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The velocity of creative consumer activity, producer stances and the intellectual property landscape

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Ian P. McCarthy THE VELOCITY OF CREATIVE CONSUMER ACTIVITY, PRODUCER STANCES AND THE INTELLECTUAL PROPERTY LANDSCAPE
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Page 1: The velocity of creative consumer activity, producer stances and the intellectual property landscape

Ian P. McCarthy

THE VELOCITY OF CREATIVE CONSUMER ACTIVITY, PRODUCER STANCES AND THE INTELLECTUAL PROPERTY LANDSCAPE

Page 2: The velocity of creative consumer activity, producer stances and the intellectual property landscape

INTRODUCTION

• Why do we need to rethink strategies when the consumer creates the value?

– The innovation landscape has changed

• Who should do the rethinking?

– Creative consumers?

– Policy makers/legislators?

– Firms/producers?

• Draws upon and adds to work by McCarthy et al (2010), Berthon et al (2007), Fisher (2014), Fauchart & Hippel (2008) and Strandburg (2008)

• I am not a law scholar or a law professional.

• Legal and innovation context is US centric

Page 3: The velocity of creative consumer activity, producer stances and the intellectual property landscape

INDUSTRY DYNAMICS: VELOCITY

• Speed is central to industry change (dynamism) and performance.

• High velocity industries (environments):

– “those in which there is a rapid and discontinuous change in demand, competitors, technology and/or regulation” (Bourgeois and Eisenhardt 1988: 816)

– “market boundaries are blurred, successful business models are unclear, and market players (i.e. buyers, suppliers, competitors, complementers) are ambiguous and shifting”. (Eisenhardt and Martin 2000: 1111)

• Velocity is the rate (speed) and direction of change

Page 4: The velocity of creative consumer activity, producer stances and the intellectual property landscape

PRODUCT VELOCITY

4

2005 2010

Continuous and 6 new models

Discontinuous

From: McCarthy I. P., Lawrence T. B., Wixted B., & Gordon B. R. 2010. A multidimensional conceptualization of environmental velocity. Academy of Management Review, 35(4): 604-626

Page 5: The velocity of creative consumer activity, producer stances and the intellectual property landscape

REGULATORY VELOCITY

5

Discontinuous:Restricted to 21 lines

From: McCarthy I. P., Lawrence T. B., Wixted B., & Gordon B. R. 2010. A multidimensional conceptualization of environmental velocity. Academy of Management Review, 35(4): 604-626

August 9, 2001

Discontinuous:Increased to over 1000 lines

Mar 9, 2009

Page 6: The velocity of creative consumer activity, producer stances and the intellectual property landscape

6

Direction of Change

Discontinuous

Continuous

Rate of ChangeLow High

The velocity of:

(i) creative consumer activity,

(ii) producer stances

(iii) intellectual property landscape

VELOCITY FRAMEWORK

Page 7: The velocity of creative consumer activity, producer stances and the intellectual property landscape

USER INNOVATION AND CREATIVE CONSUMERS

• User innovators are “individuals or firms that create novel things to use, rather than wait for manufacturers to identify, create, and deliver these things to satisfy the need or desired use” (Hippel, 2007).

• I am focused on:

– Individuals, not firms.

– individuals who modify existing products, as opposed to those who design completely new products

• These individuals are called ‘creative consumers’ (Berthon et al 2007)

Page 8: The velocity of creative consumer activity, producer stances and the intellectual property landscape

DAVE HURBAN – BODY MODIFIER

Click to watch video

Page 9: The velocity of creative consumer activity, producer stances and the intellectual property landscape

THE LASSI WASHING MACHINE

Click to watch video

Page 10: The velocity of creative consumer activity, producer stances and the intellectual property landscape

CREATIVE CONSUMER ACTIVITY (CCA)

Rate of change = highDirection of change = continuous

Torrance & von Hippel 2013

Page 11: The velocity of creative consumer activity, producer stances and the intellectual property landscape

PRODUCER RESPONSES (PR) Berthon et al 2007

11

Firms attitude to CC innovation

Producer action to CC innovation

Passive

-ve

Active

+ve

RESISTActively restrain the innovation e.g., block all, integration

ENCOURAGEHappy to allow but don’t help the innovation

DISCOURAGEDefacto ignore or tolerate the innovation e.g., acquiesce

ENABLEActively facilitate the innovation

Berthon P. R., Pitt, L. F., McCarthy I. P., & Kates S. M. 2007. When Customers Get Clever: Managerial Approaches to Dealing with Creative Consumers, Business Horizons, 50(1): 39-47

Page 12: The velocity of creative consumer activity, producer stances and the intellectual property landscape

PRODUCER RESPONSES (PR)

Block all by integration

Block all, block some, block none (Fisher 2014)

Block all by restricting

Page 13: The velocity of creative consumer activity, producer stances and the intellectual property landscape

PRODUCER REPONSES (PS)

Block some: do no harm

Block none: acquiesce

Click to watch video

Click to watch video

Page 14: The velocity of creative consumer activity, producer stances and the intellectual property landscape

PRODUCER REPONSES (PS)

Block none: appropriateBlock none: competitions and tool kits

Rate of change = highDirection of change = discontinuous

Page 15: The velocity of creative consumer activity, producer stances and the intellectual property landscape

THE LEGAL LANDSCAPE

• Producers– Copyright, patent protection and trademarks.– Digital Millennium Copyright Act (DMCA)– Forces: compensation, labour-desert theory and personality

theory (Strandburg 2008)

• Creative consumers– Fair use doctrine– First Amendment for freedom of expression– Forces: market failures, distributive justice, human flourishing

(Strandburg 2008)– Norms-based IP systems (Fauchart and von Hippel 2008)

Rate of change = lowDirection of change = continuous

Page 16: The velocity of creative consumer activity, producer stances and the intellectual property landscape

VELOCITY REGIME

Creative consumer

activity

Legal landscape

Stances of producers

Rate of change

Dire

ction

of c

hang

e

Low High

Conti

nuou

sDi

scon

tinuo

us

A conflicted velocity regime:

“diverse, coupled and contradictory velocities” McCarthy et al (2010)

Norms-based IP systems

Page 17: The velocity of creative consumer activity, producer stances and the intellectual property landscape

CONCLUSIONS

• Conflicted velocity regimes present costs to society:

– Misfit costs

– Costs of delays and missed opportunities

• IP Response should consider different innovation contexts: cultural innovations vs. artifact innovations; medical innovations

• Norms based IP systems.

• A lot of creative consumer activity is hidden and more protected than is assumed.


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