Transcript Kari Sipilä Director, D.Sc.(Tech.)h.c. FUTURE INNOVATIONS Past President of LES Scandinavia Former Director of the Foundation for Finnish Inventions Espoo, Finland FROM INTELLECTUAL PROPERTY TO BUSINESS ASSETS Damascus 14-17.5.2007 ©

Kari Sipilä
Director, D.Sc.(Tech.)h.c.
FUTURE INNOVATIONS
Past President of LES Scandinavia
Former Director of the Foundation for Finnish
Inventions
Espoo, Finland
FROM INTELLECTUAL PROPERTY TO BUSINESS
ASSETS
Damascus 14-17.5.2007
© Kari Sipilä www.futureinnovations.fi
KARI SIPILÄ IN THE FIELD OF INNOVATIONS
• Dr. Kari Sipila is a citizen of Finland and has graduated at Helsinki
University of Technology.
• He is Executive Director in a consulting company Future Innovations,
which is specialized in management and innovation development
activities. He is a consultant to SME companies, to WIPO, EPO and to
some other international organizations in the fields of intellectual
property and innovation policy, development and commercialization.
• He is also the Immediate Past President of LES Scandinavia Licensing Executives Society of Scandinavia, a member in the Finnish
Academies of Technology and a former member of the Board of The
Finnish Technology Award Foundation.
• He has been in 1992- 2003 Executive Director of the Foundation for
Finnish Inventions, a non-profit Innovation Center, which promotes,
finances and assists in IPR, developing and commercialization of
Finnish innovative products. Earlier he has been Director in a bank
and in domestic and international companies in Finland, USA,
Switzerland and Saudi Arabia.
© Kari Sipilä www.futureinnovations.fi
CONTENTS
•
•
•
•
•
Innovation experiences from Finland
From inventions to innovations and to business assets
Management of Intellectual Property ( IP )
Valuation of IP assets
Influences of innovation activities
© Kari Sipilä www.futureinnovations.fi
THE SIGNIFICANCE OF INVENTIONS
IDEAS
INVENTIONS
INNOVATIONS
Business
Entrepreneurship
Competitiveness
Internationalization
Employment
© Kari Sipilä www.futureinnovations.fi
INVENTIONS AND INNOVATIONS
INVENTIONS AND INNOVATIONS
ARE THE CORNERSTONES
OF SUCCESSFUL COMPETITIVE
PRODUCTS AND BUSINESS REFORMS
© Kari Sipilä www.futureinnovations.fi
INNOVATION EXPERIENCES FROM FINLAND
© Kari Sipilä www.futureinnovations.fi
THE WORLD – AND GLOBALIZATION
© Kari Sipilä www.futureinnovations.fi
REPUBLIC OF FINLAND
•
•
•
•
•
•
•
•
•
•
•
Member of European Union
5.2 mill. inhabitants
Area 338 000 km2
Capital Helsinki
GDP 25 600 euros ( 30 000 USD )
20 universities
Modern industries and innovations
• Information technology
• Metal
• Wood, paper, pulp
One of the most wired and wireless nation
in the world
The world’s leading innovator in mobile
phones and telecommunications
Home to the world’s most developed
electronic banking system
The world leader in forest products, pulp,
paper and board technology
© Kari Sipilä www.futureinnovations.fi
HELSINKI
FIELDS OF INNOVATION AND TECHNOLOGY POLICIES
IN FINLAND
• EDUCATION, KNOWLEDGE AND KNOW-HOW
• PRIVATE AND PUBLIC R&D AND ITS FINANCING
• COOPERATION BETWEEN PUBLIC AND PRIVATE
SECTORS
• DEVELOPMENT OF EXISTING AND NEW SECTORS
• FOCUS ON AREAS OF SPECIFIC EXCELLENCE
• INTERNATIONAL COMPETITIVENESS
© Kari Sipilä www.futureinnovations.fi
RESULTS FROM INNOVATION ACTIVITIES IN FINLAND
• HIGH RATINGS IN INTERNATIONAL
COMPARISONS LIKE IN
–
–
–
–
–
COMPETITIVENESS
RESEARCH AND DEVELOPMENT ( R&D )
PATENTING
HIGH TECHNOLOGY
UNIVERSITY-COMPANY COOPERATION
• FINLAND IS ABOVE EU’S AVERAGE RATINGS
© Kari Sipilä www.futureinnovations.fi
(Source: NBPR)
© Kari Sipilä www.futureinnovations.fi
© Kari Sipilä www.futureinnovations.fi
FROM INVENTIONS TO INNOVATIONS
AND TO BUSINESS ASSETS
© Kari Sipilä www.futureinnovations.fi
KEY ELEMENTS
IP Creation
Impact Recognition
Strategy, Policy
Value Extraction
© Kari Sipilä www.futureinnovations.fi
Portfolio Management
INTELLECTUAL PROPERTY ( IP ) POLICY
1. Types and role of intellectual property (IP)
2. Management and organization for IP
3. Making and acquisition of inventions
4. Rewards
5. Instructions on utilizing patent information
6. Instructions to secure and maintain patent
protection and protecting the corporate patents
7. Portfolio management, follow up, business
8. Values of IP
9. Licensing behavior ( out and in )
10. Infringements
11. Publication policy
© Kari Sipilä www.futureinnovations.fi
FIELDS OF INVENTIONS AND INNOVATIONS
• TECHNOLOGICAL
• STRATEGIC
• BUSINESS
• SOCIAL
• COMBINATIONS
© Kari Sipilä www.futureinnovations.fi
HOW TO START THE INNOVATION PROCESS?
