Listen to the podcast of The Idea Incubator, about 4 mintues. [audio:https://0a11b2.p3cdn1.secureserver.net/wp-content/uploads/2012/03/29-March-2012-Idea-Incubator-podcast.mp3|titles=29 March 2012 Idea Incubator podcast]
Innovation is the blending of the science of a new technology with the art of finding a new market. New products allow people to interact with their environment more efficiently, more conveniently, and more dynamically.
Yet inventors are faced with certain challenges, depending on their work situation. In the March issue of The Village, a newsletter for the global new product development (NPD) community, we discussed Three Myths of Innovation. These are the markets, the technology, and the timing of the commercial launch. Upgrade to GNPS Premier Membership today, and you can access Three Myths of Innovation and other cutting edge thought leadership papers at no additional charge. Otherwise, you can download Three Myths of Innovation for the special Innovation Member price of $5.95 (tax included) until April 30.
Again, inventors may face many challenges in protecting their ideas. Scientists in large companies often face committees with stringent financial hurdles for even early-stage ideas, and competition with additional ideas being pursued in other business divisions within the corporation. In fact, one of the biggest threats to corporate innovation may be the patent system itself.
Patents and other intellectual property (IP) give specific legal protections to the patent holder to use the invention exclusively for a set time period. Yet, the act of filing a patent application in a large company is an expensive endeavor. Many firms require a review of all ideas with a team of senior management, key technology experts, and a bevy of lawyers. Reviews of the relevant patent literature can take time and related patent searches can result in pages upon pages of documents requiring further scientific inquiry.
Additionally, many corporations will file in multiple countries at the same time they file for a patent in the United States to protect disclosure of the invention. Annual “maintenance fees” accrue over time, piling onto the cost burden of filing a patent in the first instance.
Small entrepreneurial companies, on the other hand, are usually not lucky enough to have an extensive internal network of corporate lawyers and patent specialists to assist them in the US Patent and Trademark Office minefield. In fact, many individuals are not even aware when they might want to consider filing for patent protection on an invention. Of course, if you have a novel, but easy-to-duplicate, new technology, you will definitely want the legal protections offered by a patent so you don’t encounter a future loss of market share to copycat competition.
When considering IP, you can also consider the options of trademarks, copyrights, or holding the technology as a trade secret. In the latter case, the heart of
the technical invention is kept under lock and key at the company with information shared with only the most critical need-to-know basis among the senior executives at the firm. Other employees should be asked to sign confidentiality agreements to prevent sharing of company knowledge if the employee leaves your firm at a later date.
A couple of resources that might help you plan your IP strategy are “Burning the Ships” by Marshall Phelps and David Kline. You can read a review of “Burning the Ships” published in the Journal of Product Innovation Management (November 2010). Also, Chapter 12, Barriers to IP Protection, in “Conquering Innovation Fatigue” by Jeff Lindsay, Cheryl Perkins, and Mukund Karanjikar, has a few tips on navigating the tortuous waters of IP and patents. You can read a review of “Conquering Innovation Fatigue” published in the January 2011 issue of the Journal of Product Innovation Management.
Proper patent protection is important to most new technologies. Innovation is fundamental to the success of all firms. Therefore, you should consider how best to ensure IP protection into the future to realize maximum profits on your innovations.
Here are some additional references as you learn more about patents and intellectual property.
Image of US Patent Office courtesy of NIH.
Image of computer courtesy of learning centers.
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