INNOVATION AND COMMERCIALIZATION

Learning Outcomes
LO1. Investigate how innovation is sourced and supported within different types of
organizations.
LO2. Explore the processing of different types of innovation within organizations
LO3. Apply the process required to commercialize innovation within an organization
LO4. Evaluate the range of methods for protecting innovation within
organizations.
 What Is Intellectual Property?

• Intellectual property refers to creations of the mind

- Inventions
- Literary and artistic
- Works Symbols, names and images used in commerce

• IP is an intangible asset to a company

- It gives business partners and financial institutions the
confidence to invest in or collaborate with the organisation

• In addition to protecting their creation, business owners can

maximise the value of their IPs in many ways For example, they can
franchise or license out

• Video: Introduction to Intellectual Property:

https://www.youtube.com/watch?v=RQOJgEA5e1k
 The Importance of Intellectual Property
• Traditionally, businesses have thought of their physical assets, such as land,
buildings, and equipment as the most important.

• Increasingly, however, a company’s intellectual assets are the most important.

FORM OF PROTECTION WHAT IT PROTECTS

PATENT INVENTIONS
- UTILITY DESIGNS
- DESIGN

TRADE SECRET INFORMATION

COPYRIGHT EXPRESIONS IN TANGIBLE MEDIA

TRADEMARK IDENTIFYING SYMBOLS

The forms of Intellectual Property Rights
 Trade Mark
• A trademark is a recognizable sign, design or
expression which distinguishes products or
services of a particular trader from the similar
products or services of other traders

• The trademark owner can be an individual,

business organization, or any legal entity

• A trademark may be located on a package, a

label, a voucher, or on the product itself
Process of Obtaining trademark
• For the sake of corporate identity, trademarks
are often displayed on company buildings

• Video: Trademarks and Avoiding Consumer

Confusion:
https://www.youtube.com/watch?v=3gWaAJR5
L18
 Copyrights
• Copyright is a legal right created by the law of a country that
grants the creator of an original work exclusive rights for its
use and distribution

• Usually only for a limited time

• The exclusive rights are not absolute but limited by

limitations and exceptions to copyright law, including fair use

• The major limitation on copyright is that copyright protects

only the original expression of ideas, and not the underlying
ideas themselves

• Video: Copyright Basics:

https://www.youtube.com/watch?v=Tamoj84j64I
 Patent

• A patent is a set of exclusive rights granted by a sovereign

state to an inventor or assignee for a limited period of time in
exchange for detailed public disclosure of an invention

• An invention is a solution to a specific technological problem

and is a product or a process
Game Boy Smart Phone Case
• The following procedures vary widely between countries
according to national laws and international agreements:
- Granting patents
- Requirements placed on the patentee
- The extent of the exclusive rights
- Typically, however, a granted patent application must
Requirement to obtain patent
include: One or more claims that define the invention
Video: Patents, Novelty, and Trolls:
https://www.youtube.com/watch?v=RrN7IxvAJto
Process of Obtaining a Patent
 Industrial Design Right
• An intellectual property right that protects the visual
design of objects
• An industrial design consists of:
• The creation of a shape, configuration or composition of
pattern
- Or colour
- Or combination of pattern and colour
Video: How Are Trademarks Different from Industrial
Designs:
https://www.youtube.com/watch?v=SgWNaN9JaiE
Video: Design Patents & Utility Patents (Design
Rights):
https://www.youtube.com/watch?v=WZREm0_THVg
 Trade Secret

• A trade secret is a formula, practice, process, design,

instrument, pattern, commercial method, or compilation
of information not generally known by others by which a
business can obtain an economic advantage over
competitors or customers
- Characteristics:
- Is not generally known to the public
- Confers some sort of economic benefit on its holder
• Is the subject of reasonable efforts to maintain its
secrecy
• Video: 10 Best Kept Business Secrets In The World:
https://www.youtube.com/watch?v=XTWxGxmd1j8
Advantage and Disadvantages of Intellectual Property Rights
METHOD ADVANTAGE DISADVANTAGE

Patent Protect a design of something functional or utilized. Patents are expensive to acquire.
Patents offer superior rights when wilful infringement Patents provide for only a relatively short
does occur. economic life compared with other IP types.

Trademark Trademark is that there are no statutory limitations for Trademarks represent some of the largest brands
the life of trademarks in the world
registration of a trademark at a trademark office is
relatively inexpensive and easy
Copyright Significantly longer statutory life—the life of the author Copyrights is that copyrights protect the
plus 70 years. The owner is entitled to actual damages expression of an idea, not the idea itself.
and any additional profits.
Industrial Design Industrial designs add a commercial value to a product, Complex nature of presenting
Right Helps to ensure a fair return on investment Costly
Trade secret trade secrets can cover any type of design, information, or Nothing prevents one from independently
other knowledge deriving the same or similar design for an
unlike copyrights, trade secrets can cover functional invention protected with a trade secret
items or items of util­ity Trade secrets require diligent attention to the
administration and enforcement of
noncompetition and nondisclosure agreements,
 The Role of Branding in Protecting the Innovation

• One of the most important aspects of any

business
• Your brand is your promise to your
customer
• Tells them what they can expect from your
products and services
• Differentiates your offering from your
competitors
• The brand is derived from:
- Who you are
- Who you want to be
- Who people perceive you to be
• Video: What is Branding:
https://www.youtube.com/watch?v=JKIA
OZZritk
 Open Source Innovation Platforms Upon IP
Open innovation means opening up the innovation process beyond company boundaries in
order to increase one's own innovation potential through active strategic use of the
environment.

Innovation therefore arises through the interaction of internal and external ideas,
technologies and processors.

Own employees, customers, suppliers, LEAD users, universities, competitors or companies

of other industries can be integrated.

• Place of innovation = inside and outside the company

 Close Innovation Platforms Upon IP
• A closed innovation is based on the view that innovations are
developed by companies themselves. From the generation of
ideas to development and marketing, the innovation process
takes place exclusively within the company.

• Place of innovation = within the company

• Companies invest large sums in internal research and

development (R&D) in order to establish it as a know-how
centre.

• These R&D departments provide significant technological

inventions that lead to innovative products and solutions.

• As a result, the innovation process is characterized by a

closed system, with fixed company boundaries and internal
R&D activities
Android: An Open Source Mobile Operating System
• Android was officially introduced to the public on October 21,
2008 by Android Open Source Project and the Open Handset
Alliance.

• Android is the first free, open source, and fully customizable

mobile platform.

• As the Android Open Source Project claimed "Android is not a

single piece of hardware; it's a complete, end-to-end software
platform that can be adapted to work on any number of
hardware configurations.
Open Innovation Vs Close Innovation
The Differences : Open Innovation Vs Close Innovation
For Stages of Technology Life Cycle: Open Model vs Close Model

• At the introductory stage, the technology

diffusion is very slow.

• Customers are not willing to try something

new unless there are significant benefits.

• Many wonderful technologies died during

this stage before they could even reach the
growth stage.

• In the growth stage the adoption of the new

technology grow exponentially until the
market is saturated.

• Then new technology will emerge to replace

the old technology.
Case Study:
Pricing Patents and Profits in the Pharmaceutical C
ompany
– Click Page 218