Intellectual Property SurveyQ2_2014

Purpose & MethodPurpose: InsideCounsel conducted a QuickPulse survey to gain a deeper understanding of intellectual property rights holders and those responsible for protecting them.

Method:¨ Online survey conducted March 20th – May 7th 2014¨ Sample Recruitment:

¨ Email invitations¨ High impact ad units and ROS banner campaign on insidecounsel.com¨ Banner ad placement within InsideCounsel editorial newsletters

¨ Confidence Level: 95%¨ 106 usable responses*

*Usable: Respondents who selected their primary job function in question #1 as Corporate General Counsel, Business Unit/General Division Counsel, or Deputy General Counsel and selected yes to working in a Fortune 1000 company in question #2. Other Inside Counsel responses in question #1 were reclassified if they met qualifications of the program. The reclassifications were determined by pulling additional data from InsideCounsel database. All other respondents were terminated from the survey, and were not used in tabulation/analysis for this report.

17.0%

21.7%

16.0%

45.3%

Corporate General Counsel

Business Unit/Division General Counsel

Deputy General Counsel

Other Inside Counsel

Q1. Which of the following most closely describes your role? (please select one)Base 106

Respondent Profile

Not concerned

Somewhat concerned

Very concerned

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

26.5%

46.2%

41.5%

Q.3 How concerned are you about your organization’s intellectual property protection?Base 106

Level of Concern88% of respondents are very or

somewhat concerned about their organization’s intellectual property

Q4. Please rank your level of concern about your intellectual property rights protection in the following areas:

Base 104

5

43%

46%

21%

22%

28%

39%

Copyright infringement

Trademark counterfeiting

Trade secret theft

35%

26%

39%

Very ConcernedSomewhat Concerned Not Concerned

Patent trolls/NPEs 43% 36% 21%

Concern Ranking

Very well preparedModerately prepared

Moderately unpreparedVery unprepared

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

33.7%

53.8%

7.7%4.8%

Q5. How prepared is your organization to prevent a significant, material attack on your product, brand, or intellectual property? (please select one)

Base 104

Preparedness 66% of respondents indicate their organization is only

moderately prepared or not prepared to prevent a

significant attack

Q6. Please comment on your answer to question 5 {open-ended}“How prepared is your organization to prevent a significant, material attack on your product, brand, or intellectual property?”

Base 50

Q5. Preparedness Commentary Very well prepared Moderately prepared Moderately unprepared

We are constantly vigilant about protecting our brands and enforcing our intellectual property rights.

Coordinating between the business teams, who become aware of issues, and the legal teams is challenging in a large corporate environment.

As a fortune 20 company we've only had one in-house IP attorney for the past 3 years.

Several safeguards are in place and we have a team who has dealt with such issues in the recent past. Need more monitoring capability and management

buy in /cash support.

We have devoted significant resources to business, IP and reputation protection.

Proactive and ongoing steps to monitor patent/IP infringement, however it remains an ongoing concern given the disparity of patent regimes in the world, particularly China where a Chinese company can obtain a

design patent on designs which are in the public knowledge in other parts of the world.

Very robust IT and data security process that we continue to enhance. We understand it is impossible to build a system that can guarantee no breach.

Need more efforts to educate employees about intellectual property

We regularly face such attacks globally. We have systems in place to respond that are ever-vigilant.

We are too dependent on hearing of such issues only secondarily through our associates, and we do not have a thorough enough monitoring

process to catch issues early.

We monitor competitive products and watch when employees leave to work for competitors. However, getting business approval for high price litigation

remains a challenge.No plan other than to know who to call.

My company is very well prepared to prevent a significant, material attack on our product, brand and or intellectual property as many safeguards have been put in place to

combat any form of cyber attack

We have a process in place to address concerns of IP infringement reactively, but nothing that would be considered proactive.

Within the US we are confident that we police the unauthorized us of our IP rigorously. Outside the states, we have less protection

We have a strong IP department, but could always be more proactive.We have a staff of intellectual property lawyers vigilant in

protecting our brand.There is always room for improvement on processes and procedures.

I think we've made significant strides but still have a ways to go.

51.9%

42.3%

5.8%

Very Confident

Moderately Confident

Not Confident

Q7. Should your organization be the target of a significant, material attack on your product, brand, or intellectual property, how confident are you in your ability to respond and recover quickly?

(please select one)Base 104

Response Confidence Level

Q8. Please comment on your answer to question 7 {open-ended}Should your organization be the target of a significant, material attack on your product, brand, or intellectual property,

how confident are you in your ability to respond and recover quickly? (please select one)Base 37

Q7. Response Confidence CommentaryVery confident Moderately confident Not confident

Because of the safeguards my company has put in place, I am extremely confident that should my organization be the target

of a significant, material attack on its product, brand, or intellectual property that we would have no

problems responding and recovering quickly.

