IP SOLUTIONS BLOG

On Tuesday, the famous French shoemaker Christian Louboutin SA stepped into the U.S. 2nd Circuit Court of Appeals in Manhattan to make the case that it should own the exclusive right to use a shade of red called “China Red” to coat the bottoms of its popular high heels. The case pits the shoemaker against famous designer Yves Saint Laurent (YSL), which sells a line of shoes whose tops and bottoms are red.  Louboutin was granted a trademark to use the red for its shoe soles in 2008 but a recent court ruling suggests that registration was granted in error. The Wall Street Journal reports on the case which could be an important step in trademark law.
___________________________________________________________________

Christian Louboutin’s lawyers have based their case on the argument that the brand has created one of the more iconic trademarks of the 21st century. Much like Tiffany’s hold on robin’s egg blue, the red sole of a shoe is an instant identifier to any footwear fan (both fashion insiders and major city pedestrians).

Susan Scafidi, a law professor at Fordham University and an expert in law and fashion summed up the current issue with intellectual property and the fashion industry when she stated that the Louboutin case showcases the fact that fashion designs “really have no protection,” even though “the industry has been trying for 100 years, but intellectual property law still stops right at fashion’s door.”

In the initial ruling, Manhattan Federal Judge Victor Marrero questioned “whether a color could ever be trademarked for use in fashion,” because within the fashion industry “color . . . performs a creative function; it aims to please or be useful, not to identify and advertise a commercial source.”

If Louboutin was the only shoe designer to use a red sole, does that mean the use of color is a unique element to the Louboutin trade dress? Did Judge Marrero properly interpret trademark law? Are additional findings required around the likelihood of confusion between the two brands? We are curious to see what the appeals court finds; it will be sure to have a big impact on the fashion industry.

Bob Stembridge, Customer Relations Manager, Thomson Reuters Innovation

At last week’s Consumer Electronics Show (CES), Motorola Mobility Holdings, Inc. and Lenovo Group Ltd. announced plans to introduce new smart phones using Intel chips.  The Wall Street Journal reports that the move could be a crucial step for Intel to moving its chip technology into the smartphone market.
____________________________________________________________________

While this is an interesting step for Intel, the bigger story here may be in what this move will mean for the continued march of convergence in the smartphone industry.  As our own Bob Schukai, global head of mobile technology at Thomson Reuters, told Investor’s Business Daily when asked about the recent spate of smartphone patent lawsuits:

In many ways this is a rerun of what we saw in the 1990s when GSM patent wars took place. They were suing each other left and right and eventually figured out a way to license patents back and forth… Today the litigation has exploded in ways that are hard to fathom.  So much innovation is happening so fast – in patent systems that have not kept up.

Our research on this topic has echoed Shukai’s comments.  Nearly every smartphone that enters the consumer market is using technology licensed from as many as dozens of other manufacturers.  As this trend continues, expect continued innovation and litigation inspired by convergence.

Bob Stembridge, Customer Relations Manager, Thomson Reuters Innovation

The Wall Street Journal reported last week that Detroit automakers are making a bold push to innovate in the small and midsize car market.  Reporters Jeff Bennett and Neal E. Boudette explain:

After gut-wrenching restructurings—GM and Chrysler in government-backed bankruptcies, and Ford on its own—the Detroit Three are all making money. Instead of having to spend a lot on labor costs and retiree benefits, they are pouring money into engineering and designing cars that can go head to head with the best in the industry.

Armed with good-looking, fuel-efficient and technology-packed cars, Detroit’s revived auto makers insist they have a historic opportunity…

It’s a great come-back story, but we have to ask the question: When it comes to innovation, is Detroit really putting its money where its mouth is?

For insight, we turned to our annual State of Innovation report, which tracks patent activity in bellwether technology areas using the Thomson Reuters Derwent World Patents Index®.  The full report for 2012 will be released later this month, but an early peak at the auto industry data suggests that the Detroit come-back story may have some real merit.

