Masters in Engineering and Management of Technology Masters in engineering Design Introduction to Entrepreneurship and New Venture Creation Rui Baptista

Intellectual Property Protection

Entrepreneurship - Rui Baptista 3 Intellectual Property and Competitive Advantage Intellectual property (IP) can generate profits through the protection of ideas, technologies, product designs, brands Intellectual property is property: Has value Can be sold or licensed Can be stolen Can be protected Subject to much of property and contract law as well as to IP law

Entrepreneurship - Rui Baptista 4 Intellectual Property and Market Structure In markets where standards and networks of users play a significant role, sharing intellectual property may be an appropriate strategy to establish a favorable position When exclusive use of intellectual property is difficult, the creator/owner may choose to protect it (temporarily) or to share it in a manner that generates profit – by obtaining from the government some form of ownership rights, allowing for a possible financial benefit from the sale or use of said property

Entrepreneurship - Rui Baptista 5 Types of Intellectual Property Trade SecretPatentCopyrightTrademark What is Protected Any secret technical/business information Invention – process, machine, product Software, literary works, music, arquitectural works Words, phases, logos used to brand products/services How to Protect No legal protection available Apply for patentApply for registration Actual use; apply for registration Who Applies for Protection No application process First inventor or individual/institution assigned the right AuthorUser Duration of Protection Until no longer a secret years from application date, depending on type Life of author + 50/100 years depending on type Unlimited duration (registration is renewable) Type of Legal Protection Provided Right to prevent unlawful use or disclosure Right to exclude others from usage or commercialization Right to prevent unauthorized copying or public use Right to exclude others whose use may cause confusion

Entrepreneurship - Rui Baptista 6 Legal Forms of Intelectual Property The legal forms of intellectual property protection are defined as: Trademark Copyright patent Trade secrets are not afforded the same assurance of legal protection as their counterparts but are sometimes a more effective way of securing property rights

Entrepreneurship - Rui Baptista 7 Trade Secrets The trade secret’s greatest advantage over other forms of IP may be in the potentially limitless duration of its value and service to its owner – ex.: Coca-Cola Because the value of a trade secret may be compromised even under careful protection, the decision to maintain IP as a trade secret rather than filing for legal protection must be weighed carefully. Trade secrets are most advantageous if IP is expected to endure beyond the period of protection afforded by legal protection – if only 5 to 10 years of real value are expected, a patent may be the way to go However, filing for, registering and defending patents can often be far more costly than maintaining trade secrecy

Entrepreneurship - Rui Baptista 8 Trademarks Trademarks are highly useful tools employed by companies to distinguish their products and the sources of these products from one another Trademarks are akin to and in some cases synonymous with “brands” A trademark can take a number or some combination of forms including name, symbol, motto or jingle, just to name a few, and represents a company and/or product it is associated with: The stylized is a trademark for Motorola The slogan “Vorsprung durch Technik” is one of Audi’s trademarks. The roaring lion of Metro Goldwyn Mayer (MGM) is a well-known example of a trademark in the form of image and sound

Entrepreneurship - Rui Baptista 9 Copyright Copyrights are instruments of legal protection given to authors of original works of writing, art, musical composition, photography and architectural design, to name a few In addition to the condition of originality, protected works must be expressed and recorded in a fixed medium, such as in print, by brush stroke, recorded on disc or video, etc. Computer programs may be copyrighted With rare exception, names may not be copyrighted

Entrepreneurship - Rui Baptista 10 Types of Patents Design patents are issued to individuals who have created a novel ornamental design – for instance, a chair – it does not include the elements of structure and function Plant patents are issued to individuals who have invented or discovered a novel type of plant and who have been able to reproduce that plant Utility patents are issued to individuals who have invented novel processes, machines, and compositions of concern matter, or improvements thereof – it is the most complex and common of all types of patents

