1 / 41

The economics of patenting, the importance of innovation and the role for of patents for SME

The economics of patenting, the importance of innovation and the role for of patents for SME. Gerhard LOSENICKY at APO since 1991 Examiner for 15 years since 2006 Department: Patent Support / PCT. topics. commercial background product cycle patent filing – when??? EPO – facts & fees

altessa
Download Presentation

The economics of patenting, the importance of innovation and the role for of patents for SME

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The economics of patenting,the importance of innovationand the role for of patents for SME • Gerhard LOSENICKY • at APO since 1991 • Examiner for 15 years • since 2006 Department: Patent Support / PCT Gerhard Losenicky

  2. topics • commercial background • product cycle • patent filing – when??? • EPO – facts & fees • PCT - facts & fees • Patent valuation with IPscore Gerhard Losenicky

  3. commercial background • What are patents for(e.g. Austrian Law, Section 22) • entitle the patentee to exclude others from the following • to industrially produce the subject of the invention • put it on the market • offer it for sale • to work it • exclusive right  prohibit (allow) others to do (produce) something Gerhard Losenicky

  4. commercial background How patents can be used in commercial life ? Gerhard Losenicky

  5. commercial background reason for patents Source: European Commission (2005), Research Project ETD/2004/IM/E3/77 1= highest priority Gerhard Losenicky

  6. product cycle • Showing the life–cycle of a new product: 1 2 3 4 Stage 4: Degeneration Stage 3: “normal” Life Stage 2: Business explorationStage 1: Research and Development (start – up or ?) Gerhard Losenicky

  7. ProfitCostRisk ?NewProduct Star poor dog cashcow loss - cumulated - profit product cycle Life-cycle  Profit  Cost  Risk Gerhard Losenicky

  8. ?NewProduct Star poor dog cashcow product cycle • ? - New Product (1. quarter) • Technical but no market knowledge • Internal funding (small investment) • Market contact • IP information search • Market survey • Technology feasibility / Prototype • Business plan • Inventor ship transforms into product • Serious IP considerations • High risk Gerhard Losenicky

  9. ?NewProduct Star poor dog cashcow product cycle • Star (2. quarter) • Risk bearing financial partners exit • Partners have the opportunity to receive their share of the enterprise • Owners exit oppertunity • Inventor ship transforms into product • New sources of finance (banks) • Profits can be used for market expansion Gerhard Losenicky

  10. ?NewProduct Star poor dog cashcow product cycle • Cash Cow (3. quarter) • Low level of risk • Use the success of the product to make company successful • keep the sales indicator at their peak for the maximum amount • Reinvest the profits for new rising business Gerhard Losenicky

  11. ?NewProduct Star poor dog cashcow product cycle • Poor Dog (4. quarter) • Profitable rate starts to shrink • Launch time for “New” Products • Risk increases again new competitors Gerhard Losenicky

  12. product cycle Product – cycle   innovation process a good way, as it should be the better way, shareholders favourite last product present product next product Gerhard Losenicky

  13. Patent filing – when??? • When is the right time for filing a patent ? • better later • After 18 months  published • In PCT: National entry phase starts later • Annual patent fees are more expensive • Development of product is in a final state • better earlier • Only after filing invention is safe • Keeping secret can be dangerous • Better position in case of negotiations Gerhard Losenicky

  14. Market observation Market launch Process optimisation Design optimisation Idea Concept Feasibility Develop-ment Scale Up Launch Post- Launch Feasibility Alternative concepts Idea generating Patent filing – when??? • Research and Development Phase  Patent filing Patent search Patent search Freedom to operate Patent filing Licence Gerhard Losenicky

  15. DE - patent FR - patent EP - Pat.- Office HU - patent 1 US - Pat.- Office US - patent PCT - procedure ZA - Pat.- Office ZA - patent • EP - Search Report SG - Pat.- Office SG - patent TR - application • publication  TR - patent 6 12 18 24 30 36 months 0 US – patent National Patent Office e.g. US DE – patent Regional Patent Office e.g. EP FR – patent HU – patent Patent filing – when??? Important days for an Patent application publication application day= priority day Gerhard Losenicky

  16. Patent filing – when??? • Summarising the time depending facts • As late as possible • Before informing business partners • Before publishing the new invention • Before involving suppliers • Before informing sales representatives (sales man) • Not too early • Invention should be complete (patent should cover the product) • Application is always published 18 months after filing • Should not published before market launch Gerhard Losenicky

  17. EPO – facts & fees Patent application at the European Patent Office DE - patent EPO granting procedure FR - patent CH - patent European Patent Office GB - patent HU - patent TR - application TR - patent months 0 6 12 18 24 30 Gerhard Losenicky

