1. Conference on Intellectual Property Rights for SMEs organized by TAIEX in co-operation with WIPO and the Turkish Patent Institute Istanbul, 10 – 11 January 2005 Competitive Intelligence: Exploiting the Power of Patent Information Karl Rackette Freiburg, Germany 2004@rackette.de

2. Competitive Intelligence: Exploiting the Power of Patent Information 2 Ikujiro Nonaka, Japan, 1998 In an economy where the only certainty is uncertainty, the one sure source of lasting competitive advantage is knowledge.

3. Competitive Intelligence: Exploiting the Power of Patent Information 3 Competitive Intelligence for Whom? Competitive Intelligence is important for –global companies, –large companies and –SMEs

4. Competitive Intelligence: Exploiting the Power of Patent Information 4 What is Competitive Intelligence? (1) Society of Competitive Intelligence Professionals http://www.scip.org : A systematic and ethical program for gathering, –analyzing, and –managing external information –that can affect your companys plans, decisions, and operations.

5. Competitive Intelligence: Exploiting the Power of Patent Information 5 What is Competitive Intelligence? (2) Business discipline for decision making based on understanding the competitive environment Process of monitoring the competitive environment Organized system for collecting information about competitors Creation of insights that help make better business decisions

6. Competitive Intelligence: Exploiting the Power of Patent Information 6 What is NOT Competitive Intelligence? Competitive Intelligence is not spying –uses open sources, public domain information Espionage –uses illegal means to gather information –breaks the law

7. Competitive Intelligence: Exploiting the Power of Patent Information 7 Tools Used in Competitive Intelligence public domain information such as –newspapers, journals –radio, television –internet, information databases –company publications –official publications by government authorities reports, statistics,... patent documents

8. Competitive Intelligence: Exploiting the Power of Patent Information 8 Effects of Competitive Intelligence (1) Raw information is turned into intelligence Provides early warning of changes in the competitive landscape Allows early detection of opportunities and threats Enhances the marketplace competitiveness through a greater understanding of the competitive environment of a company

9. Competitive Intelligence: Exploiting the Power of Patent Information 9 Effects of Competitive Intelligence (2) Enables managers to make informed decisions about research and development, marketing, investing, business strategies Leads to greater earnings Adds value to a company such as a SME

10. Competitive Intelligence: Exploiting the Power of Patent Information 10 Actions involved in Competitive Intelligence Uses legal and ethical means and methods to gather information Involves a legal and ethical analysis of information regarding competitors

11. Competitive Intelligence: Exploiting the Power of Patent Information 11 Questions solved by Competitive Intelligence CI obtains information as to what is occurring in a particular technological area –what are the subjects where research is being done –what are the emerging research lines –which are the players in a technical field –which are the leading research teams –what are the technological trends –what are the patenting trends –what are the technology portfolios of a company –what are the technical strategies of a company

12. Competitive Intelligence: Exploiting the Power of Patent Information 12 Patents Patents reward disclosure rather than secrecy.

13. Competitive Intelligence: Exploiting the Power of Patent Information 13 Basic Idea Underlying the Patent System (1) All patent owners are obliged, in return for patent protection limited in time, to publicly disclose information on their invention in order to enrich forever the total body of technical knowledge in the world.

14. Competitive Intelligence: Exploiting the Power of Patent Information 14 Basic Idea Underlying the Patent System (2) In exchange for a limited-term right to exclude others from making, using or selling the potential invention, the inventor must provide a complete and accurate public description. This provides others with the ability to use that information to invent further, thus pushing technology forward for the benefit of society.

15. Competitive Intelligence: Exploiting the Power of Patent Information 15 Why are Patent Documents Published? Protection function –Inform the public about the scope of protection limited in time and to a particular territory Information function –Teach the world wide public domain how to use the invention

16. Competitive Intelligence: Exploiting the Power of Patent Information 16 Principle of Territoriality Patents are territorial e.g., a Turkish patent has no force in foreign countries, just as foreign patents have no force in Turkey. Foreign patents may be exploited inside Turkey!

