conference on intellectual property rights for smes organized by taiex in co-operation with wipo and...

Conference on

Intellectual Property Rights for SMEs

organized by TAIEX in co-operation with WIPO and the Turkish Patent Institute

Istanbul, 10 – 11 January 2005

Competitive Intelligence:

Exploiting the Power of Patent Information

Karl RacketteFreiburg, Germany

[email protected]

Competitive Intelligence: Exploiting the Power of Patent Information 2

Ikujiro Nonaka, Japan, 1998

„In an economy where the only certainty is uncertainty,

the one sure

source of lasting competitive advantage

is

knowledge.“


Competitive Intelligence for Whom?

Competitive Intelligence is important for – global companies, – large companies and – SMEs


What is Competitive Intelligence? (1)

Society of Competitive Intelligence Professionals http://www.scip.org :

A systematic and ethical program for • gathering,

– analyzing, and– managing

• external information– that can affect your company‘s plans, decisions,

and operations.


What is Competitive Intelligence? (2)

• Business discipline for decision making based on understanding the competitive environment

• Process of monitoring the competitive environment

• Organized system for collecting information about competitors

• Creation of insights that help make better business decisions


What is NOT Competitive Intelligence?

• Competitive Intelligence is not spying– uses open sources, public domain information

• Espionage– uses illegal means to gather information– breaks the law


Tools Used in Competitive Intelligence

• public domain information such as– newspapers, journals– radio, television– internet, information databases– company publications– official publications by government authorities

• reports, statistics,...• patent documents


Effects of Competitive Intelligence (1)

• Raw information is turned into intelligence

• Provides early warning of changes in the competitive landscape

• Allows early detection of opportunities and threats

• Enhances the marketplace competitiveness through a greater understanding of the competitive environment of a company


Effects of Competitive Intelligence (2)

• Enables managers to make informed decisions about research and development, marketing, investing, business strategies

• Leads to greater earnings

• Adds value to a company such as a SME


Actions involved in Competitive Intelligence

• Uses legal and ethical means and methods to gather information

• Involves a legal and ethical analysis of information regarding competitors


Questions solved by Competitive Intelligence

• CI obtains information as to what is occurring in a particular technological area– what are the subjects where research is being

done– what are the emerging research lines– which are the players in a technical field– which are the leading research teams– what are the technological trends– what are the patenting trends– what are the technology portfolios of a company– what are the technical strategies of a company


Patents

Patents reward disclosure rather than secrecy.


Basic Idea Underlying the Patent System (1)

All patent owners are obliged,

• in return for patent protection limited in time,

• to publicly disclose information on their invention in order

• to enrich forever the total body of technical knowledge in the world.


Basic Idea Underlying the Patent System (2)

• In exchange

for a limited-term right to exclude others from making, using or selling the potential invention,

the inventor must provide a

complete and accurate public description.

• This provides others with the ability to use that information to invent further,

thus pushing technology forward for the benefit of society.


Why are Patent Documents Published?

• Protection function

– Inform the public about the scope of protection limited in time and to a particular territory

• Information function– Teach the world wide public domain how to

use the invention


Principle of Territoriality

Patents are territorial

e.g.,

a Turkish patent

has no force in foreign countries,

just as foreign patents have no force in Turkey.

Foreign patents may be exploited inside Turkey!


Number of Patent Documents

• There are 40 million patent documents worldwide

• The 40 million patent documents describe approximately 13.5 million inventions

• On the average, for every invention a patent is applied for in three different countries


Number of Patent Documents

• Every year almost 1,000,000 patent documents (patent applications and granted patents) were published over the past 10 years

• More than 10,000 new patents are filed every week

• Every 30 seconds a new patent document is added to the vast technical library of patent documents


•

(C) Copyright: 1998 -2003 Japanese Patent Office and European Patent Office

Domestic or Initial Patent Applications

http://www.uspto.gov/web/tws/tsr2002/pdf/tsr_2002.pdf


Expiration of Patent Rights

Once a patent expires, the protection ends, and an invention enters the public domain.

The owner no longer holds exclusive rights to the invention.

The invention becomes available to commercial exploitation by others.


