Académique Documents
Professionnel Documents
Culture Documents
collaborative management of
innovation & intellectual property (IP)
Exercise
market power Sell License Collaborate Donate
2008 2016
1. IP management strategy: exercise market power
IP protection through:
• patents,
• trademarks,
• copyrights and
• trade secrets.
Example
Nortel 6000 patent IP
auction:
• 4 days, 20 rounds
• If you are unlikely to successfully commercialise your IP,
you might be better off selling (or licensing) it • Sales price: $4.5b
• “Sale makes sense if the difference between (a) the • Buyers: group of 6, incl
value of the IP in your hands and (b) its value in B's Apple, Microsoft, RIM
hands exceeds (c) transaction costs” Prof W. Fisher
• Buyers start seeking
• Consider risk-weighted value of keeping the IP and the licensing royalties from
benefit minus risk-weighted strategic costs of selling users of the IP
3. IP management strategy: license (for royalties)
And risks …
Licensing is … complicated
… and full of litigation cases Number of patent lawsuits
commenced
Recent jump due to regularly changes, but general
trend increasing in line with growing number of
patents
The case for collaborative approaches: the market’s potential
Acer
Alcatel
Collaborate:
Asus
Google was the leading force behind the
CGI
Open Handset Alliance (OHA), a
Dell
collaboration of initially 34 (now 84) telco and
Foxconn
tech companies that all support Android and
Fujitsu
commit to using it under its licensing terms
Garmin
and not to work on a competing mobile OS.
Haier
HTC
Huawei
Kyocera
Lenovo
Most LG
major Motorola
handset NEC
manufac Oppo
turers Pantech
are part Samsung
of the Sharp
OHA Sony Ericson
Toshiba
ZTE
Corporation
5. IP management strategy: donate
License (free-of-charge):
Members of the Open Handset
Alliance take free-of-charge
license of the Google Mobile
Services. These are the
premium features of Android …
shows that licensing doesn’t
GMS have to be a battleground…
Google Mobile Service
Donate:
Android Open Source Project
AOSP (AOSP) is a basic mobile phone
Android Open Source Project operating system. It is open
source. Anyone can download,
adapt, use it. It has a basic
version of the GMS functions.
Most popular in China
Freemium vs Premium - not everybody gets a lick
• A lot of the Google apps and functionality exist only in rudimentary form in the
open-source code (AOSP).
• Over time Google moved the most popular Google apps into to-be-licensed
version of Android, the GMS.
• Critics and competitors state that Google “forces” the licensee to pre-install
the all GMS apps if they want to use any one of the apps (e.g. YouTube or
Google Play Store) or any of the enhanced functions, e.g. advanced location
services or in-game payments. Google says, these services belong together.
• The European Union takes this serious and have launched an inquiry into
Google over the alleged practices and their impact on competition. Check also
what Google has to say about this: https://www.android.com/everyone/facts/
MS • note: things are a bit different within China but that is a different story altogether.
bile Service
AOSP GMS
www.InnovationTactics.com/strategic-IP-management