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INTELLECTUAL PROPERTY Which intellectual property
PUBLISHING MANAGER
strategy firm delivers more
Charles Orton-Jones DESIGN, ILLUSTRATION, INFOGRAPHICS
of the World's Top 300 IP
Strategists than any other?
Freelance writer, based in Madrid, he specialises in the international economy, emerging markets, VALUING THE POWER insurance and related subjects for business publications in the UK, United States and Brazil.
OF UK CREATIVITY Former editor of The Law Society Gazette, he is now a contributor to The Times and a special reports writer for The Lawyer magazine.
The UK has migrated to a knowledge economy, but too few Author and freelance business journalist, he specialises in technology, marketing, corporate businesses value their intel ectual property, from original J.K. Rowling's Har y Potter books are protected by finance and fast-growth companies. ideas to brand recognition, writes Charles Orton-Jones copyright and can be read in Former Professional Publishers Association Business Journalist of the Year, he was editor-at- large of LondonlovesBusiness.com and editor of Ȗ Once upon a time, protecting Ensygnia comes to the war well securing investment in my tech- currently is simply too high a cost intellectual property was a boring prepared, registering two patents nology businesses." and just doesn't make sense for a necessity. Business owners went in 59 countries. Its fourth hire was Gerald Brady, managing director young SME [small and medium- Science, technology and business writer, currently through the tedious legal processes a chief legal officer. Patent conflicts of Silicon Valley Bank's venture sized enterprise]." Worse, he adds: on the staff of The Register, she also contributes to required to register and then between startups like this used capital arm, works with entre- "Defending IP is very difficult, hoped the issue would never arise to be rare. Ensygnia saw early on preneurs to help them use IP particularly for companies like again. It was on a par with mak- that the landscape is changing as as security. He reports: "When ours that are global by nature. For EDWIN SMITH
ing sure the company telephones mastering IP means the right to Silicon Valley Bank started 30 example, the chances of us defend- Writer and editor, he has contributed to The Guardian, worked and staff toilets flushed.
dominate lucrative fields. And it years ago, we established a novel, ing ourselves somewhere like The Independent, The Independent on Sunday, The Sunday Telegraph, London Evening Standard, City AM That was then. Today intel- proceeded from the outset with highly differentiated model of China are slim to none." and Private Eye.
lectual property (IP) is becoming that in mind. lending, which was based on taking Even firms that can't use the the number-one corporate bat- Investors are ramping up the security on IP, rather than using might of the law need to handle tleground. For many firms it is the importance they place on IP. Iceo- the traditional asset-based model IP very carefully. Board game single most important commercial tope makes liquid cooling for serv- that is still used by most banks in entrepreneur Matthew Tidbury and strategic concern. It is the key ers. It is a technology with huge 2014. We recognised then, and still has avoided registering any IP to securing funding. Defending IP global potential. Founder Peter do, that there is a real value to IP for his game City of Zombies. and winning licensing rights can be Hopton attributes landing invest- rather than the accounting view of Defending a claim is too expen- a goldmine. Losing those rights in ment of $10 million to his focus intangible assets." sive. Instead, he's avoided mak- court can mean ruination.
on intellectual property. The high Online payments startup Paddle up-front cost of patent registration is in the midst of an existential IP was no disincentive.
Share and discuss online at raconteur.net
EverEdge IP is one of the world's leading intellectual property strategy firms. battle. It had barely launched when "When I started my career, I Telefonica-owned rival Ensygnia was in the position of having no If a startup fails to thrive, there ing the game in China and won't alleged Paddle was infringing patents and a lot of ideas," he may be value in IP during the display it at trade shows, to frus- We help companies identify, manage and leverage intellectual property to create two patents relating to log-in and says. "I would often hear people fire sale. "This option simply did trate copycats. payments processes. Arbitration comment on the pointlessness of not exist for companies ten to "My intention is to secure a failed. Paddle claimed the fees patents and, as a result, chose to fifteen years ago," says Mr Brady. licensing deal," he says. "That way demanded were uncommercial hold most of my IP as knowhow. "Therefore, these days, even in a the game is protected under the wealth. This is our edge.
and disputed the validity of the Ultimately, experience led me shutdown scenario, investors and umbrella of the licence too and a patents, so the pair are in court. to an understanding that badly management can recover some large licensing deal will published Although this publication is funded through advertising and Paddle founder Ed Lea says: "It is written patents are pointless, but value from their investment." a massive number of the games in sponsorship, al editorial is without bias and sponsored features are disheartening to be spending our well-written and well-researched With such incentive to register one go so my tenure is secured – at clearly label ed. For an upcoming schedule, partnership inquiries or feedback, please cal +44 (0)20 3428 5230 or e-mail limited resources on legal services, patents are hugely valuable, IP, the question arises why more least for a while." Talk to us today about how we help turn innovation into value.
but we feel that we've been given despite the expense. Patents have firms don't protect it. According to Two new developments will been one of the key factors in Clifton Asset Management, only 6 increase the value of IP. A new Raconteur Media is a leading European publisher of special interest per cent of firms value their IP at European patent will grant rights content and research. It covers a wide range of topics, including more than 10 per cent of business across the EU at a stroke. There business, finance, sustainability, lifestyle and the arts. Its special [email protected] 020 35193023 everedgeip.com worth. A most prominent reason is also the Patent Box tax break reports are exclusively published within The Times, The Sunday Times is cost. Some firms can't justify designed to encourage UK entre- and The Week. www.raconteur.net There is a real value to intel ectual
preneurs to register IP.
Purple Wifi makes analytics Both these mean intellectual The information contained in this publication has been obtained from sources the Proprietors believe to be correct. However, no legal property rather than the accounting
software for public internet hubs. property is an issue no firm can liability can be accepted for any errors. No part of this publication may Founder Gavin Wheeldon says: ignore. The incentives to master the be reproduced without the prior consent of the Publisher. "Trying to file a patent to cover issue are large and growing. And the view of intangible assets
* As independently ranked by Intellectual Asset Magazine - the intellectual property industry's premier publication. Raconteur Media all 50 countries that we trade in price for failure may be extreme. twitter: @raconteur

INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY ago, England's Patent County Court evolved into the Intellectual Prop- erty Enterprise Court (IPEC). This M
ERCIAL Know your
was more than a re-branding exer- KEEP PUSHING A
cise as the court has widened its IP ambit beyond patents and pro- motes itself as a forum for smaller business claimants. Generally, IPEC deals with cases of up to £500,000 in damages. But the most important element is that recoverable costs are capped at £50,000. So while the court provides a quick resolution – cases come to Many organisations create a patent or intellectual court within three to six months of an initial hearing and trials are lim- property landscape only when bringing a new ited to half a day – the winning side can be left out of pocket if damages product to market or when another business don't cover the extra costs.