  18. EPO – facts & fees provisional protection provided (reasonable compensation) applicationin FR DE EN NPO (only forwarding) EPO (Munich, The Hague, Berlin not at EPO - Vienna) publishing (A1,A2)application after 18 months since priority date Search Report (A1,A3) state 1 state 2 state 3 granted(B1) Examination on filing Formalities examination max. 6 monthsrequest examination EP - search 9 m Opposition Fees: 1 month time limit Application fee € 190.-( --- “ --- online € 105.-) from page 36 per page € 13.- claims fee 16-50 per claim € 210.- claims fee 51 + per claim € 525.- Search fee € 1.105.- Fees: Examination fee € 1.480.-Designation fee € 525.-Extension fee à € 102.-Renewal fees from the 3th year Fees: Fee for grant € 830.- translation of the claims in the other 2EPO - official languages Gerhard Losenicky

  19. EPO – facts & fees • What is to consideredfor an EP – Application • EP application at the APO in Vienna, like direct filing at EPO (form 1001) • Any natural or legal person • Appoint an representative if neither a residence nor a principal place of business in a contracting state • This representative  all proceedings except application and fees • To designate an inventor is necessary • Add national Search Report - R 144 + R 70 b (from 1.1.2011) • Request Examination during the application  waived your right to receive the communication R 70.2 • 1 month time limit for fee • Languages: Application in DE, FR and EN • Renewal fees according EP – system (from 3. Y = 420.-, 525.- 735.-, 945.-…) Gerhard Losenicky

  20. EPO – facts & fees • What is to considered when a EP – Patent (B1) is granted • Take effect when grant is mentioned in EP – Patent - Bulletin • 9 months time limit for Opposition • Language translations (London Agreement) 3 months time limit in Austria • In AT: Fee for publishing € 150.- + € 30.- = € 180.- (+ € 130.-/ 15 pages) • Appoint an representative if neither a residence nor a principal place of business in a Austria • In AT: No representative only for fees • Annual fees according the National System (notice: Time limits) Gerhard Losenicky

  21. EPO – facts & fees change over EP  national Patent Patent is granted by the EPO and published EP - OFFICE • European Patent Bulletin • published by the EPO as a B1 document • European publication server • Esp@cenet annual fee (depends on application day) e.g. TR is designated time limit for translation(if failed – patent was not in force) TR - OFFICE national patent data basenational Patent Bulletin Gerhard Losenicky

  22. EPO – facts & fees „London Agreement“ in „contracting states“ (and ratified) for applicants there are no, or reduced translation costs 2 groups of states Gerhard Losenicky

  23. EPO – facts & fees • Advantages: • After priority year and national search report • 3 official procedure languages • Translation costs after granting, and reduced by „London Agreement“ • Equal Patent-Claims • Disadvantages : • Costs of the procedure ~ 4500.- € • No EP-Patent, only 1 2 1 2 3 Gerhard Losenicky

  24. EPO – facts & fees red … after PCT – application - only „regional“ patent possible Gerhard Losenicky

  25. PCT - facts & fees PCT* - Patent application DE - patent FR - patent EP - Pat.- Office HU - patent PCT - procedure 1 US - Pat.- Office US - patent PCT - procedure ZA - Pat.- Office ZA - patent • Search Report SG - Pat.- Office SG - patent TR - application • publication TR - patent 6 12 18 24 30 36 months 0 priority year *PCT….Patent Cooperation Treaty 1 2 3 Gerhard Losenicky

  26. PCT - facts & fees provisional protection provided (reasonable compensation) publication (A1,A2) application after 18 months since priority date Search Report (A1,A3) • applicationin FR DE EN • ÖPA (Receiving Office) • Examination on filing • Forwarding to • IB – international Bureau Geneva • EPO – for Search 30/31 (34 in BA)months DE - patent preliminary international Examination (Chapter II) FR - patent EP - Pat.-Office HU - patent Antrag  Search (EPO) US - patent US - Pat.-Office Search Report ISR16 months ZA - patent ZA - Pat.-Office 19 months from priorityrequest for SIS SG - patent SG - Pat.-Office 2 months from ISRamendment ofthe claimsat IB, (Article 19) Fees: 1 month time limit Transmittal fee € 50.- International filing fee € 950.- (€ 879.- online) from page 30, per page € 11.- Search fee € 1.785.- Fees: (Chapter II) 1 month time limitExamination fee € 1760.- Gerhard Losenicky

