Moy Se Yenko Pap

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Marketing Mix of Industrial Property in Modern Conditions

PhD Project Summary

Post-graduate student Yuriy MoyseyenkoMaster of Marketing, Master of Intellectual Property

CONTACT INFORMATION : Yuriy Moyseyenko G.M. Dobrov Centre for Scientific &Technical Potential and Science History Studies of National Academy of Sciencesof Ukraine 9-th floor, 60 T. Shevchenko blvd. KYIV 01032 UKRAINE (UA)Tel/fax: +380 44 4869591 Mobile: +380 66 5605031E-mail: [email protected] [email protected]

for private mailing: mailbox _ 1 KYIV 03179 UKRAINE (UA)

Content:

Starting point________________________p. 1

Objectives of the Study and Research Topic,

Industrial property rights as product, customer

value and solution____________________p. 9

Research data and method, Benefits of the

Study______________________________ p. 2

Industrial property valuation models and tools

as pricing, consumer cost and value_____p. 11

The Marketing Mix mode______________ p. 3Marketing strategy based on Marketing Mix

Model_____________________________p. 4

Submission of 4P’s by 4C’s in Marketing Mix

Model for creative products____________p. 5

Access to industrial property rights asconvenience (Place in 4P’s)___________p. 12

Information about industrial property right as

promotion and communication_________p. 13

Conclusion________________________ p. 14

SIVA Marketing Model as specific Markeing

Mix Model for industrial property rights__p. 8

References_________________________p. 16

Starting point

The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist

in implementing the Marketing strategy. Marketing managers use this method to attempt to

generate the optimal response in the target market by blending 4 variables in an optimal way. It

is important to understand that the Marketing Mix principles are controllable variables. The

Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target

group and the other dynamics of the Marketing environment.

The starting point for the research presented in this summary is an attempt of analysis of

applicability of Marketing Mix model to intellectual property rights as product. In the research



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Yuriy Moyseyenko analysed the structure, consistence and evolution of Marketing Mix model.

By the result of mentioned analysis the researcher made an attempt to apply Marketing Mix

model for such specific products as intellectual property rights (inventions, designs, trademarks)

due to the EU legislation by the method of synthesis of legislation and 4P’s (Product, Price,

Place, Promotion). Among other things, the lifecycles characteristics of the product, innovationand technology were taken as fundamentals for conclusions.

Objectives of the Study and Research Topic

The objective of this research is to investigate the role of Marketing Mix of industrial property as

tool of innovation policy. The study belongs mainly to the field of economics of intellectual

property and innovative marketing. The objective is to examine characteristics of industrial

property as product in Marketing Mix and its pricing, placement and promotion specifics.

The research problem is as follows:What are the role and main aim of marketing manager in industrial property marketing under

modern conditions?

The researcher problem will be solved by answering the following research questions:

1. Marketing Mix evolution (analysis):

- 4 P’s (product, price, place, promotion);

- 4 C’s (customer value, consumer cost, convenience, communication);

- SIVA model (solution, value, access, information).

2. Industrial property Marketing Mix characteristics (synthesis):

- Industrial property rights as product, customer value and solution;

- Industrial property rights valuation methods as price, consumer cost and value;

- Access to industrial property rights as convenience (Place in 4P’s);

- Information about industrial property right as promotion and communication.

3. The role and main aim of marketing manager in lifecycle of industrial property rights.

Research data and method

This research is based on official and unofficial issues of European Commission (incl. statistical

data) and the World Intellectual Property Organisation. The main methods of research are

analysing Marketing Mix Model and its synthesis with industrial property rights.

Benefits of the Study

The aim of this study is to offer new knowledge which can be used in the development of the

Marketing Mix Model Theory and generating new business ideas in industrial property

marketing. This knowledge may also be useful for managers in innovation marketing activities.

The results of the research can be applied in any country of the World but the national legislation

should be taken in account.



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The Marketing Mix Model

The function of the Marketing Mix model is to help develop a package (mix) that will not only

satisfy the needs of the customers within the target markets, but simultaneously to maximize the

performance of the organization [1].Table 1. The Marketing Mix model [1]

Product Historically, the thinking was: a good product will sell itself.