Expiration of Patent Protection ( 20 years)


http://www.uspto.gov/web/tws/tsr2002/pdf/tsr_2002.pdf


4.6 Million Patents were in Force in 2001

• USA 1 388 000 30%• EPC States 1 268 000

28%• Japan 1 079 000

24%• Others 854 000

18%


Patents in Force 2001



Formats of Patent Information

• Typed paper• Printed paper• Photocopies• Microfilm• Online services (abstracts or full text)• CD-ROM / DVD• Internet (full text and drawings as

files in tiff or pdf format)


Kinds of Patent Information

• patent applications filed• published search reports• granted patents• reexamined patents• published court decisions

• Gazettes, data bases and other secondary literature in paper or electronic form


Most Important Patent Information

• Published application for a patent– 18 months after filing/priority date

• with or without search report

• Published patent after being granted– with examination

as to form and substance– without examination

as to substance– after opposition proceedings


Examples of Patent Information

• European Patent Application– front page data listing

– abstract of a European Patent Application

– description, claims, drawings

• European Search Report – with prior art citations

• classification of the fields searched

• assessment of the relevance of the citations

• European Patent Specification


Abstract of a European Patent Application


European Search Report (1)


Patent

A patent is a right granted and published

for any device, substance, method or process,

which is

new,

involves an inventive step and

is susceptible of industrial application.


Content of a Patent Document

• Identification information (business)

• Legal information

• Technical information


Identification Information

• Issuing authority

• Application number

• Publication number


Legal Information Contained in a Patent Document

• Issuing authority• Name and address of the inventor• Name and address of the applicant/proprietor• Date of filing• Date of priority• Date of publication• Country of priority claim• Country or countries covered• Claims


Claims

A series of numbered statements in a patent specification, usually following the description, that define the invention and establish the scope of the monopoly conferred by the patent.

At least one such statement (usually the first) will be self contained - this is known as an independent claim.

Others may refer to previous claims and using wording such as ”... as claimed in claim 1 or claim 2...” - these are known as dependent claims.


Technical Information Contained in a Published European Patent Application

• Description– Background and discussion of relevant prior art

• Problem to be solved by the invention• Solution to the problem in broad terms

– Detailed description with examples• Drawings where appropriate• Abstract

• Search results• International Patent Classification


International Patent Classification (IPC)

• a hierarchical classification system comprising

– 8 sections, – 120 classes, – 628 subclasses and – 69,000 groups (main groups and

subgroups).

• For the uninitiated user, it is advisable to approach the Classification by using the official Catchword Index to the IPC.


International Patent Classification (IPC)

• Authentic versions (English and French) of the IPC are made available on the WIPO Web site, permitting the user to browse the text of the Classification in order to find the relevant IPC symbols.

• The seventh edition of the IPC is in force since January 1, 2000.

• The eighth edition will enter into force on January 1, 2006


International Patent Classification (IPC)Sections

A Human NecessitiesB Performing Operations; TransportingC Chemistry; MetallurgyD Textiles; PaperE Fixed Constructions F Mechanical Engineering; Lighting;

Heating; Weapons; BlastingG PhysicsH Electricity


International Patent Classification (IPC) Classes of Section H

H01 Basic Electric Elements

H02 Generation, Conversion, or Distribution of Electric Power

H03 Basic Electronic Circuitry

H04 Electric Communication Technique

H05 Electric Techniques not otherwise provided for

http://www.wipo.int/classifications/fulltext/new_ipc/ipc7/fh.htm#H03

http://www.wipo.int/classifications/fulltext/new_ipc/ipc7/fh04b.htm#H04

http://www.wipo.int/classifications/fulltext/new_ipc/ipc7/fh04b.htm#H04


International Patent Classification (IPC) Subclasses of Class H 04

H 04 B TransmissionH 04 H Broadcast communication

H 04 J Multiplex communication

H 04 K Secret communication; Jamming of communication

H 04 L Transmission of digital information, e.g. Telegraphic communication

H 04 M Telephonic communicationH 04 N Pictorial communication, e.g. Television

H 04 Q Selecting

H 04 R Loudspeakers, microphones, gramophone pick-ups or like acoustic electromechanical transducers; Deaf-aid sets; Public address systems

H 04 S Stereophonic systems

http://www.wipo.int/classifications/fulltext/new_ipc/ipc7/eh04l.htm


International Patent Classification (IPC) Groups and Subgroups of Subclass H 04 B

1/00 Details of transmission systems1/02 . Transmitters1/03 . .Constructional details, e.g. casings, housings 1/034 . . . Portable transmitters 1/036 . . . Cooling arrangements .............1/38 . Transceivers, i.e. devices in which transmitter

and receiver form a structural unit and in which at least one part is used for functions of transmitting and receiving


International Patent Classification (IPC) Groups and Subgroups of Subclass H 04 M

