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					Protection of Knowledge in the Shipbuilding Industry
     Workshop on Intellectual Property Rights
                  26 March 2010




   General Aspects of IP in the
     Shipbuilding Industry
             Dr. Wiebke Baars, LL.M.,
             Taylor Wessing Hamburg
      Fachanwältin für gewerblichen Rechtsschutz
I.      Overview
                         IPR


     Registered Rights         Unregistered Rights


          Patents                  Copyright


                                 Unregistered
       Utility Model
                                 Design Rights

           Design
                                                     Know-How
        (registered)


       Trademarks                                Unfair Competition
II.           Registered Rights
     Patents

         Inventions = solution of a technical problem
         Of products or methods
         New (=not state of the art)
         Inventive step
         Capable of industrial application

         Most patents in shipbuilding industry are related to
           Propulsion
           Power generation
           Loading and unloading systems
II.           Registered Rights
     Patents

         Exclusive right
         Territorial right
         Application requires disclosure and publication of invention
         Application process monitored by public (competitors)
         Granted after examination by Patent Office
           National PTOs
           European PTO
             One application
             Conversion into national patents
           No Community Patent
II.           Registered Rights

     Patents
             Proprietor has the right to stop others from
               Making, offering, putting a product on the market,

               Using, importing, stocking a product

               Using a method subject to the patent



         Lifetime: 20 years from filing
         Can be attacked during lifetime
II.         Registered Rights

     Utility Model, „little Patent“
         Not available in all countries (e.g. not UK, Sweden, Luxemburg)
         Invention of a product, in some countries also for methods
         Novelty
         Inventive step (less strict than patent)

         Exclusive right
         Territorial right
         Application requires disclosure and publication of invention
         Granted by Patent Office, no examination
II.         Registered Rights

     Utility Model, „little Patent“

         Proprietor has the right to stop others from
             Making, offering, putting a product on the market,

             Using, importing, stocking a product




         Lifetime: between 7 and 10 years
         Can be attacked during lifetime
II.           Registered Rights

     Trademarks
         Words, designs, numerals, three dimensional configurations incl.
          shape or packaging of a product, colours
         Purpose of indicating the origin of goods and services
         Allowing the consumer to distinguish the products and services of one
          company from that of another
           No protection if lack of distinctive character
           No protection if descriptive
           No protection if shape results from nature of goods
           No protection if shape is necessary to obtain technical result
II.           Registered Rights

     Trademarks
         Exclusive right
         Territorial right
         Granted after examination by Patent Office
           National PTOs
           OHIM: Community Trademark
           WIPO: International Registration (Madrid Agreement and Protocol)
II.           Registered Rights

     Trademarks
         Proprietor has the right to stop others from
           Affixing the sign to goods or packaging
           Offering goods with the sign, putting goods on the market,
           Importing or exporting goods with the sign
         Scope of protection: identical and confusingly similar signs

         Lifetime: 10 years, can be renewed for further 10 years without
          limitation
         Can be attacked during lifetime
II.           Registered Rights

     Registered Design
         Appearance of the whole or a part of a product
         Resulting from the features of the lines, contours, colours, shape,
          texture and/or materials of the product itself and/or its ornamentation
         Novelty
         Individual character
           No protection for technical aspects of design
           No protection for component parts not visible once incorporated into
            complex products
           Exemptions for spare parts
II.           Registered Rights

     Registered Design
         Exclusive right
         Territorial right
         Granted by Patent Office without detailed examination
           National PTOs
           Office of Harmonisation in the Internal Market: Community Design
           WIPO: International Registration (Hague Agreement)
         Design can be related to e.g.
             Hull shape, shape of devices
II.           Registered Rights

     Registered Design
         Proprietor has the right to stop others from
           Making, offering, putting a product using the design on the market,
           using, importing, exporting a product
         Scope of protection: similar overall impression

         Lifetime: 25 years
         Can be attacked during lifetime
III.        Unregistered Rights

   Copyright
       Personal intellectual creations
       Protected literary, scientific and artistic works:
         works of language, such as writings, computer programs
         works of fine art, including works of architecture and of applied art and
          plans for such works
         illustrations of a scientific or technical nature, such as drawings, plans,
          maps, sketches, tables and three-dimensional representations
III.        Unregistered Rights

   Copyright
       Exclusive Right
         Reproduction;
         Distribution
         Making available to the public
       Moral Rights
           Right to object against
             Distortion

             Mutilation

             Modification
III.        Unregistered Rights

   Copyright: Illustrations of a scientific or technical nature
       drawings, construction plans, maps, sketches, tables and three-
        dimensional representations
         Protection only covers the presentation as such
         Not the scientific or technical content
         Therefore building s.th. based on drawings or construction plans is no
          copyright infringement
III.        Unregistered Rights

   Copyright: Works of Architecture and plans for such works
       E.g. buildings, bridges, accessible parts of ships (e.g. bridge, mess,
        cabins, passenger„s areas)
       Plans for architectural works include protection of the work itself
       Creating a building or a ship based on the plans would be an
        infringement
       But: creation must be artistical, not just mere building standard
         Unlikely for fright ships, container ships
         More likely for individually designed yachts, cruise ships
III.      Unregistered Rights

