IT STARTS WITH AN

IDEA
Foundation Department
Kevin Wandira
IUEA
 IP FOR BUSINESS
Intellectual property is more than just ideas there are creations of the mind:
• Making a Mark (Trademarks)
• Looking Good (Designs)
• Inventing the Future (Patents)
• Copyrights
• Trade secrets

• Company values, invention values are in the intellectual property.

• Coca-Cola – 100b – 40b = IP (Brand, Trademark, Goodwill).
• Tangible assets like buildings, factories, – 40b
• Intangible assets like Brand, Trademark, Goodwill, trade secret (formula) –
60b
 INTELLECTUAL PROPERTY

• You are to figure out what your Intellectual Property is:

• 1. Name: Nike, Apple, Cocacola, LV
• 2. Formula like cocacola,
• 3. Employment ideas
• 4. Processes like McDonalds
• 5. Designs
• 6. Softwares
• Avoid using peoples IP
• 1. Quotes of movies
• 2. Download music
• 3. Books
• There is market value in IP.
• 1. Time spent in business
• 2. Customer relationship (Goodwill)
• 3. Distributor database

• The threshold of originality.

• All our work needs a thorough threshold of complexity or
effort, put into it to pass as original design.
 HOW TO BUILD TRUST

• BUILD TRUST ...................

• STOP PLAYING A CHARACTER
• BE YOURSELF - AUTHENTIC
• BE CONSISTENT
• OWN YOUR FAULTS, FEARS, MISTAKES, DOUBTS, SCREWUPS,
SHIT
• PEOPLE ARE EITHER DOING GODS WORK OR THE DEVILS
WORK.
• GOD WORKS THROUGH PEOPLE BUT SO DOES DEVIL
• YOU CANT BE NEUTRAL AND SENTIMENTAL ABOUT PEOPLE
AROUND YOU. Those wrong people chased away the right people.
• LOVING WHAT YOU DO IS RELATIVE TO SUCCESS OF AN
ENTREPRENEUR
• THE VALUE TO THE CUSTOMER CAN BE THE LOVE OF WHAT YOU
DO
 1. COPYRIGHT

• COPY RIGHT - BOOKS, MOVIES, MUSIC, VIDEOS,

ARTICLES, PICTURES, SCULPTURES, SOFTWARE,
NFTs.
• The exclusive right to copy an original work.
• Functional designs do not fall within this category. It is for
more of literary and creative work.
• You have to figure out what the permissions of use are. It
lasts for the life of the author and whomever the author
gives permission.
• Copyright or rights reserved.
 TRADEMARK

• TRADEMARK - LABELS, NAME, LOGOS, PHRASES,

BRANDS like Cocacola, Apple. If I pour the contents of
Cocacola, I am protected. I will not get Pepsi or any other
liquid.
• It is renewed every period by law.
• A trademark typically protects brand names and logos
used on goods and services. A copyright protects an
original artistic or literary work.
 PATENT

• PATENT - INVENTIONS, TECHNOLOGIES: The right to

exclude other people from making what you have created.
• There can be a patent for everything. You have to disclose to
the Government on what you used to make your product.
• Patents expire after a period as given by law.
• 1. Utility patent which is product
• 2. Design patent which identification of the business.
 TRADE SECRETS

• TRADE SECRETS - INTERNAL STRENGHTS OF YOUR

COMPANY THAT YOU DO NOT REVEAL.
• A trade secret is used instead of a patent for formulas. It lasts
longer than a patent.
• Coca-Cola divided up their secret.
• Customer lists, supplier relationships, software formation etc.
• They are free to protect but hard to protect. The value increases
the longer it is kept a secret.
“Technology-Push Linear Model of Innovation”
Basic Research

Applied Research

Invention

Development

Production

Marketing
 THE INNOVATION PROCESS
• An innovation starts as an idea/concept that is evaluated,
refined and developed before it is applied or acted upon.
• Innovations may be inspired by reality (known problem).
The innovation (new or improved product development)
process, which leads to useful technology, requires:
• Research
• Development (up-scaling, testing)
• Production
• Marketing
• Sale
• Use/Consume
• Experience with a product results in feedback and leads to
incrementally or radically improved innovations.
NEW/IMPROVED PRODUCT
DEVELOPMENT
Stages in a New/Improved Product Development
process:
• Ideas Generation
• Ideas Screening
• Concept Development and Testing
• Business Analysis
• Beta Testing and Market Testing
• Technical Implementation
• Commercialization
SPOTLIGHT IS ON KNOWLEDGE
IN TODAY’S ECONOMY
• Knowledge, Weightless, Information, Digital or Service
Economy
• Factors of production: Land, Labor, Capital, Intangibles
(Knowledge)
• Knowledge as useful Information (or Service)
• Information as a “Public Good”
• Information as Property
 MARKET-ORIENTED
ECONOMY
• Playing Field: Unfair competition; free riding
• National Legal Systems: Diversity (bilateral/regional/
international treaties or agreements)
• Adding Value : Meeting or exceeding market
needs or expectations
• Market research: Consumers’ needs, competing
products or substitutes, gaps
• Technological innovation as an element of
marketing
 CHALLENGES IN TODAY’S ECONOMY

