Inside the Patent Factory Inside the Patent Factory The essential reference for effective and efficient management of patent creation Donal O’Connell Copyright © 2008 John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England Telephone (+44) 1243 779777 Email (for orders and customer service enquiries): cs-books@wiley.co.uk Visit our Home Page on www.wiley.com All Rights Reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except under the terms of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP, UK, without the permission in writing of the Publisher Requests to the Publisher should be addressed to the Permissions Department, John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex PO19 8SQ, England, or emailed to permreq@wiley.co.uk, or faxed to (+44) 1243 770620 Designations used by companies to distinguish their products are often claimed as trademarks All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners The Publisher is not associated with any product or vendor mentioned in this book This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold on the understanding that the Publisher is not engaged in rendering professional services If professional advice or other expert assistance is required, the services of a competent professional should be sought Other Wiley Editorial Offices John Wiley & Sons Inc., 111 River Street, Hoboken, NJ 07030, USA Jossey-Bass, 989 Market Street, San Francisco, CA 94103-1741, USA Wiley-VCH Verlag GmbH, Boschstr 12, D-69469 Weinheim, Germany John Wiley & Sons Australia Ltd, 42 McDougall Street, Milton, Queensland 4064, Australia John Wiley & Sons (Asia) Pte Ltd, Clementi Loop #02-01, Jin Xing Distripark, Singapore 129809 John Wiley & Sons Canada Ltd, 6045 Freemont Blvd Mississauga, Ontario, L5R 4J3 Canada Wiley also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Library of Congress Cataloging-in-Publication Data O’Connell, Donal, 1963Inside the patent factory : the essential reference for effective and efficient management of patent creation / Donal O’Connell p cm Includes bibliographical references and index ISBN 978-0-470-51640-9 (cloth : alk paper) Patents Intellectual property – Management Industrial property – Management I Title T212.O26 2008 608 – dc22 2007050377 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 978-0-470-51640-9 Typeset in 11/16pt Trump Medieval by SNP Best-set Typesetter Ltd., Hong Kong Printed and bound in Great Britain by TJ International Ltd, Padstow, Cornwall, UK Dedication T his book is dedicated to everyone working in Nokia’s Intellectual Property Rights team, the inventor community across Nokia for your innovation and creativity, plus all of the Patent Agencies working on our behalf around the world “Never doubt that a small group of thoughtful, committed people can change the world Indeed, it is the only thing that ever has.” Unknown Contents Foreword by Urho Ilmonen Preface Acknowledgements Introduction Introduction Why ‘Inside the Patent Factory’? What questions does the book intend to answer? Who is the target audience for this book? Why have I written this book? Patent creation explained Multiple regimes of intellectual property protection A somewhat unique factory The structure of the book xiii xv xvii 1 7 10 12 14 15 viii / CONTENTS Building a strategy Introduction Strategy explained Getting started Format of a strategy Developing a strategy Validate and test your strategy The characteristics of a good strategy Monitoring and reviewing your strategy Summary 17 17 18 21 22 24 28 29 32 34 Why patent? What is a patent? A brief history of patents Reasons to patent Starting with an invention Some facts and figures Summary 37 37 39 45 50 56 63 Invention harvesting Introduction What is innovation? A culture of innovation Harvesting inventions Summary 65 65 66 68 72 73 Core activities of patent creation A national application – the UK Key differences between the UK and US systems A regional application – the EPC An ‘international’ application – the PCT 75 76 82 84 91 CONTENTS / ix Summary References The inventor community Introduction Categorising the inventor community Rating these inventor community sub-groups Working with inventors inside the company or organisation Working with inventors external to your company or organisation Understanding inventors Recognising and rewarding inventors PULL versus PUSH modes of operation Appreciate your inventor community 94 95 97 97 97 99 100 102 105 106 108 109 Other key interfaces Introduction Senior management The ‘other half’ of IPR Business and technology management External patent agencies and other IP organisations Summary 113 113 114 117 119 Organising your patent factory Key factors to consider Organisational models to consider Organisational change Summary 125 126 130 142 146 121 122 x / CONTENTS The management of External Patent Agencies Who are the External Patent Agencies and what services they provide? Why subcontract? What work can be subcontracted? Challenges in subcontracting Cooperation with External Patent Agencies Key principles regarding agreements with External Patent Agencies Example of a pricing model for External Patent Agency work Managing the External Patent Agencies What is expected of you? Associations for External Patent Agencies Outsourcing the management of the payment of annuity fees What can go wrong? Summary 149 149 150 152 152 153 154 158 159 164 165 167 167 168 10 Metrics Introduction Definition of metrics Why are metrics important? Elements that can be measured Specific metrics External metrics Setting metrics for others Summary 171 171 172 173 175 177 180 184 185 11 Quality Introduction Definition of quality 187 187 188 CONTENTS / xi Patent quality The quality debate in the patent world Quality guidelines Organisation quality Improving quality Summary 189 191 200 202 203 206 12 Patent cost management Patent cost management The patent cost curve Official patent office fees Patent attorney fees Keeping track of your patent costs Hints and tips to help keep your patent costs under control Costs versus value Summary 209 209 210 212 216 220 13 Processes and tools Processes and tools Operational modelling/process definition work Patent systems, tools and services Vendor selection Summary 231 231 234 237 243 246 14 Benchmarking Introduction Benchmarking and the