An Introduction to New

Product Development (NPD)

New products Development:

Managing Intellectual
Property

New Product Development- Open

Innovation and Technology Transfer
Learning Objectives
1. Examine the different forms of protection available for a
firms intellectual property
2. Identify the limitations of the patent system
3. Explain why other firms patents can be a valuable
resource
4. Identify the link between brand name and trademark
5. Identify when and where the areas of copyright and
registered design may be useful
6. Explain how the patent system is supposed to balance
the interests of the individual and society
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Intellectual Property
Overview of the main types of intellectual property
Type of intellectual
property

Key features of this type of protection

Patents

Offers a 20 year monopoly

Copyright

Provides exclusive rights to creative

individuals for the protection of their literary or
artistic productions

Registered Designs

As protected by registration, is for the outward

appearance of an article and provides
exclusive rights for up to 15 years

Registered Trademarks Is a distinctive name, mark or symbol that is

identified with a companys products

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Trade Secrets
Business activities and processes that are not
patented, copyrighted or trademarked
Special ways of working, price costing or
business strategies
E.g. Recipe for Coca-Cola

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Introduction to Patents
A contract between an individual or organization and the state
The granting of a temporary monopoly by the state to
encourage creativity and innovation within an economy
The state has no obligation to prevent others benefiting from it
Responsibility of the individual or organization that is granted
the patent
Monopoly for 20 years
Annual fees required
Patent Agents
Article
Pfizer sues rivals to protect Viagra patent.docx

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Introduction to Patents
Novelty
An invention shall be taken to be new if it does not form part of the
state of the art. - A state of the art is defined as all matter including
publications, written or oral or even anticipation that render a patent
invalid

Inventive Step
an invention shall be taken to involve an inventive step if it is not
obvious to a person skilled in the art

Industrial Application
Capable of industrial application if it can be a machine, product or
process. E.g. Penicillin is a discover therefore not patentable. But
process of isolating and storing a penicillin is clearly industrial
applications
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Reasons Why Firms Patent

Prevent copying
Prevent Blocking
Prevent suits
Use in negotiations
Enhance Reputation
Licensing Revenue
Measure Performance

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Patents Deter Innovation

Denying follow-on innovators access to
necessary technologies
Increasing entry barriers
The expense required to avoid patent
infringement
The issuance of questionable patents

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Trademarks Act (1994, section 1(1)

Trademarks Act (1994, section 1(1))
being any sign capable of being represented graphically
which is capable of distinguishing goods or services of
one undertaking from those of other understanding
Trade Marks Should:
Satisfy the requirements of section 1(1)
Be distinctive
Not be deceptive
Not Cause confusion with previous trademarks

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3 main categories of Copyright

Original literary, dramatic, musical and
artistic works
Sound recordings, films, broadcasts and
cable programmers
Typographical arrangement or layout of a
published edition

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Remedy Against Infringement

Damages Civil case to request for damages,
which can be expected to be calculated on the
basis of compensation for actual loss suffered
Injunction Prohibits a person making infringing
copies of a work of copy right
Account Enables access to the profits made
from infringement of copyright.

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Tutorial
1. Explain the importance of tacit knowledge
to the technology transfer process
2. Explain how a firms internal activities
affect its ability to acquire external
technology

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