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Rethinking the Place of Patents in the Innovation Process:  A New Model for Improving Innovation ROI,[object Object],Jackie Hutter, MS, JD,[object Object],Decatur, GA,[object Object],404-797-8124,[object Object],www.HutterGroup.com,[object Object],www.PatentMatchMaker.com,[object Object],www.ipAssetMaximizerBlog.com,[object Object],Twitter @ipStrategist,[object Object]
How is corporate innovation like the journey of the Pilgrims to the New World?,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Like exploration and settlement, innovation requires calibration of “instruments”  at the front end of the process,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Patents are critical calibration steps at the front end of innovation processes,[object Object],Highly determinative of ROI,[object Object],Information “hiding in plain sight”,[object Object],Small modifications early can lead to big changes in destination,[object Object],Copyright 2010 Jackie Hutter,[object Object]
How can patent information enhance innovation processes?,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Ownership of Innovation Output,[object Object],Innovation ROI typically depends on ownership of output,[object Object],Successful innovations will be knocked off & competitors will enter market at lower cost,[object Object],Patent info on front end reveals,[object Object],Can you own the fruits of our innovation efforts?,[object Object],If so, how broadly?,[object Object],Innovation not just invention!,[object Object],Info allows to make alternate plans,[object Object],Protect investment using other methods,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Risk of Innovation Output,[object Object],Regardless of ownership, must know early if will have freedom to operate,[object Object],Go/no-go innovation decisions assume clear path forward not,[object Object],	Litigation,[object Object],	Injunction,[object Object],	Royalty/license,[object Object],ROI not met if third party patents in innovation pathway,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Streamline Innovation Output,[object Object],Can we jump-start efforts by using innovations disclosed by others?,[object Object],Don’t reinvent the wheel,[object Object],Start innovation process on 30 yard line,[object Object],Reduce cost and improve speed ,[object Object],Use adjacent innovations,[object Object],Likely patents do not cover your space and fully “baked” for your use,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Enhance Innovation Output,[object Object],Patent information can provide insights into,[object Object],Partners,[object Object],Strategic alliances,[object Object],Suppliers ,[object Object],Can reduce cost and improve speed to market,[object Object],Build on expertise of others,[object Object],Can reduce risk through collaboration and cost sharing,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Guardrails for incorporating Patent info in front end,[object Object],Cannot tell you where/what to innovate,[object Object],Standard innovation decision-making criteria applies,[object Object],IMPORTANT:  Only directional info as to patentability and clearance,[object Object],No product exists yet!,[object Object],Think of as validation/facilitation tool at “fuzzy front end”,[object Object],Still need usual legal analysis for go-to-market approval,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Case Study in the use of patent info on front end:  Green Packaging,[object Object],Large paper company interested in introducing biodegradable packaging for consumer goods due to Wal-Mart “green” initiative and general increasing consumer demand,[object Object],Starch-based plastic,[object Object],Innovation would require > $50 MM investment,[object Object],Would change nature of company from tree-based paper to biodegradable paper company,[object Object],Game-changing innovation pathway,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Case Study in the use of patent info on front end:  Green packaging,[object Object],ROI depended on ability to own the innovation AND have freedom to operate,[object Object],Just owning the specific invention would not justify scale of investment,[object Object],Initial review identified 1000’s of patents potentially relevant to proposed product,[object Object],Previous recognition of good idea, but no success in getting to market,[object Object],Innovation pathway potentially blocked by previous inventors,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Process for Obtaining Business Insights from Patent Data,[object Object],Search-based analytics,[object Object],Business Team Formulates Business Question: What ROI can we expect by investing in biodegradable food packaging?,[object Object],Patent expert reviews master dataset:  Few to 1000’s of patent filings discussing biodegradable food packaging,[object Object],Patent expert performs multiple searches of patent database to provide master dataset for analysis,[object Object],Business team consolidates targeted patent ownership data with other data to make business decision,[object Object],Claim Type 3,[object Object],Claim Type 1,[object Object],Claim Type 4,[object Object],Biodegradable food packaging,[object Object],Dataset that reveals ownership and litigation risk of results of innovation efforts,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Case Study in the use of patent info on front end:  green packaging,[object Object],Patent analysis revealed ,[object Object],Unlikely that broad ownership of innovation would be possible,[object Object],Significantly increased probability that competitors could copy after market developed,[object Object],Highly probable that infringement liability would result,[object Object],Avoidance would require innovation pathway to be greatly narrowed and complicated,[object Object],Adverse patent profile resulted in decision to kill project at an early-stage,[object Object],Done before product even fleshed-out,[object Object],Huge opportunity costs avoided,[object Object],Copyright 2010 Jackie Hutter,[object Object]
So, why is this so hard?,[object Object],Should be a “no brainer” to include patent information on front end ,[object Object],BUT even while corporate innovation processes have been transformed at many corporation, but few have modified way they view patents,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Traditional Corporate Silos Between Patents and Business,[object Object],Patent experts retain control ,[object Object],“Create risk”,[object Object],Gatekeeper needed to control costs,[object Object],“Too complicated”,[object Object],Business people choose not to handle,[object Object],Don’t teach in B-school,[object Object],“Too hard” for busy person to learn,[object Object],Existing incentives,[object Object],Lawyer status based on expert role,[object Object],R&D = invention,[object Object],Business not familiar with details of IP,[object Object],Communication barriers,[object Object],Lawyers, R&D = Mars,[object Object],Business people = Venus,[object Object],Copyright 2010 Jackie Hutter,[object Object]
Cannot be successful in putting patents into front end of your innovation processes unless,[object Object],Incentives properly aligned,[object Object],Legal,[object Object],R&D,[object Object],Business ,[object Object],Patent experts “get” innovation,[object Object],Ambiguity vs. certainty,[object Object],Business people make effort to learn basics of patents,[object Object],Make relevant to roles & responsibilities,[object Object],Copyright 2010 Jackie Hutter,[object Object]
US Patent System is for Innovators(Time to Take it Back!),[object Object],Copyright 2010 Jackie Hutter,[object Object]
THANK YOU!,[object Object],Copyright 2010 Jackie Hutter,[object Object]

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Rethinking the Place of Patents in the Innovation Process: A New Model for Innovation ROI

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