Patent Creation Factory How to conduct a benchmarking exercise The benchmarking exercise My own experiences 249 249 223 228 229 251 252 255 258 xii / CONTENTS Benchmarking a Patent Creation Factory Summary 261 262 15 Changes Introduction European regional initiatives Developments in the Far East Cooperation between patent offices Changes in US patent law Patent initiatives by individual companies WBCSD initiative with environmental patents The WIPO WorldWide Academy European Patent Office project looking at future scenarios Summary 265 265 266 268 270 272 273 275 277 16 Conclusion Conclusion Patents are of importance The factory analogy Steps to success Creativity and innovation Wrap-up 285 285 286 288 290 299 300 References 303 Index 307 279 282 INDEX / 309 patent applications 3–4, 56–60, 268–70, 280–1 Patent Office 268–70 China Petroleum & Chemical Corporation 47 Choquette, Sonia 286 CIP see Continuation-in-Part CIPA see Chartered Institute of Patent Attorneys civil engineering sectors 62 Civil War, US 43 coaches 101 see also training Columbia Law School 196 communications see also feedback benchmarking exercises 257–63 business and technology management 120 change factors 145–6, 258–63 employees 73–4, 99–111, 145–6, 258–63, 290 External Patent Agencies 121–2, 149–69 importance 73–4, 99–111, 115–23, 290 interfaces 73–4, 99–111, 115–23 inventor communities 99–111 ’other half’ of IPR 118 processes 232–4, 297 senior management 111, 115–17, 118, 120, 290 strategy 30–1, 35, 73–4, 110–11, 115–17, 290 companies see also business ; organisation changes 266, 273–5 competitors 3–5 valuations 2–3 company strategy, alignment issues 28, 29–30, 116–17, 118, 146–7, 290 company-led initiatives, quality issues 194– competencies 21–2, 74, 151, 168–9, 235, 242–3 competing/complementary patents 49 competitive advantage 19, 25–7, 71, 115, 116 competitors 3–5, 13, 19, 25–7, 30–2, 46–7, 49, 78–9, 126–9, 160–1, 181–3, 240–1, 246–8, 249–63 benchmarking exercises 9–10, 15, 27–8, 243–4, 249–63, 298, 301 change pressures 145–6 intelligence factors 27 ’invent around’ dangers 78, 81 metrics 180–3 complexity overcomplicated strategies 29 patent processes 4, 77–8, 221–2, 243, 287 conceptual thinkers, inventors 106 conclusions 285–302 confidentiality issues benchmarking exercises 253 External Patent Agencies 155, 157–8 tools 246 conflicts of interest, External Patent Agencies 155–6, 162, 163, 166 Constitution, US 41–3 constraints/limitations, strategy format 23–4 consumer goods sectors 62 contact networks benchmarking exercises 253–4 innovations 69–70, 102–11, 135, 288–9 location organisational model 130, 134–5 Continuation-in-Part (CIP) applications, US 83–4 continuous innovations 30–2, 236–7 contracts External Patent Agencies 152–8, 163, 294–5 suppliers 103, 109 Cook, Mary Lou 300 cooperation issues, External Patent Agencies 153–4 copyrights 12–14, 300–1 Corporate Ownership Tree, The Patent Board 182 cosmetics sector 62–3 cost curves, concepts 210–11 costs see also budgets; fees benchmarking exercises 255, 261–2 breakdown structure 221–3, 296–8 components 211–23, 296–8 concepts 4, 7, 25–6, 31, 80, 82, 84–5, 87–90, 92–4, 116, 151–4, 156–8, 163, 209–29, 242–3, 267, 283, 296–8 countries-selected factors 225–7, 267, 283, 296–7 employees 106–7, 111, 220–9 error-avoidance benefits 223, 228–9 Europe’s patent system 267, 283 examinations/searches 80, 212–29 External Patent Agencies 151–4, 156–8, 163, 211, 216–29 Global IP Estimator 221–3 hidden costs 218–20 hints and tips for cost-savings 223–9 Japan 267, 283 lateness problems 223, 228–9 management issues 209–29, 296–8 metrics 175–7, 220–9, 295–8 monitoring needs 220–9, 296–8 outsourcing 133–4 Patent Creation Factory 7, 25–6, 31, 116, 209–29, 296–8 310 / INDEX Patent Office 211–29, 267 prior art searches 223–4 regional comparisons 225–7, 267, 283, 296–7 reporting templates 221–3 statistics 212–29 strategy 223–9 supply chains 209–11 time scales 210–12, 221–2, 223, 227–9 tools 220, 232–3, 242–3, 244–6, 296–8 training needs 220 unwanted cases 223, 227–8 US 267, 283 values 228–9 variability considerations 209–10, 296–7 Cousins, Margaret 111 creativity see also ideas benefits 38–9, 291–2, 299–300 concepts 65–74, 97–100, 288–90, 291–2, 299–302 critical success factors 2, 6–7, 29–32, 35, 72–4, 122, 126–9, 144–6, 290–9 Cukier, Ken cultural issues 65–6, 68–71, 72–4, 98–111, 133, 134–5, 188–9, 204–7, 262–3 benchmarking exercises 262–3 change factors 145–6 innovations 65–6, 68–71, 72–4, 98–111, 134–5 quality issues 188–9, 204–7 current state, strategy creation 20–2, 35, 126–9, 144–5 customers inventor communities 98–100 metrics 177, 179–80 organisational obsessions 128 requirements 67, 71, 128, 177, 179–80, 300 da Vinci, Leonardo 237 Darwin, Charles 127 data privacy benchmarking exercises 253 External Patent Agencies 155, 157–8 tools 246 databases 13, 79–80, 88–9, 181–4, 212–16, 221–3, 239–40 decision making 11, 31–2, 203–7, 288–90 delivery/acceptance of work results, External Patent Agencies 156–8, 163, 167–8 Dell Computer, Idea-Storm 103–4 Deming, W Edwards 231 Denmark 226 designs 12–14, 300–1 development, strategy 24–8, 35 digital fingerprints 239 disclosures benchmarking exercises 253 inventions 51–2 disruptive innovations, concepts 66–7, 100, 299–300 distribution issues 119–20 documentation External Patent Agencies 161–3 patent applications 78–84 quality issues 200–2, 203–7 Doll, John 196 domain names 12–14, 300–1 Drucker, Peter 129 Dudas, Jon 192–3, 271 duration factors, patents 25, 27, 38, 42–3, 82, 291 Eco Patent Commons Initiative 275–6 effectiveness and efficiency considerations 5, 10, 14–15, 27–8, 143– 4, 174–7, 209–29, 236–7, 293–5, 299 see also performance measures cost management 209–29 metrics 174–7, 236–7, 295–6 electricity/electronics sector 61–3 employees see also teams benchmarking exercises 257–63 communications 73–4, 99–111, 145–6, 258–63, 290 compensation rights 106–7, 111, 281 costs 106–7, 111, 220–9 empowerment benefits 68–9, 74, 128–9, 285–6 External Patent Agencies 156–8 importance 68–9, 74, 128–9 innovation cultures 68–71, 74, 98–111 inventor communities 98–111, 177–80 legal issues 106–7, 111 metrics 177, 178–80 ’ most important asset’ 128–9 motivation 68–9, 74, 107, 111, 132, 206–7 organisational issues 126–9 qualifications 69, 202–3 quality issues 189–91, 202–3 rights 106–7, 111 skills 21–2, 69, 