• Government regulation, market participants and consumers;

globalization, deregulation, quotas, tariffs, subsidies, market
access or non-tariff barriers
• Supply exceeds demand; fickle demand, risk, lean retailing
• Trust and relationships: Consistency vs Innovation
• Changing needs: need for creativity and/or innovation
• Mass production, custom made, personalization,
co-creation/designing
• Supply, demand, production, value chain or network
• Innovation/creativity: Customer, supplier, consultant, partner,
competitor, standards, product liability, risk sharing,
ownership
COMPETITION AND COOPERATION IN
TODAY’S ECONOMY

• Property: Right to Exclude/use/enjoy

• Share/leverage
• Physical vs. Intellectual Property
• One to one vs. one to many
• Physical manifestation/link to carrier/medium or
fixation
• Nature of competing/substitute products:
Functional, equivalent, class, set, related goods
 CHALLENGES TO INTELLECT
PROPERTY
• Expand, adapt, fine tune, harmonize
• New categories (Sui generis systems)
• National, regional or global
• National treatment vs. reciprocity
• Digital environment and E-commerce
• Legal jurisdiction, applicable laws
• Fit for purpose: Clear, fast, cheap and effective
• Simple and cogent
THE CHALLENGE OF ADDING VALUE IN
TODAY’S ECONOMY

• Raw materials/Inputs: Processing (Value addition) =

Value added output/component; product; sale; Profit
• Value addition: Better: Functional/technological or
aesthetic/non-technological; Rational/Emotional
(More for Less)
• Price; access/availability; consistency
• Individual, Enterprise (legal person), Chains,
Networks; consortia; Open Innovation (Industry-
Government-Academia)
• Ownership vs. access to knowledge
IDEAS, CREATIVITY AND INNOVATION

• Creativity
The ability to make or otherwise bring into existence
something new, whether a new solution to a problem, a
new method or device, or a new artistic object or form.
• Innovation
1 : The introduction of something new
2 : A new idea, method, or device

• Creativity = Idea + Action

• Innovation = Creativity + Productivity
• Innovation = Idea + Action + Productivity
 IDEA TO PRODUCT Business
Strategy
Internal,
External, or Joint Business
model Manufacturing or
Internal, Idea Business Process
External,
or Joint
Functional or
@Entrepreneur@ Invention
Technological

Innovation Form or
Internal, (Tech/Non-tech) Appearance
External or Joint
Marketing (Branding)
Technology (Internal, External or Joint)

Financial, legal or
organizational
Product (Internal, External or Joint)
IDEA TO MARKET
Idea
Technology

Creative Expression
Technology

Fixation/Replication/Distribution

Technology

Product
Technology

Marketing
IDEA TO PROFIT

Idea

Business Model Intellectual Property

Product

Relationship of Trust

Marketing

Value Extraction (Sale)

 UNDERSTANDING THE PROCESS OF
INNOVATION

The Process/Steps of Innovation

Pre-IPO
$
• Viable
Expansion • Market acceptance
• Legal Entity • Heading to IPO or M&A
• High Growth
• Bright Idea • Founders = Mgt Team
• Head Count
• Experimental • Minimal Revenue
Start-Up • Multiple Cycles
• Research • Slow Growth
• Support Functions
• Business Plan
• Administration
• Proof of Concept Seed • Marketing
• Revenue Growth
Idea / Concept

Time
Time
 The Needs of Each Stage
•Recruitment
•
•Corporate and Business
Development
Secretarial •A & P
•Financial
$ •Training
•Market Access
•PR and Marketing
•Networking
•Business Expansion
•Business Plan Development
•Prototype/ POC •International support and
•Project Management Mkt. Access
•Business Premises Start-Up •Diversification strategies
•Project Management and support
•Management Training •Recruitment
Seed •Training and Incentives
Idea / Concept
Time
Time

