“Part of a bigger innovation picture”

Integration of IPR enforcement and innovation support

Maria Weir

Operations Manager

Intellectual Assets Centre Scotland

The Intellectual Assets Centre

“To assist Scottish businesses to maximise theeconomic potential of their intellectual assets”

First of its kind in Europe

Funded by the Scottish Government

Independent, impartial, a facilitator

Not a grant-giver

Part of a set of organisations giving joined up Innovation Support as a clear strategic policy aim

A few of the IA Centre’s aims

To raise awareness and understanding of intellectual assets (IA) among Scottish organisations

To help those organizations identify and exploit the untapped potential of their IA

To work with independent IA management specialists and encourage their sector to grow

How we’re helping?

Events and programmes

Sectoral Support and Key themes e.g. IA in procurement

One-to-company support by staff and our associates

Tools

Information

New Business Service Partnerships!

Why are intellectual assets important?

Whilst it may be difficult to separate some of these assets out for sale they’re still worth something - look at the monetary values attributed to intangibles:

Around 80% of value lies in intangibles e.g.2005 Procter & Gamble purchase of Gillette for $57b 97% of the

value was attributed to the intangibles* e.g. March 2006 L’Oreal bought The Body Shop for £652.2m 81% of

the purchase price was for intangibles* More than £20bn in Scottish SMEs alone

They are highly rated by investors, shareholders and others seeking to identify business value drivers.

* Source: The Importance of customer valuation. Thayne Forbes IA Magazine Issue 19 August / September 2006

What do we mean by...? (some definitions)

Intellectual Capital (IC) - intangible organisational assets of a business

Intellectual Assets (IA) (aka Intangible Assets) - the intangible assets that are or can be recorded

(or written down, codified etc)

Intellectual Property (IP) - the bits of the IA that are legally protected by statute

law

IP or IA or Intellectual Capital?

Intangible Assets

Intangible Assets (Intellectual

Capital)

Intellectual Assets Intellectual Property

PatentsCopyright

Trade marksDesign rights

Plant variety rights

Intellectual PropertyKnow-how

BrandsReputation

GoodwillBusiness processes

Trade secretsCustomer databases

etc.

Intellectual AssetsIntellectual Property

Human Capital

Examples of other “non-IP” intellectual assets

Know-how and show-how e.g. chef, R&D company Process procedures and technical information e.g. SOP Confidential information / trade secrets

e.g. Drambuie, Irn Bru Management systems and infra-structure Unregistered trade marks and domain names Contracts e.g. employee, lease, license, etc

Some more examples

Image enhancing customers Goodwill and reputation e.g. Ratners; Toyota - damaged Brands Customer and supplier knowledge

and networks Accreditations e.g. ISO, IIP, by Royal Appointment Market knowledge All these Intellectual Assets may add value to your brand

and how customers, suppliers and potential partners or

investors view your organisation!

Why are IA so important?

Whether a big global player or SME, understanding the IA of a business can: show the KEY commercial strengths of a business inform business strategy stimulate innovation, e.g. by suggesting and controlling diversification help raise money e.g. investment, mortgaging generate new income streams be traded in – e.g. licensed, assigned add kudos and act as a marketing tool deter and prevent the competition…….. etc

What do we offer? IA Showcase – free events, seminars, case studies IA Skillbuilding events – for business support professionals and companies –examples 3 day IP Masterclass and Love Me Tender (for small

businesses who wish to enhance their tender prospects through management of their IA) IA Valuebuilding programmes – examples have been with software businesses, helps businesses communicate the value of their intangible

assets IA Costsaver – consultancy advice and downloadable resources from the IA Centre website. We pay for consultancy days clients pay nothing.

Projects have run for these sectors: creative, energy & renewables, food & tourism, HE and the public sector, financial services; life sciences, engineering & manufacturing

Supplier Directory of Business Service Partners - offering free initial consultations and special rates in the fields of IP, legal services, finance and accounting, brand management, people management, reputation management, knowledge management, supply chain logistics and procurement.