International issues further com- asserts a patent against them. Yet, maintaining a plicate litigation, although Brus- Many sets of middle-class hipster parents wouldn't be sels is attempting to simplify the seen without one as they push little Noah or Tabatha down How best to protect your intel ectual property rights position in Europe. A harmonised Islington's Upper Street on a sunny spring Sunday morning comprehensive, real-world understanding of the EU trademark exists and union- en route for a flat white and almond croissant. from infringement may be through litigation or a wide patent courts are soon to be Bugaboo is the perambulator of choice for many yummy patents being filed and who is filing them can be a launched in London, Paris and mummies and their caring and sensitive male – or even compromise arrangement, as Jonathan Ames reports Munich to adjudicate on a unified female – spouses, life partners or whoever else assists source of significant competitive advantage with the rearing of their children.
Copyright law is generally har- Protecting that brand position is crucial, especially for a monised across the EU, and an IP relatively young international company. The Amsterdam- Enforcement Directive unifies headquartered business was launched 18 years ago by penalties and remedies for actions two Dutch entrepreneurs, designer Max Barenbrug and Dr Ȗ When the football World Cup least marginally less traumatic Football shirt an IP partner at London law firm late," warns Tom Farrand, manag- Typically viewed as only a legal func- assess the potential risk to its own kicks off this June, the competi- and confusing.
manufacturers will Withers. "Just talking to people ing director of trademarks at the Outside the EU, the environment In 2003, they cracked the UK and US markets with their tion, patent analysis and intellectual business and proactively develop a tion's array of global mega-spon- The first issue for entrepreneurs monitor local counterfeit can be a good strategy – very often London office of Novagraaf, a Euro- is murkier. China and East Asia are distinctive products that are actually more pushchairs property (IP) landscaping can be competitive strategy." sors won't have at the forefront of seeking legally to defend IP rights traders at the World Cup chatting to potential investors will pean patent and trademark consul- considered in the popular concep- than prams. Total revenue for 2012 was €94 million (£78.7 useful as an advisory tool on a broad Assessing potential acquisition their minds the silky skills of the is to determine exactly what they in Brazil tease out information about what tancy. He cautions businesses keen tion as being bandit country, but the million), more than double its turnover seven years earlier. range of business functions, such as targets – and ensuring a company planet's most sublime purveyors of are trying to protect. Is it an idea else is out there." to cut deals not to enter discussions situation is improving. The Chinese Bugaboo products are now sold in 50 countries, with risk analysis, mergers and acquisi- doesn't overpay – is another area the beautiful game – or even the for- that could gain patent protection? Discovering a similar existing without insisting that all parties government gradually accepts the nearly 20 per cent of revenue generated in the Americas tions, product planning and competi- where patent analysis can help. tunes of individual national teams. A brand that could be trademarked? product need not scupper a busi- sign a non-disclosure agreement.
country must move towards west- and 12 per cent in Australasia. tive strategy. As a result, investigat- Mr Martin gives the example of a No, the men in suits will focus Or is there a creative element that ness's idea as a simple tweak in the So what can smaller businesses ern IP standards and an updated "It is important for us that our models are protected in ing the patent landscape should be of semiconductor manufacturer that their eye on one ball and it won't could be covered by copyright and design or brand might be enough to do if their IP is infringed? The first trademark law is to be imple- various markets around the world," says Bugaboo's top interest to both chief financial officers had agreed on a price to purchase be rolling along the pitch. Brand design law? get it back on track.
issue is extremely basic, but cru- mented in the country on May in-house lawyer, general counsel Jan Maarten. "Patent and chief executives.
another business, but realised the protection will concentrate execu- Once a product or idea is on the cial. The business must determine 1. That legislation will deal with protection is crucial because we are always looking for an of patents can be missed as a "Patent intelligence helps busi- patent portfolio was not as strong as result of patent data errors tive thoughts right the way through market, signs of IP infringement whether the IP rights assumed bad-faith filings, cracking down on invention – something the other brands don't have." ness leaders make better and more it had first thought. "They were able the finals, because no matter how Global
come in several forms. Word of actually subsist and are valid in law. trademark pirates of brand names. So far, the company has not had to litigate in the English informed decisions," says John F. to negotiate a reduction on the pur- popular an international commod- mouth is perhaps the most com- Andrew Bowler, a specialist part- But is litigating generally the best courts to protect either its design or brand. However, it Martin, chairman and chief execu- chase price by over £20 million," he ity football has become, protecting mon. "If the infringer is within ner at law firm Bristows, explains: practical solution for SMEs claim- has had some tiny flare-ups with websites either misusing tive officer of patent analysis soft- says. Such investigation can assess intellectual property (IP) is an even your industry, then you are likely "There are lots of situations where ing IP infringement? Not always, brand imagery or, more frequently, copying and pasting ware firm Innography. "When mov- the risks of future patent claims fol- bigger game.
to come across the problem your- rights have been granted by the UK Bugaboo product pictures. ing into a new technology or product lowing an acquisition, he adds.
Litigation and the courts form the self," says Sarah Wright, an IP or European authorities, but then "Initially, everyone would like The biggest headache for Mr Maarten's legal team is area, it answers questions such In-depth analysis of patent data can field on which this contest is played. partner at law firm Olswang. "If it are held invalid by a court. That is hefty damages," says Mr Mullen. dealing with various international patent and trademark as who is active in this technology also help organisations assess the The likes of Adidas, Coca-Cola and Entrepreneurs often fail to do is somebody outside the sector, it largely because the examiners at "But the problem with IP is that authorities, many of which have varying approaches to the and whether they are litigious, who value of their own portfolios and make Sony have teams of lawyers devoted basic market research before usually gets reported to you by an the patent offices have to deal with there is often a question over how registration process. are potential partnering firms and decisions about which patents can to protecting their IP, so woe betide launching an idea, product or employee or supplier." a huge number of applications and much damage has actually been "Protecting intellectual property is more difficult in whether it makes sense to develop be licensed to others and any poten- the cheeky local São Paulo market brand. Specialist solicitors, trade- Again, entrepreneurs need to box occasionally drop a stitch." caused. It can be very difficult to some jurisdictions than others," he says. "We are not or license these technologies." tial sales opportunities. "Intellectual trader attempting a tiny spot of mark and patent attorneys, can clever. "Often small businesses will Once satisfied the right is valid, determine unless you force the the only company that wishes there could be one global Examining patent data can also property is a multiplayer game," says Patent analysis and intellectual ambush marketing.
assess whether anyone else is miss the signs and get a whiff of the business must decide on the other side to tell you how much standard process." help monitor competitor activity, Mr Martin. "Companies need to know property landscaping can be But how can small and medium- already using a similar brand to one infringement when it's almost too best forum for dispute. Four years they have been selling and where However, Mr Maarten realises that wish is likely to remain including who is buying and selling where they stand relative to their useful as an advisory tool on a sized enterprises (SMEs) protect proposed or whether a competitor they've been selling it. And you just that. Global harmonisation of intellectual property patents or enforcing them through competitors and potential market range of business functions their own equally important IP, has developed and is already mar- can't do that until you get to court." (IP) registration is arguably politically impossible because litigation. "For example, using pat- entrants to fully understand the value defending it against infringement keting similar goods.