Combined, the top 10 North American patent assignees filed 86,788 patents in 2011, with the bulk of them (19,078) focused on alternative powered vehicles.  Another 11,413 patents were focused on transmission technology and 11,279 were focused on navigation systems.  “Fuel-efficient and technology-packed cars” indeed.

Our full report, due in late January, will contain detailed break-outs by manufacturer and comparisons with European and Asian manufacturers.  To receive a copy, please contact us here.  In the meantime, keep an eye on Detroit as a reemerging hotbed of innovation; if IP strategy, marketing campaigns and consumer preferences continue to align in this manner, the Big Three may be on their way to some big wins.

Laura Gaze, Senior Marketing Manager, IP Solutions Innovation

This week, we announced the world’s 100 most innovative organizations with the launch of the Thomson Reuters 2011 Top 100 Global Innovator program, an initiative that analyzes patent data and related metrics in a proprietary methodology to identify the companies and institutions that lead the world in innovation activity.

This week, we announced the world’s 100 most innovative organizations with the launch of the Thomson Reuters 2011 Top 100 Global Innovator program, an initiative that analyzes patent data and related metrics in a proprietary methodology to identify the companies and institutions that lead the world in innovation activity.

A comparison of market data for 2011 Top 100 Global Innovator companies (those that report such data) shows they added more than 400,000 new jobs in 2010 over 2009, three percent more than the prior year and greater than the percentage increase in growth experienced by the S&P 500 for the same period.  Forty percent of the companies are from the U.S., 31 percent are from Asia, and 29 percent are from Europe.

Methodology

There are many ways to measure innovation.  We believe that our peer-reviewed methodology is unique in its unbiased approach, using the best data currently available to measure both the breadth and influence of corporate innovation.  Our methodology is based on four principle criteria: patent approval success rate, global reach of a patent portfolio, influence as measured by patent citations (removing self cites) and overall patent volume.  By analyzing corporate patent portfolios in this manner, we are able to identify the sweet spot of innovation where pure R&D meets corporate strategy for protecting intellectual property.  While it is possible that this approach excludes many companies that are major innovators in their respective fields, it is the best measure we have to objectively evaluate corporate commitment to innovation and protection of intellectual property.

Data for the Top 100 Innovator program was aggregated and analyzed using published patent information from 2005 – 2010.  All company names listed are those used in published patent data through 2010. Learn more about our methodology here.

Additional Information:

List of Top 100 Innovators.

Read the press release.

Laura Gaze, Senior Marketing Manager, IP Solutions Innovation, Uncategorized Top 100 Innovators

YOU…wanted more control over what Thomson Innovation® shows you

YOU…wanted a more intuitive interface that lets you collaborate more effectively

YOU…wanted new ways to do your job in less time

The new, more intuitive user interface on Thomson Innovation will speed your workflow and bring forward the information you need – exactly when you need it. You are the reason why we made the new Thomson Innovation… because you drive innovation.

Your new Thomson Innovation. Coming December 2011.

Register now for a live demo:

• November 15, 2011 Register
  • 9:00 a.m. New York
  • 2:00 p.m. London
• November 15, 2011 Register
  • 3:00 p.m. New York
  • Noon Los Angeles
• November 17, 2011 Register
  • 9:00 a.m. New York
  • 2:00 p.m. London
•  November 17, 2011 Register
  • 3:00 p.m. New York
  • Noon Los Angeles  

Kevin Bonsor, Marketing Manager, IP Solutions Patents Patents

Saving time and saving money are two things that most IP professionals would readily agree are important.

To that end, Thomson CompuMark and Thomson IP Management Services are teaming up to offer a webinar to help you develop strategies for successfully integrating the management of trademarks and patents into your workflow.

In the webinar, leading experts will share information about customizable trademark solutions that work the way you need them to, fast and efficiently.