71, 74, 128–9, 206–7, 240–1, 277–8 tools 238–9 training needs 206–7, 220, 277–8 empowerment benefits, employees 68–9, 74, 128–9, 285–6 environmental issues 20, 21–2, 266, 275–9, 281–2 EPC see European Patent Convention EPLA see European Patent Litigation Agreement EPO see European Patent Office INDEX / 311 error-avoidance benefits, cost savings 223, 228–9 Eurasian Patent Convention 84 European Commission 266–7 European Community patent proposals 266–8, 283–4 European influences, Japan 44 European Patent Bulletin 88–9, 91 European Patent Convention (EPC) 40, 60–1, 76, 84–91, 94–5, 212, 267 see also regional European Patent Litigation Agreement (EPLA) 268 European Patent Office (EPO) 3–4, 40, 54–5, 56–7, 59, 61, 80, 84–91, 199–200, 226, 266, 268–9, 279–84 costs 267, 283 database searches 80, 88–9 examinations/searches 80, 88–9, 212 Future Scenarios project 266, 279–84 invoicing practices 218–20 origins 40 quality issues 199–200 rejections 90–1 statistics 3–4, 56–7, 59, 61, 268–9 examinations/searches, patent applications 76–84, 85–95, 150, 212–29, 239–40, 270–2, 292–3 experts 80, 133–4, 138–9 exploitation considerations, patents 28 external associates see also External Patent Agencies; interfaces benchmarking facilitators 253–4, 258–9 change factors 123, 133–4 concepts 113–14, 121–3, 133–4, 138–9, 149–69, 234, 294–5 functions 121–2, 294–5 external inventor sub-groups, concepts 97–9, 102–11, 113–14, 135–6, 262, 292–3 external metrics 3–4, 31–2, 45–6, 56–64, 176, 177–84, 192–8, 295–6 see also metrics concepts 177, 180–4 league tables 111, 177, 181 scorecard reports 181–3 sources 180–4 External Patent Agencies 8, 9–10, 15, 30, 121–3, 138–9, 149–69, 177, 211, 216–29, 234, 239–40, 294–5 annuity fees 150, 152, 167, 212–29 associations 165–6 audits 162, 163 benchmarking exercises 253–4 challenges 152–3 checklist of issues 163, 224–5 communications 121–2, 149–69 concepts 121–2, 138–9, 149–69, 177, 211, 216–20, 234, 239–40, 294–5 confidentiality issues 155, 157–8 conflicts of interest 155–6, 162, 163, 166 contracts 152–8, 163, 294–5 cooperation issues 153–4 cost savings 223, 224–5 costs 151–4, 156–8, 163, 211, 216–29 customer responsibilities 164 definition 149–50 delivery/acceptance of work results 156–8, 163, 167–8 documentation 161–3 employees 156–8 feedback benefits 162–3 fees 151–4, 156–8, 163, 211, 216–29 force majeure 157 functions 121–2, 138–9, 224–5, 294–5 global list of approved agencies 159–60, 163, 217–18, 294–5 hidden costs 218–20 insurances 155 invoicing practices 218–20 key agreement principles 154–8, 294–5 management issues 149–50, 159–69, 220, 223, 224–5, 294–5 metrics 177, 180 monthly billing practices 218–20 performance measures 155–8, 167–8, 177 pricing issues 151–4, 156–9, 163 problem areas 158, 167–9 quality issues 156–8, 163, 223, 224–5, 229 relationship managers 164, 167–8 remedies in case of failures 156–8, 167–8 responsibilities 154–64 risk management tools 154–8 rules of conduct 165–6 task-based billing practices 218–20 termination grounds 157–8 terms of the agreement 157–8, 294–5 three-way relationships 161–2, 163 tools 234 uses 149–53, 294–5 facilitator selections, benchmarking exercises 253–4, 258–9 fact-based management 169 factories analogies 1–2, 6, 11, 14, 110, 171, 223–4, 237–8, 288–90 automated factories 14 concepts 1–2, 6, 288–90 historical background innovations 1–2, 14–15, 288–90 modern factories 2, 6–7 fast-track schemes, patent applications 270–2 feedback benefits see also communications change pressures 143–4 External Patent Agencies 162–3 312 / INDEX inventor communities 101–2, 103–4, 110–11, 143–4, 300 licences 118 quality issues 188–9, 204–7 senior management 115–17, 143–4 fees 26, 82, 88–90, 92–4, 116, 150, 151–4, 156–8, 163, 167, 211–29, 239–40 see also costs agents 26, 151–3, 156–8 annuity fees 150, 152, 167, 212–29, 239–40 concepts 211–29 External Patent Agencies 151–4, 156–8, 163, 211, 216–29 invoicing practices 218–20 monthly billing practices 218–20 Patent Office 211–29 renewal fees 82, 90, 150, 152, 167, 212–16 task-based billing practices 218–20 file-everything model, organisational structures 130, 138–9 filing processes 8, 11, 13, 48–9, 60, 72–4, 76–84, 85–95, 116, 118–19, 129, 130–2, 149–50, 152–3, 176, 178–80, 184–5, 203–7, 288–90, 292–3 Finance financial incentives see also incentives inventors 106–7, 110–11, 281 Firestone, Hervey 67 ‘first to file’ rule 83–4 Fitz-Enz, Jac 256 flexibility needs, tools 233–4, 285–6 Florence 39 flowcharts, processes 247–8 focus benefits 28–32, 71–4, 109–10, 127–8, 146–7, 205–7, 235, 287, 300 force majeure, External Patent Agencies 157 Ford, Henry 1, 188 foreign filing costs 221–3 formal proceedings, patent applications 81– 2, 90–1 format template, strategy 22–4 Foster, William A 188 foundations/cornerstones, strategy format 23–4 France 44, 59, 61, 226 Franklin, Benjamin 147 future prospects 266–84, 298–9 Future Scenarios project, EPO 266, 279–84 Geneen, Harold S 130 general public, inventor communities 97–9, 102–11 Germany 59–61, 106–7, 226 get togethers, inventors 111 Gillespie, Eric Global IP Estimator 221–3 The Global Patent Scorecard (GPS), The Patent Board 181–2 goals communication needs 73–4 Patent Creation Factory 6–7, 23–4, 30–2, 289–90 governments 38–40 GPS see Global Patent Scorecard granted patents certificates 82 complexity 4, 221–2, 243, 287 concepts 3, 31, 56–64, 76–95, 178–80, 203–7, 212–20, 239–40, 288–90, 292–3 factories 2, 6, 288–90 renewal fees 82, 90, 150, 152, 167, 212–16 stages overview 76–7, 292–3 statistics 3, 31, 56–64, 177–84, 192–8, 268–70 growth sectors, patents 61–3, 182 Gurry, Francis 59–60, 270 Hawley, J Jeffrey 198 Henry VI, King of England 39 hidden costs, External Patent Agencies 218– 20 historical background, patents 39–45 Hoffer, Eric 284 holistic views 12–14, 106, 300–1 Human Resources see also employees IBM 46, 194–5, 273–6 ‘idea to patent’ process 72–3 Idea-Storm, Dell Computer 103–4 ideal state see also strategic intent strategy creation 20, 21–2, 27, 35, 126–9, 144–5 ideas see also creativity; innovations concepts 65–74, 97–100, 129, 176, 178–80, 288–90, 291–2, 299–302 definition 66–7, 73, 291–2 factories 2, 65–74, 97–100, 129, 288–90 importance 67, 97–100, 114–15, 286–90, 291–2, 299–302 metrics 176, 178–80, 295–6 pull/push models 100, 108–11, 126, 262 quality issues 66–7, 73–4, 99–111, 127–9, 289–90, 291–2, 