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Intellectual Property Rights

Saturday, 19 March 2016 1

Intellectual property (IP)

• Intellectual property (IP) is a term referring to creations of the intellect

for which a monopoly is assigned to designated owners by law.

• Some common types of intellectual property rights (IPR) are

trademarks, copyright, patents, industrial design rights, and in some

jurisdictions trade secrets: all these cover music, literature, and other

artistic works; discoveries and inventions; and words, phrases,

symbols, and designs.


Intellectual Property

• Intellectual Property is a property that arises from the human intellect. It

is a product of human creation.

• Intellectual Property is the creation of the human intellectual process

and is therefore the product of the human intellect or mind.


Intellectual Property

• It is an intangible form of property.

• It is a personal property.

• It is a basic form of property.

• It is based on information.


Protected Intellectual Property

• Invention by a patent or as trade secret.

• Utility models by a certificate or secret.

• Industrial Design by a certificate.

• Trade and Service Mark by a certificate.

• Copyright by reducing to a fixed form.


Types of intellectual property

• Copyright

• Copyright is a legal term used to describe the rights that creators have

over their literary and artistic works.

• Works covered by copyright range from books, music, paintings,

sculpture and films, to computer programs, databases, advertisements,

maps and technical drawings.



• Patents

• A patent is an exclusive right granted for an invention.

• Generally speaking, a patent provides the patent owner with the right to

decide how - or whether - the invention can be used by others. In

exchange for this right, the patent owner makes technical information

about the invention publicly available in the published patent document.



• Trademarks

• A trademark is a sign capable of distinguishing the goods or services of

one enterprise from those of other enterprises. Trademarks date back

to ancient times when craftsmen used to put their signature or "mark"

on their products.



• Industrial designs

• An industrial design constitutes the ornamental or aesthetic aspect of

an article.

• A design may consist of three-dimensional features, such as the shape

or surface of an article, or of two-dimensional features, such as

patterns, lines or color.



• Geographical indications

• Geographical indications and appellations of origin are signs used on

goods that have a specific geographical origin and possess qualities, a

reputation or characteristics that are essentially attributable to that

place of origin.

• Most commonly, a geographical indication includes the name of the

place of origin of the goods.


World IP Day

• On April 26 every year we celebrate World Intellectual Property Day to

promote discussion of the role of IP in encouraging innovation and

creativity


E- Governance


Electronic governance

• Electronic governance or e-governance is the application of information

and communication technology (ICT) for delivering government

services, exchange of information communication transactions,

integration of various stand-alone systems and services between

government-to-customer (G2C), government-to-business (G2B),

government-to-government (G2G) as well as back office processes and

interactions within the entire government framework.


Difference between E-Government and E-Governance

• Both terms are treated to be the same, however, there is some

difference between the two.

• "E-government" is the use of the ICTs in public administration -

combined with organizational change and new skills - to improve public

services and democratic processes and to strengthen support to public.

• The problem in this definition to be congruence definition of e-

governance is that there is no provision for governance of ICTs.


Components Of E-governance

• Technological Component

• Social Component

• Cultural Component

• Political Component

• Psychological Component:

• Service Component


Types of Interactions in e-Governance


Benefits Of E-Governance

• Better access to information and quality services for citizens.

• Simplicity, efficiency and accountability in the government.

• Expanded reach of governance.


Emerging Trends in

Ecommerce


Saturated price race will begin

• For products that can be easily compared with others without the need

for any physical inspection and are easy to ship and distribute, the

lowest prices will decide the winners.


Consumers will go global

• Significantly larger numbers of consumers will start buying from foreign

country websites, creating a problem for local and domestic merchants.

On the other hand, such merchants can potentially start selling

overseas themselves.

• Thus, ecommerce vendors who can expand their reach beyond the

local and domestic boundaries will emerge as big winners.


Marketing will get more personalized, driven by big data

• An increasing number of ecommerce vendors will start tapping into big

data (and other available resources) to deliver a highly personalized

shopping experience to visitors.


Corporations will get personal too

• In keeping with the trend #3 above, corporates will shed their gray suits

to mix and socialize with online visitors and customers.