The webinar will cover techniques that streamline every phase of the watch process from how you order watches, to how you can update your portfolio and analyze results. We’ll also discuss how you use online solutions to manage your watches, and several methods and services that will help make sure you’re always compliant and that you have the flexibility to best manage your budget.

Learn more and register for the webinar here.

Victoria Poor, Public Relations and Event Manager, Thomson CompuMark Patents, Trademarks, Webinar Patents, Trademarks

The constantly changing and evolving nature of the Internet and social media presents unique challenges to those managing trademarks and brands online. There isn’t always a clear answer when it comes to things like how best to protect your brand’s reputation online, how to interpret new policies and procedures of ICANN, and how to decide which social networks to monitor for trademark infringement, just to name a few of the issues.

Thomson CompuMark has created a new LinkedIn Group to provide a forum for trademark professionals, brand owners, and others from around the globe to exchange ideas and opinions, and share news and information, to gain a better understanding of the issues and challenges faced, and ultimately to help you successfully manage your brand online.

Join the conversation here: http://www.linkedin.com/groups?about=&gid=4135628

Victoria Poor, Public Relations and Event Manager, Thomson CompuMark Trademarks Trademarks

Intellectual property has been a hot topic in the news this year.  Patent portfolios are becoming a leading factor in acquisitions and new light is being shed on the importance of IP and its power. Case in point: the Nortel Networks patent portfolio recently sold for $4.5 billion to a group of technology companies including Apple, Research In Motion, Ericsson, Microsoft and Sony; and Google paid $12.5 billion for Motorola Mobility and its 25,000 patents.

Even the US government is stressing the importance of IP and its role in corporate America. On September 16, the “America Invents Act” was signed into law, reforming the way patents are awarded. Now businesses and inventors can focus more time on innovation and job creation rather than costly litigation.

We thrive on innovation to work efficiently, fight disease with the discovery of new drugs, and enjoy the new inventions that technology brings to entertain and make our lives easier in many ways.  However, in a time when organizations are being pressed to do more with less, bringing a new idea to fruition can be a challenge.

To help with those hurdles, the Thomson IP Management Services business of Thomson Reuters recently launched an IP consulting practice to support all aspects of the IP lifecycle allowing new ideas to get to market faster and smarter.  Made up of an experienced team of IP attorneys and technical experts backed by Thomson Reuters leading IP software solutions, the consulting group provides tailored onsite support for organizations who are seeking to make the most of their IP operations.

Led by seasoned IP attorney Adam Jaffe, the IP Management Consulting Services team is the largest in the industry and is growing quickly due to client demand.  IP Management Consulting Services will delve into any IP topic including operation reviews, information sharing, technology alignment, complex software implementations and process optimization to name a few.

The importance of IP is becoming greater and greater as we evolve to bigger and better things and I’m looking forward to what the future brings.

Laura Gaze, Senior Marketing Manager, IP Solutions Innovation Innovation

This month, I had the privilege to represent the Confederacy of European Patent Information Groups (CEPIUG) in my capacity as Secretary of the group at one of a series of continuing workshops on patent information organised by World Intellectual Property Office (WIPO). The series is in support of the program to set-up Technical and Innovation Support Centres (TISCs) in developing areas of the world.  This event took place in Tbilisi, Georgia and was organised jointly with SAKPATENTI, the Georgian Patent Office.

The workshop was conducted over two and a half days and was attended by around 45 delegates from all sides of the Georgian intellectual property scene from universities, private inventors, industry to the patent office itself.  I and fellow instructors from CEPIUG, WIPO and SAKPATENTI led the participants through a series of lectures covering the importance and value of the patent system, various information resources (both patent and non-patent literature), classification systems and techniques & tools for searching and analysing this information followed by practical case study hands-on sessions to explore and embed the learnings from the lectures. 

The workshop culminated in a group discussion on the next steps to take on the path to establishing TISCs in Georgia to help stimulate and promote innovation in the region.