299–300 sources 97–111, 127–9, 291–2 volumes 99–100 Idris, Kamil 57, 269, 277 IEE see Institution of Engineering & Technology imitators 25–6 incentives 38–9, 69–70, 106–7, 110–11, 236, 281 INDEX / 313 see also financial ; non-financial ; rewards concepts 106–7, 110–11, 236, 281 incremental innovations, concepts 66–7, 100, 299–300 indemnification model, organisational structures 131, 141–2, 157–8 India 59, 63, 280–1 individual goals, strategy format 23–4 industrially-applicable requirements, patentable inventions 50, 55–6, 81–2, 94, 149–50, 152 Industry Scorecards 181–3 information technology sector 61–3 innovation-based economies 18 innovations see also ideas; invention concepts 1–2, 14–15, 18, 28–9, 30–2, 38–9, 65–74, 100–11, 288–90, 291–302 contact networks 69–70, 102–11, 135, 288–9 cultural issues 65–6, 68–71, 72–4, 98–111, 134–5 customer requirements 67, 71 definition 66–7, 100, 291–2, 299–300 factories 1–2, 14–15, 288–90 great innovations 68 importance 2–3, 6, 10, 45–6, 66–7, 114–17, 286–90, 299–302 inventor ratings 100–11 management issues 15, 70–1, 73–4, 111, 291–2, 300 open innovation 70 product improvements 67, 69 questioning attitudes 68–9, 74, 291–2, 299–300 R&D 50–1, 69, 71, 102–3, 108, 139–40 reward structures 69–70, 105–7, 281 stages 66–7, 68, 292–3 survival factors 67, 291–2, 300 time scales 69, 83–4, 291 types 66–7, 100, 116, 299–300 Institution of Engineering & Technology (IEE) 183–4 insurances, External Patent Agencies 155 intangible assets concepts 2–3, 8, 116–17, 160–1 importance 2–3, 114–15, 116–17, 160–1, 240, 286–90, 299–302 tangible assets 2, 116–17 Intellectual Assets Management 183 intellectual property (IP) concepts 2–3, 6, 8–9, 12–14, 17–18, 25–30, 98–111, 114–15, 149–50, 266, 279–84, 286–302 EPO Future Scenarios project 266, 279–84 importance 2–3, 6, 10, 45–6, 114–17, 174, 240, 279–84, 286–90, 299–302 strategy 28–30, 114–17 Intellectual Property Owners Association (IPO) 197–8 intellectual property rights (IPR) see also patent creation concepts 3, 7–8, 12–14, 18, 45, 98, 113–14, 273–4, 286–302 employees 106–7 holistic views 12–14, 106, 300–1 importance 3, 10, 45–6, 114–17, 174, 240, 286–90, 300–2 multiple protection regimes 12–14, 32, 300–1 ’other half’ of IPR 113–14, 117–19 types 12–14, 300–1 interfaces 8, 11, 15, 63, 73–4, 97–111, 126– 47, 149–69, 177, 234, 244–6, 292–4 see also inventor communities business and technology management 113–14, 119–20 change factors 123, 143–4 communications 73–4, 99–111, 115–23 concepts 97–111, 113–23, 126–9, 177, 234, 292–4 external associates 113–14, 121–3, 133–4, 138–9, 149–69, 234, 294–5 metrics 177, 295–6 organisational issues 126–47 ’other half’ of IPR 113–14, 117–19 overview 113–14 senior management 15, 111, 113–17, 120, 251–5 tools 234, 244–6 types 97–105, 113–23 internal inventor sub-groups, concepts 97– 102, 135–6, 262, 292–3 International Herald Tribune 183 International Patent Class (IPC) 182 international patent system see also Patent Cooperation Treaty; supranational concepts 4, 40, 56–60, 91–4, 129, 223, 225–7, 265–84 cost savings 223, 225–7 Japan 4, 56–60 realities 91 US 4, 56–60 usage 4, 40, 56–60, 91–4, 223, 225–7 International Preliminary Examining Authority 94 Internet 150, 238, 240, 242 ‘invent around’ dangers, competitors 78, 81 invention harvesting 11, 15, 72–4, 109, 140–1, 288–90 see also ideas concepts 72–4, 109, 288–90 invention-gathering processes 11, 15, 65–74, 288–90 314 / INDEX inventions see also innovation ; inventor communities concepts 50–6, 66–7, 72–4, 97–111, 190–208 creation 50–6 cultural issues 65–6, 68–71, 72–4, 98–111, 134–5 definition 66–7 disclosures 51–2 factories 1–2, 14–15, 288–90 industrially-applicable requirements 50, 55–6, 81–2, 94 inventive steps requirements 50, 52–5, 81–2, 94 key questions 24–8 metrics 176, 178–80, 295–6 new/novel requirements 50–2, 81–2, 94, 149–50 novelty requirements 50–2, 81–2, 94, 149–50, 152–3 quality issues 190–208, 289–90 R&D 50–1, 69, 71, 102–3, 108, 139–40 success factors 72–4, 122 inventive steps requirements, patentable inventions 50, 52–5, 81–2, 94, 149–50, 152 inventor communities 8, 11, 15, 63, 73–4, 97–111, 113–14, 126–9, 133–4, 176, 177–80, 288–90, 292–3, 300 see also interfaces; inventions appeals processes 110 appreciation needs 109–11 communications 99–111 concepts 97–111, 113–14, 126–9, 133–4, 176, 177–80, 288–90, 292–3, 300 employees 98–111, 177–80 external sub-groups 97–9, 102–11, 113–14, 135–6, 262, 292–3 feedback benefits 101–2, 103–4, 110–11, 143–4, 300 focus benefits 109–10, 300 general public 97–9, 102–11 internal sub-groups 97–102, 135–6, 262, 292–3 legal issues 103, 106–7, 109, 111 metrics 176, 177–80, 295–6 neglected areas 102–3 organisational issues 126–47, 293–5 partners 98–100, 104–5, 108–11, 117–18 pull/push models 100, 108–11, 126, 262 R&D 50–1, 69, 71, 102–3, 108, 139–40 ratings 99–100, 109–10 rewards 38–9, 69–70, 105–7, 110–11, 281 ’serial’ inventors 98–102 sub-groups 97–111, 292–3 suppliers 98–100, 103–5, 108–9 types 97–105 understanding needs 105–7 universities 103–4, 108–9, 117 inventors 63, 83–4, 97–111, 113–14, 176, 177–84 characteristics 105–6 statistics 63, 176, 177–84 understanding needs 105–7 US patent applications 83–4 investors invoicing practices, External Patent Agencies 218–20 IP see intellectual property IPC see International Patent Class IPO see Intellectual Property Owners Association IPR see intellectual property rights Israel 59, 63 James I, King of England 40 Japan costs 267, 283 employee rights 106–7 European influences 44 historical background 44–5 international patent system 4, 56–60 patent applications 3–4, 56–63, 268–72 Patent Monopoly Act 1885 44 patents 3–4, 44–5, 56–63, 106–7, 267, 268–72 PPH 270–2, 283 utility modern law 44–5 Jefferson, Thomas 41 Kelly, John E., III 274 Kennedy, Arthur 273 Kennedy, John F 144 King, Kelvin knowledge economies 71 Korea see also North East Asia patent applications 3, 56–63, 268–70 KSR vs Teleflex case 266, 272–3 Lafley, A.G 104 lateness problems, costs 223, 228–9 law students leaders 5, 28, 146–7, 169, 188–9, 205–7, 287–90 see also management benchmarking exercises 253–4, 258–60 change agents 146–7 proactive leaders 146–7 quality factors 188–9, 205–7, 287, 289–90, 295–6 values-based leadership 169 league tables 111, 177, 181 learning journeys 10, 284, 301–2 see also training INDEX / 315 legal issues 