Lawyers advise businesses to Suing to protect IP can be a murky and expensive
many national authorities see the process as a nice little ent analysis for competitive intel- of their portfolio and determine the in the UK and abroad? While lawyers can assist with consider compromising with earner for their exchequers. ligence, a premium electronics best going-forward strategy." about their own strategy. Suing to protect IP can be a trademark and other searches, an infringer. A better practical Should smaller companies avoid court battles over IP at manufacturer was surprised to Staying on top of the millions of pat- "Being informed about your com- murky and expensive business. businesses should also do their own business, but there are some core principles that
option than doing battle in court all costs? Mr Maarten acknowledges that litigation costs discover a previously unknown ents filed each year would require pany's own portfolio is just the first However, experts point to some leg work. "It helps if clients them- might be to cut a licensing agree- chunks of time and cash. "As a Dutch company, we are competitor that was in stealth huge resources for an in-house step," says Mr Martin. "The really core principles that make the selves have done some basic market make the experience less traumatic and confusing
ment to co-exist peacefully with very pragmatic," he says ruefully. "But most of the time mode and was working to launch team. Even where such capabilities interesting answers arise from how experience, if not easy, then at research," says Kenneth Mullen, we have a strong case – and people realise that if they several competitive products," says exist, these tend to be based around your organisation compares with the infringe our patents or trademarks they will have a serious Mr Martin. "Armed with informa- traditional keyword searches, which other players in the marketplace." problem and they stop doing it." tion about the competitor's prod- can miss entries that use unusual uct plans, the business was able to terms or are from other industries. In addition, as many as 20 per cent Innography, Inc.
of patents can be missed as a result Corporate Office
of patent data errors. For instance, 3900 N. Capital of Texas Hwy.
International Business Machines is Suite 175
spelt some 900 different ways in pat- Austin, TX 78746
An integrated source of lower-cost advice which combines ent data, Mr Martin points out. United States
commercial and technical insight with legal expertise, Organisations, such as Innography, use big data techniques to compile the Telephone: +1 512 806 8688
helping you to commercialise, as well as protect, your IP.
We are not the only company that
latest information on patents, cleanse Toll free: 877 603 2070
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To see how we can add value via our range of IP capture and wishes there could be one global
advanced search techniques going helps business leaders
management services, please visit or contact us at: well beyond typical keyword search. The result is that multiple functions make better and more within organisations can learn valu-
able information about competitor activity and make informed decisions twitter: @raconteur twitter: @raconteur

INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY WHAT'S TO BE DONE
MORE SPEED WITH
PUTTING CUSTOMERS
DRUGS TRIALS
IN CONTROL
ABOUT BIG DATA?
Before new medicines are allowed on to the market, Allfiled is a UK-based company that aims to put consumers they must go through a trials process and this presents in control of their data while providing marketers with certain logistical problems for the pharmaceutical access to a highly targeted customer base. "We were companies concerned, not least in terms of recruiting founded about five years ago, by Steve Bennett," says chief Unprecedented amounts of valuable data patients to take part. executive Julian Saunders, "But over the past two years, As Graham Wylie of the Medical Research Network (MRN) what we offer has really come into its own." are now available for analysis by commercial explains, drugs companies need to get the trials up and The premise behind Allfiled is that consumers are running as quickly as possible to get the product on the concerned about how their data is being used. Meanwhile market at the earliest possible date. This maximises the businesses are struggling with the complexities of and public-sector organisations, but this commercial potential of the drug when it's under patent. managing and processing vast swathes of customer "But recruitment for trials has to be cost effective," he information. Under the Allfiled model, customers information constitutes intel ectual property, says. "Companies don't want to spend too much as the provide selected data that is of direct use to participating trial may not be successful." businesses. Armed with this information, these businesses writes Trevor Clawson The MRN specialises in recruitment for trials and is now can provide a better deal. using big data techniques to identify potential patients. The model has been successfully tried out on the Using a system known as Rapid, the MRN monitors social Moneysavingexpert.com website, operating as the Energy media for references to relevant medical conditions and Savings Club. It's a limited application with members analyses the conversations to identify patients most likely providing details of energy usage. This in return allows to take part in trials.
utilities providers to look at the consumption information In addition to monitoring conversations, the MRN is also and, where possible, offer cheaper deals. More than one gathering information on location and the media sites million people have signed up in a year. the candidates use. Drug trials are then advertised to Now Allfiled is developing an independent platform the candidates in a highly targeted way through their bringing together consumers and a range of trusted preferred media channels. "We don't contact them partner companies. "The key to our model is trust," says directly. They see the advertising and opt into the trials," Mr Saunders.
There are variations on the theme, for instance, sites It's an approach that has already been used on one trial that enable consumers to sell their data. Mr Saunders for a Hepatitis C treatment. Early indications suggest the prefers the "trust coupled with the promise of a better Ȗ Dutch bank ING planned to amassing data and applying pre- approach cuts advertising costs, speeds up recruitment deal" approach, believing consumers who have expressed share the details of its custom- dictive modelling techniques, and, because it is based on public-domain material, is an interest in a particular product group will be more ers' debit and credit card transac- which enable them to target compliant with data laws. interesting to marketers than those who simply sell data. tions with third-party companies. marketing on customers at the The plan was simple. By providing point at which they are likely access to transactional informa- to be most receptive. In theory, tion, initially as an opt-in trial, the data can also be shared between – expected either next year or in those who fail to do so risk losing ucts from a "privacy by design" bank would enable its commercial companies along the ING model. 2016 – consumers will have more out to competitors. standpoint to ensure compliance partners to offer discounts based "Banks are in a very strong posi- rights to see their personal data A key question is whether or not with current and future law. on spending information. In the- tion to do this," says Alwin Magi- and order it to be deleted. an organisation has the right to But there is also the court of ory it was win-win, with ING's may, head of digital and analytics And as Vinod Bange, a partner use the information provided by public opinion to consider. For customer's enjoying cheaper deals at auditors and professional specialising in data at law firm customers. Alex Hazell, head of UK instance, US Retailer Target and the participating companies services company KPMG. "For Taylor Wessing, explains the new privacy and legal at digital market- used profiling and customer data Real business value benefitting from a highly targeted instance, if a bank knows how regulations considerably up the ing company Axciom, says that, to identify pregnant custom- route to consumers. much you spend on electricity, it ante in terms of penalties for data in IP terms, ownership of data ers, even down to the due date. breaches and misuse. "Under the essentially resides with the collec- Its marketing hit the headlines current UK law, the maximum fine tor. "However, the Data Protection when it targeted information at a Intellectual property – the ownership of any concept or design in a legally protected Share and discuss online at raconteur.net
is £500,000," he says. "This will Act creates a kind of quasi-IP on 16-year-old girl who had yet to tell rise to €100 million." behalf of individuals who provide form – is the real source of value for most companies. But many businesses do not Within hours of the announce- can get you a better deal on that." But KPMG's Mr Magimay the data. They have the right to And here's the rub. At one level, understand it, says Phoenix IP Ventures founder ment, privacy campaigners, mem- On the other hand, there are believes the potential of big data put limits on how the data can be consumers probably like to hear Osagie O. Imasogie
bers of the Dutch parliament had real constraints. Julian Saunders, can't be ignored and that large used," he says. about special offers or products tai- expressed concern, while Data chief executive of Allfiled, a com- organisations will have to opti- "The data you collect must lored to their data. However, some Protection Authority chairman pany that allows consumers to mise the value of their informa- be used in accordance with the targeting can come across as intru- Wilbert Tomesen urged ING to show control their data, says the con- tion assets to stay competitive. individual's legitimate expecta- sive. So how do you get it right? firm operates, the difference between government changed how it records informed decisions that will lead to ity daily, primarily in the life sciences restraint when profiling customers. troversy over the NHS Care Data "We have identified big data as tions," says Sam Jardin, a partner One way forward is to let the market capitalisation and the gross domestic product, to include direct financial improvements. On sector. We have developed a private There was a similar furore here scheme reflects a broader unease. one of the major disruptive forces specialising in data at law firm the consumer control the data. book value of many businesses is spending on entertainment and average, for every dollar spent on equity business model that enables in the UK when plans for the NHS "The intention of the scheme in the digital space," he says. Watson Burton. "Companies For instance, New York-based immense. In the last decade, large artistic items. This change sig- research and development, around us to monetise the inherent value of Care Data initiative were made was very good. I think much of In his view, those who use data also have to draw a distinction startup Datacoup allows consum- companies such as Johnson & John- nificantly increased the financial eight times more is returned (up to IP and its arbitrage opportunities.
