1. The IP Experts Inventing the Future The Importance of Inventive & Innovative Activity in Maintaining Competitiveness BY P. KANDIAH KASS INTERNATIONAL SDN BHD

2. The IP Experts No business remains the same Unless there is innovation there is certain business death Unless there is innovation, a business evaporates

3. The IP Experts Product Innovation Sales Time 1 st product 2 nd generation 3 rd generation

4. The IP Experts Innovations in Trademarks Modernizing Trademarks - e.g. Shell, 3M, Starbucks

5. The IP Experts Inventing Future Products/Process New Products (Non-existent before) E.g. Cell phones, Smart phones, iPad, etc. Reduce Cost Materials Operations Machines/Equipment Market Needs

6. The IP Experts Necessity is mother of invention - Traditional view (still relevant) Market survey on unmet needs R&D New Products

7. The IP Experts New Way Create Needs Then create market (e.g. Cell phone, etc) New Challenges Global Warming Increasing cost of labor Modern communication tools etc.

8. The IP Experts See Challengese.g. Japan – Small houses/apartments Miniaturization of domestic appliances Multi-functional tools High cost of fuel and reduction in supply Fuel efficient vehicles/equipment/machines Land High ValueMultiple use of land e.g. Oil palm plantations - Use of biomass - Use of below canopy space - Low sunlight plants - Animal husbandry

9. The IP Experts Singapore- Shortage of land and water - Use of roof tops for commercial gardening - Create technology for land water management (Now exporting water management technology)

10. The IP Experts Old / Existing NeedsNew ways of satisfying needs using new technology E.g. Use of cell phones, multi-functional tasks (Telephone, camera, watch, alarm, storage of images, transmission/reception of images, directory of information), Use of credit-card, etc.

11. The IP Experts Walkman criteria Realized need for people to listen to music individually and whilst on the move Separated location of production of music and the hearing of music by the individual Now met by several ways: - MP3 players - iPods - Cell phones - etc (Aided by digital technology and the miniaturization of devices)

12. The IP Experts Creation of Technology To extend wide control of market through patent system ToyotaCarsRobots to make the cars GilletteRazor BladesTechnology to make the blades CarotinoCooking oilMachinery to produce the oil InventorEfficient Production &New/Innovation in equipment Utilization of Energyto achieve energy efficiency in oil palm industry

13. The IP Experts Product Development Proprietary RightsPatent/Utility Innovation Industrial Designs Copyright/Layout Circuit in ICs Trademark Unless R&D results claimed as IP rights, they are deemed donated to the public

14. The IP Experts Sources of Invention/Innovation From in-house R&D facilities 1.From the marketing and sales departments 2.From QC circles, safety committees, ISO committees, innovation circles, etc 3.From outside of the company a) Free Source i) Patent databases ii) Technology Mining iii) Non-patent literature b) Licensing

15. The IP Experts Anatomy of a Granted Patent Document

16. The IP Experts ICT Industry How is software protected as proprietary rights Software per se copyright only Software and hardware patent and copyright

17. The IP Experts Example of software patent in the US

18. The IP Experts To be patentable, a software must… contribute to technical effect Laws on software patents vary from country to country. Ingenious way to protect ICT technology Need to obtain enforceable patents – because of cross-border operation of technology – all integers of a patent claim may not be located in one country.

19. The IP Experts Why Patent? 1.Competitive edge, market power and earning more money 2.Add new revenue stream - licensing a patent - different product - different market - different country

20. The IP Experts Why Patent ? (contd) 3.Raise funds and attract potential investors a)patents may be bought, sold or licensed b)collateral for bank loans c)attract investors - venture capitalists - investment bankers - financial analysts - others

21. The IP Experts 4.Bargaining chip for securing Freedom to Operate Patent right is a negative right Cross licensing e.g. Qualcomm Inc. filed 278 patent applications in Malaysia in 2010, yet it does not have a factory in the country. Microsoft Corp filed 44 patent applications in Malaysia in 2010. Why Patent ? (contd)

22. The IP Experts 5.Selling the Invention Patents, Industrial Designs, etc. are tradable assets - Value add for business if technology is protected by patents Why Patent ? (contd)

23. The IP Experts 6.Strategic Partnership, Mergers and Acquisitions, IPO, and Higher Sales Price - Entering new markets with strategic partnerships or in mergers and acquisitions - Start up company listed on stock exchange - Higher sales price of an established company Why Patent ? (contd)

24. The IP Experts 7.Convoyed Sales Add on, collateral, derivative, follow-on or convoyed sales e.g. Improvement in camera lens, but sales of cameras. Improvement in energy utilisation of factory, but sales in critical equipment which results in energy utilisation Why Patent ? (contd)

25. The IP Experts 8.Basis for Recognition and Rewarding Employees - Rules for rewarding inventor employees Why Patent ? (contd)

26. The IP Experts 9.Part of Branding and Marketing Strategy - Company portrayed as a R & D company and not as a me-too copycat company - Attract quality employees Why Patent ? (contd)

27. The IP Experts Patent and UI filings by Malaysians in Malaysia from 2006 to 2010 20062007200820092010 [Source: Intellectual Property Corporation of Malaysia (MyIPO)]

28. The IP Experts CreativityEmotional (Entrepreneurs) Causal (Structured R & D ) Malaysian Companies and Entrepreneurs need to THINK BIG, THINK GLOBAL MARKET

29. The IP Experts for your participation and listening THANK YOU P. KANDIAH Tel: +603 2284 7872 Fax: +603 2284 1125 E-mail: ipr@kass.com.my