Home / Summaries / Class notes - Capturing Value from Innovation / value-patent-copyright

Introduction into Value Appropriation

Q: What does copyright protect in contrast to patents?

The particular way in which an idea is expressed - moderations of the idea that are sufficiently different may be developed by third parties without further ado.

33 important questions on Introduction into Value Appropriation

Which certain exclusive rights has a holder of IPs?

Right to distribute, cope, exclude others form producing

Copyright gives the owner of a document, musical composition, book, or other piece of information ...

The right to decide what others can do with it

What does copyright not cover?

A song that is just in your head. It only covers work that are a form of material expansion (e.g., compositions that are recorded)

What is the duration of a copyright?

70 years after the author's death
70 years after first publication, if the author is an organization

What are exceptions to copyrights?

Fair use/citation (parts of the work only)
Private copy
Educational use
Parody (e.g., spoofs)
Reselling legal copies

What are examples of copyrights?

Writings
Music
Drawings
Computer programs
Architectural buildings
Movies
Data bases

What is not included in copyrights?

Ideas
Concepts
Principles
'Brute' facts
(tacit) knowledge

What does copyright protect in contrast to patents?

The particular way in which an idea is expressed - moderations of the idea that are sufficiently different may be developed by third parties without further ado.

What is a trademark?

A distinctive sign used by an organization to identify that its products/services with which the trademark apprears originate from a unique source of origin in order to distinguish its products/services form competitors

What are examples of trademarks?

Name
Word
Phrase
Logo
Symbol
Design
Image
Audible sign
Combination of these elements

How do you see that a trademark is applied?

How do you see that a trademark is not applied?

™

How long do trademarks last?

They can last indefinitely as long as they are used in commerce.

What is a patent?

A set of exclusive rights granted by a state to an inventor for a fixed period of time in exchange for a disclosure of an invention.

What is a utility patent?

Protects the functionality of a given item

What is a design patent?

Covers the ornamental design for an object, including designs of beverage containers, furniture, computer icons: industrial designs

What is a plant patent?

Protects distinct a new variety of plant

What are the criteria patent offices use?

Idea must represent a new, non-obvious development compared to 'prior art'
An application needs to offer the possibility for industrial application
A physical component must be involved (not always required: US --> software)

Why are the costs for application & protection are high:

Yearly costs for renewal of the application
Costs to search for possible infringement
Costs associated with the legal action needed to redress infringement

What is the difference between a utility patent and a design patent?

Utility patents protect the functional features of an invention
Desing patent protect nonfunctional appearance of an invention

What do utility patents include?

Detailed description
Drawings
Multiple claims

How can you see the difference between a utility and design patent?

Design has Des. number instead of only the Patent number

What is a trade secret?

A formula, practice, process, design, instrument, pattern, or compilation of information which is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors or customers

How is confidentially protected by trade secrets?

Through non-compete and non-disclosure contracts with employees

Is a tradesecret formal protection?

No: a third party is not prevented from independently duplicating and using the secret information once it is discovered --> additional laws needed

In which way does the establishment of intellectual property rights represent a trade-off?

To balance the interest of society in the creation of non-rival goods (by encouraging their production) with the problems of monopoly power.

What is value appropriation?

The ability of innovators to capture the value of their innvations

What are the different degrees of imitation?

Completely different solution (impossible to identify)
Inspired by; follow style/trend (difficult to identify)
Counterfeit (exact copy) (easy to identify)

Does the effectiveness of appropriability mechanisms differ between?

Product and process innovations?
Technical and nontechnical innovations?
Countries?

Why applying for a patent?

Preventing imitation: active
Patent blocking: defensive
Preventing a law suit
Bargaining position (e.g. cross-licensing)
Improving corporate image
Licensing revenues
A measure for internal innovation productivity

Where does the value chain envy arise?

Value creation / capture -- Stage in the value system

Why does the value chain envy produce need for value protection?

Unstable value systems: a pressure of new entry and vertical integration into desirable stages to remedy value chain envy

With a little help of technology.. Can a big fish be outsmarted by small musicians?

NO!

Most musicans did engage in VI into music publishing
Hope that ICT would alter their situation and improve their chances to capture value was unfounded
Musicans could easily create and protect their value (copyright strong), but still not able to capture value
Reason: closely knit relationships with the selectors of record companies.. songs did not get noticed/selected by market

The question on the page originate from the summary of the following study material:

Capturing Value from Innovation

View summary

A unique study and practice tool
Never study anything twice again
Get the grades you hope for
100% sure, 100% understanding

Remember faster, study better. Scientifically proven.