However there are no bad products anymore in today’s highly

competitive markets. Plus there are many laws giving customers

the right to return products that they perceive as bad. Therefore

the question on product has become: does the organization create

what its intended customers want? Define characteristics of your

product or service that meets needs of your customers.

Functionality,

quality,

appearance,

packaging, brand,

service, support,

warranty.

Price How much are the intended customers willing to pay? Here we

decide on a pricing strategy – do not let it just happen! Even if

you decide not to charge for a service (a loss leader), you must

realize that this is a conscious decision and forms part of the

pricing strategy. Although competing on price is as old as

mankind, the consumer is often still sensitive for price discounts

and special offers. Price has also an irrational side: something

that is expensive must be good. Permanently competing on priceis for many companies not a very sensible approach.

List price,

discounts,

financing, leasing

options,

allowances

Place Available at the right place, at the right time, in the right

quantities? Some of the revolutions in business have come about

by changing Place. Think of the internet and mobile telephones.

Locations,

logistics, channel

members, channel

motivation, market

coverage, service

levels, internet,

mobile

romotion (How) are the chosen target groups informed or educated about

the organization and its products? This includes all the weapons

in the marketing armory – advertising, selling, sales promotions,

public relations, etc. While the other three P’s have lost much of

three meaning in today’s markets, promotion has become the

most important P to focus on.

Advertising, public

relations, message,

direct sales, sales,

media, budget

There have been many attempts to increase the number of P’s from 4 to 5P’s in the MM model.

The most frequently mentioned one being People or Personnel. Booms and Bitner have

suggested a 7-Ps approach for services-oriented companies [1].



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Marketing strategy based on Marketing Mix Model

Market research gives an enterprise a set of relevant information that allows it to determine ‘a

strategy indicating the specific target markets and types of competitive advantages that are to be

developed and exploited’1. For most enterprises in developing countries and countries in

transition this means that they need to define their marketing mix [2, p. 30]:

• Identify a product for a target market (or a segment of a particular market). It may be that

the enterprise can diversify into new product lines using existing technology and skills. It may

have to invest in new technology and skills, to enable it to produce entirely new ranges of

products. The ‘new range’ could include a new brand image, new packaging, new services and

new way of maintaining or servicing customer relations. This may involve brand stretching,

brand extension or the creation of new brands or trademarks for the new market or customer types.

• Calculate the price at which this product will sell. To penetrate certain markets profit

margins may have to be kept low; for other markets the current trends may allow increased

margins for certain periods. In yet other markets the rarity of a raw material or skill will permit

pricing at the highest margins possible.

• Work out where to place or position the products in the market(s) by: attempting contact

with new types of customers; competing with another maker; introducing the products to a newtype of retail outlet in a totally new locality (new market channel); or developing an export

market about which little is known. The enterprise should check whether it has the freedom to

use an existing or proposed verbal trademark in an export market. It should also verify whether

the trademark has any negative or undesirable connotations in the export market (if it does, then

the enterprise will have to find a new trademark for use in that market). Creating or selecting a

suitable trademark is just as important if the enterprise intends to position a product to target a

new customer type, market segment or location. In addition to trademarks, new packaging andlabeling may be required, and these too may have branding (trademark), industrial design or

copyright implications.

• Establish the best way to promote the product to the consumer, depending upon the

location in which the product is placed.

Varying combinations of these factors will provide artisans and craft enterprises with a

choice of actions to take and directions in which they might move in order to continue in

business effectively. This is marketing strategy [2, p. 31].