17. Competitive Intelligence: Exploiting the Power of Patent Information 17 Number of Patent Documents There are 40 million patent documents worldwide The 40 million patent documents describe approximately 13.5 million inventions On the average, for every invention a patent is applied for in three different countries

18. Competitive Intelligence: Exploiting the Power of Patent Information 18 Number of Patent Documents Every year almost 1,000,000 patent documents (patent applications and granted patents) were published over the past 10 years More than 10,000 new patents are filed every week Every 30 seconds a new patent document is added to the vast technical library of patent documents

19. Competitive Intelligence: Exploiting the Power of Patent Information 19 (C) Copyright: 1998 -2003 Japanese Patent Office and European Patent Office Domestic or Initial Patent Applications http://www.uspto.gov/web/tws/tsr2002/pdf/tsr_2002.pdf

20. Competitive Intelligence: Exploiting the Power of Patent Information 20 Expiration of Patent Rights Once a patent expires, the protection ends, and an invention enters the public domain. The owner no longer holds exclusive rights to the invention. The invention becomes available to commercial exploitation by others.

21. Competitive Intelligence: Exploiting the Power of Patent Information 21 Expiration of Patent Protection ( 20 years) (C) Copyright: 1998 -2003 Japanese Patent Office and European Patent Office http://www.uspto.gov/web/tws/tsr2002/pdf/tsr_2002.pdf

22. Competitive Intelligence: Exploiting the Power of Patent Information 22 4.6 Million Patents were in Force in 2001 USA1 388 000 30% EPC States1 268 000 28% Japan1 079 000 24% Others 854 000 18%

23. Competitive Intelligence: Exploiting the Power of Patent Information 23 Patents in Force 2001 (C) Copyright: 1998 -2003 Japanese Patent Office and European Patent Office

24. Competitive Intelligence: Exploiting the Power of Patent Information 24 Formats of Patent Information Typed paper Printed paper Photocopies Microfilm Online services (abstracts or full text) CD-ROM / DVD Internet (full text and drawings as files in tiff or pdf format)

25. Competitive Intelligence: Exploiting the Power of Patent Information 25 Kinds of Patent Information patent applications filed published search reports granted patents reexamined patents published court decisions Gazettes, data bases and other secondary literature in paper or electronic form

26. Competitive Intelligence: Exploiting the Power of Patent Information 26 Most Important Patent Information Published application for a patent –18 months after filing/priority date with or without search report Published patent after being granted –with examination as to form and substance –without examination as to substance –after opposition proceedings

27. Competitive Intelligence: Exploiting the Power of Patent Information 27 Examples of Patent Information European Patent Application –front page data listing –abstract of a European Patent Application –description, claims, drawings European Search Report –with prior art citations classification of the fields searched assessment of the relevance of the citations European Patent Specification

28. Competitive Intelligence: Exploiting the Power of Patent Information 28

29. Competitive Intelligence: Exploiting the Power of Patent Information 29 Abstract of a European Patent Application

30. Competitive Intelligence: Exploiting the Power of Patent Information 30 European Search Report (1)

31. Competitive Intelligence: Exploiting the Power of Patent Information 31 European Search Report (2)

32. Competitive Intelligence: Exploiting the Power of Patent Information 32 European Search Report (3)

33. Competitive Intelligence: Exploiting the Power of Patent Information 33 Patent A patent is a right granted and published for any device, substance, method or process, which is new, involves an inventive step and is susceptible of industrial application.

34. Competitive Intelligence: Exploiting the Power of Patent Information 34

35. Competitive Intelligence: Exploiting the Power of Patent Information 35 Content of a Patent Document Identification information (business) Legal information Technical information

36. Competitive Intelligence: Exploiting the Power of Patent Information 36 Identification Information Issuing authority Application number Publication number

37. Competitive Intelligence: Exploiting the Power of Patent Information 37 Legal Information Contained in a Patent Document Issuing authority Name and address of the inventor Name and address of the applicant/proprietor Date of filing Date of priority Date of publication Country of priority claim Country or countries covered Claims

38. Competitive Intelligence: Exploiting the Power of Patent Information 38 Claims A series of numbered statements in a patent specification, usually following the description, that define the invention and establish the scope of the monopoly conferred by the patent. At least one such statement (usually the first) will be self contained - this is known as an independent claim. Others may refer to previous claims and using wording such as... as claimed in claim 1 or claim 2... - these are known as dependent claims.