public. The benign aim was to the opposition was sparked by effectively will reap huge benefits; between basic personal data and ers to sell their social media and son, Pfizer and Merck have frequently impact of the creative industry on $32) than from the same spending The only methodology for operat- analyse patient data from across concerns over certain sorts of sensitive data such as medical card data for $8 a month. There seen their capitalisation stand at two the American economy.
on new machinery, according to a ing successfully in maximising and England to identify problems and marketing and the issues raised history or criminal records. Sensi- are variations on this theme. In or three times book value.
The GDP change was introduced Columbia University study.
selling IP investments is this: to ultimately improve treatments. by [NSA whistleblower] Edward tive data can't be passed to other the UK, Allfiled is developing a Many industries witness the same only months after the US Patent and In the pharmaceutical sector, have a deep knowledge of and deep But the plan involved sensitive Snowden," says Mr Saunders. parties without express consent." way of enabling consumers to effect. Last summer, real recog- Trademark Office recognised that IP- large businesses remain commit- contacts in the industry, to focus on information. Privacy lobbyists and "People don't like to feel they're And as Vincent Bange adds, place selected data on a secure nition was given to the maturing intensive industries support at least ted to maximising their research discovering assets that have been patient groups cried foul, forcing being snooped on." in order to be confident about platform in return for discounts nature of this issue, when the US 14 million jobs and contribute more through IP licensing. The number neglected or not fully exploited, to Meanwhile businesses must com- Companies have to draw a
using the data: "The organisation than $5 trillion (£3 trillion) to the US of such deals in recent years has manage risk, and to exit successfully. So here's the dilemma. On one ply with a regulatory framework has to ask whether that purpose Arguably the future for big data It is essential chief executives and economy – more than a third of its remained high, at around 800 a year. The companies that do the best, hand, organisations of all kinds that is set to grow much more strin- was fully explained, and did the to some extent depends on cus- distinction between basic
their senior management get to grips GDP. That economy, like many oth- Innovative ideas must be patented in terms of trading IP-protected have the capacity to gather, pro- gent. At the moment, the UK's Data customer understand what the tomers and other stakeholders with intellectual property (IP) and that ers, has long been transforming from or be under trade secret in order to assets, will succeed and prosper. cess and analyse unprecedented Protection Act is the prime piece being given a clearly presented investors are savvy enough about it. one based on industry to one based protect them and to avoid the loss Maximising IP is a complex area that amounts of information, rep- of legislation governing how data personal data and sensitive
Remaining compliant will require choice of when and how their data Companies are good at creating valu- on knowledge, ideas and information. of a market in which a business has requires real skill, but it is also an resenting a huge intellectual can be used. However, this is set to more attention to the controls and is used. This could be a simple able ideas, but they sometimes lack As the return on investment of area of fantastic opportunity.
As the return on investment of
property (IP) asset, which in turn be superseded by the EU's General mechanisms designed to protect opt-in, once the purpose of the data such as medical history
the understanding on how to formally physical assets has declined, the In essence, IP is quickly becoming can be used to improve services, Data Protection Regulation, which and govern data usage within the data collection strategy has been protect and further monetise them.
return on ideas has soared. By the new global currency. At Phoenix physical assets has declined, the
develop new products or target will be enforced across all member organisation. Mr Hazell says the explained, or specialist platforms Great IP is born from excellent aggregating, analysing and sharing IP Ventures, the company I founded Find out more about the approach,
marketing much more effectively. states under the umbrella of a or criminal records
starting point for Axciom is to on which consumers proactively research and development. In the information from R&D, organisations with my two partners, we fully team and portfolio of Phoenix IP
return on ideas has soared
Thus, we've seen retailers single regulator. Once it is in force design all its data processing prod- pool their data. pharmaceutical industry, where my can make much quicker and more understand and work with this real- Ventures at www.phoenixipv.com
twitter: @raconteur twitter: @raconteur INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY CHOOSE YOUR
lison, a partner at London-based attributed to the development of law firm Taylor Wessing. "The laws China's own research and technol- BATTLES TO
in India are reasonably good, but ogy, which has driven companies to RANKING: THE WORLD'S MOST INNOVATIVE NATIONS
the infrastructure behind them is seek protection for new products definitely lacking," he says. "There they have developed in the local are huge delays in Indian regis- market. In fact, China was the WIN THE WAR
tries. They have now a specialised country where the highest num- court for IP matters, which is a ber of patents were filed in 2012, good idea. But it is a court that according to the World Intellectual moves around several cities, which Property Organization. is very disruptive." In May, China is due to start India has been placed last among implementing a new trademark 36 major jurisdictions in the law that introduces important pro- Companies operating international y can face fourth Global Intellectual Property visions, such as higher penalties Index drafted by Taylor Wessing. for infringers and a streamlined an uphill struggle to enforce their intel ectual SOUTH KOREA
But similar problems can be found court process to deal with disputes.
in other parts of the world, says But companies fear the pro- property rights and may decide to concentrate gress could be hindered by other on markets where the odds – and profits – are in their favour, as Rodrigo Amaral reports Efforts to fight the problem are
underway, but a functioning global
IP rights regime remains little more
than a pipedream
Ȗ The enforcement of intellectual $1.7 trillion, more than double the "In some Middle-Eastern coun- provisions of the law which, for property (IP) rights has become 2008 figure.
tries, the process of applying for example, eliminate the right for a priority for multinational cor- More than half the loss is caused a patent or a trademark often parties in a court case to appeal porations as they expand their by the international trade in fakes requires numerous physical visits against a decision taken by the customer bases and supply chains and the domestic production of to the ministry of economy," he trademark agency.
around the world.
counterfeited products answers says. "The whole process may take "In terms of trade secrets, pre- The good news for them is that for up to a further $540 billion. up to three years and the patent or vention is always better than cure," a growing number of countries The digital piracy of music, video trademark may not actually fea- says Lara Quelch, a senior IP con- have signed up to international IP and software is set to account for ture on the registry for five years. sultant at KPMG in London.
rights treaties in a quest to attract some $240 billion in 2015. Sometimes companies want to Sometimes that requires a legally more investments. In the United States alone, the launch a product in one of these enforceable contract to protect IP But key emerging markets for phenomenon drains around $300 countries, but they cannot be sure and allow the company's right to multinationals remain a long way billion from the economy every that it does not conflict with a reg- perform unannounced audits of a from putting in the necessary year, the equivalent of US exports istered patent because the registry third party's premises.
effort to turn the letter of the law to Asia, say anti-piracy campaign- Ms Quelch notes that some into effective tools against pirates ers. Such numbers, as high as they MOST INNOVATIVE COUNTRIES Other times, however, IP cam- companies have decided to dis- and counterfeiters.
may look, could in fact underesti- IN THE WORLD 2014 NEW ZEALAND
paigners identify a considerable tribute parts of their production As a result, companies have been mate the real cost of the problem degree of bad faith in the failure chains among several different allocating evermore resources as, by their nature, IP infringe- of the authorities to enforce their countries to reduce the risk of the in a bid to safeguard their trade ments are difficult to quantify.