1 Source: Marketing, Concepts and Strategies. Dibb, Simkin, Pride and Ferrell, 4th ed. Houghton Mifflin, 2001, p. 656.



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Submission of 4P’s by 4C’s in Marketing Mix Model for creative products

Traditionally, the specialist in marketing mainly relies on the so-called marketing mix, or the

four P's-product, price, place and promotion-to develop marketing plans. But this functional

approach is unidirectional, since it comes from the organization and imposed on the customer. Inthe domain of creativity where shop value and trust are essential, this perspective is not adapted

since it represents the seller's mind-set rather than the buyer's. This is why Robert Lauterborn

suggests that marketers think in terms of the four Cs instead of four Ps: customer value (not

product), customer costs (not price alone), convenience (not place), and communication (not

promotion)1 that is why Mohanbir Sawhney suggests that marketing should be focused on

processes: process for understanding, defining, realizing, communicating and sustaining value.

- Customer value more than Product [3, p. 13]

Offering the product is the traditional first step of the four Ps. But when offering new and

unknown products, it is very important to consider that the view of the consumer will be very

complex. People will place different values on various aspects of the core product. People not

only acquire products but are searching for new experiences and sequences. Furthermore, each

patron's experience will vary according to his or her knowledge, preferences, background, and

mental state at the time of the use of the product.

In many creative areas, such as culture, there exist augmented products. The augmented product

consists of features and benefits by the marketer to stimulate purchase and enhance consumption

of the core product. Due to the uncertainty of the cultural good, many characteristics will have to

be organized for increasing the confidence of the customer.

Since creativity is the principle for these companies, managers need to periodica1ly adjust or

reformulate their marketing and positioning strategy. There are ongoing changes in the

environment, such as growing competition and evolving customers’ preferences. Moreover, theorganization itself, its core products, and its augmented products are all subject to life cycle

analysis.

During the growth stage the organization capitalizes on the customer's strong response and seeks

to develop patron loyalty. It also employs several strategies to prolong the growth stage. It may

add new product features and benefits such as visible improvement in the quality of the

productions and customer service. It may cultivate new market segments. It may add new

1 Ross, Goran, Stephen Pike & Lina Ferstrom (2005), Managing Intellectual Capital in Practice, London: Elsevier



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versions or windows products or consider new distribution channels, such as performances in

neighborhood.

When the growth rate slows, often to the point where managers are working harder just to

maintain past years’ customers’ level, the organization has entered the stage of maturity. It can

try to expand its number of users by converting nonusers, by encouraging more frequent use

among current users, and by increasing the amount of use per occasion. The organization can

also stimulate demand by modifying the product. This can take the form of quality improvement,

usually by investing more heavily in production values, or feature improvement, such as

offering. The marketers should also consider what modifications should be made to non-product

elements to stimulate demand. Could new appeal be built with new branding and positioning

strategies?

A difference between life cycle in our domain and “mainstream life cycle” is that usually

creative products do not know phases of decline but of disappearance that can be very fast after

maturity. But sometimes they re-appear some time after, usually in a new marketing perspective.

- Consumer cost more than Price [3, p. 14]

Creative companies marketers need to consider the costs incurred not only by the organization

presenting a production but also by the consumers using the product or service. It is difficult for

creative organizations to clearly identify productivity gains, moreover productivity gains

experienced by the rest of economy. Since the early twenty, century, increases in efficiency in

our technology-oriented, for-profit economies have been continuous and cumulative. But the

references are totally different for many creative industries since they are in advance on this

reference. Furthermore, many of these companies have to incur substantial expenses for

financing sunk and fixed costs that must be met without knowing the number of consumers. This

calls for pricing strategies starting from the possibilities of the various consumers segments

rather than on the organization costs. Organizations depend on contributed income to come for

the difference between the company’s expenses and' its income, yet garnering adequate subsidies

is a perpetual struggle.

In such a perspective, they have to consider the costs supported by the consumers and not only

the cost of the product. They must consider value for time as much as value for money. They

must take into consideration that customers have very different perceptions of value for money

and then adapt their pricing policy.



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Since the success of creative products is submitted to bandwagon and network effects, they have

the choice between two objectives that have to be sequenced within time: maximizing the

number of customers; maximizing the income. These objectives are not mutually exclusive and

marketers have to meet these two goals either simultaneously or successively.

- Convenience more than Place [3, p. 14]

In the digital area, place has taken a very flexible content. For example information and

distribution take forms independent of specific places. But the main point here is the fact that the

time of consumption has to use the digital perspective. Many companies still are opposed to too

much flexibility here, fearing processes such as illegal downloading and copying. But they have

to take into consideration these new perspectives.