39. Competitive Intelligence: Exploiting the Power of Patent Information 39

40. Competitive Intelligence: Exploiting the Power of Patent Information 40 Technical Information Contained in a Published European Patent Application Description –Background and discussion of relevant prior art Problem to be solved by the invention Solution to the problem in broad terms –Detailed description with examples Drawings where appropriate Abstract Search results International Patent Classification

41. Competitive Intelligence: Exploiting the Power of Patent Information 41 International Patent Classification (IPC) a hierarchical classification system comprising –8 sections, –120 classes, –628 subclasses and –69,000 groups (main groups and subgroups). For the uninitiated user, it is advisable to approach the Classification by using the official Catchword Index to the IPC.

42. Competitive Intelligence: Exploiting the Power of Patent Information 42 International Patent Classification (IPC) Authentic versions (English and French) of the IPC are made available on the WIPO Web site, permitting the user to browse the text of the Classification in order to find the relevant IPC symbols. The seventh edition of the IPC is in force since January 1, 2000. The eighth edition will enter into force on January 1, 2006

43. Competitive Intelligence: Exploiting the Power of Patent Information 43 International Patent Classification (IPC) Sections A Human Necessities B Performing Operations; Transporting CChemistry; Metallurgy DTextiles; Paper EFixed Constructions FMechanical Engineering; Lighting; Heating; Weapons; Blasting GPhysics HElectricity

44. Competitive Intelligence: Exploiting the Power of Patent Information 44 International Patent Classification (IPC) Classes of Section H H01 Basic Electric Elements H02Generation, Conversion, or Distribution of Electric Power H03Basic Electronic Circuitry H04Electric Communication Technique H05 Electric Techniques not otherwise provided for

45. Competitive Intelligence: Exploiting the Power of Patent Information 45 International Patent Classification (IPC) Subclasses of Class H 04 H 04 B Transmission H 04 H Broadcast communication H 04 J Multiplex communication H 04 K Secret communication; Jamming of communication H 04 L Transmission of digital information, e.g. Telegraphic communication H 04 M Telephonic communication H 04 N Pictorial communication, e.g. Television H 04 Q Selecting H 04 R Loudspeakers, microphones, gramophone pick-ups or like acoustic electromechanical transducers; Deaf-aid sets; Public address systems H 04 S Stereophonic systems

46. Competitive Intelligence: Exploiting the Power of Patent Information 46 International Patent Classification (IPC) Groups and Subgroups of Subclass H 04 B 1/00 Details of transmission systems 1/02. Transmitters 1/03..Constructional details, e.g. casings, housings 1/034... Portable transmitters 1/036... Cooling arrangements............. 1/38. Transceivers, i.e. devices in which transmitter and receiver form a structural unit and in which at least one part is used for functions of transmitting and receiving

47. Competitive Intelligence: Exploiting the Power of Patent Information 47 International Patent Classification (IPC) Groups and Subgroups of Subclass H 04 M 1/00 Substation equipment, e.g. for use by subscribers 1/02. Constructional features of telephone sets 1/03.. Constructional features of telephone transmitters or receivers, e.g. telephone hand-sets 1/04.. Supports for telephone transmitters or receivers 1/05... adapted for use on head, throat, or breast 1/06... Hooks; Cradles 1/08.... associated with switches operated by weight of receiver or hand-set 1/10.... associated with switches operated by magnetic effect due to proximity of receiver or hand-set

48. Competitive Intelligence: Exploiting the Power of Patent Information 48 Advantages of Patent Documents as a Source of Technological Information Most current and up-to-date Uniform structure makes reading easier Not published elsewhere (unique) Well organized due to classification system Concentrated information Quick and easy access (internet) Low cost (accessible) Unique Resource (U.S. patent file spans over 200 years (evolution of society))

49. Competitive Intelligence: Exploiting the Power of Patent Information 49 Who Uses Patent Information? (1) Independent inventors SMEs Business and industry Scientists and researchers Educators and students Legal professionals, e.g. patent attorneys and agents Patent searchers and paralegals Commercial database producers

