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Julia Shevchenko

on 30 September 2013

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What is Intellectual Property?
Why is Intellectual Property important?
What is Intellectual Property?
Why is Intellectual Property important?
The Paris Convention for the Protection of Industrial Property
Forms of IP: Industrial Property, Copyright
Intellectual Property crimes
IP protection based on Business Practices and Strategies
Intellectual Property
refers to unique, value-adding creations of the human mind
The list of the subject matter protected by intellectual property rights:
Literary, artistic and scientific works;
Performances of performing artists, phonograms, and broadcasts;
Inventions in all fields of human endeavor;
Scientific discoveries;
Industrial designs;
Trademarks, service marks, and commercial names and designations;
Protection against unfair competition;
And all other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields.
Intellectual property rights -
The rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.
The Berne Convention for the Protection of Literary and Artistic Works
Reasons to protect IP:
IP establishes a right and identifies ownership of the intellectual creativity
IP enhances the value and profitability of a business
IP assets accrue to their owners through its business development and strategies
IP instills trust, confidence and loyalty to the consumers it markets
Forms of Intellectual Property
Industrial Property
Industrial design
A geographical indication
is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem
is the ornamental or aesthetic aspect of an article. The design may consist of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features, such as patterns, lines or color.
Industrial design
is a distinctive sign which identifies certain goods or services as those produced or provided by a specific person or enterprise
is a sign used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that place of origin.
Geographical indication
Intellectual Property Crimes
IP Protection Based On Business Practices and Strategies
Scarce Assets
Network Externalities
High Costs When Switching Among Products
Customer Status Quo
Learning Curve
When a business involves scarce assets, an entrepreneur can protect her intellectual property by obtaining control of scarce assets before others can get to them.

Oil Industry: Buying up the land where drilling for oil is better than others
Intangible Assets: Signing up contracts with the best suppliers in an industry with a limited number of suppliers
Scarce Assets
Network Externalities
Products become more valuable as the number of people who use them increases

Ebay: Most popular auction site, hence has the largest number of potential buyers and products for sale.
High Costs When Switching Among Products
Any time switching from one product to another involves high costs for customers, first movers have an advantage.

QWERTY type keyboard
Customer Status Quo
People are frequently satisfied with the status quo and tend to adopt new products only if the new product is significantly better than the old one in terms of quality, features, durability, etc.
The first product in a market tends to make a larger and more long lasting impression on customers and provide an advantage to the company producing it.
First product becomes the standard and default option
Competitors have to invest more on advertising
Example: Amazon.com for online book purchases.
Learning Curve
First mover can develop significant cost advantages by learning how to do things better, such as produce or market products more efficiently.
Knowledge should be kept from spreading.

Example: Amazon.com

= various trademark counterfeiting and copyright piracy

is a legal term used to describe the rights that creators have over their literary and artistic works.
Industrial Property
is intangible property such as inventions, industrial designs, trademarks, which is afforded protection under national and international intellectual property laws.

defraud consumers
threaten health and safety
loss of business profits, investments and government revenues
violate the rights of trademark, patent and copyright owners

Difficult to differentiate authentic from fake
Main medium for piracy
multimillion dollar networks to produce, transport, distribute and sell bootleg products
makes it difficult to investigate, trace and prosecute
low risk of getting caught, high level of profit

copying, publishing or distributing products without permission on purpose or by gross criminal negligence
offending the moral rights of IP laws
importing or exporting illegally produced goods
fines, damages and/or prison
Protecting your intellectual property allows you to:

Stop others using what you’ve created without your permission

Charge others for the right to use what you’ve created
Baron, R.A. & Chain, S.A. 2008. Entrepreneurship: A process Perspective. 2nd Edition.
Dietmar Harhoff. 2006. Prime Minister’s Office, Economic Council of Finland. Intellectual property rights in Europe – where do we stand and where should we go?
WIPO Publication No. 895(E). Understanding Industrial Property.
The official web-site of World Intellectual Property Organization: www.wipo.int
The official web-site of European Union: www.europa.eu
The official web-site of European Patent Office: www.epo.org
The official web-site of International Intellectual Property Crime Investigators College: www.iipcic.org
The official web-site of Ministry of Education and Culture: www.minedu.fi
Dicle Berfin Köse
Eini Parttimaa
Ekaterina Kazachenko
Iuliia Shevchenko
Full transcript