Controlling the value in software companies
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The document discusses the importance of intellectual property (IP) in software companies, focusing on asset control, commercialization, and legal protection. It highlights various types of IP assets including copyrights, trademarks, designs, and trade secrets, emphasizing their strategic value for competitive advantage and transaction facilitation. Additionally, it provides examples of how software companies can navigate IP issues during different stages of development to secure their unique assets.
Controlling the value in software companies
- 2. Bergenstråhle & Partners IP Consultants IP Creation & Management IP Law & Litigation Process & Strategy Commercialisation & Valuation
- 3. Software To value developed software assets Function/Unicity Performance compared to competition Development cost Development phase Option value User base Control over and access to assets Scope of protection Ease of detection Protected part of value
- 4. ”Commercialization”? Why IP, why control? As barriers to entry – to deter others (and enforce if needed) As objects for transactions – to enable business opportunities As a tool for communication – to drive company value Control ≠ blocking others Control = decide how the assets can be used
- 5. Software Companies with high ratio of intellectual assets Traditionally the assets can be seen as: Intellectual assets in an industrial company 20% Intellectual assets in a knowledge-based company 80% Example redacted.
- 6. Software Define the assets in software companies Human capital Databases Source code Algorithms Technical implementations related to HW Graphical representations Brand GUI Relationships User base
- 8. Software Linux Kernel example GPL v.2 1. You may copy and distribute verbatim copies of the Program's source code as you receive it, in any medium, provided that you conspicuously and appropriately publish on each copy an appropriate copyright notice and disclaimer of warranty; keep intact all the notices that refer to this License and to the absence of any warranty; and give any other recipients of the Program a copy of this License along with the Program. You may charge a fee for the physical act of transferring a copy, and you may at your option offer warranty protection in exchange for a fee. Image redacted
- 9. Software Linux trademark example Trademark no. 000851246 “LINUX” Linus Trademark Institute “The Linux Mark Institute (LMI) protects the public and Linux users from unauthorized and confusing uses of the trademark and to authorize proper uses of the mark through an accessible sublicensing program. In affiliation with the Linux Foundation, LMI is able to offer a free, perpetual, world-wide sublicense to approved sublicense applicants. In return, the sublicensee holders must agree not to challenge Linus Torvalds' ownership of the Linux mark in any jurisdiction, and to provide proper attribution of ownership on their goods, services and elsewhere. The Linux Sublicense Agreement is available for review.” - Linux Foundation Licensed under Creative Commons Attribution 3.0 License. Image redacted
- 10. Software Google example Design reg. no D620950 Design description: The ornamental design for a display screen of a communications terminal with teardrop-shaped marker icon, as shown and described. FIG. 1 is a front view of a teardrop-shaped marker icon in an embodiment of the present invention, the teardrop- shaped marker icon including a shadow. Image redacted
- 11. Software YouTube example Community trademark reg. no 012177366 16. Paper and stationery items, namely, notebooks, pens, and pencils, adhesive backed stickers. 29. Meat, fish, poultry and game; meat extracts; preserved, frozen, dried and cooked fruits and vegetables; jellies, jams, compotes; eggs; milk and milk products; edible oils and fats. 30. Coffee, tea, cocoa and artificial coffee; rice; tapioca and sago; flour and preparations made from cereals; bread, pastry and confectionery; ices; sugar, honey, treacle; yeast, baking-powder; salt; mustard; vinegar, sauces (condiments); spices; ice. 39. Transport; packaging and storage of goods; travel arrangement. 43. Services for providing food and drink; temporary accommodation. 45. On-line social networking services.