50. Competitive Intelligence: Exploiting the Power of Patent Information 50 Who Uses Patent Information? (2) Government agencies, particularly departments involved in economic planning and development, industrial property activities or licensing Librarians and technical library administrators Historians, social scientists, and other scholars Collectors and antiquarians Journalists General public

51. Competitive Intelligence: Exploiting the Power of Patent Information 51 Searching and Retrieving Patent Information by using the filing number or publication number by using references found in a patent document –to find prior art –to find possible infringers by using the bibliographic data by using the International Patent Classification by using well chosen key words by using combinations of the above strategies

52. Competitive Intelligence: Exploiting the Power of Patent Information 52 Analysis of Patent Information for finding protected information for finding out time limits and geographical limits of the protected information for finding licensors or licensees for finding infringers for finding existing solutions to technical problems that are not protected for finding translations to avoid translation costs

53. Competitive Intelligence: Exploiting the Power of Patent Information 53 Reasons Raised for Not Using Patent Information 133 Do not consider patent information to be useful or relevant to the company Do not know enough about patent information The cost of acquiring the information is too high Can get this information from newspaper, journal or other literature

54. Competitive Intelligence: Exploiting the Power of Patent Information 54 Reasons for Searching Patent Information to check whether an invention may be patented to check that a product does not infringe an existing patent to keep track of the market and competitors to keep abreast of technological developments generally (lifelong-learning) to get information in response to a specific technological problem to license in new technology to study history of technology or social changes

55. Competitive Intelligence: Exploiting the Power of Patent Information 55 Conducting Patent Searches by hiring a patent agent by searching online or the Internet by the Patent Office at time of application by visiting a library with patents through a parent company or another branch of the company through a business link or Chamber of Commerce by a specialist patent search service by other external information service by a trade or research association

56. Competitive Intelligence: Exploiting the Power of Patent Information 56 Simple Analysis Direct count and evaluation of the number of patent applications (and those for which patents were granted ) –of a country / granting authority –of a company (expiration dates) –of an inventor –of a particular IPC (key words) –of number of annuities paid since filing within one given large time frame or for a trend analysis within several smaller time frames to compare the results and to analyze the evolution

57. Competitive Intelligence: Exploiting the Power of Patent Information 57 Statistical Analysis of Patent Documents Concerning a Particular Applicant or Proprietor Analyzing theallows to find applicants / proprietors (further)cooperating companies inventorstop inventors in a company IPC symbolsfields of expertise, R&D focus priority data (dates)activity chart of a company country codes (national patents)importance of markets designated EPC states(foreign) markets of interest designated PCT states(foreign) markets of interest

58. Competitive Intelligence: Exploiting the Power of Patent Information 58 Statistical Analysis of Patent Documents Concerning a Particular Inventor Analyzing theallows to find applicants / proprietorsemployers, assignments, C.V. inventors (further)inventor teams, networks IPC symbolsfields of expertise of an inventor priority data (dates)creativity chart of an inventor country codes (national patent)local importance of inventions designated EPC statesvalue of his inventions designated PCT statesvalue of his inventions

59. Competitive Intelligence: Exploiting the Power of Patent Information 59 Statistical Analysis of Patent Documents Concerning a Particular IPC Analyzing theallows to find applicants / proprietorsmarket leaders, competitors inventorsexperts in a field of technology IPC symbolsrelated technology priority data (dates / countries)evolution/origin of a technology country codes (national patents)importance of foreign markets designated EPC statesmajor regional markets designated PCT statesgeographic importance

60. Competitive Intelligence: Exploiting the Power of Patent Information 60 Statistical Analysis of Patent Filings in or from a Particular Country / Region Analyzing theallows to find applicants / proprietorstop players in/from a country inventorsimportant experts IPC symbolsimportant technology, in / from priority data (country)workplace of top players priority data (date)changes within a territory designated EPC statescountries in competition designated PCT statescountries in competition

61. Competitive Intelligence: Exploiting the Power of Patent Information 61 THE END Thank you for your attention!