GLOBAL INNOVATORS BY R&D own IP rules.
process being copied and trans- secrets. However, they often have Efforts to fight the problem are For example, the US Congress ferred to rivals.
few material results to show for underway, but a functioning global has recently come up with Experts also stress the need for their efforts.
IP rights regime remains little some scathing language about companies not to tolerate any The rapid expansion of the more than a pipedream.
GLOBAL INNOVATORS BY China and its approach to other infringement to their IP rights. That internet and other communication "Laws are being changed because people's intellectual property. means not only taking aggressive technologies in emerging markets, countries want to attract invest- "National industrial policy goals action when counterfeits are identi- where much of IP rights infringe- ments from companies and that in China encourage IP theft, fied, but also acquiring a thorough ments are committed, has made it is a step in the right direction," and an extraordinary number understanding of how the local harder for companies to fight for says Michael Hart, head of the Source: Bloomberg January 2014 of Chinese in business and gov- government and judiciary work.
their patents and trademarks.
IP department at law firm Baker ernment entities are engaged "Companies have to adopt IP in this practice," according to protection strategies that are Share and discuss online at raconteur.net
a US Congress report. "There appropriate to local systems," are also weaknesses and biases says John Wilks, a partner at law in the legal and patent systems firm DLA Piper in London. "It is And new technologies that keep & McKenzie in London. "But it that lessen the protection of important to understand what a popping up do not make the task will take time and changes in the particular local system is good for any easier. According to experts, political climate for such laws to The bottom of the rankings and what are its limitations." the latest threat to emerge has be properly enforced." elaborated by Taylor Wessing The fight is hard, though, and been 3D printing, which poten- Many countries have subscribed COSTA RICA
also includes other large emerg- takes place in a global environment, tially makes it much simpler for to regulation through adhering to ing economies, such as Brazil, which forces companies to pick its pirates to produce faithful copies the principles of the World Trade IN KNOWLEDGE ROYALTIES AND Indonesia, Mexico, Turkey, Rus- battles according to their immedi- of articles that are valued mostly Organization's Trade-Related sia and South Africa. But, for its ate needs and long-term goals.
for their shape, rather than the Aspects of Intellectual Property sheer size and the pivotal role Baker & McKenzie's Mr Hart material they are made of.
Rights (TRIPS) regime. But actu- it plays in global supply chains, concludes: "The most successful The high cost of 3D printers ally enforcing the rules is a com- China is a focal point for multi- IP programmes have a degree has helped to keep this menace pletely different matter. national firms when it comes to of flexibility that enables com- at bay for a while. But as prices Sometimes non-enforcement panies to shift resources from come down, 3D printing is set to is the result of a dearth of means It is also one of the jurisdic- one place to another as situa- become a new frontier in the fight as slow judiciaries and inefficient tions where, somewhat differ- tions change. Companies need patent registration processes Source: Global Innovation Index 2013, World Intel ectual Property Organization, Cornel University and INSEAD ently from American politicians, to employ a whole combination According to the International continue to be hallmarks of sev- experts have noted that progress of measures to consolidate their Chamber of Commerce, the global eral countries.
has been made in recent years to reputation as someone that annual impact of counterfeiting This is the case in India, for enforce patents and trademarks.
counterfeiters do not want to and piracy will next year reach example, according to Roland Mal- This has been to a large extent mess around with." twitter: @raconteur twitter: @raconteur INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY Valuing the knowledge economy KEY TO THE
Intellectual property has risen in prominence as a result of some spectacular corporate failures and major lawsuits. EverEdgeIP's Dr Chris Donegan asks
UK'S SUCCESS
what impact does it have on a company's stock price? Ask someone to name a few of today's most exciting, innovative FIVE-YEAR STOCK MARKET PERFORMANCE OF THE WORLD'S TOP TEN COMPANIES BY RESEARCH AND DEVELOPMENT SPEND
companies and they'll probably The UK is an innovative nation – our suggest names such as Google, Nike, Apple, Amazon and Sam- talent for world-leading science, cutting- sung. In a single generation these companies have become ubiqui- edge technology and breathtaking tous, made a huge impact on our daily lives and become major driv- creativity has defined our position in ers of stock markets. One thing they have in common is extensive the world, says Intel ectual Property intellectual property (IP), in other words, their brands, trademarks, Minister Lord Younger patents and copyrights. It's estimated that currently up to 80 per cent of stock market values are based on intangible assets. This compares to just 20 per cent in 1975, the year before Apple was founded. This remarkable differ- maceutical industry, which invests cially small firms, is key. We know The London Olympics intelligence on IP infringement, markets, can deter businesses from ence reflects the fact that many more than £4 billion in research that, while businesses may spend opening ceremony focused enforcement authorities finding new global customers. companies in 2014 operate in and development and employs a great deal developing new ideas, showcased the UK's and an effective judicial system I am keen that we should do more industries with very little machin- FIVE-YEAR STOCK MARKET PERFORMANCE OF THE WORLD'S TOP TEN COMPANIES BY PATENTS FILED
more than 72,000 people, to our too often they don't put in place the creative talents to which understands IP issues.
to support those who reach out to ery or other fixed assets. Accord- creative industries, which contrib- strategies they need to secure the the world Since I took up post, I've been new markets. We have set up a net- ingly the observed company value ute £16 billion to the UK's economy. best return on that expenditure. pleased to see and encourage real work of IP attachés covering four must be attributed to intellectual It matters that government deliv- This is why, unlike most IP offices progress across this agenda. The key emerging markets – South- assets such as brand value and ers a backdrop which encourages elsewhere in the world, the UK's changes we have made to the old East Asia, China, India and Brazil continued investment and growth. Intellectual Property Office (IPO) Patents County Court, now the – who are there to help businesses Most of the studies of the relation- There is much to be proud of, I is routinely out and about, talking IP Enterprise Court, have cre- with IP-related issues. Already ship between a company's IP and believe. At the end of last year, the to businesses, to help them under- ated a space where creators and they have helped hundreds of its stock market performance have Lord Younger is Parliamentary Under independent Global Intellectual stand their IP and how to protect it.
