PATENTS IN TECHNOLOGY ACQUISITION - DO WE KNOW WHAT WE ARE SAYING?
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Transcript of PATENTS IN TECHNOLOGY ACQUISITION - DO WE KNOW WHAT WE ARE SAYING?
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March 23, 2014 1 © Crafitti Consulting Private Ltd.
Patents in Technology
Acquisition – Do we understand,
what we are saying? Navneet Bhushan [email protected] Phone: +91 9902766961
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March 23, 2014 2 © Crafitti Consulting Private Ltd.
KEY POINTS – We need to Innovate!
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IP Imperialism: Indians even in India are not filing patent applications
March 23, 2014 3 © Crafitti Consulting Private Ltd.
IP Imperialism
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The English word ‘patent’ is derived from the Latin word ‘patere’ meaning ,- to be open.
• A Legal grant by a Government
• Terms of grant
– In return for disclosing an invention publicly so that others can learn from it, and paying the processing fees, the Govt. of the country will grant the inventor of the invention the rights to exclude others from making, using, or selling the invention for a limited period of time
What is a Patent?
When you patent your invention - you disclose your invention or "technical solution to a problem". If that Patent application - your disclosure is Novel, Inventive and have industrial application and is "sufficiently" disclosed you may get a right by the government of the land/country to exclude others from exercising that "invention" for a limited time period - currently 20 years from the date of filing. That right is called the "patent right"!
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Case Study 1 (Engineering) – (1)
Scenario
• An MNC had an invention that was patented and that expired in 2010 in multiple countries but it was not filed in India.
• In 1996, the MNC filed another patent which was a slight extension of the base patent - but this time through PCT route they filed in India as well. In India the application was published in 2004.
• The new patent was granted - they cited the base patent as prior art and created some mumbo-jumbo the way people who draft these applications know so that the new application was considered an invention over prior art.
March 23, 2014 5 © Crafitti Consulting Private Ltd.
The MNC sent a letter to one of the big SME's in India,
saying their product infringes the patent - hence they
should stop production and sales.
The Indian company really was not aware of the
patent and what actions to take.
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Case Study 1 (Engineering) – (2)
Solution
• After months of struggle, they found us. We suggested that (a) Let us look at the extent of infringement (b) let us look at the validity of the patent In a week of study, we were able to prove that on technical grounds Patent is not valid (purely on Technical grounds) (a) Insufficient disclosure of how to exercise the invention (b) Prior art - the old expired patent was the main patent - and the extension was sort of small extension (c) Prior use - there was a product existing in the market since 1980s which clearly shows that invention described in the patent is not Novel.
March 23, 2014 6 © Crafitti Consulting Private Ltd.
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• Prior art - the old expired patent was the main patent - and the extension was sort of small extension
• Questionable Novelty!!
March 23, 2014 7 © Crafitti Consulting Private Ltd.
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Case Study 1 (Engineering) – (3)
Key lessons and steps (a) Maintain a continuous patent watch in your industry (b) As you see a patent for which you have a prior art or prior use - immediately raise a pre-grant opposition in Indian Patent office (this is much less costly) (c) If someone threatens with a patent - please do the following i. verify the extent of infringement - many times infringement may be very small or negligible ii. Check the validity of patent - given the pace of patent apps and lack of sufficient availability of manpower in patent offices - many patents are granted with very low level of assessment - 50% of patents will be invalid on various grounds (
March 23, 2014 8 © Crafitti Consulting Private Ltd.
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Case Study 1 (Engineering) – (4)
Key lessons and steps (d) If there is an infringement and patent is valid 1. Get into carrying out a Technology Alternative Studies (TAS) on the patent. 2. Carry out a patent valuation study
3. Get into a discussion/negotiation with the Patent holder to acquire the technology or pay a royalty Please understand the extent of threat that your field is facing due to patent system becoming more pronounced and India becoming a Big Globally lucrative market. Our defence is in our hands..
March 23, 2014 9 © Crafitti Consulting Private Ltd.
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Intel’s Ex-CEO
March 23, 2014 10 © Crafitti Consulting Private Ltd.
PARANOID!
