A Comment to "A Plea for Patents that Inspire Invention"
I read this great article written by James Dyson, when it was shared by Dick Lee on his Value Innovation group at LinkedIn. Please find it in the following link: http://www.ft.com/cms/s/0/cbd5c6bc-87ac-11e1-ade2-00144feab49a.html#axzz1sUf190k7
I read this great article written by James Dyson, when it was shared by Dick Lee on his Value Innovation group at LinkedIn. Please find it in the following link: http://www.ft.com/cms/s/0/cbd5c6bc-87ac-11e1-ade2-00144feab49a.html#axzz1sUf190k7
James Dyson makes some great points in this article that really caught my attention, but mainly, there were two phrases that I will elaborate on:
1. "Patents have become commodities to be traded"
Dyson defends the integrity of patents when coming in front of the reality that now-a-days, patents are swapped in a strategic way to profit from them.
The first time I actually came in contact with this reality pointed out by Dyson was actually not long ago, when I first heard a webinar hosted by Pure Insight. It was led by John Cronin entitled “IP Exploitation to Generate Value for Your Business”, and it taught me something: The business world is ‘cruelly fair’.
The webinar was great actually. Cronin talked about a systematic approach to IP covering the areas of Enforcement, Licensing, and Competitive Advantage. He gave around 5 different ways to approach each of the areas (… and for someone that has been just opened up to the IP reality you can imagine how shocking that was). But it did teach me plenty, and what Dyson say in this article is true: Patents have become commodities to be traded.
Strategies can be defined by knowing the ROI companies want to get out of their IP. Methodologies exists for IP valuation, and in answer to your initial question, I think that the real value of a patent most of the time will be defined by the value the market (consumer, customer, client) gives to it, or will give to it when launched. I don’t think that Oracle, an external, would have still sued Google for a license if the market wouldn’t have valued smartphones in the first place.
1. "Patents have become commodities to be traded"
Dyson defends the integrity of patents when coming in front of the reality that now-a-days, patents are swapped in a strategic way to profit from them.
The first time I actually came in contact with this reality pointed out by Dyson was actually not long ago, when I first heard a webinar hosted by Pure Insight. It was led by John Cronin entitled “IP Exploitation to Generate Value for Your Business”, and it taught me something: The business world is ‘cruelly fair’.
The webinar was great actually. Cronin talked about a systematic approach to IP covering the areas of Enforcement, Licensing, and Competitive Advantage. He gave around 5 different ways to approach each of the areas (… and for someone that has been just opened up to the IP reality you can imagine how shocking that was). But it did teach me plenty, and what Dyson say in this article is true: Patents have become commodities to be traded.
Strategies can be defined by knowing the ROI companies want to get out of their IP. Methodologies exists for IP valuation, and in answer to your initial question, I think that the real value of a patent most of the time will be defined by the value the market (consumer, customer, client) gives to it, or will give to it when launched. I don’t think that Oracle, an external, would have still sued Google for a license if the market wouldn’t have valued smartphones in the first place.
2. “It is a burden for a large business, but unthinkable for start-ups”
I do think he is right, but I’d like to think there is a way into the light for start-ups. Years ago, when I was starting my career as product designer I had a very naïve view of the world and I wanted to save the world by re-using circuit boards in day-to-day products. I legally registered my brand ‘LoveLife Ecodesign’ and started my business producing circuit board notebooks. Never IP on it, I knew it wasn’t registered in Costa Rica, but was sure that somewhere in the world that product existed. One year later I noticed that the store in MoMA was selling them (from a different designer, of course!), and later on, more circuit board products appeared back home.
I felt powerless, as Dyson, to see the same concept in my market. But such is life, that’s what I told myself back then, and that is what Cronin reminded me not far from now. Unless special conditions exist, no start-up will have £1.5 million per week to invest in IP. I know I didn’t, I suppose that at the time Dyson didn’t either.
Where I do think that there is a way for start-ups to bring value to their IP is in Open Innovation. This model encourages companies to look at start-ups and universities for new ideas, and co-develop with them. Co-creation in between start-ups and giants is a great way to value the IP from the small ones, and profit in both sides.
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