Entrepreneurship - Rui Baptista 11 Conditions for a Patent to be Granted Scope: patents can cover only a limited range of ideas, excluding naturally occurring objects, laws and abstract ideas Utility: non-useful inventions may not be patented Novelty: the original invention must pre-date knowledge and the use or sale of the invention Non-obviousness: the invention must be judged not to be obvious to any person of ordinary skill in the field relating to the invention Reduction to practice: the method of manufacturing or effectuation of the invention must be made clear to a person skilled in the field relating to the invention

Entrepreneurship - Rui Baptista 12 Portuguese IP Authority: INPI ( Website contains most of the required information on what is accepted as protected intellectual property and on the required administrative steps to apply for said property – see “Guia do Requerente” When an invention does not fulfill the necessary requirements for the assignment of an utility patent (i.e. solving a specific technical problem) but still represents a new concept, a “softer” form of protection – Utility Model – may be granted (biological or chemical processes are excluded) Portuguese IP enforcement authority: IGAE (

Entrepreneurship - Rui Baptista 13 What to Do to Protect a New Idea Depending on the sophistication required to comprehend and copy the new idea, unprotected conversations with other people may represent a threat – if this is the case, it is convenient to have a simple non-disclosure or confidentiality agreement drawn up to be signed by any person you discuss your ideas with, before any substantive conversation takes place The most important criterion for selecting a representative will be the relative amount and quality of experience in practicing patent law; an agent or attorney who specializes or has knowledge in the scientific or technical field pertaining to your invention can be especially helpful in guiding the development of the idea

Entrepreneurship - Rui Baptista 14 The Disclosure Document Patenting requires the production of a document disclosing the invention, which must contain a comprehensive explanation of the invention and the manner that it is produced and used, distinguishing novelty items from “prior art” – all subjects that have been patented by others in the past Where applicable, drawings should be included as well The document must explain the purpose of the invention and how it is “novel” from any existing inventions The Patent Office – INPI – will keep the disclosure document until the patent is awarded – during that time, the document will be considered evidence of the earliest date of conception for the invention

Entrepreneurship - Rui Baptista 15 Sequência Ideia–Patente: o Caso Português (I) Conceber a ideia e realizar uma análise preliminar do seu potencial de mercado e de geração e valor económico/comercial Tomar as precauções adequadas para a protecção da originalidade da ideia, limitando a sua divulgação e produzindo documentação detalhada e datada Preparar um documento descritivo da ideia, distinguindo o que constitui novidade, e definindo todas as caracterísitcas técnicas e utilizações potenciais que devem ser objecto de protecção Seleccionar um representante jurídico especializado Realizar uma pesquisa preliminar do “estado da técnica”, localizando patentes atribuídas e solicitadas relacionadas com a invenção Realizar uma pesquisa detalhada que localize e descreva detalhadamente todas as patentes atribuídas e solicitadas relacionadas com a invenção – este processo deve ser comunicado e realizado através do INPI; se não existirem patentes que entrem em conflito com a ideia/invenção, o pedido pode prosseguir

Entrepreneurship - Rui Baptista 16 Sequência Ideia–Patente: o Caso Português (I) Preparar o pedido de patente utilizando os meios adequados – desenhos, descrição do “estado da técnica”, da novidade e das aplicações da invenção Registar o pedido, recebendo confirmação do seu número, data e hora Reposta do INPI quanto ao exame de forma (prazo: 1 mês), podendo requerer a apresentação de documentos adicionais Publicação do pedido no Boletim de Propriedade Industrial (prazo: 18 meses para patentes, 6 meses para modelos de utilidade), atribuindo oficialmente protecção idêntica à oferecida pela patente (a partir da data do pedido), e permitindo a sua divulgação e eventual contestação Decisão de concessão, concessão parcial (solicitando informação adicional), ou de não concessão (prazo: 3 meses após publicação do pedido) – número de patente é atribuído Requerer o direito de prioridade para outros países, utilizando os documentos emitidos pelo INPI junto de organismos nacionais e/ou internacionais