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TRIZ – Inventive-Problem Solving by Altshuller
Teoriya Resheniya Izobreatatelskikh Zadatch • 1946 Patent
Officer in Russian Navy
• Discovered patterns in patents, published paper. Sent to Gulag
• 1954 released, analysed 2,500,000 patents
• Identified what makes a successful patent
• 1956-1985 TRIZ formulated
• Same Problems and Solutions appear repeatedly in different industries (Myth: My field is Unique )
• There are a series of recognizable evolution paths for all technical systems (Myth: Evolution is Completely Random)
• Innovative solutions used theories outside their own area/industry (Myth: Innovation happens through Deeper Knowledge)
• The most powerful solutions uncover and eliminate contradictions (Myth: Optimization is the Focus)
TRIZ itself does not solve problems. Problems are solved by people.
TRIZ teaches how to solve problems.
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5 Levels of Inventions
March 23, 2014 © Crafitt
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• Pioneering Invention – based on newly discovered phenomenon
• Pushing existing technology to a higher level
• Revolutionary Level 5 (<0.3%)
• New System Developed
• Interdisciplinary solutions
• Replacing old technology with New Level 4 (< 4%)
• Radical change or elimination of one principal system component
• One Engineering Discipline
• Resolution of a physical contradiction Level 3 (19%)
• Slight Modification of the system
• Knowledge from different areas within the industry
• Resolution of a technical contradiction Level 2 (45%)
• A simple improvement
• Knowledge within the trade
• No system conflicts are resolved Level 1 (32%)
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WHAT IS THE LEVEL OF YOUR INVENTION?
QUANTIFYING THE LEVELS OF INVENTION
March 23, 2014 13 © Crafitti Consulting Private Ltd.
APPLE Filed this patent in 2005
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Crafitti’s Level of Invention Tool Key Changes described in this patent compared
to prior art
March 23, 2014 14 © Crafitti Consulting Private Ltd.
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March 23, 2014 15 © Crafitti Consulting Private Ltd.
Crafitti’s Level of Invention Tool How long will it survive?
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Quantifying the Height of Inventive Step – Using Lines of System Evolution
March 23, 2014 16 © Crafitti Consulting Private Ltd.
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March 23, 2014 17 © Crafitti Consulting Private Ltd.
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March 23, 2014 18 © Crafitti Consulting Private Ltd.
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March 23, 2014 19 © Crafitti Consulting Private Ltd.
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Claims
March 23, 2014 20 © Crafitti Consulting Private Ltd.
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Identify System Hierarchy
March 23, 2014 21 © Crafitti Consulting Private Ltd.
Cattle/Cows, Feed, Drinking, People to feed the
cows,
Owner/Manager, Type of feed, Preparation of
the Feed, Delivery/Management of the Feeding
process, Other cows in the dairy
Constituents of the feed, amount of food,
amount of water
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Identify Problem in the existing system
March 23, 2014 22 © Crafitti Consulting Private Ltd.
• Inefficient Daily distribution of food ingestion
by animals,
• Low Amount of water drunk by animals
•Digestive disorders such as acidosis or bloating
Food for the cattle is given one time of the day
and there is no control on how much each cattle
eat during the day
Feed is more than the capacity of
eating/digesting, There is no time for the cattle
to drink water as it keeps on eating
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Key Changes proposed in the Patent
March 23, 2014 23 © Crafitti Consulting Private Ltd.
Feed-Additive capsicum oleorasin added to the
feed
Produces irritation and heat sensation in the stomach hence leads
to less food intake and a second peak of more food intake
Leads to more drinking of water
No need to manage the distribution of food
intake throughout the day
Healthy animals
Process of MicroEncapsulation of the new addititive
Flexibility to release the chemical (capsicum
oleorasin) to specific part of the digestive track of
the animal
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Quantify the Level of Invention
March 23, 2014 24 © Crafitti Consulting Private Ltd.
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“Life” of Invention for various inventiveness levels
March 23, 2014 25 © Crafitti Consulting Private Ltd.
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Life of Invention Curves
March 23, 2014 26 © Crafitti Consulting Private Ltd.