- Communication more than promotion [3, p. 14]

Communication is perception. The recipient message, not the sender, is central to

communication. The transmitter can only make it possible for a recipient, or percipient, to

perceive. Moreover, perception is based on experience, not on logic, so one can perceive only

what one is capable of perceiving. Therefore, in order to make communication possible, a

creative company must first know the recipient's language and experience, knowing that this

latter responds best to communications that fit in with its aspirations, values, and motivations. If

the message does not correspond with these qualities it is likely not to be received at all or, at

best, likely to be resisted.

Marketing is a matter of influencing behavior - either behavior or preventing it from

changing. In order to influence behavior it is crucial to understand where the customer is coming

from. If a message is not designed to address target interests, needs, and mind-set, it will not be

effective. Once the marketer has developed an understanding of targeted market he may develop

messages and use media that inform, and educate people in compelling ways. All advertising,

public relations efforts, personal selling, and sales promotion tactics are intended to persuade.

Unfortunately, much marketing copy is filled with hype, exaggerating consumer expectations or

causing people to be skeptical of the claims. Here, a major source of dissatisfaction is not

inferior quality but exaggerated expectations. Disappointment can be avoided if the organization

uses only but realistic methods of persuasion [3, p. 15].

Like all other enterprises, creative enterprises must produce an economic value. It enables

them to cover their production costs, make investments for the future and remunerate their shareholders. It also brings out the interdependence between potential needs and actual supply.



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To produce this economic value, enterprises have to organize their resources, suppliers,

distributors and consumers in a coherent manner. In this contribution, we analyze the

environment and the foundations for answering these challenges. We start by looking at the

specificity of the so-called creative enterprises vis-à-vis mainstream enterprises. Then we

identify three main logics for creating value and show that creative enterprises have specific

challenges to solve (1). Then we analyze the specific drivers for creating these values (2).

Various business models can be considered then, and the versioning model will be considered

more in detail (3) [3, p. 15].

SIVA Marketing Model as specific MMix Model for industrial property rights.

The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps

supply side model (product, price, place, promotion) of marketing management.

The four elements of the SIVA model are [4]:

- Solution: How appropriate is the solution to the customers’ problem/need

- Information: Does the customer know about the solution, and if so how, who from, do they

know enough to let them make a buying decision

- Value: Does the customer know the value of the transaction, what it will cost, what are the

benefits, what might they have to sacrifice, what will be there reward?

- Access: Where can the customer find the solution? How easily/locally/remotely can they buy itand take delivery.

Table 2. Siva Marketing Model [4]



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This model was proposed by Chekitan Dev and Don Schultz in the Marketing Management

Journal of the American Marketing Association, and presented by them in Market Leader - the

journal of the Marketing Society in the UK [4].

Due to industrial property rights characteristics SIVE Marketing Model is the most convenient

variant of Marketing Mix Models for industrial property rights marketing strategy planning.Table 3. Industrial property Marketing Mix Model

PRODUCT PRICE PLACE PROMOTIONCustomer value Consumer cost Convenience Communication

SOLUTION VALUE ACCESS INFORMATION

IP r ights for

invention, utility

mode l , des i gn ,

trademark

International,

E u r o p e a n a n d

national valuation

standards

National patent

offices’ data bases:

information about

IP rights existing

Firms

communication

policy

Industrial property rights as product, customer value and solution

Invention rights as product, customer value and solution

In the European Union (EU), patent protection is currently provided by two systems, neither of

which is based on a Community legal instrument: the national patent systems and the European

patent system. The national patent has undergone de facto harmonisation with the signing of

several international conventions, including the Convention on the Grant of European Patents

(the Munich Convention) in 1973 to which all EU Member States have acceded. The Munich

Convention lays down a single procedure for the granting of European patents. The Convention

established the European Patent Office ("the Office") to grant patents which then become

national patents subject to national rules. At present, 31 countries are members of the European

Patent Organisation. Although the Munich Convention creates a single system for granting

patents, there is still no Community patent belonging to the Community legal order. A single

patent for the whole Community could help Europe transform research results and new

technological and scientific know-how into industrial and commercial success stories. The aim is

also to help Europe catch up on the United States and Japan in terms of private R&D investment.