12–14, 27, 32, 37–45, 75–95, 103, 106–7, 109, 111, 160–1, 189–208, 221–3, 272–3, 291–2, 300–1 employee rights 106–7, 111 inventor communities 103, 106–7, 109, 111 KSR vs Teleflex case 266, 272–3 protection factors 12–14, 32, 37–9, 75–95, 160–1, 189–208, 291–2, 300–1 US developments 272–3 LeGuin, Ursula K 301 lessons learned, benchmarking exercises 250–1 licences see also ‘other half’ of IPR feedback benefits 118 patents 25–6, 38–9, 47, 227–8, 291 limited property rights, government patents 38–9 Lincoln, Abraham 265 Lippman, Walter 66 listening benefits, understanding needs 114 location model, organisational structures 130, 134–5 London Business School 198–200 ‘lone wolves’ 105 McCloskey, Robert 122 McCreevy, Charlie 267 machinery/mechanics/transport sectors 62 McKnight, William 68 maintenance costs 211–29, 244–6 see also costs management issues see also organisational ; senior costs 209–29, 296–8 External Patent Agencies 149–50, 159–69, 220, 223, 224–5, 294–5 fact-based management 169 innovation cultures 15, 70–1, 73–4, 111, 291–2, 300 processes 236–48, 297 quality issues 188–9, 205–7, 287, 289–90, 295–6 strategy 19–20, 30–1, 73–4, 114–17, 289–90 Mandela, Nelson 164 Mann, Ronald 196 manufacturing economies 18 mapping systems, patents 241–2 Marchant, Ron 37 market focus 71 research 28 shares 2–3, 46–7, 115 ‘Market rules’ EPO Future Scenarios project 279–82 marketing 119–20 mass customisation operations, patents 4–5 mass production factories 1–2 matrix organisational structures 9–10 media 282–3 medical technology sector 61–3 mentors 101 see also training mergers and acquisitions 8, 117–18, 133, 140–1, 182 metrics competitors 180–3 concepts 7, 15, 20–1, 23–4, 171–86, 203–7, 220–9, 236–7, 295–6 costs 175–7, 220–9, 295–8 customers 177, 179–80 decision making 203–7 definition 20, 171–3 effectiveness and efficiency considerations 174–7, 236–7, 295–6 elements overview 173, 175–7 employees 177 external metrics 3–4, 31–2, 45–6, 56–64, 176, 177–84, 192–8, 295–6 ideas 176, 178–80, 295–6 importance 172–5, 295–6 interfaces 177, 295–6 inventor communities 176, 177–80, 295–6 league tables 111, 177, 181 monitoring needs 174–5, 220–9, 295–6 quality issues 7, 15, 20–1, 23–4, 171–86, 295–6 relative importance 175 selection issues 172, 175–7, 295–6 soft targets 186 specific metrics 177–80 success factors 173–5, 295–6 target-setting difficulties 184–5 third-party metrics-setting benefits 184–6 time scales 174–5 trends 174–5 Mexico 59 Microsoft 24 military influences 20–1, 35, 43 mission statements, concepts 20, 22–4 MIT Technology Review 183 Mitchell, Gay 71 mix-of-internal-and-external model, organisational structures 130, 135–6 modelling concepts, processes 247–8, 297 Molyncke AB versus Proctor and Gamble Ltd 53 monitoring needs concepts 32–5, 174–5, 220–9, 289–90, 295–8 costs 220–9, 296–8 key milestones 34 metrics 174–5, 220–9, 295–6 quality issues 188–91, 289–90, 295–6 monthly billing practices, External Patent Agencies 218–20 316 / INDEX motivation, employees 68–9, 74, 107, 111, 132, 206–7 multiple protection regimes, IPR 12–14, 32, 300–1 national patent applications see also individual countries; UK; US concepts 76–84, 129, 223, 225–7, 265–84 National People’s Congress 48 Netherlands 63 networks see contact networks New Zealand, patents 40, 59 new/novel requirements, patentable inventions 50–2, 81–2, 94, 149–50, 152 Nichols, Ralph 114 Nigeria 45 ‘no more than necessary’ claims, EPC patent applications 87–91 Nobel, Alfred Bernhard 99 Nokia 30–2, 275 non-financial incentives see also incentives inventors 106–7, 111 types 111 non-obviousness standards, US 53–4, 272–3 non-residents, patent applications 57–60, 269–70 North East Asia 3, 56–60, 266, 268–70 see also China; Korea changes 266, 268–70 patent applications 3, 56–63, 266, 268–70 significant growth 58–60, 268–70 Novell 195 novelty requirements, patentable inventions 50–2, 81–2, 94, 149–50, 152–3 objectives see also strategy Patent Creation Factory 6–7, 11–12, 17, 23–4, 25–8, 33–5, 289–90 processes 231–48, 297 reviews 33–5 obviousness standards, US 53–4, 272–3 open innovation, definition 70 Open Source Development Labs 195–6 Open Source Software as Prior Art (OSAPA) 195–6 open standards 49, 194–7, 281 open-source software developers 194–7, 281 operating profits 31–2 operation modes 9–10, 21–2, 233–7, 287 opportunities EPO Future Scenarios project 279–82 SWOT analysis 21–2, 23–4, 28, 143–4, 241–2, 251–2 organisational issues 5, 7, 9–10, 21–2, 125– 47, 189–91, 249–63, 287, 293–5, 301 see also employees; management ; processes; tools benchmarking exercises 9–10, 15, 27–8, 243–4, 249–63, 298, 301 change factors 127–9, 142–7, 249–63 concepts 125–47 interfaces 126–47 key consideration factors 126–9 quality factors 189–91, 202–7, 289–90, 295–6 strategic deliverables 126–9 organisational structures 5, 7, 9–10, 21–2, 125–47, 249–63, 287, 293–5, 301 business-unit-or-division model 130, 132–3 concepts 125–47, 258–63, 287, 293–5, 301 file-everything model 130, 138–9 indemnification model 131, 141–2, 157–8 location model 130, 134–5 mix-of-internal-and-external model 130, 135–6 models 130–42, 147, 292–5 outsourced model 130, 133–6, 150–3 patent-acquisitions model 131, 140–1 portfolio model 130, 136–7 resource-pool model 130, 137–8 steps-in-the-filing-and-prosecution-process model 130–2, 137 technology model 131, 139–40 types 130–42, 292–5 OSAPA see Open Source Software as Prior Art OSTG 195 ‘other half’ of IPR see also interfaces; licences communications 118 concepts 113–14, 117–19 outsourcing 6–7, 121–2, 131, 133–4, 135–6, 149–69 see also External Patent Agencies costs 133–4 organisational structures 130, 133–4, 135–6, 150–3 service provisions 151–3 skills 133–4, 135–6, 164–9 overcomplicated strategies 29 overview 4–15, 286 owners, patents 38–9, 46–7 P&G see Procter & Gamble Palmisano, Samuel J 46 Paris Convention 78 partners inventor communities 98–100, 104–5, 108–11, 117–18 ’other half’ of IPR 117–18 patent agencies see External Patent Agencies INDEX / 317 patent applications 3–4, 6, 31–2, 42–4, 45–6, 48–9, 76–95, 116, 129, 176, 177–80, 212–16, 223, 225–7, 266–84, 292–3 see also international ; national ; regional changes 266–84 complexity 4, 77–8, 221–2, 243, 287 documentation 78–84 environmental issues 266, 275–9, 281–2 EPC 40, 60–1, 76, 84–91, 94–5, 212, 267 examinations/searches 76–84, 85–95, 150, 