Patents and Technology Transfer
Cornelis Schüller - Group Head of Patents Patents and Technology Transfer Genève, 6th November 2007
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Patents and Technology Transfer
Patents and Technology Transfer
Introduction The
Patenting Process
Transfer in Theory Transfer in Practice
Technology Technology Conclusion
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Patents and Technology Transfer
Introduction
Universities/public
research
Innogenetics
Nestlé
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Patents and Technology Transfer
The
Patenting Process
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Patents and Technology Transfer
The Patenting Process
Exclusive
rights vs. Full disclosure
Encourage
scientific/technological development
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Patents and Technology Transfer
The Patenting Process
Patents are primarily used for,
Protection of R&D results Preventing competitors from entering a certain field Avoid being blocked out of a field by third parties Cross-license to get access to third party products and technologies Marketing tool » Proof of innovativeness » Selected licensing » PR.
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Patents and Technology Transfer
The
Patenting Process Secrets
Trade
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Patents and Technology Transfer
Trade Secrets (1)
employees
move to other companies, including competitors more often there is no such thing as ‘life-time’ employment anymore, is similar if not identical in terms of textbooks, handbooks,scientific journals etc., to information is universal via the internet,
education
access
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Patents and Technology Transfer
Trade Secrets (2)
access to information is universal via the internet, retrieving information from inside or outside of a company is easy,
via
internet or on discs etc. huge amounts of information can be transported unnoticed, industrial espionage is growing, think of the formula 1 wherein McClaren was accused of using Ferrari info.
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Patents and Technology Transfer
The
Patenting Process Secrets
Trade
The
Current Situation
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Patents and Technology Transfer
Current situation
Patents
protect economic interests
Patents
„Patent
serve to attract investors
or perish‟
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Patents and Technology Transfer
Technology Transfer
…..the
process of developing practical applications for the results of scientific research. process of transferring process and production technologies from one factory to another.
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…..the
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Patents and Technology Transfer
Technology Transfer
Transfer
of Patent Rights and Trademarks of Technology
Transfer
Licensing
as the Core of a Larger Contractual Package
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Patents and Technology Transfer
Key players
Universities/public
research
Innogenetics
Nestlé
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Patents and Technology Transfer
Universities/public research
Bayh-Dole
Act(1980) gave universities control of their publicly funded patents, Prior to enactment the US goverment had 30,000 patents 5% of which were licensed Petitions for „march-in‟ rights have mostly been denied.
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Universities/public research
Association
of University technology managers 6000 members (w.w.) US univ. 3000 US patents/year. Research budget 40 billion USD, Licensing revenues 1.4 billion USD Top 5 institutes account for 91% of the revenues (Univ. Calif., Stanford, Harvard…)
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University (Groningen)
The TLG‟s profile
Who are we and what do we do? The Transfer & Liaison Groep is a faculty department of the Office of the University of Groningen (RuG). We function as the main link between RUG academics on the one hand and authorities (local, regional and national) and the business community on the other. You can find us at the university’s Zernike Science Park.
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Innogenetics 2006
-
-
Product sales increased by 13.2% to reach €47.9 million Total revenues increased by 10.6% to reach €53.7 million Total income increased by 6% to €58.0 million Operating loss from continuing operations €25.7 million versus €20.0 million in 2005 Cash position €22.3 million
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Patents and Technology Transfer
Innogenetics products
(web site : Innogenetics (2007)
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D iagn ostics
D ia g n o s is
S p ecialty D iagn ostics
P re d is p o s itio n p ro filin g
D ia g n o s is T re a tm e n t T re a tm e n t s e le c tio n T re a tm e n t O u tc o m e T re a tm e n t m o n ito rin g
> € 2 3 b n – G ro w th 6 % -7 % *
> € 1 b n – G ro w th 1 5 % *
F ig u re 1
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Patents and Technology Transfer
S p ecialty D iagn ostics – P artn ersh ip s
D is trib u tio n H C V g e n o typ in g B ayer lice n se fe e , R & D fu n d in g , m ile sto n e p a ym e n t, tra n sfe r p rice lice n se fe e , R & D fu n d in g , m ile sto n e p a ym e n ts, ro ya ltie s
C o -d e v e lo p m e n t ra p id m icro b io lo g y te stin g O u t-lic e n s in g H IV -1 g ro u p O
R oche
A b b o tt lice n se fe e , ro ya ltie s B ayer R oche b io M é rie u x /O .T . D a d e B e h rin g O rth o -C lin ic a l D ia g n o s tic s R oche lice n se fe e , ro ya ltie s
H C V g e n o typ in g
F ig u re 2
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Nestlé in Figures 2006
• • • • • • •
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Worldwide Sales: EBIT: Net Profit: Factories: Employees: Organic Growth: R&D Expenditure (F&B):
CHF 98,458 billion CHF 13,302 billion CHF 9,197 billion 481 in 87 countries Around 265,000 6.2 % CHF 1.7 billion
(1.8% of sales)
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Sales by region
Percentage of total F&B sales in 2006
Europe 38.3% Americas 42.4% Africa, Asia, Oceania 19.3%
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( Excluding globally managed businesses ( Pharmaceutical, Nestlé Waters, Nestlé Nutrition)
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PatentsPatents and Technology Transfer and Technology Transfer
Sales by Product Group in 2006