• Only time will tell how successful they will be at this encroachment

upon this turf that has been hitherto reserved largely for the small

ecommerce vendors.

• Nevertheless, small e-tailors would do well to prepare themselves to

face this ‘invasion’.


Mobile buying and marketing will increase

• With ever increasing numbers of people (including shoppers and

buyers) accessing the Internet via smartphones, tablets and other

mobile devices for various reasons and purposes including making

purchases, ecommerce sites will go ‘mobile-friendly’.

• Online stores not capable of operating well on mobile devices will lose

visitors, customers and revenues, while the ones that work well with

mobiles will thrive and prosper.


Video-based marketing and buying will explode online

• As it becomes evident to more and more online stores and vendors that

video marketing – the nearest contender to the in-store experience for

prospective buyers – leads to much higher conversions, more and

more online stores will create and integrate (product) videos on their

sites.


Ecommerce coding/designing and copywriting will

become (strange) bedfellows

• More textual content – content that is original and persuades a visitor to

become a buyer – on web pages tend to bring more organic (read free)

traffic to such pages via the search engines, leading to more sales for

ecommerce sites.

• Increasing awareness of this marketing advantage will lead more e-

stores to incorporate more copy (text) on their site and product pages.

Those who do will prosper, those who don’t will lose.


Multi-dimensional social networking services will grow

more popular

• Social networking services that allow users to communicate – and

share information – using more methods and channels of

communication will gain more popularity.

• Ecommerce sites having strong presence on such networks will

prosper while the other ones will fall behind in terms of business

volumes, or stagnate at best.


Online storytelling to boost sales will rise

• Storytelling has always been a great way of selling. As more

ecommerce vendors discover this, more of them will incorporate stories

around their products, by way of written text or videos on their online

stores.

• Those ecommerce sites that recognize and seize the opportunity of

digital storytelling will see higher sales graphs while those who don’t

will be at a loss.


Niche based content targeting will gain momentum

• As increasing numbers of ecommerce vendors realize that more sales

can be achieved by placing content on their site and product pages that

appeals to a particular market niche, more of them will start practicing

this.

• While crystal-ball gazing is best left to the gypsy ladies, every single

one of the future trends mentioned above has been based on the

findings of sound scientific and market research conducted by reliable

sources.


E-Business off the Ground


The Entrepreneurial Process


Start-up Financing

• As an entrepreneur starting a new e-business, you must be prepared to

invest time, effort, and your own money to get your new e-business off

the ground.


Personal Assets

• Sweat Equity: putting in time and effort

• Mortgage Personal Assets: put up property as collateral to a bank

• Personal loans: taking a loan without collateral (higher interest rate)

• Credit card/credit line advance: similar to a personal loan (usually a

high interest rate)


Friends and Family

• Friends and family investors are family members or friends who invest

in a business.

• Many entrepreneurs successfully solicit startup money from their

network of friends and family.


Friends and Family (cont’d)

• A network of potential friends and family investors extends beyond

immediate family members and friends, to their families and friends, to

their families and friends, and so on.

• Advantages?

• Disadvantage?


Angel Investors

• The term angel investor originally referred to wealthy investors in

Broadway theatrical productions

• In this context it refers to any individual with the assets and interest to

invest in a startup business

• Not the same as a Venture Capitalist

• May be members of an Investment club


“Touched by an Angel”

• Angels can be difficult to find.

• Angels sometimes appear unexpectedly.

• The keys are networking and research.

• Usually provide small-medium investments

– $10,000 up to $300,000

– May want to become involved in the business

– May want an equity position in the business


Venture Capital Investors

• Venture Capital (VC) firms are organized to invest specifically in new

business startups.

• Typically take a significant equity interest (perhaps 20-40%) in the firm

with in exchange for providing startup capital.