212–29, 239–40, 270–2, 292–3 factories 2, 6, 288–90 fast-track schemes 270–2 filing processes 8, 11, 13, 48–9, 60, 72–4, 76–84, 85–95, 116, 118–19, 129, 130–2, 149–50, 152–3, 176, 178–80, 184–5, 203–7, 288–90, 292–3 ’first to file’ rule 83–4 formal proceedings 81–2, 90–1 future prospects 266–84, 298–9 Japan 3–4, 56–63, 268–72 PPH 270–2, 283 preliminary examinations/searches 76–84, 85–95, 212–16, 223–4, 292 public scrutiny 26, 42–3, 51, 80–1, 274 publication dates 48, 80–1, 88–91 publications 48, 76–84, 85–95, 211–29 residents/non-residents 57–60, 269–70 routes 76, 129 stages overview 76–7, 292–3 statistics 3–4, 31–2, 45–6, 56–64, 176, 177–84, 192–8, 212–29, 268–70 substantial examinations/searches 76–84, 85–95, 212–16, 292–3 time scales 76–8, 81–91, 189–91, 210–12, 227–9 two-part claims 83–4 US 3–4, 42–4, 56–63, 76, 82–4, 218–20, 266, 267–70, 272–3, 283–4 patent attorney firms see External Patent Agencies The Patent Board, scorecard reports 181–3 Patent Cooperation Treaty (PCT) 56–7, 59, 60–3, 76, 91–4, 129, 225–6 see also international advantages 93–4, 225–6 application phases 92–3 concepts 91–4, 129, 225–6 contracting countries 91–2 cost savings 225–6 rejections 93–4 patent creation 5–15, 25–8, 75–95, 97–111, 113–23, 125–47, 286–302 see also intellectual property rights concepts 5–9, 10–12, 75–95, 286–302 core activities 75–95, 126–7 definition 10–11 explanation 10–12 factory analogies 1–2, 6, 11, 14, 110, 171, 223–4, 237–8, 288–90 routes 76, 129 Patent Creation Factory see also inventor communities benchmarking exercises 251–63 concepts 5–15, 25–8, 97–111, 113–23, 125–47, 286–302 costs 7, 25–6, 31, 116, 209–29, 296–8 critical success factors 2, 6–7, 29–32, 35, 72–4, 122, 126–9, 290–9 goals 6–7, 23–4, 30–2, 289–90 interfaces 8, 11, 15, 63, 73–4, 97–111 metrics 7, 15, 20–1, 23–4, 171–86 objectives 6–7, 11–12, 17, 23–4, 25–8, 33–5, 231–48, 289–90 organisational issues 5, 7, 9–10, 21–2, 125–47, 189–91, 249–63, 293–5 pull/push models 100, 108–11, 126, 262 tools 232–48 patent firms see External Patent Agencies Patent Monopoly Act 1885, Japan 44 Patent Office benchmarking exercises 253–4 changes 266–84 China 268–70 costs 211–29, 267 database searches 79–80, 212–16, 239–40 EPO 3–4, 40, 54–5, 56–7, 59, 61, 80, 84– 91, 199–200, 226, 266, 268–9, 279–84 fees 211–29 quality initiatives 192–4 UK 37, 79–80, 192–4, 212–16 US 42–3, 84, 192–4, 266, 267, 272–3 Patent Prosecution Highway (PPH) pilot scheme 266, 270–2, 283 Patent Quality Index (PQI) 196–7 ‘patent races’ 81 Patent Report 2007 Edition, WIPO 3, 56, 180–1, 268 The Patent Scorecard 183 patent-acquisitions model, organisational structures 131, 140–1 patentable inventions 50, 55–6, 81–2, 94, 149–50, 152, 272–3 patents 2–35, 37–64, 75–95, 116, 151–4, 156–8, 163, 209–29, 242–3, 265–84, 286–302 see also portfolios abstracts 77–95 asset value Australia 40, 59 awareness skills 240–1 benefits 25–8, 30–2, 37–9, 43, 45–9, 286–302 changes 265–84 competing/complementary patents 49 complex processes 4, 77–8, 221–2, 243 core creation activities 75–95, 126–7 318 / INDEX costs 4, 7, 25–6, 31, 80, 82, 84–5, 87–90, 92–4, 116, 151–4, 156–8, 163, 209–29, 242–3, 267, 296–8 definition 13, 14–15, 37–9, 291 duration factors 25, 27, 38, 42–3, 82, 291 environmental issues 266, 275–9, 281–2 exploitation considerations 28 factory analogies 1–2, 6, 11, 14, 110, 171, 223–4, 237–8, 288–90 future prospects 266–84, 298–9 growth sectors 61–3, 182 historical background 39–45 industrially-applicable requirements 50, 55–6, 81–2, 94 inventive steps requirements 50, 52–5, 81–2, 94 Japan 3–4, 44–5, 56–63, 106–7, 267, 268–72 key questions 24–8 legal issues 27, 39–45, 77–8, 81–2, 103, 106–7, 109, 111, 204–7, 221–3, 272–3 licences 25–6, 38–9, 47, 227–8, 291 life cycles 57–8 mapping systems 241–2 mass customisation operations 4–5 military influences 20–1, 35, 43 New Zealand 40, 59 new/novel requirements 50–2, 81–2, 94, 149–50 owners 38–9, 46–7 publication dates 48, 88–91 quality issues 4–5, 7–8, 11–12, 14–15, 27, 73–4, 95, 118, 127–9, 154, 156–8, 171–86, 187, 189–208, 286–7, 289–90, 295–302 reasons 25–8, 30–2, 37–9, 45–9 rejects 14, 90–1, 93–4 requirements 50–1 responsibilities 37–8, 291–2 rights 37–45, 106–7, 291 selective approaches 31, 289–90 statistics 3–4, 31–2, 45–6, 56–64, 176, 177–84, 192–8, 212–29, 268–70 time scales 76–8, 81–91, 189–91, 210–12, 227–9, 291 UK 27, 37, 39–40, 45, 52–3, 59, 63, 76–84, 192–4, 212–20, 226–7, 270–2 unwanted cases 223, 227–8 US 3–4, 40–4, 50–1, 56–63, 76, 82–4, 218–20, 266, 267–70, 272–3, 283–4 value 2, 20, 145–6, 228–9 Patents Acts UK 40, 53, 78, 81 US 41–3 patience 292 PCT see Patent Cooperation Treaty performance measures see also metrics concepts 33–5, 143–4, 171–86 External Patent Agencies 155–8, 167–8, 177 metrics 7, 15, 20–1, 23–4, 171–86, 295–6 tools 244–6 Peters, Tom 235 pharmaceuticals sector 62–3 Pipeline Power Index, IEE 183–4 Pitney Bowes 275 planning needs see also strategic planning benchmarking exercises 255–6 processes 233–4, 247–8, 297 tools 233–4, 247–8, 297–8 plaques, non-financial incentives 111 Poland 59 Porter, Michael 19 portfolio model, organisational structures 130, 136–7 portfolios 2–5, 17, 25–8, 47–8, 72–4, 115–17, 127–9, 136–7, 181–2, 189–208, 286–7 see also patents quality issues 189–208, 286–7 SWOT analysis 27–8 volumes 27, 56–64, 127–9, 131–2, 286–7 positioning, strategy 21 PPH see Patent Prosecution Highway PQI see Patent Quality Index preliminary examinations/searches, patent applications 76–84, 85–95, 212–16, 223–4, 292 pricing issues, External Patent Agencies 151–4, 156–9, 163 prior art searches 86–91, 195–6, 223–4 prior art section, EPC patent applications 86–91 proactive innovations, reactive innovations 116 proactive leaders 146–7 process engineering sectors 62 processes communications 232–4, 297 concepts 231–48, 297–8 definition 231–2, 234–7, 297 development work 234–7 flowcharts 247–8 management issues 236–48, 297 modelling concepts 247–8, 297 planning needs 233–4, 247–8, 297 quality issues 188–208, 236–7 strategy 236–7 tools 232–48, 297–8 Procter & Gamble (P&G) 104 products business and technology management 113–14, 119–20 improvements 67, 69 prosecution processes 8, 11, 25–6, 116, 130–2, 149–50, 152–3, 191–208, 211–29, 266, 270–2, 288–90 INDEX / 319 costs 211–29 Patent Prosecution Highway pilot scheme 266, 270–2 quality issues 191–208 protection issues 