Effects of the Community patent are the solution precisely mentioned in the research as product.

The Community patent confers on its proprietor the right to prohibit, without his consent:• the direct use of the invention, in particular making it, offering it, putting it on the market,importing it, etc.;• the indirect use of the invention, through supplying it, etc.

Annual fees must be paid to the Office to renew Community patents. The amount of these fees

will be fixed by means of an implementing regulation on fees, which will be adopted by aregulations committee. The Community patent is valid for twenty years, calculated from the



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date of filing of the application. The patent will lapse if the renewal fee or any additional fee has

not been paid on time [5].

European patents shall be granted for any inventions which are susceptible of industrial

application, which are new and which involve an inventive step [6, Art. 52]. An invention shall

be considered to be new if it does not form part of the state of the art [6, Art. 54]. An inventionshall be considered as involving an inventive step if, having regard to the state of the art, it is not

obvious to a person skilled in the art [6, Art. 56]. An invention shall be considered as susceptible

of industrial application if it can be made or used in any kind of industry, including agriculture

[6, Art. 57]. The European Patent Convention guarantees rights of utility models and utility

certificates and applications for utility models and utility certificates registered or deposited in

the Contracting States whose laws make provision for such models or certificates [6, Art. 140].

Trademark rights as product, customer value and solutionA Community trade mark may consist of any signs capable of being represented graphically

(particularly words, designs, letters, numerals, the shape of goods or of their packaging) provided

that such signs are capable of distinguishing the goods or services of one undertaking from those

of other undertakings.

A Community trade mark confers on its proprietor exclusive rights which are the solution precisely

mentioned in the research as product.. The proprietor is entitled to prohibit all third parties from using in

the course of trade:• any sign which is identical with the Community trade mark in relation to goods or services which are

identical with those for which the Community trade mark is registered;• any sign for which there exists a likelihood of confusion on the part of the public in relation to

another trade mark;• any sign which is identical with or similar to the Community trade mark in relation to goods or

services which are not similar to those for which the Community trade mark is registered, if the sign

is used to exploit the reputation or distinctive character of the trade mark.

The Community trade mark is registered for ten years from the date of filing of the application.

Registration is renewable for further periods of ten years. Necessitaty the payment of an

application fee and, where appropriate, one or more class fees. An application for a Community

trade mark must involve two searches, conducted by OHIM and the national industrial property

offices, in respect of existing Community or national trade marks or trade mark applications [7].

Design rights as product, customer value and solutionTo qualify for protection, designs must be new and have an individual character (they must be

different from existing products). The right to the Community design is vested in the designer or

his successor in title. The Regulation provides for two types of protection of designs directly

applicable in each Member State, i.e.:

• without any formalities, as an "unregistered Community design";

• As a "registered Community design", if it is registered with the OHIM.



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The characteristic feature of the protection granted to an unregistered Community design is that

it is short-term: it is protected for a period of three years from the date on which the design was

first made available to the public within the EU (the product was put on sale through marketing

or prior publication measures). This form of protection may be useful in sectors which produce

large quantities of designs intended for products which frequently have a short economic life.The provisions of the Regulation will thus allow them to qualify for a certain level of protection

without having to go through a longer procedure. In the case of the registered Community

design, the protection is for a minimum of five years and a maximum of twenty-five years.

The difference in the degree of protection conferred is that a registered design is protected

against both systematic copying and the independent development of a similar design, whereas

an unregistered design is protected only against systematic copying. A registered design thus

benefits from more formal and more comprehensive legal certainty [8].Industrial property valuation models and tools as pricing, consumer cost and value

As a manager, a chief executive officer, a research director, an accountant, an investor, a

corporate finance professional, an academic or a student, you probably need to be aware of the

value of IPR within your activity. There are a few of scopes involved in IPR valuation:

• Marketing of IPR – Stating the possibility to independently sell IPR owned by firms, an IP

valuation could provide the right information needed for a successful exploitation of

intangible assets. The sale or the purchase of IPR could thus represent an important resource

for the firm in order to obtain financial support or to allow further research activities.

