Intellectual property as driver. of innovative development. Aleksey Petrov. The 3 rd EU-Russia Innovation Forum 14 June 2012

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Intellectual property as driver IP services, IP fund, Association of IP Specialist of innovative development Aleksey Petrov The 3 rd EU-Russia Innovation Forum 14 June 2012 The National Research University of Information Technologies, Mechanics and Optics Startup marathon and acceleration

IP for Innovations 2 «First was the mouse. The second was the click wheel. And now, we're going to bring multi-touch to the market. And each of these revolutionary interfaces has made possible a revolutionary product - the Mac, the ipod and now the iphone». Steven Paul Jobs (1995 2011) Each new technology can give future but not everybody can see this.

Russian IP Today 3 Already done: Implement of Patent Prosecution Highway (PPH); Enactment of the Federal Law on Customs Regulation granting ex officio authority for IP enforcement to customs officials; Creation of specialized IPR court (from January 2013); ~ 9$ billions of gross income from IP (~ 900$ billions in Japan). On the readings: Amendments to Part IV of the Civil Code (share of IP commercialization); Implement and changes of law 217 August 2009 - legal basis for Russian universities to commercialize IP (currently production only).

IP statistics 4 Patent application activity (2010, WIPO Report) Resident Non Resident Office Filings Filings United States of America 241 977 248 249 China 293 066 98 111 Japan 290 081 54 517 Republic of Korea 131 805 38 296 European Patent Office 74 399 76 562 Germany 47 047 12 198 Russian Federation 28 722 13 778

Trademarks (in 2011): 33000 applications from Russia; 26500 foreign applications. Total number of registered TM: 16300 Russian applicants\19650 foreign applicants. Patents (in 2011): - 26500 filings of Russian applicants; - 15000 filings from foreign applicants. Total number of active patents in Russia is about 170000 (on 31.12.2011). Russian IP market (2011) IPR contracts total: -In 2010 2860 contract registrations; -in 2011 3207 contract registrations. 5

Russian PPH 6

Innovative system SumIT WeekEnd: 600 participants 200 Ideas Startup Marathon: 25 Start-ups 40 lections 2000 Students 16-17 July, 2011 38 days 7 Invest Fest: 10 VC и 15 BA 15 Startups 250 participants 24 August 2011 SumIT results: 2 startups received first round investments (8 at winter 2012 Summer) 1 startup was bought by strategic investor

How it works? 8 Government Inventor Investor IP MARKET Capitalization Commercialization Innovations

Benefits: - Disclosure of new technology to Public; - Outcome of R&D success; - Market priority (Alpha products IPad); - Others cant use your technology, without your approval. Benefits&Disadvantages Patent system: Disadvantages: - Requires significant money for international protection; - Requires special knowledge in IPR protection strategy; - Others cant use your technology, without your approval. 9

Requirements IP market requirements: - IPR strategy;* - Government support of innovative activity, protection and enforcement; - Long-term investments; - IP Specialist. 10 * «Intellectual Property Revenue Generation Game» by Robert Cantrell (1999)

Obstacles in Russia 11 Lack of the innovative projects focused on technology development and commercialization; Applied R&D directions are formed without studying of market requirements; Low demand for R&D results in the industry; Industry inability to perceive innovations; Insufficient motivations of scientists; Absence of patent search at R&D stage; Insufficient IPR protection, low quality of R&D results (for example, absence of novelty) and a little inventive activity; Lack of patent specialist.

Obstacles in Russia 12 High costs of R&D and production; A long term investments are hard to obtain (the speculative mind of investors); Corruption barriers; Patent trolls (mostly trademarks); Piracy and counterfeit.

Advice for innovators (inventors, R&D managers): Main steps Use opporunities emerging Clusters Skolkovo, St.Petersburg pharma cluster, etc. they grant substantial governmental support and protection. Be prepared and pro-active use IP market information and services to investigate freedom and obstacles; advise customs on your goods and registered trademarks. Be assertive do not hesitate to initiate proceedings upon infringement. «Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it». 13 Steven Paul Jobs

Questions 1. What are the core IP fundamentals that need to be in place in order to allow for the successful commercialization and collaborations between different parties towards the innovative development? 2. To what extent is Russia able to leverage and capitalize on its innovation and capabilities by using the IP system? 3. Is technology transfer a profession? Is there a need for specialist training and capacity building in order to understand and use the IP system or is it just something that can be obtained "on the go"? 4. Role of IPRs in collaborative models, especially between multinational companies and local entities in emerging countries? 5. What is the role of the Government in promoting the use of IPRs and innovation? 14

Aleksey Petrov Deputy Director info@nevapatent.ru www.nevapatent.ru Thank you for your attention www.sumit.ru 21 July 31 August (will be held on English)