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Traditional methodologies to value patent
• Cost based approach
• Market based approach
• Income approach
• Black scholes model
• Relief from royalty method
• Competetive advantage method
• Fair market value
• Valuation using multiples
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Patent Valuation Using Crafitti’s Multi-Dimensional Multi-Perspective (MDMP)
Valuation Methodology
• 4 Key Pillars of Our Holistic Approach
– TRIZ
– Social Network Analysis
– Scenario Planning
– Analytic Hierarchy Process (AHP)
• Multi-Dimensional Multi-Perspective Methodology
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Crafitti Multi-Dimensional Multi-Perspective (MDMP) Valuation Methodology for a Patent
March 23, 2014 © Crafitt
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Current State of the Patent/
Patent Value Indicators
Citations
backward/
forward
Maintenance
levels/ Legal
Status
Technical
Description
Family
Size
Claims
Length/Breadth
Remaining
Life
Assessing the Patent Using Theory of Inventive Problem
Solving (TRIZ) – A Unique Proposition
TRIZ Level of Invention 77% of inventions are at Level 1 or 2, 19% at Level 3, 4% at Level 4 less than < 0.3% at Level 5, Higher Level means higher Valuation
TRIZ Laws of Evolution 9 Laws have been identified. Based on the position of patent on each of these laws it is possible to ascertain the strength of the patent
TRIZ Function and Resources Analysis How does various parts of the invention combine to perform the function and how much resources have been utilized help in understanding the strength of Invention
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COMPARING APPLES WITH ORANGES – AN EXPOSITION OF AHP
Similar to Decision Matrix approach but allows a wider range of values in comparison of alternatives
Developed by T.L. Saaty (1980)
AHP invites pair-wise qualitative comparisons
The problem is organized as a hierarchy
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March 23, 2014 31 © Crafitti Consulting Private Ltd.
STRENGTH OF NEW CONCEPTS
NOVELTY BUSINESS VALUE FEASIBILITY
C1 C2 C4 …..
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Crafitti Multi-Dimensional Multi-Perspective (MDMP) Valuation Methodology for a Patent
March 23, 2014 © Crafitt
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Current State of the Patent
Future State of the Patent
Historical Factors related to the
invention/Patent
Current State of sub-systems,
components and parts that make-up
the patent
Future State of sub-systems,
components and parts that make-up
the patent
Historical Factors related to
components and sub-systems
PAST PRESENT FUTURE
Current State of Technology, Market
and Competition
Future Scenarios in Technology,
Market and Competition
History of Technology, Market
and Competition
Sub
Sys
tem
Sy
stem
Su
per
Sys
tem
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Scenario Writing and Thought Experiments (understanding something about something in future)
33 © Crafitt
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Scenario Writing: Description of sequences of
events for thought stimulation on potential crisis and to anticipate future. Usually include plausible, but unexpectedly important situations and problems that exist in some small form in the present day.
Thought Experiments: the process of employing imaginary situations to help us understand the way things really are. The understanding comes through reflection upon this imaginary situation.
Crafitti Approach Combines Scenario Writing with Thought Experiments
During the Idea Crafting Engagement for one of the world’s top three financial data provider, four global scenarios were written and future initiatives played out in each of Global scenarios as thought experiments to rank order the initiatives
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An Integrated Approach – ALVIS THINKING
ALVIS
Value Thinking (Minimize Waste – Maximize Value)
Inventive Thinking
(Ideality – Functions – Resources)
Systems Thinking
(Holistic Approach – Exploring Complexity)
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Analytical Thinking (Divide
complexity into multiple solvable
problems )
Logical Thinking
(Informal and Formal Reasoning)
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TECHNOLOGY ACQUISITION
• CLOSELY LINKED TO PATENTS
• BE AWARE OF PATENTS IN YOUR FIELD
• SYSTEMATIC PATENT WATCH
• PATENT VALUATION IS VERY DIFFERENT FROM A COMPANY VALUATION
• SCOUT SELECT SYNERGIZE THE TECHNOLOGY THAT YOU NEED
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Thank You
Crafitti Consulting Pvt Ltd |www.crafitti.com
Innovationcrafting.blogspot.com)
+91 9902766961
© Crafitt
i Consul
ting Private Ltd.
Navneet Bhushan