Georgia is one of the Group 2 eligible regions entitled to benefit from access to commercial patent information services including Thomson Innovation at favourable rates under the recently concluded ASPI agreement.  Under the terms of this agreement, patent offices, academic and research institutes are entitled to participate in the program. So far Georgia is yet to take up this entitlement.

As they say, the proof of the pudding is in the eating, so it will be interesting to monitor developments that follow-on from this workshop.

Bob Stembridge, Customer Relations Manager, Thomson Reuters Innovation Innovation

Patents have historically been relegated to the purview of the Legal department and treated in many companies as a “necessary evil.” However, as corporate value shifts from tangible to intangible assets (case in point Kodak, which has been reported to have a more valuable patent portfolio than the company itself¹), patents are becoming much more than mere defensive protection measures, and are starting to be considered as a product unto themselves.

Google’s play to acquire Motorola Mobility highlights just how important – and valuable – patent protection can be to a company. They give the holding company strategic advantage that its competitors don’t have, as well as the potential to generate additional revenue through licensing, sale and other avenues.

After having lost its bid for the Nortel patent lot, and tip-toed through talk of infringing mobile technology rights now owned by Oracle in its Android offering (among others), Google realized the need to beef up its patent holdings, at a minimum to apparently help stave off infringement claims.

Interestingly, Google had not bought into the concept of building its patent arsenal like some of the other players in the mobile tech space. A quick look at 2010 patent holdings for some of the biggest players in this sector shows how Google has the smallest portfolio of them all (figure 1).

Figure 1: 2010 unique inventions globally, including published patent applications and granted patents
Source: Derwent World Patents Index

 Note: the above figures represent the entire patent portfolio of each company, inclusive of mobile tech holdings.

A closer look at just Google’s and Motorola’s US granted patent portfolios from 1990 – present illuminates the stark difference in strategy of these two companies.  Over the last two decades, Motorola has amassed a collection of more than 17,000 patents, as compared to Google’s 755 (figure 2). It’s no wonder why Google wants – and needs – the assets from Motorola. What’s more, as Motorola owns a number of the essential patents that form the basis for the core GSM (Global System for Mobile Communications) and third generation (3G) technologies used in mobile phones today, it’s been able to generate royalty revenues even as its market share decreased. 

Figure 2: Google’s vs. Motorola’s US granted patents, 1990 – present
Source: Thomson Innovation

 Patents Provide Strategic Insight

It’s a little known fact in the business world, although quite common amongst patent junkies, that published patent applications provide unique insight into future technologies. More than 70% of the information contained in patent applications is not yet publicly disclosed anywhere else (for obvious competitive reasons). So, if one wants a glimpse of what’s to come in a certain area, you need look no further than a patent application (why more people don’t do this is unclear to me).

The 2011 published patent application portfolio of Mobile Mobility provides some strategic insight into Google’s intentions. A snapshot of some of the records in this collection is shown in figure 3. Although not inclusive of everything Motorola Mobility brings to the table, it is indicative of the technology suite they provide and Google’s interest in them.

Figure 3: Snapshot of Motorola Mobility’s 2011 US published patent applications
Source: Derwent World Patents Index (DWPI) from the IP Solutions business of Thomson Reuters

Where to from here?

Patent protection is a key element of smart business strategies. As more companies realize this, patents are moving from defensive publications to products unto themselves. The Google/Motorola acquisition is a prime example of this, and is just the beginning of what I call the new era of business or business in the 21st century. Hold on for the ride, it is sure to be exciting and quite lucrative, especially for those in the world of IP. (And, if you’re not yet looking at patent data as a source of business insight, seize the moment – it’s never too late to start.)

 1 Wall St. Journal, July 21, 2011, “Kodak Considers Sale of Digital-Photo Patents”

Laura Gaze, Senior Marketing Manager, IP Solutions Patents Patents