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Christian W. Appelt German and European Patent and Trademark Attorney

IP in International Business -Patents as Tool for Economic Success- WIPO – Italy International Symposium on IP Competitiveness of SMEs in Textile Sectors December 1, 2005. Christian W. Appelt German and European Patent and Trademark Attorney. What is IP – Why do we need IPRs?.

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Christian W. Appelt German and European Patent and Trademark Attorney

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  1. IP in International Business-Patents as Tool for Economic Success-WIPO – Italy International Symposium on IPCompetitiveness of SMEs in Textile SectorsDecember 1, 2005 Christian W. Appelt German and European Patent and Trademark Attorney

  2. 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? BOEHMERT & BOEHMERT

  3. Patents in Force(Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

  4. Worldwide Patent Activities(Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

  5. 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??? BOEHMERT & BOEHMERT

  6. 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 BOEHMERT & BOEHMERT

  7. 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 BOEHMERT & BOEHMERT

  8. 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 BOEHMERT & BOEHMERT

  9. 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 BOEHMERT & BOEHMERT

  10. 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 BOEHMERT & BOEHMERT

  11. 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 BOEHMERT & BOEHMERT

  12. Basic Technology vs. Further Enhancement BOEHMERT & BOEHMERT

  13. 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 BOEHMERT & BOEHMERT

  14. 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 BOEHMERT & BOEHMERT

  15. 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” ?) BOEHMERT & BOEHMERT

  16. Who owns your local market?(Source: EPO – Trilateral Web Site) BOEHMERT & BOEHMERT

  17. „Textile EP-Activies” BOEHMERT & BOEHMERT

  18. Further Questions ? Contact me at: Appelt@Boehmert.de Christian W. Appelt Boehmert & Boehmert Pettenkoferstr. 20-22 D-80336 Munich Germany Tel.: + 49 – 89 – 55 96 80 Fax: + 49 – 89 – 34 70 10 BOEHMERT & BOEHMERT

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