ENT 3003 Chapter 6 (Kinney)

Entrepreneurs and New Product Design

-Intensely competitive arena for product development. -Customers demand products that reflect lifestyles and value systems. -Technology shortens product life cycles. -Entrepreneurs must manage innovation pipeline to remain competitive.

Patent Infringement

-Occurs when someone other than the inventor (patent holder) or licensee makes and sells a product that contains every one of the elements of a claim -If lawsuit is successful, court may issue injunction preventing infringer from making further use of invention and award inventor royalties. -Doctrine of equivalents - U.S. Patent Office protects investors from infringers who would violate a patent from making small, insignificant changes in the claims. -Courts tend to favor the inventor.

Foreign Patents

-Patent rights granted to an individual extend only to the borders of the United States. -Every country has different laws regarding intellectual property. -Hire a knowledgeable intellectual-property attorney!

Copyrights

-Protects the form of the original works of authors, composers, screenwriters, and computer programmers -Does not protect the idea itself -Lasts for the life of the holder + 70 years -Works for hire and works published anonymously have copyrights of 95 years from date of publication. -Doctrine of Fair Use: reproduction of a copyrighted work is "fair" when it is done for purposes of criticism, comment, news reporting, teaching, scholarship, and research.

Trademarks

-Trademark is a symbol, logo, word, sound, color, design, or other device that is used to identify a business or a product in commerce. -It has a longer life than a patent. -Grants a business exclusive rights to a trademark for as long at it is actively using it. ® Registered trademark ™ Intent-to-use application filed for product SM Intent-to-use application filed for services Marks that cannot be trademarked: -Anything immoral or deceptive -Anything that uses official symbols of the U.S. or any state/municipality such as the flag -Anything that uses a person's name or likeness without permission

From Idea to Market

1. Discovery: invention, innovation 2. Opportunity recognition: invention disclosure, concept development 3. Feasibility: technology feasibility, market feasibility, initial financial metrics 4. Intellectual Property and Regulatory Requirement: provisional patent decision, non-provisional patent filing, other intellectual property, regulatory requirements 5. Prototype development: platform, design, applications, testing 6. Market/Customer Tests: Field test, applications, testing, clinical trials 7. Launch strategy: license, start a business, sell or joint venture 8. Execution plan: execution strategy, develop operations plan, develop marketing plan, secure needed management, identify funding needs and sources --> Launch

The New Product Development Success Curve

3,000 raw ideas 300 ideas submitted 125 small projects 9 early stage developments 4 major projects 1.7 launches 1 success

Trade Secrets

A trade secret consists of: -A formula, device, idea, process, pattern, or compilation of information that gives the owner a competitive advantage in the marketplace. -A novel idea that is not common knowledge and is kept in a confidential state. A trade secret is not protected by federal law.

Outsourcing Product Development

Areas suitable for outsourcing that require engineering analysis, design and expertise: -Component design -Materials specifications -Machinery to process -Ergonomic design -Packaging design -Assembly drawings & specifications -Parts and material sources (suppliers) -Operator's and owner's manuals

How Entrepreneurs Develop Products and Services

Challenge: Perform R&D that results in high-quality, engineered prototype as quickly and inexpensively as possible. Impact of insufficient resources: -Poor execution -Time-to-market increases -First-to-market opportunities are missed -Projects are made simpler so that more can be done with less -Team morale declines

Intellectual Property Rights

Definition of intellectual property rights: The group of legal rights associated with patents, trademarks, copyrights, and trade secrets Used to: Protect entrepreneur's property Avoid infringing on the rights of others

Trademark Infringement, Counterfeiting, and Dilution

Infringement: A mark that is likely to cause confusion with a trademark already existing in the marketplace Counterfeiting: The deliberate copying of a mark Dilution: The value of the mark is substantially reduced through competition or through the likelihood of confusion from another mark

New Product Failure

New product failure results from: -Lack of good market and industry analysis Technical problems Strategies to consider when competing effectively in product development: -Design products right the first time -Shorten the time-to-market -Outsource some product developments tasks to create a lean structure

Patents

Patents are the primary means of protecting an original invention. Questions to assess whether patent is necessary: -Does the invention solve a significant problem and change the way things are done? -Does the invention fall under FDA regulations? -Will the invention achieve revenues that exceed the potential cost of patent enforcement? -Is there a plan to license?

Provisional or Non-provisional Patents

Provisional patent: -Permits use of the term patent pending -On par with international applications -Granted for 12 months Non-provisional patent: -Required for all patents -Granted for 20 years -Must be specific enough to demonstrate the invention's uniqueness but broad enough to make it difficult for others to circumvent patent

Is the Invention Patentable?

The invention must fit into one of the five classes established by Congress: 1. Machine or something with moving parts or circuitry 2. Process or method for producing a useful and tangible result 3. Article of manufacture 4. Composition of matter 5. A new use or improvement for one of the above that does not infringe on the patents associated with them USPTO criteria for patentability: -The invention must have utility (it must be useful). -The invention must not contain prior art; that is, it must be new or novel in some important way. -The invention must not be obvious to someone with ordinary skills in the field.

Product Development Cycle

The process cycle components: -Opportunity identification -Technical and market feasibility analysis -Intellectual property & regulatory requirements -Prototype development -Initial market tests -Launch strategy -Execution plan

Patents Types

Utility: Protects functional part of machines/processes Design: Protects new, original ornamental designs for manufactured articles Business method: Protects fundamentally different ways of doing business in which the embedded process must produce a useful, tangible, and concrete result