IIDS Lect 4_ Part 5: Entrepreneurial performance: Innovation (Other,…
IIDS Lect 4_ Part 5: Entrepreneurial performance: Innovation
“traditional” motives to patent, as intended by policy makers
“strategic” motives to patent; could turn out to be a problem from social welfare perspective!
Patents serve many more purposes than just preventing imitation and earning licensing revenues.
Why do start-ups file patents?
Patents are very costly. Easier to prevent patents (submit a paper)
Takes enormous amount of time. Negotiations, ...
Not going to work (takes too long 3-5 years, costly: easily 1m $ to enforce)
so why do they do it?
Stimulate investment or acquisition (patent as an important asset
Deter patent infringement lawsuit (patent infringement lawsuit are often reciprocal, e.g., Samsung vs. Apple)
Increase leverage over a partner (e.g., joint development agreement with big company)
Patent sharks or patent trolls
Sharks are winning the game with
and high awards for
What companies and managers can do:
Slim down their patent portfolios
develop smarter, simpler technical standards and design more-modular components
Cooperate with their competitors earlier in the R&D process
make sure that functional groups within and among firms share information
Stop filing for patents on minor innovations.
Technology companies are being attacked by
sharks (patent trolls)
: Firms with hidden IP that surface and sue, when their rights are
What is a trademark?
A trademark is any word, slogan, symbol, design (can also be a sound, color, or smell) or combination of these that
Identifies the source of your goods and services
Distinguishes them from the goods and services of another party
see appendix slide 51
Different forms of trademarks
It is your choice how to represent your mark in your application. Different trademark formats are available: SEE SLIDE 52_53
1. Standard character format:
Is used to register words, letters, numbers or any combination thereof, without claim to any particular font style, size, or color, and absent any design element
2. Stylized/design format:
Is appropriate if you wish to register words and/or letters having a particular stylized appearance, a mark consisting of a design element, or a combination of stylized wording and a design. Once filed, any design element will be assigned a “design code,” as set forth in the Design Search Code Manual.
Other, rather unusal forms: sound trademark
A sound trademark is a trademark where
is used to perform the trademark function of uniquely identifying the commercial origin of products or services
Examples:Yahoo‘s Yodelor Twentieth Century Fox Film Corporation, Intel Jingle
The TM must not be a functional feature of the good or service.
Other non-traditional trademarks can be colors (e.g., UPS brown, T-Mobile magenta), sounds, or anything else that is a source identifier.
is the strategic use of sound. The aim is to differentiate a product or service in a positive way. It should enhance recall, create preference, build trust, and even increase sales.
Symbols :The ® and TM Symbols
® may only be used when the USPTO has issued an active Certificate of Registration.
Use of ® without registration is fraud under Federal law.
it can be attached to any mark where the owner is claiming
trademark rights in good faith.
TM is the common law trademark symbol.