Again, communication is key; having the information provided to legal counsel in a timely manner is challenging. However, I feel that our legal counsel is very knowledgeable

and would be able to seek protection.

Again, as an organization our IP practiceis significantly overburdened due to lack

of bandwidth.

Have experienced team in place and have the resources to deal with it. Depends on the attack but we have prepared for this.

History has shown that we can move quickly and effectively when faced with IP threats

Fortunately have not had to deal with that issue yet. We have good internal expertise and good

experience with registering or marks and responding to ad hoc infringements, but not sure how we would

withstand a more organized, intentional, material attack on our brands.

IT has security measures in place Getting business approval for high priced litigation is a challenge.

Our risk management program is well established and comprehensive.

No one can prepare for all contingencies, nor budget for them.

We have a 10 yr history of defending our trademarks and patents and are prepared to fight to counter

anyone stealing our protected work.

The main threat is a competitive one, and we have sufficient IP protection in place (strategic patent protection and

sufficient patents for offensive use) that I am moderately confident. However, China concerns me; we are ramping Up our China patent portfolio and have concerns about

the Chinese legal system's willingness to be fair and respect those patents and strike down bad patents.We have a strong trademark enforcement program

We have extremely competent attorneys on staff and outside counsel who support and defend our brands. I think we have the resources to respond if necessary.

We have the necessary processes in place to manage this. Not sure we have preparedness plan in place.We monitor and have resources in place to react. Our business is sufficiently diversified.We monitor constantly, and have both in-house

and outside counsel expertise.We have people in place who are supposed to

take care of this.

Awareness of ex-isting/emerging

threats

Understanding existing/emerging

threats

Acting on exist-ing/emerging

threats

All of the above None of the above

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0% 33.0%

26.2%28.2%

19.4%23.3%

Q9. Where do you feel your organization has resource gaps to prevent and/or respond to an intellectual property attack? (select all that apply)

Base 103

Resource Gaps 77% of respondents feel their organization has resource gaps in awareness,

understanding and/or acting on emerging threats

68.9%

31.1%

Q.10 Does your corporation have an accurate valuation of its intellectual property holdings?

Base 103

IP Valuation

Yes

No

Q.11 Please comment on areas of greatest concern for you with regard to intellectual property rights protection: {open-ended}

Base 49

IP Greatest ConcernsGlobal Attacks Technology Cost Internal

Again, not so much patent trolls as we are a B-2-B company, but since we are in the

life-sciences industry and we are concerned about the emergence of patent trolls

in this sector. China remains a concern as we see Chinese companies violating our IP to manufacture and sell the low end of our product lines and sell first in China,

but then try to move to other foreign markets. Finally, it is always difficult to

make the case for and justify the costs to protect our IP, and this remains a

struggle today.

Trade secret/data theft in emerging regions and data security.

Major concern for a smaller company like ours is the cost of enforcing IP rights. Often

the breaches/infringement result in damages that do not justify the incredibly

high cost of litigation in this area - so infringers have significantly less incentive to

settle

Business method patents pose the greatest threats, especially in terms of processes we

utilize. Trade secrets are also at risk in a large company with so many employees, but our

turnover is not all that great, and we do a good job, in my opinion, of making employees

understand the importance of our trade secrets to the company, and the risks to them should

they misappropriate or reveal them.

Enforcement of IP rights against large clients in foreign countries - copying of technology/IP

in certain foreign jurisdictions. main exposure thus far has been China.

Patent troll claims, which can be expensive to defend against.

Use of competitive proprietary information by "trusted" independent distributors of our products to roll business to a competitor.

Attacks are constant and global. It is hard to learn of them all. Keeping up with technological changes. Patent trolls and the expense associated

with defending those types of cases.Individual leaks -controlling / monitoring

hundreds of employees who might be tempted to steal/sell information

Organized, intentional attack on our brands in international jurisdictions (particularly Asia).

Protection of our proprietary data and information systems

Recent AIA legislation makes the US atmosphere less patent friendly. IPRs are expensive and

do not act like European oppositions which are simple, less expensive and do not

create estoppels.

Managing the protection of trade secrets from all sorts of threats including BYOD policies.

Monitoring global misuseThe cloud

Escalating costs of annuities and expansion of portfolio is leading to accelerating

pace of expenses.

Employees handing over information unknowingly

Threats outside the U.S. Departing employees