•
•
•
•
•
•
•
Get familiar to possibilities and practice of Intellectual
Property ( IP ) and Interrectual Property Rights ( IPR )
IP is creating something new ( inventions, trademarks,
copyrights, trade secrets and other forms of IP; research
and development; think: who, where and how )
Would IPR be useful to your company?
Arrange the IPR information, encouragement,
organization and financing in your company
Start the innovation and IPR policy work
Get familiar with others in the field of IPR
Do not get disappointed with the first problems!
© Kari Sipilä www.futureinnovations.fi
© Kari Sipilä www.futureinnovations.fi
RIGHT FROM THE BEGINNING
AN INVENTION
MUST BE CONSIDERED AS
A BUSINESS OPPORTUNITY !
© Kari Sipilä www.futureinnovations.fi
FROM IDEAS INTO PRODUCTS ON THE MARKET
IDEA
EVALUATION,
PLANNING
PATENTING
PRODUCT
DEVELOPMENT
COMMERZIALISATION
KNOW-HOW AND FINANCIAL RESOURCES ADD VALUE
© Kari Sipilä www.futureinnovations.fi
MODERN PRODUCT SAVES TIME AND
DEVELOPMENT REQUIRES CO-OPERATION
IDEA
PRODUCT DEVELOPMENT
• IDEA
• DEVELOPMENT
POTENTIAL
PRODUCT
MANUFACTURING
MARKETING
IPR, PRODUCT DEVELOPMENT
• MARKETS
• COMPETITION
MANUFACTURING
© Kari Sipilä www.futureinnovations.fi
SALES
• NEW
PRODUCT TO
MARKETS
INTELLECTUAL PROPERTY AND BUSINESS ASSETS
•
•
•
•
Intellectual property often forms the basis for
business assets
corporate development
growth
international expansion
© Kari Sipilä www.futureinnovations.fi
INNOVATIONS REQUIRE EXPERT KNOW-HOW
IN MANY AREAS
• MANAGEMENT
• INTELLECTUAL PROPERTY RIGHTS
• INNOVATION PROCESS
• PRODUCTION
• DOMESTIC AND INTERNATIONAL MARKETING
• COOPERATION SKILLS
© Kari Sipilä www.futureinnovations.fi
INTELLECTUAL PROPERTY MANAGEMENT
AND VALUATION
© Kari Sipilä www.futureinnovations.fi
INTELLECTUAL PROPERTY IS A PART OF COMPANY´S BUSINESS ASSETTS
Market value
Adjusted Shareholders´
Equity Financial Capital
Customer
Capital
Intellectual Capital
Organizational
Capital
Human
Capital
Customer
Base
Process
Capital
Base
Value
Customer
relationships
Corporate
culture
Relationship
Value
Customer
Potential
Innovation
Capital,
IPR
© Kari Sipilä
www.futureinnovations.fi
Potential
Value
EXAMPLE OF A STRONG USE OF IPR
•
•
•
•
•
•
Patent(s) for product(s)
Patent for manufacturing method
Corporate trademark
Product trademark(s)
Copyrights
Trade secrets
© Kari Sipilä www.futureinnovations.fi
MEASURING THE INFLUENCE OF INTELLECTUAL
PROPERTY ASSETS
•
QUANTITY AND QUALITY OF
– PATENTS, TRADEMARKS, COPYRIGHT AND OTHER IP
– RESEARCH AND DEVELOPMENT WORK OR PROJECTS AND ITS PERCENTAGE
OF TURNOVER
– COOPERATION WITH UNIVERSITIES OR RESEARCH INSTITUTES
– CUSTOMER CONTACTS GENERALLY AND ALSO FOR LICENSING AND
TECHNOLOGY TRANSFER
•
•
•
•
VALUE ADDED PER PERSON
INNOVATION POLICY AND ITS FULFILMENT
BUSINESS SUCCESS, MAKE-OVER RATE, OR THE ABILITY TO
INTRODUCE NEW PRODUCTS AND THEIR SHARE OF TOTAL SALES
DOMESTIC AND INTERNATIONAL REPUTATION
© Kari Sipilä www.futureinnovations.fi
WHY IP MANAGEMENT ?