12–14, 32, 37–9, 75–95, 160–1, 189–208, 291–2, 300–1 Protocol on Patents and Industrial Designs, ARIPO 84 public scrutiny, patent applications 26, 42–3, 51, 80–1, 274 publications dates 48, 80–1, 88–91 patent applications 48, 76–84, 85–95, 211–29 publishing protection strategy 32 pull/push models, ideas 100, 108–11, 126, 262 Quaker 12 qualifications, employees 69, 202–3 quality issues action plans 205–7 audits 206–7, 238–9 business needs 188–9 company-led initiatives 194–7 concepts 4–5, 7–8, 11–12, 14–15, 27, 73–4, 95, 118, 127–9, 154, 156–8, 171–86, 187–207, 286–7, 289–90, 295–302 cultural issues 188–9, 204–7 debates 191–200 definition 188–91, 198–9, 295–6 documentation 200–2, 203–7 employees 189–91, 202–8 EPO 199–200 External Patent Agencies 156–8, 163, 223, 224–5, 229 feedback benefits 188–9, 204–7 guidelines 200–2 IBM 194–5 ideas 66–7, 73–4, 99–111, 127–9, 289–90, 291–2, 299–300 improvements 204–7, 235 inventions 190–208, 289–90 IPO 197–8 management issues 188–9, 205–7, 287, 289–90, 295–6 metrics 7, 15, 20–1, 23–4, 171–86, 295–6 monitoring needs 188–91, 289–90, 295–6 organisational factors 189–91, 202–8, 289–90, 295–6 OSAPA 195–6 patent office initiatives 192–4 patents 4–5, 7–8, 11–12, 14–15, 27, 73–4, 95, 118, 127–9, 154, 156–8, 171–86, 187, 189–208, 286–7, 289–90, 295–302 PQI 196–7 processes 188–208, 236–7 research and studies 197–200 responsibilities 188–208 senior management 188, 205–7, 287, 289–90, 295–6 teams 188–9, 206–7 tools 189–91, 202–8, 233–4, 244–6 total quality determinants 189–91, 205–7 training needs 206–7 USPTO initiatives 192–4, 195–6 questioning attitudes, innovation cultures 68–9, 74, 291–2, 299–300 R&D see research and development reactive innovations, proactive innovations 116 ‘reasonable’ claims, EPC patent applications 87–91 recognition see also incentives importance 107, 110–11 Red Hat 195 references 303–5 regional patent applications see also European Patent Convention concepts 76, 84–91, 92, 129, 225–7, 266–70, 282–4 cost comparisons 225–7, 267, 283, 296–7 regulations 27 Reitzig, Markus 198–9 rejected patents 14, 90–1, 93–4 relationship managers, External Patent Agencies 164, 167–8 remedies in case of failures, External Patent Agencies 156–8, 167–8 renewal fees, granted patents 82, 90, 150, 152, 167, 212–16 reporting templates, costs 221–3 reputations 2–3, 115, 202–3, 233, 245–6, 258, 286–7 requirements, patents 50–1 research and development (R&D) 8, 31–2, 38–9, 50–1, 69, 71, 102–3, 108, 139–40 budgets 38–9 innovations 50–1, 69, 71, 102–3, 108, 139–40 Research Policy (2007) 200 research and studies, quality issues 197–200 residents/non-residents, patent applications 57–60, 269–70 resistance problems 28, 142–3, 145 resource-pool model, organisational structures 130, 137–8 respect issues 30–2 responsibilities External Patent Agencies 154–64 patents 37–8, 291–2 quality issues 188–208 restructuring exercises 9–10 returns on investments 2–3, 31–2, 46–7, 115, 286–7, 291–2 320 / INDEX reviews see also strategic concepts 20, 32–5, 203–7, 288–90 rewards 38–9, 69–70, 105–7, 110–11, 281 see also incentives innovation cultures 69–70, 105–7, 281 inventor communities 105–7, 110–11, 281 rights employees 106–7 patents 37–45, 106–7, 291 risk attitudes 70, 291–2, 299–300, 302 risk management, External Patent Agencies 154–8 roadmaps/timelines, strategy format 23–4, 69–70, 120 Royal Bank 71 royalties 47 rules of conduct, External Patent Agencies 165–6 rules of engagement, strategy format 22–4 Russian Federation 59, 61 sales 119–20 scope considerations, benchmarking exercises 252–3, 258–9 search engines 240 see also Internet sectors, patents 61–3, 182 selective approaches, patents 31, 289–90 semi-conductors sector 13, 62–3 senior management 15, 111, 113–17, 118, 120, 177, 188, 205–7, 251–5, 287, 289–90, 295–6 see also interfaces; management; strategy benchmarking exercises 251–5 change factors 144–6, 251–5 communications 111, 115–17, 118, 120, 290 concepts 111, 113–17, 118, 120, 287, 289–90, 295–6 definition 114 feedback benefits 115–17, 143–4 language 115 metrics 177, 179–80 quality issues 188, 205–7, 287, 289–90, 295–6 ‘serial’ inventors 98–102 service provisions see also outsourcing concepts 151–3 Shakespeare, William 301 Shapiro, Stephen 116 SIC see Standard Industrial Classification Product Field silicone chips see semi-conductor topography ‘silos’ 133 simplicity benefits quality improvements 235, 237 strategy 29–30, 237 Siwei, Cheng 48 skills 21–2, 69, 71, 128–9, 135–6, 164–9, 206–7, 240–1, 277–8 outsourcing 133–4, 135–6, 164–9 patent awareness skills 240–1 WIPO WorldWide Academy 277–8 soft skills 71 soft targets, metrics 186 Song, Liuping 46 Sony 275 Spain 61 ‘special technical features’ 79–80 specifications, quality issues 191–208 sponsors 28 stakeholders 49 Standard Industrial Classification Product Field (SIC) 182 standards, open standards 49, 194–7, 281 start-ups 48–9, 102 state of the art 51–3, 85–91 Statute of Monopolies 40 steps-in-the-filing-and-prosecution-process model, organisational structures 130–2, 137 Stigson, Bjorn 276 strategic actions concepts 20, 21–2, 147, 257–8, 261–3 definition 20, 21 strategic deliverables, organisational issues 126–9 strategic intent see also ideal state concepts 20, 21–2, 27, 35, 126–9, 144–5, 147 definition 20, 21 strategic planning approaches 21–2, 290–1 concepts 17–35, 290–1 strategic reviews concepts 20, 32–5 definition 20 strategy 8, 11, 15, 17–35, 72–4, 114–17, 126–9, 143–7, 257–8, 261–3, 289–90 see also objectives; senior management alignment issues 28, 29–30, 116–17, 118, 146–7, 290 approaches 21–2 benchmarking results 257–8, 261–3 change factors 143–7 communications 30–1, 35, 73–4, 110–11, 290 concepts 17–35, 72–4, 114–17, 126–9, 289–90 costs 223–9 definition 18–21 development 24–8, 35 INDEX / 321 explanation 18–21 format template 22–4 good characteristics 29–32 intellectual property 28–30, 114–17 invention harvesting 72–4, 109, 140–1, 288–90 management issues 19–20, 30–1, 73–4, 114–17, 289–90 monitoring needs 32–5 positioning 21 processes 236–7 quality factors 188–9 simplicity benefits 29–30, 237 tactics 19–21, 35 terminology 19–20 tests 28 uniqueness characteristics 19 validation needs 28, 35 strengths current portfolios 27–8, 136–7 SWOT analysis 21–2, 23–4, 28, 143–4, 145–6, 241–2, 251–2 Stuart, John 12 sub-contracting see outsourcing sub-groups of inventor