A detailed English summary was prepared for the course 'Patents and Innovation,' taught by Professor Liesbet Paemen during the academic year. This summary earned a score of 18/20. The content was thoroughly synthesized from attentive notes taken during lectures and the provided slides and course ma...
PART Ia: Introduction intellectual property rights, patent systems
1. Innovation
1.1. Definition of innovation
New and original products, services, ideas, … which are used in a market or society and add ‘value’ to a company and/or have
impact on society. Examples can be oral contraceptives, AB, vaccines, cellphones, computers, robots, etc.
Why should we protect innovations?
❖ Patent protection by granting ‘exclusivity’ rewards creators for innovations that are commercially successful
❖ Society benefits from the economic opportunities it creates.
❖ The revenues from these technologies provide for the financing of additional R&D endeavours
❖ The patent process turns an invention into a commercial asset (which can be sold or licensed).
❖ Intellectual property (IP) assets such as patents can also attract investors to the business. (exclusivity attracts)
❖ Info (made available) about the invention can inspire future creations, which may lead to additional patented innovations
❖ The mapping of patent information allows policymakers to see where valuable R&D is occurring, thus helping to shape
policy and regulation to support innovation.
Is there a need to innovate?
❖ Innovation is vital to competitiveness in the global economy
❖ Research leads to improved goods, services or processes for the market.
❖ Studies show that those companies that prioritise innovation experience the highest increase in turnover.
❖ Studies show that intellectual properties (IP) is appealing for the European economy (balance trade & job creation)
1.2. How has (recent) innovation affected your life?
Large impact examples: internet, mobile applications, healthcare solutions, etc.
Smaller impact examples: scanning in the supermarket, ballpoint pens that can erase, etc.
Innovation is stimulated by Governments
❖ Increases in spending budgets on R&D (Research and Development)
❖ Investment in education-tax incentives (rewards/bonuses linked to performances)
❖ Creating an environment which facilitates the start-up of new companies (and closing down unsuccessful ones)
Innovation is stimulated by European initiatives
❖ ‘The Lisbon strategy (2000-2010) recognized knowledge-based innovations as an economic priority’;
❖ ‘Europe 2020 strategy’ (2010-2020): 3% of GDP in R&D
❖ Horizon 2020 (2014-2020): €80 billion of EU research and innovation funding
❖ European structural and investment funds (ESIF): €110 billion to innovation activities
❖ Horizon Europe (2021-2027): €95.5 billion for research in different clusters
Innovation is stimulated by Universities
❖ Knowledge-based innovations aren’t only developed within ‘industry’ but also in university research
❖ Public research organisation like Unis need to transfer their knowledge & innovations to industry to be implemented
❖ Industry is always looking for knowledge and technologies developed at universities (or other companies) to develop a
‘knowledge-based economy’ s and to remain competitive
2. Basic principles of IP rights
2.1. Definition of IP rights (EXA QUESTION!)
A right of a patent holder to inhibit others from commercialising their ‘innovation’ without their permission, which requires
publication. Important for both ‘exclusivity’ and making information about the invention ‘public’ to stimulate future inventions.
Needed to …
❖ reward innovators to stimulate innovation
❖ stimulate innovators to publish their innovations - instead of keeping them secrets as this allows further innovation -
patents are published documents
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,Hence, why do IP rights exist ?
❖ To promote innovation by offering time-limited protection and to give incentive to share knowledge so that people can
learn (by requiring the disclosure of invention, i.e. publication of the IP right) so that research advances.
❖ It is a contract between society (receives knowledge) and the inventor (receives exclusive rights).
Importance of IP rights
❖ Supporting innovation
❖ Bringing innovation to society
❖ Necessary for business models in fields where there is high risk & huge investment
❖ In R&D which is risky & costly :
○ More that 90% failure rate for drugs in general
○ Higher for drugs targeting complex and poorly understood diseases
■ E.g., 2002-2012: failure rate for new drugs targeting Alzheimer’s disease: 99,6%
○ Often failure in phase 3 when a lot of costs have been made for clinical research & testing’
■ Often due to fact that larger patient groups are used and end-points are not well defined
■ The success of one marketised drug often provides for the failure of many drugs within one company
Importance of exclusivity in the pharmaceutical sector
❖ Exclusivity on the market vs. traditional competitors
❖ Ability to exclude generics
○ Make exact same product
○ Do not have R&D expense
2.2. Common vs specific features of IP rights
COMMON features SPECIFIC features
1. Exclusive rights over creations of the mind (such as 1. Difference depending on the nature of the creation
musical, literary, artistic, technical creations) 2. Ways of obtaining them
restricted in time 3. Requirements for obtaining them
2. Governed by legal procedures dictated by national 4. Ownership
laws based on international treaties 5. Period of protection e.g., different for patents,
3. They are territorial rights (mostly national or a trademarks, …
limited in a set of countries)
4. They become intangible assets (added value)
Types of IP rights
❖ Patent right ~ hard IP
❖ Trademark (protection of a name) ~ hard IP
❖ Copyright (text) ~soft IP
❖ Rights in designs (aesthetic look) ~ hard IP
❖ Plant variety protection
❖ Chip design
❖ Secret information/know how - Trade secret (less defined) ~IP-ish
National laws concerning IP rights were quite diverse. Various agreements to harmonise procedures.