• Licensing – In order to make an agreement to license IPR, a business must know as

accurately as possible the real value of the IPR concerned. An accurate IP valuation allows

licensor and licensee to estimate the financial terms of their licensing agreement addressing

the specific needs of both parties [9, p. 1].

IP valuating is a complex procedure taking into account economic, technology-related as well as

juridical factors. The heterogeneity of the factors concerned and the specific purposes addressed

in every valuation do not allow adopting one generally-accepted standardised IP valuation

model, but there is a variety of different models and tools comprising different approaches.

Moreover, it is important to consider that the elements which should be included in valuation

mostly depend on the specific IPR involved. In that respect, we are to explain the most

commonly used methods in order to provide users with a general overview on that issue [9, p. 2].

a) The market based method

It is devoted to asses IPR market value by reference to comparable market transactions. The

method basically consists of assessing prices and/or profits achieved by third parties in



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comparable market transactions, such as mergers and acquisitions as far as the IPR assets are

concerned, IPR sales or the grant of IPR-related licenses. An itemisation of such model is the

relief-from royalty method that takes into account only previous licensing royalties prices

determining the value of related IPR. Such methods imply serious problems mostly when

comparable transactions cannot be found with regard to the relevant IPR. b) The cost based method

This method assumes a direct impact of costs on the IPR value. It is based on the analysis of

costs necessary to replace the IPR concerned, as well as on costs that have been invested for the

development, application, maintenance and commercialisation of IPR, and on a consideration of

costs which may have been avoided by establishing IPR such as royalties for licensing-in a

related technology. The disadvantage of this method is that, not considering IPR market

indicators, it does not allow to establish a fair relationship between IPR costs and related IPR real market value.

c) The profit based method

Such method is the most comprehensive one as it aims at determining the IPR potential for

market revenue growth, the profit to be expected by the future commercialisation of the IPR

concerned1. This method analyses the nature of the asset, its legal status, its related marketability

as well as market conditions, likely performance and potential, and the time value of money. It is

illustrative, demonstrating (or not) the cash flow potential of the property and is highly regarded

and widely accepted in the financial community.

Like tangible assets, IPR can be used, sold, or otherwise commercialised in the market

depending on the firm’s strategy, and frequently represent the crucial element for drafting

business plans, building up IP portfolios, negotiating technology transfer agreements, managing

business partnerships, setting up start-ups or spin-offs, or for receiving or granting financial

investment [9, p. 2].

IP valuation consists of an interdisciplinary work drawing upon the understanding of technology,

law, economics, finance, accounting, and investment. IPR nature, operating context as well as

the high number of elements concerned, make it difficult to create a unified method for assessing

the value of IPR, however different models are currently used by professionals and academics

which allow a successful strategic management and commercialisation of IPR [9, p. 2].

Access to industrial property rights as convenience (Place in 4P’s)

1 Within this method according to the “discounted cash flow analysis” potential future profits and thus expected cash flows arediscounted by a discount rate to their actual current value. The projection of market revenues such as future licensing profits aswell as any avoided payments for licensing-in a technology from third parties is a critical step in the valuation [9, p. 3].



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National patent offices’ data bases have information about industrial property rights which are in

force in one or another country. The consumer can not buy industrial property rights anywhere,

but only in countries where such rights exist (anyway consumer can buy it in case of non-patent

license but the level of guarantees is much lower comparatively with usual industrial property

licenses). Only in countries where holder has protected his industrial property rights the patent

license can be given with all state protection guarantees in case of infringements.A Community industrial property may be licensed for the whole or part of the Community.

A license may be exclusive or non-exclusive. The consent of the right-holder is essential.