IP Management Needed in all stages

 BASIC MESSAGE 1
IP adds value at every stage of the value chain from
creative/innovative idea to putting a new, better, and cheaper,
product/service on the market:

Patents / Trademarks/ GIs

Utility Models/Trade secrets Ind. Designs/Patents/Copyright
Industrial All IP Rights
Patents / Designs/
Utility models Trademarks/GIs
Invention
Commercialization
Marketing
Financing Product Design Exporting

Literary / artistic Licensing

creation

Copyright/Related Rights
All IP Rights
 BASIC MESSAGE 2

• IP Strategy should be an integral part of the overall

business strategy of an Enterprise
• The IP strategy of an Enterprise is influenced by its
creative/innovative capacity, financial resources, field of
technology, competitive environment, etc.
• BUT: Ignoring the IP system altogether is in itself an IP
strategy, which may eventually prove very costly or even fatal
BASIC MESSAGE 3 (MORE FOR LESS)

•Own Use
•Licensing
•Franchising
•Merchandising (Mickey
Mouse, Hello Kitty)
 Patents

Example: Ring-pull cans

The inventor licensed the system to Coca-Cola at 1/10 of a
penny per can. During the period of validity of the patent the
inventor obtained 148,000 UK pounds a day on royalties.
 What is a trade secret?

• Three essential requirements:

– The information must be secret *
– It must have commercial value because it’s
secret
– holder must have taken reasonable steps to
keep it secret (e.g. confidentiality agreements)

* “not generally known among or readily accessible to persons

within the circles that normally deal with this kind of information”
 IP RIGHTS: COPYRIGHT
• Rights given to creators for their literary and artistic
works
• Protected works: books; newspapers; computer
programs; databases; films, musical compositions;
choreography; paintings; drawings; photographs;
sculpture; architecture; advertisements; maps and
technical drawings; no registration
• Generally protected for 50 years after the death of
the author
• Extent of overlap between copyright and design
laws
 A Bundle of Exclusive Rights

Economic Rights Moral rights

- Reproduce or make
– Right of paternity: of
copies;
– Distribute to public; acknowledgement;
– Sell, rent*, lease*, lend, – Right of integrity: to object
license; against mutilation and/or
– Display or perform to distortion of work;
public;
– Adapt and Translate ** Moral rights cannot be
(“Derivative works”); transferred; but may be
waived.
Inherit, Gift, Sell or
License
* Generally applies only to certain types of works: i.e. Cinematographic works; musical
works, or computer programs.
 Copyright Works

Films
Literary Dramatic

Sound Recording

Artistic
Music
 What are Related Rights?
There are three kinds of “related rights”:
Rights Rights of Rights of
of performers producers of broadcasting
• Actors sound recordings organizations in
(also called their radio and
• Musicians
phonograms) in television programs
• Singers their recordings and in Internet
• Dancers (cassette broadcasts such as
… or generally recordings, ‘podcasts’.
people who compact discs,
perform in their etc.);
performances;
 MARKETING PRINCIPLES

• Identify opportunities and threats

• Identify customer needs and expectations
• Respond to a competitive environment
• Carefully plan to make a New or Improved Product
• Use the 7 P’s….
 Product service
 Price
 Promotion
 Place (distribution)
 Process
 Physical Evidence
 BUILDING TRUST AND
RELATIONSHIPS
• A B R A N D I S A C O N S I S T E N T, H O L I S T I C
P R O M I S E / P L E D G E M A D E B Y A C O M PA N Y;
T H E FA C E A C O M PA N Y P R E S E N T S
•A B R A N D S E RV E S A S A N U N M I S TA K A B L E
S Y M B O L F O R P R O D U C T S A N D S E RV I C E S
•“ B U S I N E S S C A R D ” A C O M PA N Y
PROFFERS ON THE COMPETITIVE SCENE,
TO S E T I T S E L F A PA RT F R O M T H E R E S T .
•E V E RY O N E H A S A B R A N D . I T S C A L L E D
PERSONAL BRAND.
Source: Association of Professional Design Firms, APDF, [Link]
 Trademarks
• Trademarks are valuable business assets
• Inter-brand 2022 Annual Survey of the world’s most valuable
global brands: TESLA, APPLE, TIKTOK, AMAZON