   Copyright
       Exclusive right
       Territorial right
       International Conventions (e.g. Berne Convention, TRIPS) grant
        protection almost wordwide, but no identical standards)


   Lifetime
       70 years after death of author
III.      Unregistered Rights

   Unregistered Design
       Appearance of the whole or a part of a product
       Resulting from the features of the lines, contours, colours, shape,
        texture and/or materials
       Novelty
       Individual character
       Made available to the public in the EU
       Protected agains direct copying
       Protected for three years after publication
III.      Unregistered Rights

   Know How (Protection of Trade Secrets)

       package of non-patented practical information,
       resulting from experience and testing,
       secret (not generally know or easily accessible),
       substantial (significant and useful for the production of the contract
        products)
       identified
III.        Unregistered Rights

   Know-How
       Examples: construction plans, technical drawings, organisation charts,
        calculations, marketing plans, customer data, recipes, reseach results


   Statutory provisions (Germany)
       Betrayal of trade or industrial secrets, sec. 17 German Act against
        Unfair Competition (UWG),
       Betrayal of documents or instructions of a technical nature, sec. 18
        German Act against Unfair Competition (UWG)
           Criminal offence
           Civil law sanctions
III.      Unregistered Rights

   Know How

   Contractual Protection
       E.g. with employees, customers, designers, business partners…
       Confidentiality obligations
       Valid only between parties
       Penalty clauses
III.      Unregistered Rights

   Unfair Competition
       Available in many countries to different extent
       Act of competition contrary to honest industrial or commercial
        chartacter
       Exploitation or misrepresentation of a competitor„s work or reputation
       Misleading consumers about origin of a product
IV.      Layers of Protection
                          IPR


      Registered Rights         Unregistered Rights


           Patents                  Copyright


                                  Unregistered
        Utility Model
                                  Design Rights

            Design
                                                      Know-How
         (registered)


        Trademarks                                Unfair Competition
IV.       Layers of protection

   Example:
       Functional features of new steering mechnism ->
        patent protection, utility model
       Brand name of new product ->
        trademark protection
       Method of manufacture->
        trade secret, contractual protection
       Shape of new device->
        design protection
V.        Threats to IPR

    Counterfeiting / Piracy
    Leakage of secret Know How
        Suppliers
        Yards
        Customers/Owners
        Reserach Centers
        Employees
VI.       Advantages of IPR

   Patents, Utility Models, Designs, Trademarks and Copyrights
    are EXCLUSIVE rights:

       Exclusive right to stop third parties from using the rights
       Inventive advantage
       Economic exploitation: licenses
VI.         Advantages of IPR

   Patents, Utility Models, Designs, Trademarks and Copyrights
    are EXCLUSIVE rights

       Remedies have been harmonised by European Enforcement Directive:
           Right to apply for evidence regarding an infringement that lies in the hands
            of the other party to be presented
           Requirement: “reasonably available evidence sufficient to support its claim”
           Provisional and precautional measures
           Right to obtain information on suppliers and customers
           Right to claim damages
           Right to reasonable compensation of legal costs
VII. Difficulties

   Spotting infringement

   Territorial rights
       High costs of international protection, especially for patents
       High administrative effort
       Patents require publication of invention
       High costs of international litigation
         Investigation, collection of evidence,
         lawyers
       Burden of proof
VII. Difficulties

   Article 5ter Paris Convention

„Patents: Patented Devices forming part of Vessels, Aircrafts or Land Vehicles

    In any country of the Union the following shall not be considered as infringement
    of the rights of a patentee:

    The use on board of vessels of other countries of the union of devices forming
    the subject of his patent in the body of the vessel, in the machinerey, tackle, gear
    and other accesories, when such vessels temporarily or accidentally enter the
    waters of the said country, provided that such devices are used there exclusively
    for the needs of the vessel“
VII. Difficulties

   Article 5ter Paris Convention

       Limits the right of patent owners in the event that a ship enters a
        country temporarily under the flag of a foreign nation
       Stena vs Irish Ferries
       Reason: free trade
VII. Difficulties

   Specific burdens in the Far East
       Especially China, Korea
       Low commitment of enforcing and respecting IP laws
       Lack of technical training and experience
       Lack of enforcement tools
       High litigation costs
       Low amount of damages and fines
       Outlook: Awareness is rising!
VIII. Contractual Clauses: The
      Solution?

   Advantage of contractual protection of Know How
       Can be obtained immediately
       Low costs
       Trade secrets have broader scope, all useful information covered, no
        level of invention required
       Low litigation costs
VIII. Contractual Clauses: The
      Solution?

   Disadvantage of contractual protection of Know How
       Valid only between parties of the contract
       No protection against third parties„ independent discovery or legal
        aquisition of information
       Often not enforced for fear of harming business relations
IX.   What to do to get the most out
      of your IPR

 Awareness of protectability
 Awareness of infringements
 Analysis: which IPR suits your company best?
 Definitions of key markets
 Consider layers of protection
 Choose your battles
General Aspects of IP in the Shipbuilding
Industry




                          Dr. Wiebke Baars
                           Taylor Wessing
                          Am Sandtorkai 41
                           20457 Hamburg
                          Tel.: 040/36 80 3 0
                        Fax : 040/36 80 3 280
                 Email: w.baars@taylorwessing.com
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