1/00 Substation equipment, e.g. for use by subscribers

1/02 . Constructional features of telephone sets1/03 . . Constructional features of telephone transmitters

or receivers, e.g. telephone hand-sets 1/04 . . Supports for telephone transmitters or receivers 1/05 . . . adapted for use on head, throat, or breast1/06 . . . Hooks; Cradles1/08 . . . . associated with switches operated by weight

of receiver or hand-set1/10 . . . . associated with switches operated by

magnetic effect due to proximity of receiver or hand-set


Advantages of Patent Documents as a Source of Technological Information

• Most current and up-to-date• Uniform structure makes reading easier• Not published elsewhere (unique)• Well organized due to classification system• Concentrated information• Quick and easy access (internet)• Low cost (accessible)• Unique Resource (U.S. patent file spans over

200 years (evolution of society))


Who Uses Patent Information? (1)

• Independent inventors • SME‘s • Business and industry• Scientists and researchers • Educators and students • Legal professionals, e.g. patent attorneys and

agents • Patent searchers and paralegals • Commercial database producers


Who Uses Patent Information? (2)

• Government agencies, particularly departments involved in economic planning and development, industrial property activities or licensing

• Librarians and technical library administrators • Historians, social scientists, and other scholars • Collectors and antiquarians • Journalists • General public


Searching and RetrievingPatent Information

• by using the filing number or publication number• by using references found in a patent document

– to find prior art– to find possible infringers

• by using the bibliographic data• by using the International Patent Classification• by using well chosen key words• by using combinations of the above strategies


Analysis of Patent Information

• for finding protected information• for finding out time limits and geographical limits of

the protected information• for finding licensors or licensees• for finding infringers• for finding existing solutions to technical problems

that are not protected• for finding translations to avoid translation costs


Reasons Raised for Not Using Patent Information

• 133• Do not consider patent information to be useful or

relevant to the company• Do not know enough about patent information• The cost of acquiring the information is too high• Can get this information from newspaper, journal or

other literature


Reasons for Searching Patent Information

• to check whether an invention may be patented • to check that a product does not infringe an existing

patent• to keep track of the market and competitors• to keep abreast of technological developments

generally (lifelong-learning)• to get information in response to a specific

technological problem• to license in new technology• to study history of technology or social changes


Conducting Patent Searches

• by hiring a patent agent • by searching online or the Internet • by the Patent Office at time of application• by visiting a library with patents • through a parent company or another branch of the

company • through a business link or Chamber of Commerce • by a specialist patent search service • by other external information service • by a trade or research association


Simple Analysis

• Direct count and evaluation of the number of patent applications (and those for which patents were granted)

– of a country / granting authority– of a company (expiration dates)– of an inventor– of a particular IPC (key words)– of number of annuities paid since filing

• within one given large time frame or • for a trend analysis within several smaller time

frames to compare the results and to analyze the evolution


Statistical Analysis of Patent Documents Concerning a Particular Applicant or Proprietor

Analyzing the allows to find

applicants / proprietors (further) cooperating companies

inventors top inventors in a company

IPC symbols fields of expertise, R&D focus

priority data (dates) activity chart of a company

country codes (national patents) importance of markets

designated EPC states (foreign) markets of interest

designated PCT states (foreign) markets of interest


Statistical Analysis of Patent Documents Concerning a Particular Inventor


applicants / proprietors employers, assignments, C.V.

inventors (further) inventor teams, networks

IPC symbols fields of expertise of an inventor

priority data (dates) creativity chart of an inventor

country codes (national patent) local importance of inventions

designated EPC states value of his inventions

designated PCT states value of his inventions


Statistical Analysis of Patent Documents Concerning a Particular IPC


applicants / proprietors market leaders, competitors

inventors experts in a field of technology

IPC symbols related technology

priority data (dates / countries) evolution/origin of a technology

country codes (national patents) importance of foreign markets

designated EPC states major regional markets

designated PCT states geographic importance


Statistical Analysis of Patent Filings in or from a Particular Country / Region


applicants / proprietors top players in/from a country

inventors important experts

IPC symbols important technology, in / from

priority data (country) workplace of top players

priority data (date) changes within a territory

designated EPC states countries in competition

designated PCT states countries in competition


THE END

Thank you for your attention!

conference on intellectual property rights for smes organized by taiex in co-operation with wipo and...

Documents

competitive intelligence

competitive landscape

raw information

external information

patent system

patent protection

patent documents

patent owners