Coca-Cola: 70.45 billion US$ Microsoft : 65.17 billion US$ IBM: 51.71 US$.
“BRAND”
COMPANIES
NIK E
AD IDA S
RE E B O K
L E V I-ST R AUS
…OWN NO FACTORIES
• UBER does not own cars but it’s the biggest taxi company in the world.
• AIR B n B does not own Hotels and Houses but it’s the largest
hospitality company in the world
• YOUTUBE does not own Video content
• SPOTIFY does not own its own music content.
• Jumia Foods does not own the food.
• JumiaHouse does not own the houses
• SAFEBODA does not own motorcycles
• Their technology is their intellectual property.
• Community database is key in a information age to compile customers
and offer value.
 Example no. 1
• Decades ago, Coca-Cola decided to keep
its soft drink formula a secret
• The formula is only know to a few
people within the company

• Kept in the vault of a bank in Atlanta

• Those who know the secret formula
have signed non-disclosure agreements
• It is rumored that they are not allowed
to travel together
• If it had patented its formula, the whole
world would be making Coca-Cola
 Example no. 2

• Patent for stud and tube

coupling system (the way
bricks hold together)
• But: Today the patents have
long expired and the company
tries hard to keep out
competitors by using designs,
trademarks and copyright
 Industrial Designs
Business (Idea) point of view:
– Make your product appealing to consumers
– Customize products in order to target different
customers (e.g. Swatch)
– Develop the brand (e.g. Apple ’s « Think
Different » strategy; i Pod)
ENTREPRENEURSHIP 1
Entrepreneurship drives innovation, competitiveness, job
creation and economic growth.
It allows new/innovative ideas to turn into successful
ventures in high-tech sectors and/or can unlock the
personal potential of disadvantaged people to create jobs
for themselves and find a better place in society.
ENTREPRENEURSHIP 2
Entrepreneurship, in small business or large, focuses on
"what may be" or "what can be".
One is practicing entrepreneurship by looking for what
is needed, what is missing, what is changing, and what
consumers will buy during the coming years.
ENTREPRENEURSHIP 3
Entrepreneurs have:
• A passion for what they do
• The creativity and ability to innovate
• A sense of independence and self- reliance
• (Usually) a high level of self confidence
• A willingness and capability (though not necessarily
capacity or preference) for taking risks.
ENTREPRENEURSHIP ISSUES

Entrepreneurs do not (usually) have:

• A tolerance for organizational bureaucracies
• A penchant for following rules
• A structured approach to developing and implementing ideas
• The foresight to plan a course of action once the idea is
implemented and established
ENTREPRENEURIAL SUCCESS

1. People (Entrepreneur /Entrepreneurial

Team)
2. Opportunity (Marriage of Market and
Product/Service)
3. Access to Resources (Land. Labor,
Capital, Knowledge
And the fit amongst these three elements
(Business Model)
INTRODUCTION TO IP MANAGEMENT
1

• Legal • Accounting
• Technical • Tax
• Business • Insurance
• Export • Security
• Financial • Automation
• Relationships • Personnel
INTRODUCTION TO IP MANAGEMENT 2

• Trademarks (Brands)
• Geographical Indications
• Industrial Designs
• Patents and Utility Models
• Copyright and Related Rights
• Trade Secrets
• New Varieties of Plants
• Unfair Competition
• Intellectual property: Especially In international trade
• Advantages of protecting intellectual property

• Intellectual property (IP) rights protect genuine business

assets that can be vital to your products or services, or the
success and profitability of your business.
• There are many advantages to securing your intellectual
property rights.
• Enhance the market value of your business
• IP can generate income for your business through
licensing, sale or commercialization of protected products
or services. This can, in turn, improve your market share
or raise your profits. In case of sale, merger or acquisition,
having registered and protected Intellectual property
assets can raise the value of your business.
• Turn ideas into profit-making assets
• Ideas on their own have little value. However, IP can help
you to turn ideas into commercially successful products and
services. Licensing your patents or copyright, for example,
can lead to a steady stream of royalties and additional
income that can boost your business' bottom line.
• Market your business' products and services
• IP is essential in creating an image for your business. Think
trade marks, logos or the design of your products. IP can
help you differentiate your products and services in the
market and promote them to your customers.
• Access or raise finance for your business
• You can monetize your IP assets through sale, licensing or using
them as collateral for debt financing. As well as this, you can use
your IP as an advantage when applying for public or
government funding, eg grants, subsidies or loans.
• Enhance export opportunities for your business
• IP can increase your competitiveness in export markets. You can
use brands and designs to market goods and services abroad,
seek franchising agreements with overseas companies, or export
your patented products.
 DISADVANTAGES OF PROTECTING INTELLECTUAL
PROPERTY

• Disadvantages of protecting intellectual property

• 1. It is costly to put in a legal framework
• 2. It can call attention on your product hence, revealing the
secret.
• 3. Legal jostling is expensive.