innovators can challenge those businesses with specific issues focused on blue chip stocks since Secretary of State for Intellectual Property at the Department for Property Index compiled by Taylor In addition to its business out- who would infringe their rights. and helped protect IP assets worth they comprise the bulk of the major Business, Innovation & Skills Wessing judged the UK's IP regime reach programme, which reaches Also the launch last year of a new, hundreds of millions of pounds.
equity markets. Typically compa- to be the best in the world and around 20,000 firms annually, specialised unit in the City of They are also helping to nies have been ranked accord- the UK to be the best location to last year it launched a new suite of London Police to tackle IP crime strengthen government-to-govern- ing to the total number of patents obtain, exploit and enforce IP. But, tools giving detailed guidance to has increased our ability to tackle ment relations in those markets and filed or the percentage of their rev- as the world changes and as new help businesses identify and pro- counterfeiting and online crime. increase our influence. Our Beijing enue they invest in research and Ȗ Making sure we maximise the technologies spark new business tect their IP assets and seize the Because IP infringement attaché, for example, is making sure development. The results of such benefits that flow from our innate practices, as the digital revolu- opportunities they create. I would doesn't respect national bounda- that the Chinese Intellectual Prop- studies have been generally incon- inventiveness will be key to secur- tion continues changing the way encourage readers who haven't ries, in June I will host a "Respect erty Office is able to share not only clusive with as many patent-heavy ing the UK's future economic sta- we produce and consume music, seen them to take a look at the for IP" London summit to focus our economic analyses, but also companies underperforming tus as market forces flux around images and the written word, we IPO's website at www.ipo.govuk.
on international enforcement our experience of driving change in as outperforming. It seems that us. Part of my mission is to drive have to make sure our IP environ- The UK is also doing much to make issues. For the first time, the the UK. It is no surprise to me that measuring the contribution of IP like this have meaningful impact out parallel and yet it collapsed els are often built on the ability to potential investors, IP is frequently the development of a business ment remains fit for 21st-century core rights granting services more summit will bring together sen- when the Chinese judiciary wanted to corporate value is not a simple for investors and may be magni- in 2012 to be broken up and sold. license their IP to larger compa- highlighted as a risk factor. An IP environment that both encourages purposes and that our businesses accessible and easier to use. The ior creators, businesses, enforce- to boost its understanding of IP numbers game.
fied by tactically positioned hedge Legendary Hollywood studio MGM nies or where in-house IP pro- challenge during the pre-flota- the birth and development of new are ready to exploit it.
Patents Law Amendment Act 1852 ment policy-makers and authori- legal issues, it turned first to the UK, As a result, researchers often funds, but such impact is often filed for bankruptcy in 2010, in no vides a competitive advantage. tion process can derail the entire ideas and ensures that our innova- introduced the world's first "mod- ties from across the globe to sending a delegation of judges to fall back on anecdotal evidence short lived. An illustration of this small measure the result of Ted In this situation, patent chal- show. Twitter is perhaps the most tors, creators and entrepreneurs ern" patent law and in October that consider the issues and share look at how we do things here.
that IP matters and there is a is the bounce in Apple's stock price Turner's decision to remove the lenge, third-party infringement famous recent illustration of this, see a return for their investment.
year the same law brought The Pat- best practice, showcasing the Being ahead of the curve, for ready supply of case studies to following its successful $1-billion library of classic films, which or counterfeiting can significantly paying IBM $36 million just ahead Forging the right intellectual profile
ent Office into being, but the paper- UK as a centre of excellence for the benefit of British businesses, support this idea. During the patent action against Samsung, later formed the kernel of TCM. impact valuation and stock price. of its initial public offering in 2013 property (IP) regime is key. As a based systems and limited focus of IP-rich companies. is an essential element in making bankruptcy of Nortel Networks, now overshadowed by more stra- Perhaps the most famous exam- It may also create breach of cov- to ward off a lawsuit that might nation, our total investment in Page 12
the mid-19th century do not reflect I hope the summit will also send sure we have a fit-for-purpose for example, the company's IP tegic factors, such as its long-term ple is that of Marvel Comics, enant conditions attached to debt have had a valuation impact many intangible assets is vast and growing the needs of 21st-century firms. a message out to British businesses IP regime that will support and portfolio was auctioned for more future without Steve Jobs.
bankrupt in 1996 and sold to Dis- finance. Given the smaller head- multiples of the payment.
rapidly. Today we invest far more in Today's IPO encourages online that the international community promote new opportunities for than 48 times the closing value of Many innovative companies with ney for $4.2 billion in 2009 pri- count of SMEs, key staff are often As technology plays an ever intangibles than we do in physical applications for patents, trademarks is serious about protecting IP. growth both here and overseas. I the stock. The market it seemed large and valuable patent portfo- marily on the strength of its IP.
repositories of valuable knowl- greater role in our lives, so will assets such as buildings and equip- That ambition was an early and design registration. In the com- As Chancellor George Osborne am proud of what we've achieved had completely mispriced value.
lios have seen dramatic declines So, given the evident importance edge and, if they leave, their IP IP. Slowly but surely investment ment. And we know this expendi- priority for this government. ing year it will be looking to expand underlined in his recent Budget, so far and pleased that others The importance of IP is particu- in stock price over the past dec- of IP what explains the apparent leaves with them. Another often banking analysts are gaining a ture is making a difference to our In 2011 Prime Minister David its digital services to include an exporting is key to our continued judge us to be the best, but I also larly apparent in the pharma- ade. Among household names lack of correlation between IP overlooked risk is the inad- better understanding of this and overall economic performance with Cameron commissioned Profes- e-patents renewal service.
economic recovery. But I know that know we have an important and ceutical sector, where the expiry that suffered this fate are Nokia, and stock price? The answer is vertent infringement by SMEs company chief executives who intangible assets responsible for 20 sor Ian Hargreaves to carry out Better guidance and more accessi- fear of being copied, in challenging ambitious agenda for the future. of dozens of critical patents has Kodak and Motorola, with the lat- clear – management. However themselves, as their research- can respond to the inevitable per cent of the UK's productivity a comprehensive review of the ble services are making a difference. wiped billions from the value of the ter eventually being acquired and impressive its IP might be, what ers operate within tight budgets questions about their IP strategy growth during the past ten years. UK's IP framework to ensure it They make it easier for businesses industry over the past few years.