In the case of licensing clearly define the right relationship and terms for the licensing of

your IP in a licensing agreement. The license agreement that covers the merchandising activity

should include at least the following [10]:

• a detailed description of the specific IP rights and other elements which the licensee is

authorized to merchandise;• the specific types of products/services the licensed IP rights will be used for, and the

information on whether the agreement extends to the manufacture and/or distribution and sale of

those products and to the corresponding packaging and advertising materials;

• the countries in which the products or services will be sold or provided;

• the indication of the period during which the agreement applies, and the information on

whether the agreement can be prolonged after that period or, on the contrary, terminated before

that period under certain conditions (such as failure to manufacture and/or distribute, defaults in payments and, in general, any breach of the conditions of the agreement), including the

consequences of such early termination;

• a requirement for the licensee to keep the licensor informed of any third party

infringements of the IP rights of which he/she becomes aware;

• an indemnification clause which states that the licensee will protect the licensor from any

lawsuits that might arise from the merchandising activities;

•

the financial terms (advance payment against future royalties, royalty percentage, basis of calculation of the royalty amount, etc);

• the indication that the license is exclusive or non-exclusive;

• the indication whether or not the licensee may grant sub-licenses;

• the indication that the licensee should obtain the licensor’s prior approval with respect to

the manner in which the IP is used on or in connection with the products or services.

• Register the license agreement, if needed. Many countries require that a license be

recorded with the national IP office or other government agency [10].

Information about industrial property right as promotion and communication



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The role of e-infrastructures Continuous investments in e-infrastructures and ICT provide

competitive European advantages and serve as excellent examples of how coordination and

cooperation on a European level, paired with major research infrastructure advances, can

dramatically change the way research work is being conducted.High-performance communication networks such as GÉANT and its global extensions,

distributed (Grid) computing, web-based data resources and virtual presence tools enable and

accelerate the construction of collaborative communities of researchers. e-Infrastructures are

both catalysts for scientific cooperation and act as integrating mechanisms, effectively providing

what can be regarded as the ‘glue’ between the different scientific disciplines [11, p. 24]:

- Many research efforts require massive computing resources to tackle, for example, the

environmental ‘rand challenge’ on global warming or research in the biosciences and bioinformatics, both of which must integrate research efforts across scientific disciplines

- Modern research is impossible without permanent access to high-quality e-infrastructure:

computers, networks, on-line library resources, research data, the software tools to support

collaborative research (known as middleware) and to find and access data, and applications to

process and present research activity.

- Good access to and management of scientific data is a growing requirement. More and more

data is created in digital format only and can be saved for future shared use. Eventually there will

be a layer of scholarly and academic information resources, readily available to the research and

education community (and much of it to the public at large). This will enable and facilitate cross-

border, crossinstitution and cross-discipline access to other researcher’s data.

The e-Infrastructures are to a large extent financed by the Member States, and connected and

interlinked together through powerful global networks that, together with computing and

simulation facilities, enable and promote the use of virtual models to simulate, visualise and

solve complex research problems. The European Commission support is essential for sustaining

the advances in high-performance networking and computing, tools and applications to develop

international research communities, and the management and creation of research information

resources [11, p. 24].

CONCLUSIONS

Industrial property Marketing Mix Model consists of 4P’s:

1) Product: exclusive rights for industrial property (patents, designs, trademarks);

2) Price: valuation models and tools;



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3) Place: abilities for license relationship;

4) Promotion: spreading information methods.

The main aims of marketing manager in lifecycle of industrial property rights are the following:

• Making a correct choice of countries where industrial property should be protected;

• Marketing researches on technologies, innovations, intellectual property, goods markets;• Internal industrial property valuation;

• Searching methods of patents, technologies, innovations.

• Preserve control over the commercial use of firm’s intellectual property rights.

According to characteristics of industrial property Marketing Mix Model let’s analyze the

marketing manager role in industrial property lifecycle. Except trademarks, industrial property

rights are not renewable. It means that after their time of being in force (invention – for 20 years,

design – 25 years) any person or company can use it for free without any payments to their holders. That’s why it is very important to prepare industrial property rights for sale in period of

licenses maximum profitability. The role of marketing manager is to predict correctly the most

successful period for industrial property licenses selling taking in account innovative technology,

industrial property and product lifecycles as on figure 1.