Venture Capital Investors

• May also provide expertise

• Typically do not invest for the long term but expect to “cash out” after

the business establishes a successful track record and can be sold or

acquired by others

• There are many established VC firms


Business Incubators

• Have traditionally been government- or university-supported nonprofit

organizations that nurture new businesses

• Provide startup companies with management advice, office space,

networking opportunities, and other critical startup services


Commercial Business Incubators

• Offer startup e-businesses access to the same services offered by

nonprofit incubators

• Are primarily interested in high-technology businesses that can become

financially viable quickly and leave the incubator within six months to a

year


Incubators

• May take an equity interest as well as charge for services

• Not-for-profit incubators may use returns from equity to reinvest


Term Sheet

• List of the major points of the proposed financing being offered by the

investor, and is used to start negotiations for the investment deal

• Example:

– Invest $200,000 for 10% equity, then the investor values your e-business at $2

M

• May include other demands

• Have reviewed by a qualified attorney


Building Your E-Business


Understanding Legal Issues

• One of the first things an e-business entrepreneur should do is

establish a relationship with an attorney experienced in business

startups and, if possible, with e-business startups.

• E-businesses may be more complex legally as their business moves

across jurisdictional boundaries, even internationally.


Copyrights and Trademarks

• A copyright is a form of protection for the author of published or

unpublished original work, including writing, drama, music, art, and

other intellectual property.

• A trademark is a distinctive symbol, word, or phrase used to identify a

product and distinguish it from products of another business.

• A business guards its own copyrights and trademarks, and needs

permission to use those belonging to others.


Content Liability

• An e-business may be exposed to potential liabilities for defamation,

label, copyright infringement, obscenity, indecency, and other liability,

on the basis of the content and hyperlinks at its web site.

• To protect against potential lawsuits, an e-business should have its

attorney draft an appropriately worded disclaimer of liability to be

posted on its web site.


Information Privacy

• Potential customers may be hesitant to purchase products or services

online or to provide valid information, for fear that the information will

be misused or sold to others.

• An e-business should have a clear policy on how it handles and

secures the information it collects at its web site.


Taxation

• Taxation is a complex issue.

– The collection of sales and use taxes is a state matter and varies as to

jurisdiction.

• The Internet tax freedom act, originally passed by congress in 1998

and recently extended to 2006, places a moratorium on new internet

taxes.

• An e-business should establish a relationship with an experienced

attorney to help sort through the legal and tax issues it faces.

• Tax Facts


Leasing Commercial Office Space

• Many startup e-businesses begin at an entrepreneur’s kitchen table

and quickly expand to temporary office space, often a spare room.

• Signs that an e-business has outgrown its temporary home office space

include:

– The need to add employees, a need for more storage

– Insufficient electrical outlets

– Insufficient phone lines

– A need to add telecom services

– The need for more office equipment


Facilities Plan

• The amount of space you need now and in the near future

• How space is to be divided into offices or work areas

• Requirements for electrical wiring infrastructure

• Telecommunications and other office equipment needs

• Amenities such as break rooms, reception areas, conference rooms,

and elevators


Facilities Plan (cont’d)

• Physical location of facilities, including exterior appearance, access to

adequate parking, and access to nearby businesses that employees

could patronize, such as restaurants and childcare centers

• Facilities’ proximity to major roads and public transportation

• Facilities’ proximity to a pool of qualified prospective employees

• Security requirements

• Property damage and liability insurance requirements


Hiring Employees

• The key to success for any business is its people.

• A key issue for a startup is hiring.

– Chief technologist

– Chief financial officer

– Marketing

– Staff

– Some VC’s require that firm hire Other Senior management with “experience”

• Must be concerned with the “burn rate”


Hiring Employees (cont’d)

• Issues for hiring:

– Compensation

– Salary

– Perks – such as?

– Stock options / equity

• Evaluation of fit with firm

• Attracting qualified individuals to work at a startup firm


Building Your Brand

• A brand is a combination of name, logo, and design that identifies a

business’s products or services and differentiates the products and

services from those of competitors

• Begins with the selection of a name; make it memorable. i.e. Dell

Corporation or Ask Jeeves

• May use a reference to Web, Cyber, Net, etc. in name

• Consider a consultant


Domain Names

• Identifies the firm on the Internet

• May use all or a portion of the firm’s actual name

• Obtain domain name from an ICANN accredited name registrar

• Someone else may own the rights to the name

• You may register your name and variations of it.

• You may also want to register the alternate top level domains (.Com,

.Net, .Org, and others) to preserve your rights and brand identity.


