Creating Value from Innovation using Intellectual Property
1. Primer on
Creating
Value from
Innovation
Using
Intellectual
Property
Darrell G. Mottley
dmottley@bannerwitcoff.com
50 Most Important African Americans in Technology January 15, 2011
2. ABOUT THE PRESENTER
• Darrell G. Mottley is principal shareholder of the Law Firm of
Banner & Witcoff LTD and practices in the firm’s Washington
D.C. office. He is the President-Elect of the District of
Columbia Bar for the 2010-2011 term. He is an intellectual
property lawyer focusing on patent and trademark cases,
including design law, opinions, licensing and litigation.
Darrell is a contributing author of the Annual Review of
Intellectual Property Law Developments: 2006-2008; 2008-
2009 and the Public Contract Law Journal, both publications
of the American Bar Association. He is a Fellow of the
dmottley@bannerwitcoff.com American Bar Foundation.
202-824-3000
Social Network Contacts:
• Darrell earned his law degree, with honors, from The George
Twitter: @darrellmottley Washington University in 2000; his Masters of Business
Facebook: darrell mottley Administration (MBA) in 1994, and his B.S. Engineering in
Linkedin/in/darrellmottley 1987 from Virginia Tech, where he was Phi Kappa Phi. He is
admitted to practice before the U.S. Patent and Trademark
Office and courts in the District of Columbia, Virginia, New
Jersey, and the Federal and Fourth Circuits.
2 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
3. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
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4. Intellectual Property Overview
Patents Trade Secrets
Trademarks
Copyrights
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7. 7 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
8. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
8 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
9. INNOVATION VALUE PROCESS
Strategy
Business
Legal
Technology Value Creation
Intellectual
Property
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10. 10 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
11. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
11 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
16. Avoid Loss of Patent Rights
• One public disclosure can terminate patent
rights outside of U.S. – Beware
SOME COUNTRIES WHERE ABSOLUTE NOVELTY IS A CONCERN
African Union Barbados Cuba France Luxembourg South Africa
Albania Bolivia Czech Republic Germany Malaysia Spain
Algeria Brazil Denmark Guatemala Malta Sri Lanka
Argentina Bulgaria Dominican Republic Guernsey Mexico Sweden
ARIPO Canada Ecuador Guinea Monaco Syria
Aruba Chile El Salvador Honduras Mongolia Taiwan
Australia Colombia Estonia Hungary Morocco Tunisia
Austria Congo (Zaire) European Patent Org. Iceland Tangier Zone Turkey
Bahamas Costa Rica Finland India Netherlands United Kingdom
Iran Netherlands Antilles Uruguay
Iraq Nigeria Venezuela
Ireland Norway Vietnam
Israel Peru Yemen, Republic of
Italy Poland Yugoslavia
Japan Portugal Zambia
Kenya Romania Zimbabwe
South Korea Russian Federation
Lebanon Singapore
Lesotho Slovak Republic
16 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
17. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
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18. Patent Value Strategy
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19. Economics of IP Assets
“ U.S. intellectual property is worth $5 Trillion to
$5.5 Trillion…that’s more than the gross
”
domestic product of any other country.
- Dave Kappos Blog Post in Business Week.com, March 28, 2007
(citing economists Kevin Hassertt and Robert Shapiro)
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20. Innovation Patent Value – Ex. Drivers
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21. 21 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
22. INNOVATION IP VALUE – QUESTIONS
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23. 23 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
24. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
24 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
25. Intellectual Property
Extracting Value Strategies
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26. LITIGATION
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27. LITIGATION
Estimated Cost
Estimated Cost
of Patent
of Patent
Infringement
Infringement
Litigation
Litigation
$1-$25M at Risk
$1-$25M at Risk
Median $2.5M
Median $2.5M
>$25M at Risk
>$25M at Risk
Median $5.5M
Median $5.5M
27 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
28. LITIGATION
• Median Patent Damage Awards – $2.4M to $10.4M
(PWHC)
Top 3 Highest Patent
Damage Awards Awards
Ending of 2009
Centocor Ortho Biotech v. Abbott Labs $1.85 Billion
Lucent v. Microsoft $1.54 Billion
Eolas Technologies v. Microsoft $521 Million
Copyright Damages Highest
Oracle v. SAP $1.3 Billion
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29. LICENSING
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30. IP Aids Determination of License
Business Objectives
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31. PATENT POOLS
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32. Patent Pools – Review Factors
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33. PATENT POOLS
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34. IP BASED FINANCING
• Intellectual Property – Business Asset
• Can be used as Collateral
• IP Appraisal for Valuation
• Economic environment problematic
COPYRIGHT PATENTS TRADEMARK
EXAMPLE TEXT
EXAMPLE TEXT
REGISTRATION
Go ahead and replace
REGS.
Go ahead and replace
it with your own text.
it with your own text.
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35. IP AUCTIONS
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36. 36 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
37. ROADMAP
Creating Value from Innovation
• OVERVIEW OF INTELLECTUAL PROPERTY
The Rights
• BUSINESS OF IP
Teamwork with Legal and Business
• INTELLECTUAL PROPERTY STRATEGY
Goals, Vision, Objectives
• PATENT STRATEGY
Value Drivers
INTELLE
CREATIN CTUAL P
• EXTRACTING VALUE FROM IP G VALU
E
ROPERT
FROM I Y
NNOVA
Example Vehicles TION
• RISKS AHEAD
Future Trends
37 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
38. CRITICAL ISSUES
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40. 40 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
41. Disclaimer – For Illustrative Purposes Only
This presentation has been prepared for discussion purposes
only in connection with this educational presentation.
Illustrative scenarios were prepared to encourage group
participation and discussion. None of the material contained
in this presentation represents the views or opinions of
Banner Witcoff, LTD or sponsoring organization.
This presentation is not intended to be used in litigation. As
stated above, the context of this presentation is educational
and not specific to any particular litigation. Because each
intellectual property litigation is specific to its own fact
situation; it would be unwise and even misleading to take a
passage of static words or slides from this presentation and
assume that it can be applied to a particular circumstance
without applying reasoned judgment to the specific facts and
circumstances of the situation.
41 Darrell G. Mottley | 50 Most Important African Americans in Technology| January 15, 2011
42. Primer on Creating
Value from
Innovation
Darrell G. Mottley
www.bannerwitcoff.com
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50 Most Important African Americans in Technology
January 15, 2011