  27. PCT - facts & fees • What is to consideredfor aPCT - application • PCT application at the APO in Vienna (form PCT/RO/101 ) • also at IB Geneva (WIPO) or EPO Munich (RO) • PCT – Easy: electronic application (paper + data storage) • each Austrian national or someone who has a residence in Austria • Language: Application (AT) in DE, FR and EN ---- in BA in EN • 3 copies (for APO, IB und EPO) ---- 1 copy in BA • 1 months time limit to pay fees • To designate an inventor is necessary • for USA: applicant = inventor • Examination on filing at APO  deliver to IB und EPA Gerhard Losenicky

  28. PCT - facts & fees • What is to considered during the PCT – procedure • EPO is Search Authority for PCT-AT and PCT-BA applications (ISA) • amendment of the claims until 2 months from Search Report at IB (Art. 19) • Demand for „Preliminary international Examination“ • Request for SIS(Supplementary International Search Report) • At IB (Geneva) • SISAuthorities: FI, SE, RU, XN (Nordic-Patent-Institute), EP, AT • not at that Office which publishes the main International Search (not EP for AT BA) • Request form PCT/IB/375 at the IB • Fees (1 month time limit): • Search handling fee for IB CHF 200, • Supplementary Search fee ~ CHF 2600.- (depends on the SISA)- in AT: CHF 1190.- (~ € 850.-) at least in German-language documentation CHF 1667.- (~ € 1.190.-) at least in European and North American documentation CHF 2381.- (~ € 1.700.-) at least in PCT minimum documentation Gerhard Losenicky

  29. PCT - facts & fees • Chapter II: International preliminary Examination • Reasons why Chapter II • „preliminary“ granted • national application in Luxembourg, Uganda und Tanzania after 30 M • EPO is “Preliminary Examination Authority” for PCT-AT and PCT-BA applications (IPEA) • Demand for „Preliminary Examination“ direct at the IPEA (EPO)form PCT/IPEA/401 • Demand until (which expires later) • 3 months from the date of transmittal of the Search Report • 22 months from the priority date • Amendments (Article 34) • Together with the Examination Request • Until the above mentioned time limit Gerhard Losenicky

  30. PCT - facts & fees Gerhard Losenicky

  31. Patent valuation with IPscore • Patent Valuation • Methods • Market Approach E.g. licence royalties • Income Approach Discounted Cash Flow (IPscore) • Cost Approach Development costs, price (buy) of patents Gerhard Losenicky

  32. Patent valuationwith IPscore • IPscore®can be used for: • evaluating patented products systematically and completed in a time saving manner • R & D projects, ideas and project proposals, even if no patent exists yet • good illustration of the result • and is therefore a clearly arranged basis of decision-making TOOLto standardised compare different innovation project within an enterprise Gerhard Losenicky

  33. Patent valuation with IPscore • IPscore®consists of... • • 40 assessment factors (questions in 5 fields) • • predefined scales that guide the responses • • a quick estimation of the monetary value (Net Present Value) • • reports visualising one patent or a hole patent portofolio • • a database ensuring documentation and comfortable updates of evaluation Gerhard Losenicky

  34. Patent valuation with IPscore Legal status • Each of this fife fields were analysed by questions. • Each of the 40 questions has 5 possible predefined answers • Radar Profiles • Opportunity / risk validation Technology Strategy Market conditions Finance Gerhard Losenicky

  35. Patent valuation with IPscore The „size of the area“ inside the frequency polygon is a value for „quality“ The example shows „good market conditions“ but deficiency in „Legal Status“ Gerhard Losenicky

  36. IPscore® Risiko- bzw. Chancenfaktoren (Ausgabe) Risk: 21 predefined questions are sorted by the value (starting: value 1) Opportunity: 15 predefined questions are sorted by the value (starting: value 5) Gerhard Losenicky

  37. Patent valuation with IPscore Gerhard Losenicky

  38. Kapitalwert (Ausgabe) • Net Present Value: • IPscore®simply and easy way for calculating the NPV • Manual inputof the values+ turnover+ direct costs+ overhead costs+ provision for depreciation Gerhard Losenicky

  39. Patent valuation with IPscore Potential extra increase in turnover € market growth in % / a earnings,provision for depreciation, overhead costs anddirect costs are values from the balance sheet earnings / year – based on the patented technology earnings provision f.depreciation overheadcosts turnover maintenance of turnover without new technology directcosts years 1. year 2. year 3. year values from the balance sheet NPV: yearly earnings = less Gerhard Losenicky

  40. Schaubilder (Ausgabe) The calculation is based on yearly Cash Flow: cash flow (CF) = turnover – direct costs – overhead costs – provision f. depreciation(in consideration of market conditions (market growth etc…)) Gerhard Losenicky

  41. Thank you for your attention Gerhard LOSENICKY Tel.: 0043 – 1 – 53424 -372 E-mail: gerhard.losenicky@patentamt.at Gerhard Losenicky

More Related