Presentation on theme: "Società Italiana Brevetti – Roma"— Presentation transcript:
1Società Italiana Brevetti – Roma -How to maximize the Exploitation of Intangibles: Going Beyond the Protection of Intellectual Property Rights to Business Strategies based on Licensing, Franchising and/or Merchandisingby Fabrizio de BenedettiCaserta, November 30, 2005
2IP rights are Business Assets Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Beyond the protection of IPIP rights are assets having no value per se. Rather they are expenses accounted at cost.IP rights are Business AssetsAt what time the shift from one category to another takes place ?Use vs. value extraction
3Which Assets New Traditional Patents Utility Models Know-How Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-NewTraditionalBusiness PatentsTopographies of integrated circuits registrationsComputer-implemented inventionsSoftwareData Compilation / DatabasesBusiness Identifiers (domain names)Geographical indicationsSlogansSoundsDistinctive packaging / Trade dressPerson’s identityProperties from characters (pictures, cartoons, TV, radio)Lifestyle propertiesGraphic symbols and computer iconsGraphic user interfacesWebsite designsPatentsUtility ModelsKnow-HowTrade SecretsPlant VarietiesDesignsTrademarksCopyrightExpansion trend
4Agreement on Trade-Related Aspects of Intellectual Property Rights Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-TRIPsAgreement on Trade-Related Aspects of Intellectual Property Rights15 April 1994… taking into account the need to promote effective and adequate protection of intellectual property rights……Recognizing that intellectual property rights are private rights…
5Which business Direct use Indirect use Fabrizio de Benedetti Società Italiana Brevetti – Roma-Which businessDirect useIndirect use
6Direct use No real business without innovation Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Direct useNo real business without innovationEither traditional manufacturing companies or new start-up or spin-off companies need an innovative idea in order to plan their business and to focus their strategies around it.
7Direct use Protecting the idea Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Direct useProtecting the ideaThe idea, being the seed from which the business should develop, needs to be protected.It will then turn into an asset.
8Direct use Extracting value Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Direct useExtracting valueDirect exploitation not limited to traditional use of a patented innovation, a design, a trademark, a copyright, etc.Includes creative recognition of all potentialities (e.g. business expansion areas, geographical expansion, additional protectable items such as simplifying or enhancing technology, new design, new graphics, new colors, new slogans, creative use in advertising, etc.).The phenomenon of no factory companies.
9Indirect use Licensing Joint Venture Franchising Merchandising Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Indirect useLicensingJoint VentureFranchisingMerchandisingCreation of a new business
10Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Fund RaisingPublic loans or capital contributions for start-up innovative businessSecuritization (bank – private investors - venture capitalists)Equity financingIP valuation
11Intangibles Tangibles Value-in-use Fair market value vs. Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Fair market valueValue-in-usevs.TangiblesIntangibles
12Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Valuation of IPThe value of an intangible depends on its contextPotentialities, strategies, capabilities influence the IP valueProprietor’s business plan determines the value-in-use
13Valuation problems IP may be employed for different uses Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Valuation problemsIP may be employed for different usesIP is unique even in the same area of activity the corresponding market being more difficult to defineIP may include a number of rights of different natureIP should be considered with respect to its legal status
14Valuation methods Cost approach (principle of substitution) Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-Valuation methodsCost approach(principle of substitution)Market approach(reference to transactions involving similar assets in similar markets)Royalty income(anticipation of future income relating to use of IP)
15From Cognitive property (knowledge) Intangible economy (profit) to Fabrizio de BenedettiSocietà Italiana Brevetti – Roma-FromCognitive property (knowledge)toIntangible economy (profit)
16Thank you! Fabrizio de Benedetti Società Italiana Brevetti – Roma -Thank you!