The International Agreement on Trade related aspects of IP rights (TRIPS) aimed to further harmonise national laws !!
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,3. Patents
Principle of the patent system is ‘reveal/publish invention’ and ‘get exclusivity’.. so that others can learn from it and improve upon
it! Incentive to innovate and to share knowledge ~ keep the economy rolling !
❖ Disclose technical details of the invention
❖ Requirements of patentability
○ Novelty (it wasn't there before), inventiveness (it wasn’t suggested before), industrial applicability, enablement
○ Checked before grant or upon enforcement
❖ 20 year-term protection (+5 years extendible for pharmaceuticals and crop protection)
○ Starting from the filing date of the patent (even before the grantment of the patent)
❖ Utility patents/models: in some countries only like Germany (not in Belgium) a shorter time frame and criteria less strict
4. Trademarks
❖ Textual and/or figurative mark like colours to describe a product or service used in commercial settings e.g. catchy
name, phrase as slogan
❖ Can be used for products and services (only limited to a certain category)
❖ Look at novelty (not previously registered by another party) and possible confusion with other existing trademark names
❖ Must be distinctive (not descriptive, doesn’t describe a characteristic of the product)
❖ Renewed every 10 years
❖ Benelux/European/International registration (no trademarking on level of Belgium = too small area of interest)
5. Copyrights
“result of intellectual work”: text, design, lay-out, format, abstract, ... → AUTOMATICALLY !
Requirement: originality, marked by the maker
❖ Traditionally: literature, play, film, music, architecture, etc.
❖ More recently: computer software, TV programme formats, databases, business method formats, etc
❖ Also for: software, algorithms etc. in the field of life sciences (diagnostics, sequencing, etc.)
❖ Automatic, 70y (EU)
6. Model and designs
❖ Shape of product or pattern on product (technical details)
❖ Requirement: novelty
❖ Registration procedure
❖ 25 year protection
❖ National, harmonised European law
7. Other IP rights
7.1. Plant variety rights
❖ New, distinct and stable varieties of seeds, tubers & asexually propagated plants – excl. others from selling this variety
❖ Nationally, Community PVP
❖ Requires deposit of seeds or live tissue samples – will be cultivated to check if indeed a new variety
❖ 20-25 year term, depending on type of plant
❖ A plant variety is not patentable in Europe but patentable in the US!
7.2. Database protection
❖ Databases that show originality in its selection, coordination and arrangement; automatic right for 15 years
❖ Semiconductor topography or ‘chip’ rights…
7.3. Trade secret
❖ Technical or commercial knowledge that is kept secret within a company, organisation & provides a commercial advantage
like production process, screening method, client database, commercial strategy…
❖ Relies on the secrecy of everyone involved
❖ Must be documented clearly
❖ Biggest risk of exposing: former, fired employers that go work at another company → prevent this by informing these
employes what these secrets are and what the consequences are if they expose them
❖ EU directive (2016/943) on unlawful use, acquisition and disclosure
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, Summary: patents are expensive, others not; patents require a long time procedure, others not, others are less protective!
Part 1b: Patents and patent rights
1. Introduction
Linked with technical innovation
Knowledge of patents is relevant
❖ In research
❖ In doing business
❖ In product development
❖ For the general understanding of economics
❖ To avoid misconceptions
1.1. Basic principles of patent rights
❖ Patents cover technical advances
❖ “Claims” with technical features
❖ Temporary right in exchange for disclosure of invention (publication of application)
❖ Patents allow you to prevent others from commercialising your invention
○ You(r company) need to actively monitor third parties (theirself)
○ You(r company) need to pursue infringement before the court (theirself)
❖ Patents do not automatically allow you to commercialise your invention
○ There may be third party patents that can stop you
○ There may be national laws, regulatory requirements
❖ Patents are territorial rights
○ You need to apply in every country where protection is wanted
○ You can have exclusivity in one country, but not in another
○ Important choice but often cost (paying taxes) a lot if you want to be exclusive in many countries
○ Major markets: Europe, U.S.
1.2. Why consider patents?
1. Source of useful information ⇒ large part of scientific results published only in patents (not in articles)
2. Protection of own developments ⇒ ensure exclusivity which can ensure opportunities for further development
3. Awareness of third party rights
○ FTO (freedom to operate research → database search: status patents, claims & contact national db)
○ Avoid costly lawsuits
Source of scientific information
❖ Patents are an important source of technical information
❖ Avoid reinventing the wheel
❖ Staying aware of research developments
❖ Identifying existing technologies that can be licensed in
❖ Getting ideas for own research
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