Selecting the Technology

• An entrepreneur must make many technology decisions.

• Software must be selected to handle sales transactions, inventory

monitoring, accounting, and internal record keeping.

• The e-business must decide whether to develop the e-business’s

computer systems and web site internally, or to outsource these

functions.


ERP Systems

• Enterprise resource planning (ERP) refers to a system that integrates

all aspects of a business, including planning, manufacturing, human

resources, accounting, finance, sales, and marketing.

• ERP systems are usually built on top of databases that store all of the

data needed by the different systems.


Customer Relationship Management Systems

• Customer relationship management (CRM) systems, sometimes called

e-CRM systems, use software and the Internet to help an enterprise

manage its customer base


Data Mining

• Making data work

• Finding interesting statistics & correlations (hidden patterns) that can

help a business better attract & sell to customers

– Ex. 60% buy A also buy B

• Data warehouse

– Database that contains huge amounts of data, such as customer or sales data

– Terabytes of data – Blockbuster (p. 207), reel.com (p. 209)

• Web mining

– Same as data mining, except data from web sources


Independent Software Vendors

• Independent software vendors (ISVs) are companies that develop and

sell software applications for a variety of operating system platforms

such as Microsoft, Apple, IBM, and Hewlett-Packard.


Value Added Reseller (VAR)

• A value-added reseller (VAR) is a company that modifies an existing

software product by adding its own “value,” such as a special computer

application, and then resells the software as a new product or software

package.

• MicroAge, ASG, Merisel


Technology Service Providers

• There are many different kinds of technology service providers

available to a startup e-business.

• These different service providers offer a range of overlapping services

and are known by an array of confusing acronyms

– Internet Service Providers

– Internet Access Providers (same as ISP)

– Web Hosting Companies (2000 $1.8 billion industry)

– Application Service Providers (PeopleSoft example)

– System and Web Integrators


Launching Your E-Business


Beta Testing Your Web Site

• Software companies allow users to test their software programs before

selling them to the public, in order to find problems in the software.

• Testing its Web site with a beta launch is a good idea for an E-

Business.

• By allowing visitors to test its Web site before marketing it to the public,

an E-Business can get feedback and make changes.


Marketing an E-Business

• The early approach to marketing E-Businesses was, “If we build it, they

will come.”

• Today, this approach is not effective.

– “A web site is like a brick-and-mortar store built on a dead-end street with few

people driving by”

• Most conventional marketing approaches are useful to the E-Business.

• Some techniques and methods are unique to the E-Business

environment.


Search Engines and Directories

• The reality of Web marketing:

– Despite all marketing expenses, most viewers locate relevant Web sites through

the use of search engines and directory services.

– 81% of those surveyed found sites this way

• Spiders – software programs that automatically update a search

engine’s indexes of Web pages by examining existing pages across the

Web


Search Engines

• Use a variety of methods to gather and index information.

• This process may take time due to the volume of materials to be

examined.

• Some services accept submissions

• Some may require a fee to review and index quickly.


Indexing Methods

• Different search engine sites use differing indexing techniques.

• This is why two different engines produce vastly different results at

times.

• Adding “Meta Tags” that accurately describe the content is important.

• These tags are used by some indexing systems to help build their

indexes.


Techniques to Improve Index “Hits”

• Write clear but descriptive Web page text that a search engine can

index.

• Avoid using frames, or have an alternate no-frames site to help search

engine spiders locate all Web pages at a Web site.

• Use static HTML pages for products that can be indexed by search

engines, instead of active pages that are generated by the server from

data in a product database.


Techniques to Improve Index “Hits” (cont’d)

• Use fewer or smaller images to keep page load times down.

• Provide links to complementary pages.

• Arrange for inbound links from other Web sites which are used by some

search tools to determine a Web page’s ranking or relevance.

• Periodically review search engine results

• Examine competitors site, including meta tags


Public Relations

• A public relations effort is one of the more cost-effective marketing

tools.

• Part of the art of a public relations effort is writing effective press

releases and sending those releases to the appropriate destinations at

just the right time.

• There are many businesses that specialize in providing public relations

services.


