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Part of a bigger innovation picture Integration of IPR enforcement and innovation support Maria Weir Operations Manager Intellectual Assets Centre Scotland.

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Presentation on theme: "Part of a bigger innovation picture Integration of IPR enforcement and innovation support Maria Weir Operations Manager Intellectual Assets Centre Scotland."— Presentation transcript:

1 Part of a bigger innovation picture Integration of IPR enforcement and innovation support Maria Weir Operations Manager Intellectual Assets Centre Scotland

2 The Intellectual Assets Centre To assist Scottish businesses to maximise the economic potential of their intellectual assets First of its kind in Europe Funded by the Scottish Government Independent, impartial, a facilitator Not a grant-giver Part of a set of organisations giving joined up Innovation Support as a clear strategic policy aim

3 A few of the IA Centres aims To raise awareness and understanding of intellectual assets (IA) among Scottish organisations To help those organizations identify and exploit the untapped potential of their IA To work with independent IA management specialists and encourage their sector to grow

4 How were helping? Events and programmes Sectoral Support and Key themes e.g. IA in procurement One-to-company support by staff and our associates Tools Information New Business Service Partnerships!

5 Why are intellectual assets important? Whilst it may be difficult to separate some of these assets out for sale theyre still worth something - look at the monetary values attributed to intangibles: Around 80% of value lies in intangibles e.g.2005 Procter & Gamble purchase of Gillette for $57b 97% of the value was attributed to the intangibles* e.g. March 2006 LOreal bought The Body Shop for £652.2m 81% of the purchase price was for intangibles* More than £20bn in Scottish SMEs alone They are highly rated by investors, shareholders and others seeking to identify business value drivers. * Source: The Importance of customer valuation. Thayne Forbes IA Magazine Issue 19 August / September 2006

6 What do we mean by...? (some definitions) Intellectual Capital (IC) - intangible organisational assets of a business Intellectual Assets (IA) (aka Intangible Assets) -the intangible assets that are or can be recorded (or written down, codified etc) Intellectual Property (IP) -the bits of the IA that are legally protected by statute law

7 IP or IA or Intellectual Capital?

8 Examples of other non-IP intellectual assets Know-how and show-how e.g. chef, R&D company Process procedures and technical information e.g. SOP Confidential information / trade secrets e.g. Drambuie, Irn Bru Management systems and infra-structure Unregistered trade marks and domain names Contracts e.g. employee, lease, license, etc

9 Some more examples Image enhancing customers Goodwill and reputation e.g. Ratners; Toyota - damaged Brands Customer and supplier knowledge and networks Accreditations e.g. ISO, IIP, by Royal Appointment Market knowledge All these Intellectual Assets may add value to your brand and how customers, suppliers and potential partners or investors view your organisation!

10 Why are IA so important? Whether a big global player or SME, understanding the IA of a business can: show the KEY commercial strengths of a business inform business strategy stimulate innovation, e.g. by suggesting and controlling diversification help raise money e.g. investment, mortgaging generate new income streams be traded in – e.g. licensed, assigned add kudos and act as a marketing tool deter and prevent the competition…….. etc

11 What do we offer? IA Showcase – free events, seminars, case studies IA Skillbuilding events – for business support professionals and companies – examples 3 day IP Masterclass and Love Me Tender (for small businesses who wish to enhance their tender prospects through management of their IA) IA Valuebuilding programmes – examples have been with software businesses, helps businesses communicate the value of their intangible assets IA Costsaver – consultancy advice and downloadable resources from the IA Centre website. We pay for consultancy days clients pay nothing. Projects have run for these sectors: creative, energy & renewables, food & tourism, HE and the public sector, financial services; life sciences, engineering & manufacturing Supplier Directory of Business Service Partners - offering free initial consultations and special rates in the fields of IP, legal services, finance and accounting, brand management, people management, reputation management, knowledge management, supply chain logistics and procurement.

