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Patent compensation and IP practices: electronics' first major IP-practices survey
Randolph J Ford -- EDN, 4/13/2000
Over the past several years, I have been writing and speaking on patents and how companies can benefit from good intellectual-property (IP) management. My interest originated from the four years I was responsible for semiconductor-new-product development at Apex Microtechnology. I have a passion for seeing companies and individuals benefit from the fruits of their IP creations—whether patents, trademarks, trade secrets, or copyrights.
As these issues evolve, some interesting themes recur about how companies develop ideas, acquire patents and other IP, and reward and recognize their inventors. As an engineer, I am the first to admit that anecdotal observation is unscientific, but frustration can often reveal the presence of a problem that warrants further research. Many engineers and managers involved in R&D or new-product development have shared concerns with me in two areas: the haphazard approach that their company takes toward patents and other IP and the lack of effective recognition to encourage IP creation, especially regarding patents.
How not to manage IP
Not all companies mismanage IP, but all could do better. The following list details the most common frustrations that designers, engineers, and their managers cite.
Don't bother me with the details: Companies often have no strategy or vision for the types of IP they could or should invest in. Subsequently, if they think it is not important enough to protect, they often lose the rights to it along with the corresponding benefits. This problem is difficult to solve without a clear understanding about the importance of IP to the company's future.
Patents: cost or investment? Most companies assert that they consider patents as investments. However, their actions often support the view that patents are a nuisance cost rather than an investment. Engineers and managers usually agree that drafting and prosecuting a good patent is rarely afforded the necessary time or attention to detail. A mentality to get it done "fast and cheap" usually permeates the entire process with predictable results.
It's part of your job: Most employers clearly define the IP work product as the property of the employer in exchange for wages paid. Yet questions abound surrounding the recognition and compensation an inventor is entitled to. Engineers and managers often come down on opposite sides of this issue. Without a framework for discussion, these questions won't go away. Is there a cost-effective way for both parties to win?
Simply identifying these issues is not enough. For any company to be more effective in creating value for their stakeholders, the company must also plan to raise, capture, and resolve these issues. Many individuals want a means of opening a dialogue with their management without getting the brush-off. The Intellectual Property Institute and EDN recognize the need to encourage discussion on this important issue. We have jointly developed an Internet-based survey to assess and report on patent and IP practices throughout the industry. The 18 questions provide a baseline of current industry practices. We also want to solicit suggestions from those on the front lines of technological development on ways to encourage more ideas and generate more patents. Our overall goal is to help companies better manage and protect IP. It will be available for a month. EDN will publish the results in the magazine in May. The results will also be available on the EDN and Intellectual Property Institute Web (www.ip-institute.com) sites and via e-mail to those respondents who provide their e-mail addresses at the end of the survey.
We believe that this survey is the first large-scale attempt to study IP and patent practices, and we are optimistic that promoting dialogue, along with recognition of those whose ideas add value to their organizations, will increase the effective creation and implementation of IP assets.
Author info
Randolph J Ford is responsible for IP coordination at Apex Microtechnology (Tucson, AZ, www.apexmicrotech.com). He also supports program development at the Intellectual Property Institute and has a bachelor's degree in engineering from Kettering University (Flint, MI) and an MBA in technology management from University of Phoenix. You can contact him at jpnews@yahoo.com.