1. To focus
– The IP based business
– Competitors and partners
2. To get
– Knowledge
– Fresh ideas
3. To develop
– The niche and best business areas
4. To manage
– All intellectual property
© Kari Sipilä www.futureinnovations.fi
IP NEEDS ACTIVE MANAGEMENT 1 (2)
• The management of the company has the central
role in the strategy and policy work, also in the IP
policy
• The goal is to get the best use of IP to improve the
business and competitiveness of the company
• The IP organization has the responsibility of the
fulfilment of the IP strategy in the company
• The size and form of the IP organization may vary
depending on the company
© Kari Sipilä www.futureinnovations.fi
IPR NEEDS ACTIVE MANAGEMENT 2 (2)
• The IP organization activates and coordinates the
innovation work inside the company, evaluates the
need of the resources and follows the budget
• IP management has to follow the latest
developments in the IP field
• It is in charge of education of IP matters in the
company
• It may also be a business unit in IP matters, in
cooperation with other business units of the
company
© Kari Sipilä www.futureinnovations.fi
IP MANAGEMENT
IN A SMALL OR A START-UP COMPANY
President (Managing Partner),
also in charge of IP
Team A
Team B
© Kari Sipilä www.futureinnovations.fi
IP MANAGEMENT IN A SME COMPANY
President
Department A
(law and administration ),
the tasks include
IP Management
Department B
© Kari Sipilä www.futureinnovations.fi
Department C
IP MANAGEMENT IN A LARGE CORPORATION
President
Legal matters
Division A
Technology
IP Management
Division B
© Kari Sipilä www.futureinnovations.fi
Division C
VALUE OF A PATENT OR INTELLECTUAL PROPERTY
ASSETS VIEWED FROM DIFFERENT PERSPECTIVES
• The inventor’s perspective
• The inventing enterprise’s perspective
• The lisensor’s perspective
• The licensee’s perspective
• Social and perhaps global economic
perspectives
© Kari Sipilä www.futureinnovations.fi
VALUATION METHODS TO CALCULATE THE VALUE OF IP
• Cost Approach
- based as realised costs or by comparing costs of a similar
patent or product
• Market Approach
- based on selling or buying of patents, comparing similar
technologies or products
• Income Approach
- based on a licensed IP and estimate of future cash flow over
time, including estimates of success and risks. Popular method.
• Other methods
- Business Results Method is based on calculated or estimated cash flow
and revenues of business and estimated role of the patent in it. This value
changes according to time and business. It may also include the influence
of goodwill or value of other IPR
- Monte Carlo is a simulation method.
© Kari Sipilä www.futureinnovations.fi
VALUATION IS ONLY AN ESTIMATE
• Remember that all methods give only estimates
• It is good to use at least 2 methods
• Think and check the real possibilities of your product
or company in the competition situation
• Do not select estimates of price, profit, markets, time,
interest rates and risks too positively
• Valuations are only a starting point in business or
licensing negotiations
© Kari Sipilä www.futureinnovations.fi
INFLUENCES OF INNOVATION ACTIVITIES
© Kari Sipilä www.futureinnovations.fi
MAIN RESULTS TO A NATION FROM SCIENCE,
TECHNOLOGY AND INNOVATION ACTIVITIES
• Economic growth and social development
• The welfare of the nation and the citizens
• Successful and competitive domestic and
international companies
• New entrepreneurs and innovative products
• Good employment
• Possibilities for good education, science, research
and development activities and to continuation in
the forefront of technology
© Kari Sipilä www.futureinnovations.fi
INNOVATION ACTIVITIES HAVE LARGE INFLUENCES
• Children and students are more interested in sciences and mathematics
• Universities and companies are active with their innovation and patenting strategies and
policies
• The government recognizes the needs for changes in technology and innovation
policies
• More human efforts and financial resources to research and development activities
• Number of patent applications, new products and innovative entrepreneurs grow
• Many innovative companies seem to be more profitable than others
• With success of innovative companies, different interest groups get profit or revenues
- Taxes to government and municipalities
- Dividends to shareholders
- Business opportunities to subcontractors and service companies
- More employment
- Innovative enterprises pay often higher salaries
• Active R&D turns into company´s intellectual capital and means more highly educated
personnel
• Good and innovative products to customers
• New technologies support a renewing society
© Kari Sipilä www.futureinnovations.fi
TRENDS IN INTELLECTUAL PROPERTY ( IP )
• Strong growth in awareness of IP and its possibilities in
corporations, universities and also on political levels
internationally
• Globalization requires continuously new skills and
education, because the competition is worldwide
• Increased complexity in all technology, especially in
information technology, communications, etc.
• The field of IP widens and offers more possibilities to
business
• More new positions for IP staff and management
• More companies active in IP – also more competition
© Kari Sipilä www.futureinnovations.fi
© Kari Sipilä www.futureinnovations.fi
THANK YOU!
Kari Sipila, Helsinki/Espoo, Finland
[email protected]
www.futureinnovations.fi
www.les-scandinavia.org
© Kari Sipilä www.futureinnovations.fi