12 Professionalism in Service Delivery: Making IPR work for SMEs Prior to the establishment of an IA Centre in Scotland (2003) About 66% of Scottish businesses had never heard of the term intellectual assets (IA) Approximately 74% would report not having a good understanding of IA More than half of Scotlands businesses had never considered the importance of IA to their businesses Only 16% of Scotlands businesses had undertaken any activity to manage their IA Only 8% of Scottish businesses had taken steps to protect or safeguard their IA (of that 8% about 58% had protected their IP)

13 What do SMEs in Scotland protect and how do they do so? The most protected IA were company name, reputation of the company, company customer base and quality of products and services The most frequently used protection methods were confidentiality agreements and employee contracts. More specialised forms of protection such as registered designs, patents, IP insurance and copyright were less well used Only 3% of Scottish businesses reported using patents to protect their IA.

14 What do SMEs cite as the business benefits of protecting their IA? Increase in company value Better understanding of business strengths Attraction of new customers Why do companies not protect their IA? – most commonly cited reason is insufficient time followed bynot thought about it, also sometimes –my company is too small to exploit our IA The Majority of Scottish SMEs are micro companies.

15 What support needs to SMEs have? 56% of the businesses we surveyed wanted to know more about IA. The most popular areas are: General information about IA Information on how other businesses have addressed IA How to value and exploit IA In 2003 the most frequently used sources of external support were lawyers, management consultants, patent attorneys and accountants. A small proportion of companies reported using public sector support. In 2008 this had changed quite radically with more public sector support being available e.g. Scottish Enterprise, H&I Enterprise, ICASS, SMART Scotland, Interface, KTPs etc. Feedback indicated that when used, external assistance had been highly rated, although there were suggestions that the cost of engaging specialist support was a barrier for some companies

16 Prevention rather than cure Premise of Intellectual Assets Centre in regard to IPR enforcement is that prevention is better than cure IA Centre promotes good intellectual asset management IA Centre sits within a network of organisations broadly promoting innovation IA wider than purely legally protected IP, includes other intangible assets than can be recorded or codified (e,g brands, goodwill, know-how, trade-secrets, technical information, contracts) A principal message is that such assets are sources of competitive advantage and represent significant value – thus need to be managed strategically

17 What does the IA Centre offer to businesses? Programme of events & workshops Tailored one to one support to individual companies Our new Business Service Partnerships! Downloadable resources such as: Publications An IA Audit tool IA Glossary IA Register Case Studies Almost all service from the IA Centre are currently free or for minimum charge to Scottish companies Outlay by Scottish Government approx 1.5m per annum

18 Transferability & Performance The strategic plan for the IA Centre includes: To put IA on the business agenda To make the case for IA as a business tool To provide support (advice and tools) for the visualisation of IA To provide initial gap analysis and risk assessment diagnostics To provide support for management, valuation and leverage of IA To link appropriately with professional assistors and associated regulatory and consultative bodies e.g IPO and private providers of IA/IP advice (through our Business Service Partnership model)

19 Results Awareness and appreciation of IA - up Consolidation of IAM activity amongst the active population of companies Numbers of companies exploiting IA - up 9% recognition level amongst the general sample of companies High proportion of companies in sample have contacted the Centre within the last months Low proportion of deadweight 90% of the sample had a very good experience of their interaction with the Centre and would recommend the Centre to others. Staff competence rated very highly 10% of the funding has come from non-core sources Scotland was seeing above average increase in trade mark applications (up to 2007) and substantial increase in the interest in copyright Good recognition among key partners and suppliers

20 On-going challenges positive feedback, but impacts very limited, particularly around exploiting IA more awareness than action – expected – long term agenda economic impacts very low, although additionality reasonably strong and improving evidence of ongoing demand (70% beyond initial advice) particularly around IP, but ongoing reluctance to pay for services

21 Some feedback from SMEs who have worked with the Centre


23 The IA Centre is keen to consider collaborations with other initiatives so if you would like to discuss ideas please see how to contact us below Main office Post: Post: Skypark 2, 12 Elliot Place, Glasgow, G3 8EP Tel: Tel: Please log on to the international section of our website:

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