communities see also inventor appreciation needs 109–11 concepts 97–111, 292–3 external sub-groups 97–9, 102–11, 113–14, 135–6, 262, 292–3 internal sub-groups 97–102, 135–6, 262, 292–3 ratings 99–100, 109–10 types 97–111, 292–3 substantial examinations/searches, patent applications 76–84, 85–95, 212–16, 292–3 success factors changes 144–6 critical success factors 6–7, 29–32, 35, 72–4, 122, 126–9, 144–6, 290–9 elements 72–4, 122, 126–9, 144–6, 290–9 inventions 72–4, 122 IPR 2–3, 6, 10 metrics 173–5, 295–6 Sun Tzu 20–1, 35 suppliers 70, 98–100, 103–5, 108–9 contracts 103, 109 inventor communities 98–100, 103–5, 108–9 supply chains, costs 209–11 support issues, tools 244–6 supra-national patent-issuing authorities see also European Patent Office; international ; World Intellectual Property Office concepts 40, 45, 56–60, 91–4 origins 40 survival issues change factors 127–9 innovations 67, 291–2, 300 Sweden 63, 226 Switzerland 63 SWOT analysis 21–2, 23–4, 28, 143–4, 241–2, 251–2 tactics, concepts 19–21, 35 tangible assets, intangible assets 2, 116–17 targets 27–8, 33–5, 184–6 see also metrics task-based billing practices, External Patent Agencies 218–20 teams 11, 23–4, 70–1, 144–7, 206–7, 255–6, 260–1 see also employees benchmarking exercises 255–6, 260–1 change efforts 144–7 goals 23–4 quality issues 188–9, 206–7 technological changes 26–7, 30–2, 38–9, 181–3, 279–84 technology management, concepts 113–14, 119–20 technology model, organisational structures 131, 139–40 technology sector 61–3 Teleflex 266, 272–3 termination grounds, External Patent Agencies 157–8 terms of the agreement, External Patent Agencies 157–8, 294–5 tests concepts 1–2, 28 strategy 28 ‘think outside the box’ characteristic, inventors 106, 109, 299–300 third parties metrics 184–6 publication dates 80–1, 88–91 Thompson, William 172, 175 threats EPO Future Scenarios project 279–82 SWOT analysis 21–2, 23–4, 28, 143–4, 241–2, 251–2 time scales costs 210–12, 221–2, 223, 227–9 duration factors 25, 27, 38, 42–3, 82, 210–12, 291 innovations 69, 83–4, 291 metrics 174–5 patents 76–8, 81–91, 189–91, 210–12, 227–9, 291 Tonghai, Chen 47 tools access controls 233–4 change factors 243–4 322 / INDEX checklists 243–6 concepts 232–48, 296–8 costs 220, 232–3, 242–3, 244–6, 296–8 data privacy 246 database searches 79–80, 212–16, 239–40 definition 232–4, 297 examinations/searches 79–80, 212–16, 239–40 External Patent Agencies 234 flexibility needs 233–4, 285–6 interfaces 234, 244–6 Internet 150, 238, 240, 242 operational models 233–7 performance issues 244–6 planning needs 233–4, 247–8, 297–8 processes 232–48, 297–8 quality issues 189–91, 202–7, 233–4, 244–6 risk management 154–8 selection issues 238–46, 297–8 support issues 244–6 training needs 244–5 vendors 233, 243–8 total quality determinants 189–91, 205–7 see also quality trade secrets, concepts 13, 32, 300–1 trademarks 12–14, 300–1 training needs costs 220 quality issues 206–7 tools 244–5 WIPO WorldWide Academy 277–8 transformative innovations, concepts 66–7, 100, 299–300 translations 150, 159, 216, 226–7, 268 ‘Trees of knowledge’ EPO Future Scenarios project 280–2 Triesman, Lord 272 Twain, Mark 302 two-part claims, patent applications 83–4 UK CIPA 165 historical background 39–40 inventive steps 52–3, 81–2 invoicing practices 218–20 Patent Office 37, 79–80, 192–4, 212–16 patents 27, 37, 39–40, 45, 52–3, 59, 63, 76–84, 192–4, 212–20, 226–7, 270–2 Patents Acts 40, 53, 78, 81 PPH 270–2, 283 US contrasts 82–4 understanding needs inventor communities 105–7 listening benefits 114 United States Patent and Trade Office (USPTO) 181, 192–4, 195–6, 271 see also US ‘unity of invention’ requirement 79 universities benchmarking exercises 254 inventor communities 103–4, 108–9, 117 ’other half’ of IPR 117–18 unwanted cases, cost savings 223, 227–8 US abuses 43 AIPLA 165 changes 266, 272–3 CIP applications 83–4 Civil War 43 Constitution 41–3 costs 267, 283 historical background 40–4 industrially-applicable requirements 55–6 international patent system 4, 56–60 inventor applications 83–4 invoicing practices 218–20 KSR vs Teleflex case 266, 272–3 non-obviousness standards 53–4, 272–3 novelty requirements 50–1 patent applications 3–4, 42–4, 56–63, 76, 82–4, 218–20, 266, 267–70, 272–3, 283–4 Patent Office 42–3, 84, 192–4, 266, 267, 272–3 patents 3–4, 40–4, 50–1, 56–63, 76, 82–4, 218–20, 266, 267–70, 272–3, 283–4 Patents Acts 41–3 PPH 270–2, 283 SIC 182 UK contrasts 82–4 USPTO 181, 192–4, 195–6, 271 usefulness requirements, industriallyapplicable requirements 55–6 USPTO see United States Patent and Trade Office utility models, definition 13 utility modern law, Japan 44–5 validation needs, strategy 28, 35 Valuation Consulting valuations, companies 2–3 values concepts 2, 20, 145–6, 228–9 costs 228–9 definition 20 values-based leadership 169 vendors of tools 233, 243–8 Venetian Statute 1474 39 venture capital 102 virtual factories, analogies 11, 288–90 vision concepts 5, 20, 22, 72–3, 127–9, 146–7, 287 definition 20 mission statements 22 INDEX / 323 volumes ideas 99–100 portfolios 27, 56–64, 127–9, 131–2, 286–7 von Mises, Ludwig 101 The Wall Street Journal 181, 183 WBCSD see World Business Council for Sustainable Development weaknesses current portfolios 27–8, 136–7 SWOT analysis 21–2, 23–4, 28, 143–4, 145–6, 241–2 ‘Whose Games?’ EPO Future Scenarios project 279–82 Index compiled by Terry Halliday WIPO see World Intellectual Property Office World Business Council for Sustainable Development (WBCSD) 266, 275–9 World Economic Forum on China Business Summit 2006 18 World Intellectual Property Office (WIPO) 3, 40, 45, 56–60, 80, 180–1, 268, 277–9 database searches 80 origins 40 Patent Report 2007 Edition 3, 56, 180–1, 268 WorldWide Academy 277–9 WorldWide Academy, WIPO 277–9 ... refer to this factory as a Patent Creation Factory 6 / INSIDE THE PATENT FACTORY Why Inside the Patent Factory ? The title of the book Inside the Patent Factory obviously comes from the analogy... in force worldwide The largest recipients of patent filings are the patent of ces of Japan, the USA, China, Korea and the European Patent Of ce / INSIDE THE PATENT FACTORY (EPO) These five of ces.. .Inside the Patent Factory The essential reference for effective and efficient management of patent creation Donal O’Connell Copyright © 2008 John Wiley & Sons Ltd, The Atrium, Southern Gate,