dismembered by Google. EMI, The really matters is how a company and short time frames where IP will see benefits in their stock Just over half of this investment was fit to promote the innovation to get to grips with the risks and While businesses may spend a great deal
On March 12 for example, Pfizer's Beatles' record company, owned uses it. This involves developing, management often takes second price. IP itself does not gener- in intangibles is linked to the devel- and growth we need in the UK opportunities associated with their stock was suspended for 20 min- a copyright library that was with- managing and protecting it. place to winning customers. ate shareholder returns, but the opment of IP assets – the patents economy. Professor Hargreaves' IP and to take action which allows developing new ideas, too often they don't
utes on news that its blockbuster Beyond the competitive arena Those SMEs most vulnerable intelligent management of IP that cover new technologies, the recommendations have stimu- firms to manage them, for example pain drug Celebrex would lose its of the world's largest compa- to an "IP shock" are those being does. This is evident when com- trademarks that help new brands to lated far-reaching reform of our by applying for registered rights. patent protection 18 months ear- nies, IP has a critical impact for floated on the stock market or paring the performance of Apple IP itself does not generate
flourish, the designs that shape our IP regime, which is continuing But having rights is worthless if put in place the strategies they need to
lier than expected. Pfizer stock small and medium-sized enter- undergoing a major change of and Nokia or Canon and Kodak. spaces and services, the copyrights through the Intellectual Prop- they are not respected and if they closed down almost 3 per cent, a prises (SMEs), a broad category ownership. When investment Investors in each company have shareholder returns, but the
that underpin so much of our crea- erty Bill just now completing its can't be enforced. Getting this right meaningful number for a company that embraces startups and busi- banks or private equity firms learnt the importance of aligning tive output. It underpins success journey through Parliament. means educating people to respect secure the best return on that expenditure
with almost $200 billion in market nesses with turnover approach- value the company or take man- business and IP strategy – and intel igent management of IP does
in thriving sectors from our phar- Our support for businesses, espe- IP, ensuring that we have good value. Event-driven market moves ing $1 billion. SME business mod- agement on a "roadshow" to meet each has a salutary story to tell.
twitter: @raconteur twitter: @raconteur INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY Following Edward Snowden's competitor". When the service FACING THE WRATH revelations about government launches properly later this year, KIM DOTCOM
spying and recent US National artists will be able to "sell direct Security Agency claims that to their fan base and keep 90 per companies such as Google had cent of sales".
knowledge of, and complied "On top of that," he says, "we'll be with, requests for private infor- the first site that offers a solution BEAT PIRACY
mation – something they have for artists to make money even previously denied – it's easy to when we offer music for free. My see why the idea would appeal idea is that artists should make Edwin Smith profiles the controversial to people who simply want to their music available for free and go about their business without fans should only pay for it if they internet giant behind the alias Dotcom being watched.
1 CREATE GREAT STUFF
But, of course, it's equally obvious Although details are still how, in the wrong hands, the new sketchy, Dotcom seems to plan service could be conducive to the to square the circle by enabling distribution of pirated material. users to "earn money" by install- And, even though Dotcom has ing a "key" for their web browser said the company will respond to that would allow adverts from 2 MAKE IT EASY TO BUY
takedown notices (as it must), any Baboom to appear on other rights holder attempting to pre- companies' websites, in place of vent material from being accessed the ads that would otherwise be illegally will still face a Sisyphean displayed. But, as with many of task as duplicate files can spring up Dotcom's ideas, this would pre- at least as quickly as the ones that sent fresh controversy. are removed.
Baboom may never succeed and, 3 SAME-DAY WORLDWIDE RELEASE
In contrast with Daniel Ek of even if it does, incarceration may Spotify and Reed Hastings of prevent Dotcom from enjoying Netflix, Dotcom isn't content to its success. He says he faces a total merely disrupt the status quo by sentence of up to 80 years' jail. But gently bringing round rights hold- there is no question that the story ers to his way of thinking. Instead, behind the demise of Megaupload 4 WORKS ON ANY DEVICE
he views them as "dinosaurs" and and the creation of Mega, as well insists the practical implications as Dotcom's own celebrity, has cre- of the internet mean that their ated a huge amount of momentum "backward, outdated licensing for his campaign for privacy and a model" should be discarded.
bonfire of old-fashioned attitudes To make this possible, Dotcom to copyright.
5 FAIR PRICE
is working on Baboom, a new It could yet prove unstoppable, music platform that he describes even without his considerable as an "iTunes-Spotify hybrid weight behind it. Above: Kim Dotcom at an Intelligence and Security Committee hearing in Ȗ Kim Dotcom divides opinion. accessed their material. It has porters who share his view. Steve Wel ington, New Zealand port need to understand that this Mega, the second incarnation of According to some, he is a "self- now been closed down, but at its Wozniak, co-founder of Apple, industry is watching very carefully Megaupload, works in a similar interested privateer" and a crimi- peak, Megaupload accounted for says Dotcom's operation "was just Top right: Megaupload who's going to stand up for them way to its predecessor, but the nal, who has built his own fortune 4 per cent of all internet traffic a service like a post office", adding: when their job is at stake." files hosted on its servers are all into the hundreds of millions of and ranked as the thirteenth most "Why do you shut down the post Bottom right: Dotcom's Whatever machinations lie encrypted. Only the users who dollars by facilitating internet popular website in the world. It office thinking that's where the New Zealand Mega behind attempts to prosecute upload content and those they piracy on a massive scale, costing was also a hotbed of pirated music, Dotcom, the fact remains that provide with an encryption key the arts and entertainment indus- films and television programmes.
Dotcom and his support- the closed-down Megaupload.
can access the information. With- try $500 million of legitimate rev- Dotcom, who changed his sur- ers advance the view that the com and its successor Mega.co.nz out the right encryption key, not enue in the process.
name from Schmitz in 2005 behaviour of the US Depart- have eroded the incomes of movie even Mega's staff can see what But to others, he is an innova- while living Hong Kong, doesn't ment of Justice is not only studios, record labels, artists and is held on their servers, even if a tor, a champion of personal free- deny this. Instead, he claims an example of "prosecutorial anyone who would earn a living, government or security agency doms and privacy in an age when many of Megaupload's users over-reach", but also a result of even tangentially, from a creative heavy-handed and sometimes stored and shared only legitimate the excessive influence held by pursuit whose product could be In order to launch a new politi- nefarious government activity is files, and says, besides, he can't be Hollywood lobbyists over the consumed digitally. cal party in New Zealand – the the biggest threat to the liberty held responsible for the activities of normal citizens.
Dotcom's chief source of ire and What is beyond doubt, however, Furthermore, in Dotcom's view, a target of attacks in numerous Share and discuss online at raconteur.net
is that the 6ft 7ins, 20-stone so long as Megaupload acted in interviews is Chris Dodd. Former German-Finn faces an extradition good faith when pirated material US senator Mr Dodd, chairman However, unlikely as it seems Internet Party – and concentrate hearing, scheduled for July, in his was found, he and his company of Hollywood's principal lobbying now, the entertainment industry on the legal work being done adopted home of New Zealand, are protected in law by the "safe group, the Motion Picture Asso- might one day be thankful for in preparation for his hearing, where he was granted permanent harbour" considerations afforded ciation of America (MPAA), has Dotcom's influence. For, despite Dotcom has given up his position residency in 2009 and now lives under the US Digital Millennium been described as "one of my best everything else, he and his com- as a director of Mega. But he has with his wife and five children on Copyright Act.
friends in life" by US Vice Presi- panies have served to crystalise already announced that the site a £16-million (NZ$30-million), There is no distinction, he dent Joe Biden.
a simple and instructive truth will soon provide a Skype-like ser- 60-acre estate. If the American argues, between the activities of "Wall Street and Hollywood own that, in this modern digital age, vice and e-mail. These too would Department of Justice has its way, his company and those of internet Obama," according to Dotcom. privacy and copyright are inex- offer encryption and the ability to he will be extradited to the United service providers, search engines, "He's not acting in the best inter- tricably linked.
