This article introduces a framework that helps to assimilate intellectual propertymanagement activities with the practices of marketing and strategy. With the framework, the management of IP rights is explained within marketing constructs such as the unique selling proposition. The article presents case studies that explore the applicability of the framework in a diversity of industry contexts and firm sizes.
The patent system is introduced to the non-legal professional by reviewing the historical justification for having a patent system and the foundations of the U.S. patent system, contrasting patents with trade secrets, exploring invention requirements for obtaining a patent, and reviewing the patent application process, international patent protection, and the elements of infringement, validity, and enforcement through litigation.
A self-employed innovator developed and patented a novel combination pen and stylus device to complement the recently released Palm Pilot personal digital assistant. He presented his design to Palm, under a nondisclosure agreement to discuss the market response to the product, and his company, ttools, was subsequently allowed to advertise the device in a monthly e-mail to Palm customers. After ttools' release of the Throttle pen/stylus, Palm and the design firm IDEO introduced a similar pen/stylus device that appeared to infringe on ttools' patent. ttools, being a small, resource-constrained company, was in a precarious position. Its competitive advantage and rights as a patent holder were being threatened. It had few financial resources to draw upon, and thus its livelihood as a company was at stake. Investigates the available options ttools had to respond to Palm and IDEO's actions.
ESPE, the market leader, is a medium-sized German manufacturer of precision dental impression materials competing in a shrinking market. To grow the business, ESPE invests substantial resources in innovative impression materials and associated distribution mechanisms. Squeezed by the shrinking market, the competition is increasingly using the proprietary channels (dispensing mechanisms) and brand equity (trademark) of ESPE to maintain their market share. There is a potential infringement. Explores how ESPE is organized to execute on the options imbedded in its IP rights.
Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. Within the year, the firm's patent for Prilosec (active ingredient omeprazole) was expiring. Prilosec was a US$6.2 billion/year blockbuster that revolutionized the treatment of chronic gastro-esophageal reflux disorders (GERD). Severe cost-based competition from generic drug manufacturers was, however, inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm. AstraZeneca had Nexium, an improvement on the original Prilosec molecule, in the pipeline. Ideally, it would like to move brand-loyal Prilosec customers to Nexium. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an over-the-counter (OTC) version of omeprazole. Tactically, AstraZeneca would like to use regulatory incentives and intellectual property rights to strengthen its competitive position. How could the company use its entire portfolio of intellectual properties-including patents and trademarks-to actively manage the priced-based competition and achieve a revenue growth strategy in the GERD market?
Tom McKillop, CEO of AstraZeneca, faced the classic quandary of large pharmaceutical firms. The firm's patent for Prilosec (active ingredient omeprazole) was expiring. Severe cost-based competition from generic drug manufacturers was inevitable. Patent expirations were nothing new for the US$15.8 billion in revenues drug firm, but Prilosec was the firm's most successful drug franchise, with global sales of US$6.2 billion. How could the company innovate its way around the generic cost-based competition and avoid the drop in revenues associated with generic drug market entry? AstraZeneca had other follow-on drugs in the pipeline-namely Nexium, an improvement on the original Prilosec molecule. Additionally, the company had the opportunity to introduce its own version of generic omeprazole, hence becoming the first mover in the generic segment, and/or introduce an OTC version of omeprazole that might tap into other markets. Ideally, AstraZeneca would like to move brand-loyal Prilosec customers to Nexium. In this market, direct-to-consumer advertising has remarkable efficacy. Classical marketing challenges of pricing and promotion need to be resolved for the Nexium launch as well as possible product and place challenges for the generic or OTC opportunity. Which combination of marketing options will allow the firm to best sustain the value of the original omeprazole innovation?
Intellectual property rights are a major source of wealth creation in our modern global economy and continue to grow in strategic significance. For managers and entrepreneurs to take advantage of the strategic options that IPs offer, it is helpful to be conversant in the unique aspects of these legal rights regimes. Provides a comprehensive and easy-to-understand overview of the IP rights regimes, consisting of trade secrets, patents, copyrights, trade dress, and trademarks.