Professionalism in Service Delivery: Making IPR work for SMEs

Prior to the establishment of an IA Centre in Scotland (2003) About 66% of Scottish businesses had never heard of the

term ‘intellectual assets’ (IA) Approximately 74% would report not having a good

understanding of IA More than half of Scotland’s businesses had never

considered the importance of IA to their businesses Only 16% of Scotland’s businesses had undertaken any

activity to manage their IA Only 8% of Scottish businesses had taken steps to

protect or safeguard their IA (of that 8% about 58% had protected their IP)

What do SMEs in Scotland protect and how do they do so?

The most protected IA were company name, reputation of the company, company customer base and quality of products and services

The most frequently used protection methods were confidentiality agreements and employee contracts. More specialised forms of protection such as registered designs, patents, IP insurance and copyright were less well used

Only 3% of Scottish businesses reported using patents to protect their IA.

What do SMEs cite as the business benefits of protecting their IA?

Increase in company value Better understanding of business strengths Attraction of new customers

Why do companies not protect their IA? – most commonly cited reason is ‘insufficient time’ followed by ‘not thought about it’, also sometimes –’my company is too small to exploit our IA’

The Majority of Scottish SMEs are micro companies.

What support needs to SMEs have?

56% of the 1000+ businesses we surveyed wanted to know more about IA. The most popular areas are:

General information about IA Information on how other businesses have addressed IAHow to value and exploit IA

In 2003 the most frequently used sources of external support were lawyers, management consultants, patent attorneys and accountants. A small proportion of companies reported using public sector support. In 2008 this had changed quite radically with more public sector support being available e.g. Scottish Enterprise, H&I Enterprise, ICASS, SMART Scotland, Interface, KTPs etc.

Feedback indicated that when used, external assistance had been highly rated, although there were suggestions that the cost of engaging specialist support was a barrier for some companies

“Prevention rather than cure”

Premise of Intellectual Assets Centre in regard to IPR enforcement is that prevention is better than cureIA Centre promotes good intellectual asset managementIA Centre sits within a network of organisations broadly promoting innovationIA wider than purely legally protected IP, includes other intangible assets than can be recorded or codified (e,g brands, goodwill, know-how, trade-secrets, technical information, contracts)A principal message is that such assets are sources of competitive advantage and represent significant value – thus need to be managed strategically

What does the IA Centre offer to businesses?

Programme of events & workshops Tailored one to one support to individual companies Our new Business Service Partnerships! Downloadable resources such as:

Publications An IA Audit tool IA Glossary IA Register Case Studies

Almost all service from the IA Centre are currently free or for minimum charge to Scottish companies

Outlay by Scottish Government approx €1.5m per annum

Transferability & PerformanceThe strategic plan for the IA Centre includes: To put IA on the business agenda To make the case for IA as a business tool To provide support (advice and tools) for the visualisation of IA To provide initial gap analysis and risk assessment diagnostics To provide support for management, valuation and leverage of IA To link appropriately with professional assistors and associated regulatory and consultative bodies

e.g IPO and private providers of IA/IP advice (through our Business Service Partnership model)

Results Awareness and appreciation of IA - up Consolidation of IAM activity amongst the active population of

companies Numbers of companies exploiting IA - up 9% recognition level amongst the general sample of companies High proportion of companies in sample have contacted the

Centre within the last 6- 12 months Low proportion of ‘deadweight’ 90% of the sample had a very good experience of their

interaction with the Centre and would recommend the Centre to others.

Staff competence rated very highly 10% of the funding has come from non-core sources Scotland was seeing above average increase in trade mark

applications (up to 2007) and substantial increase in the interest in copyright

Good recognition among key partners and suppliers

On-going challenges

positive feedback, but impacts very limited, particularly around exploiting IA more awareness than action – expected – long term agenda economic impacts very low, although additionality reasonably strong and

improving evidence of ongoing demand (70% beyond initial advice) particularly around IP,

but ongoing reluctance to pay for services

Some feedback from SMEs who have worked with the Centre

www.ia-centre.org.uk

The IA Centre is keen to consider collaborations The IA Centre is keen to consider collaborations with other initiatives so if you would like to with other initiatives so if you would like to discuss ideas please see how to contact us discuss ideas please see how to contact us belowbelowMain officeMain officeEmail: Email: info@ia-centre.org.ukPost: Post: Skypark 2, 12 Elliot Place, Glasgow, G3 8EPTel: Tel: 0141 243 4920Web: www.ia-centre.org.uk

Please log on to the international section of our website:http://www.ia-centre.org.uk/international/