- 12. Software Microsoft example Design reg. no 001432512-0014 Design description: Display screens with user interface Image redacted
- 13. Software Facebook example Patent reg. no US7669123 B2 Claim 1. A method for displaying a news feed in a social network environment, the method comprising: monitoring a plurality of activities in a social network environment; storing the plurality of activities in a database; generating a plurality of news items regarding one or more of the activities, wherein one or more of the news items is for presentation to one or more viewing users and relates to an activity that was performed by another user; attaching a link associated with at least one of the activities of another user to at least one of the plurality of news items where the link enables a viewing user to participate in the same activity as the another user; limiting access to the plurality of news items to a set of viewing users; and displaying a news feed comprising two or more of the plurality of news items to at least one viewing user of the predetermined set of viewing users. Image redacted
- 14. Software IBM example Patent appl. no US 20140047099 A1 1. A multi-cloud monitor system, comprising: a plurality of provider multi-cloud monitors configured in respective cloud computing environments to obtain performance data on the cloud computing environments; a consumer multi-cloud monitor configured in a cloud consumer computer to retrieve the cloud performance data from the provider multi-cloud monitors; and a user interface coupled to the consumer multi-cloud monitor to present the cloud performance data to a user.
- 15. Software Identify key assets Competitive advantages Value propositions USPs
- 16. Software Define the assets in software companies Human capital Databases Source code Algorithms Technical implementations related to HW Graphical representations Brand GUI Relationships User base
- 17. Software Ownership & Access Do you own your key assets? Source code Employee Consultant Creative works (databases, GUI, images, texts) New ideas?
- 18. Software Data – Ownership vs. Access What do we need to access? What do we own? What are we allowed to do? – Data regulation
- 19. Software Find the tools Patents Trademarks Design rights Copyrights Trade secrets Agreements
- 20. Software Right tool for the assets Patents – Concepts, ideas Trademarks – Graphical representations Design rights – Graphical representations Copyrights – Creative works incl. Source code, databases, photographs, sounds and songs, text. Trade secrets – Valuable information that is kept secret Agreements – Control the relationship
- 21. Software Agreements (End user) license agreements What is the user receiving? – Define the product/service What should the user do to get the product/service? Pay? Contribute? Warranties Indemnification Liability
- 22. Software Asset risks Open Source … What happens if you don’t comply? What happens with proprietary code if OS code is incorporated? Patents can be “infected” Data regulation Relationship based assets
- 23. Software An example Mjukvarubolaget AB creates a new app that will optimize what activities you should do during your workday based on previously obtained figures from a smart watch. For example, if the smart watch have indicated that you always go past the grocery store on Wednesday evenings at 9 pm, the software will suggest that you buy your groceries when you pass the store at 9 pm. The competitive advantage of the software is that it has a lot of information available about other users and how they optimize their days. The question is how should they build the software to enable the desired control?
- 24. Software An example The whole software, including the database is provided to the customer in an app. Tool for control: copyright, EULA Pros: Instant access, no need for internet access. Cons: Easier to retrieve the data, harder to control the dissemination of the data. The customer is provided with an app, the database is accessible in the cloud. Tool for control: Trade secret Pros: The data can be controlled by the company. Cons: Need for internet access.
- 25. Software The lesson If the database is the a key asset it is better to keep it as a trade secret if the company does not want to disseminate the database…
- 26. Software Another example – development of software Development start • Low on cash Tools: Use agreements and trade secrets Acquire users • Still low on cash • Build a brand • File trademarks Develop hard IP • More cash • File design rights • File patents Stage 1. Stage 2. Stage 3. The problem is that you will need to predict what you will do at stage 3 so you know how to act at stage 1. during the development of the value proposition (the software product). If you don´t, you might not be able to effectively control your competitive advantage at a later stage in the growth of the company.
- 27. Software The lesson Plan the development of software ahead to enable the development of control of key assets.
- 28. Software Q&A Johan Örneblad Attorney at Law, LL.M. Intellectual Property Law & Strategy Tel: +46 73 975 63 81 Email: johan.orneblad@bergenstrahle.se Twitter: JohanOrneblad Linkedin https://uk.linkedin.com/in/johanorneblad Johan Corell Attorney at Law, LL.M. Intellectual Property Law & Strategy Tel: +46 8 505 657 08 Mobil: +46 7 653 457 64 Email: johan.corell@bergenstrahle.se Linkedin https://se.linkedin.com/in/johancorell