Figure 1. Technology, industrial property and product lifecycles [12]

Innovative technology based on a novel invention protected as industrial property rights is shown

on Figure 1 as value curves. Till the moment of first sales transaction of innovative product thevalues of technology and industrial property rights usually are valuated by the cost-based



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method. After first innovative product units selling we can start evaluate technology and IP

rights value by the profit based method. With each month of product lifecycle industrial property

rights value will exceed and gain its maximum sum just right before active growth period

starting. This period is the most successful for license selling (shown by the letter T). But this

period is not so long because of new competitors’ patents appearing which make innovativetechnology better as whole. That’s why the main role of marketing manager is to predict the

moment of competitors inventions appearing and to sell during the most suitable period the most

expensive licenses. This money is the capital for new R&D.

From the other hand in the Community Innovation Survey – 2004 (CIS 2004) the enterprises

surveyed were asked to evaluate the importance of reduced time to respond to customer or

supplier needs. By the result between 21% (Luxembourg) and 1% (Portugal) of the innovative

enterprises considered “reduced time to respond to customer or supplier needs” a highlyimportant effect of organisational innovation. In general, this effect is not so important because

only eight out of the 20 countries in Figure 5.59 reached the 10% mark. Most innovative

enterprises seem to regard time savings more as a positive collateral effect of innovation which

do not play a large part in the enterprise’s overall innovation strategy [13, p. 147].

References:

1. Marketing Mix 4P’s model – from the Value based management web-site:http://www.valuebasedmanagement.net/methods_marketing_mix.html

2. Marketing Crafts and Visual Arts: The Role of Intellectual Property: A practical guide.

G e n e v a : I T C / W I P O , 2 0 0 3 . x i i i , 1 3 5 p . –

www.wipo.int/export/sites/www/sme/en/documents/pdf/marketing_crafts.pdf

3. Creative enterprises development – Document prepared by Mr. Xavier Greffe,

Professor, University of Paris, Sorbonne. WIPO International conference on intellectual

property and the creative industries. Geneva, October 29 and 30, 2007

www.wipo.int/edocs/mdocs/mdocs/en/wipo_ip_ind_ge_07/wipo_ip_ind_ge_07_13.pdf

4. Siva Marketing Model – http://www.daden.co.uk/pages/000163.html5. Proposal, of 1 August 2000 for a Council Regulation on the Community patent.

Intellectual property. Summaries of legislation. Activities of EU. EUROPA. –

http://europa.eu/scadplus/leg/en/lvb/l26056.htm

6. European Patent Convention (EPC 1973) – http://www.epo.org/patents/law/legal-

texts/html/epc/1973/e/ma1.html

7. Council Regulation (EC) No 40/94 of 20 December 1993 on the Community trade mark.


http://europa.eu/scadplus/leg/en/lvb/l26022a.htm



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8. Council Regulation (EC) No 6/2002 of 12 December 2001 on Community designs.


http://europa.eu/scadplus/leg/en/lvb/l26033.htm

9. IP valuation – scope and models. IPR-Helpdesk – h t t p : / / w w w . i p r -

helpdesk.org/documentos/docsPublicacion/pdf_xml/8_ES_IPValuation[0000006482_00].pdf

10. Savvy Marketing: Merchandising of Intellectual Property Rights. Lien Verbauwhede,Consultant, SMEs Division WIPO – http://www.wipo.int/sme/en/documents/merchandising.htm

11. Developing World-class Research Infrastructures for the European Research Area

(ERA) & Report of the ERA Expert Group (EUR 23320) Luxembourg: Office for

Official Publications of the European Communities 2007 — 48 pp.

12. Comparison of intellectual property valuation methods Zinov V. Shamshin S. – Journal:

Intellectual property (Kyiv, Ukraine) issue _ 4/2002 pp. 15-39

13. Science, technology and innovation in Europe. Luxembourg: Office for Official

Publications of the European Communities, 2008 – 233 pp.

Moy Se Yenko Pap

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