchase orders Artistic Literary works Copyrights Musical composition Maps Engravings Data Processing Proprietary Software Software copyrights Automated data- bases Integrated circuits Engineering Industrial design Product patents Trade secrets Engineering drawings Schematics Blueprints Contract Favorable supply contacts License agents Franchise agent Non-compete agents Human Trained and Assembled work force Employment agents Union contracts Location Leasehold interests Mineral exploitation rights Easements Air rights Water rights Goodwill Institutional Professional practice Personal goodwill of a professional Celebrity Going concern value

7. 7 Intellectual Asset Mission Protect the valuable technology,ideas,innovation and knowledge to provide: Freedom to practice Ability to exclude Optimize returns in alignment with your global business strategy

8. 8 Patents and Utility Models Utility Models: Lower level of protection and inventiveness Only available in a few countries Immediately available Low cost Patents: Global protection possible Can be expensive outside of home country Long life Strict conditions All are negative rights

9. 9 Value chain protection Know How Idea Patent Publish Trade Secret Utility Model& Design Trade Mark

10. 10 How to get started –Inventory –Identify needs –Competitive environment –Determine Gaps, threats and opportunities –Fill the gaps –Check results

11. 11 The 5 stages to remember IP Creation Strategy Impact Recognition Portfolio Management Value Extraction

12. 12 Identify your core competency Define your business strategy to take advantage of your core competency. Assess your Human Resources that sustain your core competency and your business strategy Strategy

13. 13 What do you have? Be broad in your assessment Do not do it alone Look at your contracts, including employment, termination, confidentiality agreements How do you decide what to protect and how? Creation

14. 14 What do you need to fulfill your business strategy? Inventory and classify portfolio Manage and analyze Evaluate and maintain What do you miss? Who is or might be threatening you? Use competitive analysis tools Management

15. 15 Include all extraction mechanism in Intellectual Assets strategy and management The illusion of exclusion Link competitive intelligence tools to R&D, Intellectual Assets and business strategy Value Extraction

16. 16 How can you use what you have? Outright sale License or cross license Joint venture or alliance Reduce competitive threat Incorporate into existing business Create a new business Contribute to equity position

17. 17 Did it work What else do I need to do Do I need additional resources What should I change PLAN + DO + CHECK Impact Recognition

18. 18 Questions to consider 1.Is the IP owned by the company? 2.Does it consist of issued and/or pending patents? 3.How old? What is the remaining life of the IP? 4.How is the IP used in the product and/or service? 5.What and who are the competitors? 6.What advantage is the SME technology over the competition? 7.Is the SME filing new IP protection? Are trademarks being or have been considered? 8.When you sell, or attempt to sell your product(s) outside your own country, what are the legal requirements for protection?

19. 19 MORE Questions 9.Does the potential sales justify the cost of all the protection? 10. What, if any, are the possible litigation potentials? 11. Is the size of the market justification to continue the pursuit of intellectual property? 12. Are the rewards great enough to justify the risk? HAVE YOU REALLY DONE YOUR HOMEWORK ?????

20. 20 DEATH of the SME IT CAN BE SUMMED UP IN A FEW WORDS: Imbalance of team egos Who is not doing their share Unequal compensation Not communicating GREED