Alcon Laboratories, Galderma •26.3% • Beverages •25.8% • Milk Products • Nutrition Nescafé, Nesquik, Milo, Nestea, Perrier, San Pellegino
• Chocolate Kit Kat, Smarties, • Confectionery •11.6% Crunch, After • Biscuits Eight •17.9%
Cooking Aids • Ice Cream •11.6% Prepared Dishes • PetCare
Stouffer's, Buitoni, Maggi• Pro Plan, Purina ONE, Friskies, Dog Chow
Nestlé, NAN, NIDO, Dreyer's, Mövenpick
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Patents and Technology Transfer
2006 World's largest Food and Beverage Companies
Nestlé's top competitors in 2006
80 70 60
Food Sales (in bn USD)
50 40 30 20 10 0
Nestlé PepsiCo Kraft Foods Unilever Coca-Cola Mars Danone Cadbury General Schweppes Mills ConAgra Kellogg's Sara Lee
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Some perspectives
Sales growth 2006 (CHF b) Nestlé Cadbury Schweppes Danone Coca Cola General Mills Heinz Numico Unilever Campbell Kraft Hershey 26 Finance & Control
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Patents and Technology Transfer
Our Brands
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25 brands with sales over CHF 1 billion
Beverages Chocolate, confectionery and biscuits
Prepared dishes and cooking aids
Water
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25 brands with sales over CHF 1 billion
Milk products PetCare
Nutrition
Ice cream
Pharma
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Local tastes and needs
Nestlé
tailors products to local tastes and needs:
– around 200 Nescafé blends to answer local consumers expectations
Japan
Poland
Europe
Malaysia
Africa, Greece Russia, Israel
Switzerland
Japan
Russia
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The Group Intellectual Property Department Manages IP Rights Worldwide
Patents and Technology Transfer
Organisational Intellectual Property Department
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Strategic and local brands are protected & managed
Brands Protections 22'132 Managed by 17 Regional IP Advisers (RIPA's) for local Nestlé Operating Companies
Local
7'653
84'253
Strategic
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365
Status 24.10.07 / E.Dum.
Managed by Center IP Department in cooperation with the Strategic Business Units ('SBU's) and the RIPA's
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Nestlé has a substantial patent portfolio
The Nestlé patent portfolio contains as at 24.09.2007: 10'418 granted patents 6'173 pending cases which may result in the grant of a patent
They key patenting territories for Nestlé are: USA, Europe, Canada, Japan, Australia, and more recently China and India.
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Most Valuable Global Brands 2006
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Technology Transfer Nestlé
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Nestlé's IPRs are centrally owned & licensed to local Nestlé Companies...
•
Société des Produits Nestlé S.A. is the registered trademark and design owner and Nestec SA is the registered patent owner, in both cases acting as nominee for Nestlé S.A., who is the beneficial owner
- Central ownership applies to trademarks linked to strategic as well as to local brands
•
These rights are licensed, together with know-how, to the Nestlé Operating Companies who pay royalties for their use
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Patents and Technology Transfer
Nestlé SA (Holding Co.)
Funding Royalties
Nestec SA (Knowledge Co.)
Knowledge and Licences
Operating Company
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Patents and Technology Transfer
Joint Venture
Nestlé is party to a number of important JVs: BPW (Beverage Partners Worldwide) with the Coca Cola Company CPW (Cereal Partners Worldwide) with General Mills Innéov with l’Oréal Galderma, Lactalis etc.
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„Innovating the Future‟
This strategy is enhanced by the following continuous improvement into consumer insights and their translation to innovative products built on superior science and technology, harnessing the vast expertise in our research and development work, working closely with leading universities and outside partners on cutting-edge science and technology, recruitment of open-minded and passionate innovators who can bridge science, technology and business needs, bigger pioneering innovations that hit the “innovation sweet-spot” where best in class science and technology combine to deliver precisely the needed N,H and W products needed.
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Patents and Technology Transfer
Technology transfer ….
-
includes patents, trademarks, brands etc. extensive defence is needed against counterfeiting and copying.
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Counterfeits are a serious problem and a crime in most countries!
Example Trademark NESCAFE infringement in Russia
+ Unfair competition
+ Fraudulent act with penal sanction
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NESCAFE PLATINUM in Russia
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Universities
on technology licensing groups which are not always experienced enough, license (co-own) and are therefore free to exploit outside of field of sponsoring company. feel the pressing need to exploit, as patents cost money and are perishable, understand that technology is only the starting point, may get additional sponsoring for further research, further co-development and licensing of IP relating to same project.
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Patents and Technology Transfer
Biotech companies/INNX
further develop certain fields like Universities, are tied to the Industrial results of their licensee, still rely heavily on public subsidies, understand that the basic, scientific steps are not the most rewarding as there is a long way to go to a final product and that is where a big part of the risks is located.
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Food Industry/Nestlé
primarily has direct ownership of results by direct investment, either by full-ownership or in the form of JV‟s, intergroup licensing involves multiple subjects know-how, training, patents, trademarks, is more and more accepting ownership by developers outside their own field of use, especially with engineering firms, Starts co-development in „Open Innovation‟ with peers. is more open for licensing especially since developments are going fast and so IP becomes outdated faster.
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