Customer Communications

• Direct communications with potential customers is important.

• Key thoughts: interactive, immediate, optional (opt-in vs. opt-out)

• Usenet newsgroups and forms represent a significant way to

disseminate news and respond to customer concerns.

– Portray as an industry leader

– Not for advertising, just informational


Affiliate Programs

• Affiliate Web sites are an important source of customer referrals.

• In an affiliate program, the E-Business pays a referral fee (usually a flat

amount) or commission (a percentage of the sale) on all sales sent to

the E-Business from another Web site.


Other Cost-Effective Promotion Methods

• Link exchanges

• Web rings

• Awards

• Word of mouth – goodwill marketing


E-Business Advertising

• Conventional advertising techniques may be necessary.

• Including a Web address and an email address in conventional advertising materials is important.

• URLs are everywhere (UPS)

• This will “drive” potential customers to the Web site and promote brand awareness.

• Web based advertising can be purchased from a number of popular portal sites.

• Banner Ads – priced according to number of impressions (viewings)

• Click-through rate - % of viewers who click on a banner ad to view the advertised web site


Benchmarking a Web Site

• A benchmark is a performance-based objective for a business’s Web

site.

• The process:

– Determine the goals (increase sales, reduce costs)

– Set the benchmarks

– Measure the results

– Draw reasonable conclusions


Measuring Web Site ROI

• Traditional financial measures available include ROI.

• Look at customer satisfaction and intangible benefits.


Online Measurement Tools

• Web metrics – measuring web site performance

• Web servers record all of the events that they process to files called log

files.

• A careful examination of these log files can reveal much about a Web

site’s effectiveness.

• Analysis software is available to examine logs.


Logging and Tracking

• Some of the information gained will be:

– Number of visitors

– Number of page views

– Views per visitor (how deep visitors are going)

– IP addresses of visitor – approx locations

– Referring URL’s

– Browser type

– Conversion rate (dividing # of orders by # of visitors)

– Errors

– Return visitors


Web Metrics

• Third-party analysis tools

• Click trail – the path a viewer takes on a Web site

• Sticky web sites – Web sites whose content keeps visitors coming back

again and again without relying on advertising to bring them back

• Web site traffic audit providers – third party that validates web site

traffic info (amount, type, etc.)

– Media Metrix, Nielsen/NetRatings


Digital Marketing

• 90% of Indian brands spend upto 15% of their marketing budgets on

digital marketing

• 32% of Indian brands have dedicated digital marketing teams

• 23% of Indian brands have digital marketing budgets in excess of Rs. 1

million per annum

• 14% of Indian brands spend between Rs. 10- 20 million per annum for

digital marketing


Digital Marketing

• Customer Acquisition is the primary focus for majority (58%) of Indian

Marketers

• For 50% India Marketers, e-Marketing revenue contribution is above

10%

• 85% of the Marketers are tracking revenues generated through e-

Marketing activities for their business.

• 80% of India Marketers believe that integrated campaigns (Email,

Social and Mobile) can result in increase in conversion rates

• Social Media updates was the top choice for achieving maximum

customer engagement (46%) followed by email campaigns (28%)


Digital Marketing

• Social Media (66%) and Email marketing (53%) tops the list of

marketing activities being planned for 2016

• 45% of India Consumers respond positively to email offers (which is 3x

of US Consumer).

• For 2016 almost 50% of Indian Marketers will be increasing their

investments by 31%-50% in Email

• The acceleration in growth of subscribers is expected by 31% of

marketers, a 500% increase from 2015

• Indian Marketers show an increasing preference for Purchase History

to be axis for Email Marketing Segmentation


Changing Marketing Landscape

• Internet strategy integration

• Internet marketing metrics

• Big data

• Wireless networking

• Individual internet worth

• Web 2.0

• E-commerce

• Influencer marketing

• Evolution of the internet

• Internet of Things

• Personalization and customization


Why Ecommerce Business Has Become So Popular?

• As discussed earlier, the first and foremost cause behind the success

of ecommerce business is its reach.

• Ecommerce business operates on the internet platform and today with

the internet’s power, you could get far more customers than you could

by running an actual shop.
