Crowdsourcing 2B... · 2019-11-12 · Crowdsourcing in IP Litigation Consider Crowdsourcing Patent...

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Sandra Nowak Asst. Chief IP Counsel 3M Innovative Properties Company Sandra Wunderlich Partner Tucker Ellis LLP Crowdsourcing: What It Is, How It Works, and Its Implications for Corporate America

Transcript of Crowdsourcing 2B... · 2019-11-12 · Crowdsourcing in IP Litigation Consider Crowdsourcing Patent...

Page 1: Crowdsourcing 2B... · 2019-11-12 · Crowdsourcing in IP Litigation Consider Crowdsourcing Patent Research: • Access a global network of researchers, technologies, and languages

Sandra NowakAsst. Chief IP Counsel3M Innovative Properties Company

Sandra WunderlichPartnerTucker Ellis LLP

Crowdsourcing:

What It Is, How It Works, and Its Implications for Corporate America

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Crowdfunding

Crowdcreation

Crowdvoting Crowdwisdom

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Crowdfunding

Crowdcreation

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Crowdwisdom

Average of 800 guesses: 1,197 lbs.

Actual weight of the ox: 1,198 lbs.

Crowdwisdom

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Crowdvoting

Gen Z Millennials

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Gen Z29%

Millennial28%

Baby Boomer22%

Generation X19%

The Silent Generation1% The Greatest Generation

1%

Social Media and Digital Natives

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16© 3M 2019. All Rights Reserved. 3M Confidential.

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Crowdsourcing, at Its Heart, Is Not New

Internal Crowdsourcing

External “Crowd”sourcing

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The Role of Social Media in Crowdcreation

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Crowdcreation circa 2019

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Rapid, Iterative Research with Consumers

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Crowdfunding

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· One of the largest crowdfunding campaigns in history

· Raised almost $28M

· Raised money through WordPress

Crowdfunding Example

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Crowdfunding Is Not Just for Startups

Target Audience (air aware)Test Offering PriceTest Positioning

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Page 14: Crowdsourcing 2B... · 2019-11-12 · Crowdsourcing in IP Litigation Consider Crowdsourcing Patent Research: • Access a global network of researchers, technologies, and languages

We have thousands of SKUs currently online …

… would take hundreds of people just to create and optimize content

We needed an intelligent app

Rich content generation

4,865,804,000,000,000,000,000,000 possible combinations of attributes

Filter Size Location

Application Statements

Culprit Emphasized

Benefit Statements

Beginning Captures Dust Cleaner air

End Attracts Lint Fresher air

Reduces Bacteria Healthier Home

Holds Virus Protect your HVAC

Traps Allergens Airflow guaranteed

Air Pollution Uncompromised airflow

Small Particles Easy airflow

Pollen Trusted Air Filter

DCL continuously optimizes them for maximum POS

DCL generates content combinations

Humans identify the menu of possible content attributes

DCL repeatedly adapts to changes in the environment

Filtrete Example:Crowdwisdom

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Benefits• Significant cost savings• Access to talent and creativity outside company• Wider set of disciplines and experience to solve problems• Free or low-cost market research• Free or low-cost advertising• Makes people feel invested in product, brand, or service – loyalty• Online reviews can launch a brand or product

Page 15: Crowdsourcing 2B... · 2019-11-12 · Crowdsourcing in IP Litigation Consider Crowdsourcing Patent Research: • Access a global network of researchers, technologies, and languages

Risks• Disputes over ownership of end product with multiple creators

• Difficulty monetizing innovation if ownership is not clear

• Exposure to infringement litigation

• May not be confidential (from public or competitors) if not controlled

• Potential data privacy violations

• Harm to reputation due to false or unfair reviews

• FTC violations for false advertising or manipulation of market

• Evolving area of the law so rights and responsibilities not clear

Legal Considerations in Crowdsourcing

• Data Privacy• Employment• Intellectual Property • FTC Violations• Ethics• Freedom of Speech• Tort Claims

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IP Legal ConsiderationsWho Owns the IP? Example: Employee of a company responds with an idea online in his free time, but has signed a contract saying his employer owns any idea he generates while employed by it. Who owns the IP in that instance?

Ensure Access to IP:• Ensure that it is clear that company receives all rights

• Legally binding assignment of all rights to the IP in writing

• If company wants to own the rights to the end product/innovation, assignment, terms, and conditions are important

• The company should have the right to enforce and get support for regular payment/expenses

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Be Aware of Third-Party Rights:• There is an increased risk that the winning idea may not be entirely original and/or may contain

ideas sourced from third parties.

• The person posting an idea may include photographs, drawings, and/or designs they don’t own.

• The submitted ideas may infringe existing IP rights.

• Obtain assurances but may not be entirely effective to manage risk.

Appropriate Terms and Conditions: • Clearly define relationship with participants and their rights and obligations related to any IP,

including assignment or licensing obligations. Pay the contributor.

• Mitigate liability through warranties as to originality and non-infringement.

Check Governing Law:

• Understand what law will control; specify which countries’ law you want to apply; define the dispute resolution process and which rules apply.

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Crowdsourcing and Copyrights

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Crowdsourcing in IP Litigation

Consider Crowdsourcing Patent Research: • Access a global network of researchers, technologies, and languages

• Patent-busting prior art in hidden corners of the globe in otherwise unsearchable forms

• Can save a company millions of dollars

• Locate infringers:

• In one instance, company was looking for source of counterfeits; dispatched crowdsourced organization to have people on the ground go to stores around the globe and take pictures that enabled the company to evaluate location, identify differences in packaging to help ITC stop at border, and find source of counterfeits.

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Legal Considerations in Crowdsourcing

• Data Privacy• Employment• Intellectual Property • FTC Violations• Ethics• Freedom of Speech• Tort Claims

Online Reviews

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The Good . . .

The Bad . . .

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The Ugly . . .

The Ugly . . .

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The Ugly . . .

Digital Response Team

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QUESTIONS?