From Invention to Patent-Patents as Tool for Economic Success-

WIPO – INSME International Training ProgramIP and Management of Innovation in SMEs

May 11, 2005

Christian W. AppeltGerman and European Patent and Trademark

Attorney

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What is IP – Why do we need IPRs?

Intellectual Property / Immaterial Goods

•No „physical entity“ („idea“)•Realizable / easy to copy/multiply•Value when multiplied? (rises/falls)•Aggregate Value added (by whom?)•Amendments possible•control?

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Major Effects of Patents

• Patents control a product or market segment

• Patents disclose knowledge to public

• Patenting requires “money”– Costs for application and prosecution– Renewal fees

→ To patent or not to patent???

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Criteria for IP decision - market

• Factor “time” – Patent prosecution 2-4 years– Patent enforcement 1-2 years

(longer?)• Market/competitor situation

– “behavior” of competitors– Possibilities for cooperation– Possibilities for “other products”,

circumventing scope of protection

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Criteria for IP decision - procedural

• Legal (Patent Law)– Publication after 18 months– Possibly patenting by competitor

• Technological aspects– Technical advantage– Possibilities for keeping secret– Technical alternatives

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Criteria for IP decision - financial

• Costs for a patent– European Patent: EUR 10.000 to

40.000, depending on no. of designated countries

– National Patent: EUR 5.000 to 10.000– Renewal Fees

• Costs for enforcement/litigation (national)– Depending on country (DE ↔ US)– Cost “risk” DE: EUR 60.000 to 200.000

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Defensive/passive Strategies

• Keeping secret– Non-disclosure of technical knowledge

• Due Diligence– Search and evaluation of IPRs of Third

Parties

• Publication (“Secret” Publication)– Preventing patents of Third Parties

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Active Strategies

• Application strategy– Which technology where to patent ?

• Market• Place of business of competitor• Enforcement systems (legal, time, costs)

• Enforcement Strategies– Litigation / Monopoly– Cooperative strategies

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Application Strategies

• Application of “basic patents”

– Patents with broad scope of protection

– Already very few (single) patents effective

– However, often not possible (in “third hands”)

• Application of “enhancement”

– Smaller scope of protection→ more patents necessary

– “holes” in protection of basic patent by alternative solution

– Stopping further enhancement of basic product

– Dependent patents → cross licensing

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Basic Technology vs. Further Enhancement

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Patent or Know How ?

• Can invention be kept secret for “absolute reasons“?

• Can invention be kept secret for “relative reasons“?– Persons involved internally– External cooperation– Secrecy agreement– “Secret“ publication

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Advantages of IPRs (Patents)

• Protection of own business– Control of own Technology (Start Ups, SMEs)– Freedom to market (!!)– Access to external Technology– Currency: “technology”

• Licensing (and Technology Transfer TT)

• Medium term goals

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IPR – Generating Process

• State of Art / Problems / Searches• R&D, Manufacturing, Ideas, …• „Finalization“ of an invention?• Confidentiality Agreements / no

publication/use• Early Filing of 1st application

– delay of further costs (foreign filings, EP, PCT,…)?

• First protect, then make business!(or “Know How” ?)

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Patents in Force(Source: EPO – Trilateral Web Site)

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Worldwide Patent Activities(Source: EPO – Trilateral Web Site)

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Who owns your local market?(Source: EPO – Trilateral Web Site)

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Further Questions ?

Contact me at:

Appelt@Boehmert.deChristian W. AppeltBoehmert & BoehmertPettenkoferstr. 20-22D-80336 MunichGermanyTel.: + 49 – 89 – 55 96 80Fax: + 49 – 89 – 34 70 10