States to face charges relating to such as Google, and media-hosting est of the people. He's acting in the racketeering, copyright infringe- sites, such as YouTube. interest of those corporations that ment and money laundering in "We were all under the impres- paid for his re-election." what has been described as "the sion we were acting in a perfectly To support his claim, Dotcom biggest copyright case in history".
legal space with Megaupload and points to remarks made when the The charges concern the activ- that, as service providers, would not MPAA was seeking to encourage The same amount of piracy, if not
ity of Megaupload.com, the file- face any actions like this," he says. the Obama administration to take sharing site that gave financial "The same amount of piracy, if not a tough stance on piracy in 2012. rewards to uploaders in accord- more, is happening everywhere." Mr Dodd said: "Those who count more, is happening everywhere
ance with how many other users And there are prominent sup- on quote ‘Hollywood' for sup- twitter: @raconteur twitter: @raconteur INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY TAKING CARE OF
WHAT'S YOURS
Ownership of intel ectual property has transformed most, if not al , aspects of life. Brid-Aine Parnell focuses on six of the best PHONES AND PATENTS
Technology has rewritten the intellectual property (IP) Telecoms is one of the most glaring examples of the disruption landscape, but it's also had an enormous effect on the world of intellectual property, with so-called patent wars between top of marketing. A field once dominated by TV ads now includes smartphone-makers Apple and Samsung dominating the headlines websites and social media, and freelance graphic designers as these devices have reached into every aspect of modern life. Mobile can achieve on a laptop what it used to take an agency to do. But phones and tablets have exploded on to the scene and quickly grown these freelance workers are struggling with new IP and copyright into a multi-billion-dollar industry on the backs of two kinds of patents, issues. At what point does a design become the property of the standard-essential patents (SEP) and the rest, including design, client instead of the designer? software, hardware and so on. The trouble comes from the fact that This thorny issue was highlighted in the recent controversy around the posters for Spike frequently the owners of the SEP, which are, as the name implies, necessary to build networks and Lee's movie Oldboy. As marketing started ahead of the film's release, an open letter from a devices, are also supplying products using these and other patents.
freelance designer went viral. Juan Luis Garcia wrote to Lee claiming that the promotional SEP for an agreed standard is supposed to be licensed on a fair, reasonable and non-discriminatory posters were his design and asking for help to get money from the advertising agency. basis, which is how the world enjoys 3G mobile networks. But, despite this ostensible co-operation, Mr Garcia alleged that he worked for two months on the project, despite never signing a firms have often attempted to wield these patents in legal battles in an attempt to protect their contract, and when he declined the low offer from the agency for his work, they went ahead other products, while other companies have taken the co-operation to mean they can try to use and used it anyway. the patents for free. With the shift to 4G networks, the entire landscape is likely to shift again In a highly competitive sector, designers are frequently asked to come up with ideas for as newcomers, such as Huawei that invested in R&D in LTE (Long Term Evolution) and WiMAX nothing and only get paid if their work is used, while risking having their work "stolen".
(Worldwide Interoperability for Microwave Access) networks, become major players overnight.
E-BOOKS AND CROWDFUNDING
SEEDS AND DISHES
As creative types struggle to get paid in a post-internet world, writers From seed to Michelin-starred restaurant delights, IP rights are of all stripes have arguably been the worst hit. Journalists are leaving a bad taste in the mouth. Global food giants such as Monsanto competing with the free and fast knowledge available online; authors are attracting criticism for holding the rights to new seeds – some are scrambling to get to grips with a competitive sector, the problems of genetically modified, some not – that others argue could help solve the e-book model, and the need to spend at least some of their creative the world's food crisis. The Academy Award-nominated documentary power on self-promotion online and in social media. With traditional Food, Inc is the most high-profile treatment of so-called big copyright protection being disrupted by the ease of e-book piracy and agriculture, but seed patents aren't new. Louis Pasteur patented the impossibility of chasing down all the sites devoted to reposting his germ-free, beer-making yeast in 1873; however, the father of content from other websites, the publishing model is evolving along with copyright itself. vaccination and pasteurisation does not attract the same ire as billion-dollar biotech firms.
Crowdfunded publishing, for example, keeps the writer in control of their own copyright while In 2009, the UN's special rapporteur on the right to food, Professor Olivier de Schutter, said inviting readers to pay for or even profit from exactly the kind of content they want. On new pressures on the world's food supply meant the system needed to change. "The current startup Inkshares, writers sell a share of their book or long-form article's prospects to their intellectual property rights regime is suboptimal to ensure global food security today. It is unfit to fans. If the project is successful, readers not only get to read it, they can reap the benefits of their promote the kind of innovation we need to cope with climate change," he said.
investment. On Beacon, customers can subscribe to their favourite journalists or sponsor an Further along the chain, chefs in France have been instigating camera bans in their restaurants individual project that appeals to them. Self-publishing is another way authors are using IP and to stop images of their dishes and menus slipping into the public domain. Such a food photo ban technology to sidestep traditional publishers and take more of the profits of their products.
seems extreme, but it would only bring top restaurants in line with cinemas and art galleries.
IMAGE AND PLAYER POWER
Intellectual property is not just about protecting inventions, it's also about British domestic football has been transformed in the last 20 years. shielding the brand associated with creations, whether they're mobile Much of the credit has been given to Sky TV's influx of money, but relaxed phones or catchy songs. Politicians often use popular hits as backing rules on overseas players, the growth of pan-European competitions and tracks for advertisements taking down their opponents, or as rallying intense marketing have all helped. Football is less about local pride for calls, or even as a way of showing they're in touch with the common man. many of those in the boardroom and more about "the brand", a phrase to In recent years, however, musicians have started to push back on this use make any traditional fan roll their eyes.
of their IP that takes advantage of the cultural cachet attached to their In recent years, players, no doubt helped by their growing entourage of creative output without their permission.
advisers, have realised that they are in fact the end of the line for that Discontent with the practice in the UK started mildly enough in 2010, when Keane's popular single value. Gruff managers have bemoaned "player power", but it's really about the retention of image Everybody's Changing was used at a Conservative Party manifesto launch. Drummer Richard Hughes rights, the player's IP.
tweeted that he was "horrified" adding, "To be clear – we were not asked. I will not vote for them". But David Beckham brought the concept to the mainstream with the inclusion of image rights in a last year Radiohead frontman Thom Yorke said he would sue Prime Minister David Cameron if he Manchester United contract signed back in 2002. In his first year at Real Madrid, the club sold one ever used one of his songs for a Conservative campaign. In the United States, Republican candidates million of his number seven replica shirts. It's generally accepted that while an excellent player, his have already been successfully sued for using songs without permission. Senator John McCain, for commercial draw was a bigger factor in the move. Fast forward to another Brit who landed in Madrid, example, had to settle for an undisclosed sum and issue an apology for using Jackson Browne's hit Gareth Bale, and the full battery of image rights is on show. Bale has reportedly trademarked his Running on Empty in a campaign ad attacking Barack Obama's energy policies.
"heart" goal celebration and is expected to derive a third of his earnings from his image rights.
twitter: @raconteur twitter: @raconteur

Source: http://www.innography.jp/public/upload/files/general-files/INNO-Financial-Times.pdf