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• IP can be protected through several tools that give the owner the exclusive right to market an invention for a fixed time period

• IP rights can be divided in two broad families:

  • copyrights

  • industrial property rights

• Describe the rights that creators have over their literary and artistic works

• They refer to the act of making copies of literary or artistic work

  E economic and moral rights are protected

Industrial property rights: can take on several forms including:

• patents (and licenses)

• industrial designs

• trademarks

Industrial design is the „...right to protect the original, ornamental and non-functional features of a product that result from design activity“

Patent is the „right granted to an inventor by a State, or by a regional office,...which allows the inventor to exclude anyone else from commercially exploiting his invention for a limited period...“ (WIPO, Understanding Industrial Property)

• industrial applicability

• novelty

• non-obviousness

• patentable subject matter

• Distinguish the products or services of one enterprise from those of other enterprises

• Guarantee function: Refer to the particular quality of the product or service

• Appeal function: stimulate sales by creating interest and inspire a feeling of confidence

• Ownership of a registered trademark, provides exclusive right with respect to the use of the mark. The period of protection varies; it can be renewed indefinitely.

Utility model is “an exclusive right granted for an invention, which allows the right holder to prevent others from commercially using the protected invention, without his authorization, for a limited period of time” (WIPO).

• The requirements of "non-obviousness" may be much lower or absent altogether (utility model therefore is good to protect incremental innovations)

• Shorter length (usually between 7-10 years without the possibility of extension or renewal)

• Registration process is simpler and faster

• Cheaper to obtain and to maintain

• In some countries:

  • only available for certain fields of technology

  • and only for products (primarily mechanical innovations)

  • but not for processes

• Overall, UM are suited for SMEs that make "minor" improvements to or adaptations of existing products

• An umbrella concept that encompasses

  • Open standards

  • Open security

  • Open source (software)

• Open ≠ Free software movements:

  • Open: development methodology

  • Free: social implications of it

A standard is a specification for a technology or methodology

• Reliability

• Information

• Compatibility

• Variety reduction

Open standard: publicly available

• anyone can obtain and use it to create an implementation of the specified methodology or technology

Standardization:

• process of building functionality based on standards

• using standards as building blocks

Standards compliant:

• substitutability is relevant

• standards-based systems function are freely exchangeable components

• Closed (proprietary) technology:

  • not open

  • creates lock-in situation

    • e.g. if a software cannot freely be replaced by another software system – may be(come) problematic due to

      • arbitrary pricing

      • (dis-)continuity risk

• Open source

  • source code available to the general public without restrictions that limit studying, changing or improving

• Open Source Initiative (OSI):

  • non-profit organization ‘dedicated to managing and promoting the Open Source Definition for the good of the community’

  • OSI registers and classifies (certifies) software licenses

  • OSI provides definition standards (“The Open Source Definition”)

    
    

• Freeware

  • Copyrighted software

  • Owner made it available to the public for use without cost

• Free software

  • Software to which users are permitted to make changes

Shareware

• Type of copyrighted software

• Provided free of charge to user

• Usually on the condition that if they want to continue to use it after a certain time they have to pay for it

Open source software

• Is made available to the public by copyright holder, who gives a license to modify it and distribute the modified version to any other persons

• They can use it as a platform to promote their own (copyrighted) products which serve as add-ons or enhancements to the free software

• Altruism

  • Contribution costs are not that high

  • But: Recognition, access to VC Capital, Career oportunities

• Additional befenits

  • Beta-tester point out problems

  • Tester of OS software fix bugs or identify the root of the problem

• Profit with complementary services

• Be up to date with OS developments

  • Better know competition

  • Develop absorptive capacity (spot talented programmers for hiring)

  • Attract programmers who want to work in intellectually challenging environment

• Embrace an open source project to preempt the development of a standard around a technology owned by a rival

• Key findings by Popp (2001):

  • R&D is intensified for increases in prices

  • Technology helps saving energy

  • Only few industries are exceptions (e.g. aluminum)

Both energy prices and patents positively affect innovation

• Yes and they can be used to assess effects of different policy types

• The development of new technologies around renewable energies