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Are startups IP-compatible A feedback from the French PTO Alexis Martin, INPI – I3PM meets Academia 2018, March 13, 2018

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Are startups IP -compatibleA feedback from the French PTO

Alexis Martin, INPI – I3PM meets Academia 2018, Marc h 13, 2018

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Institut National de la Propriété Industrielle

750 employees

HQ in Courbevoie (near Paris)

18 local branches

10 international representations : Beijing, Rabat, Abu Dhabi, Singapour, Moscow, Delhi, Washington, Seoul,

Ankara and Brasilia

“Traditional” Missions :

• Granting IPR

• Carry out IP laws/regulations

• International representation

• Information and training

March 13, 2018 / INPI – I3PM meets Academia 2018

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INPI, at the service of business development

Target : Innovative, fast growing, exporting busine sses (SME and ISE)

March 13, 2018 / INPI – I3PM meets Academia 2018

“INPI N ew Deal” : from a administrative PTO to an economic support structure (INPI Roadmap 2013-2016)

Beyond our basic mission to register and grant IP rights

Support companies in their use of IP

Developcompetitiveness

Economicgrowth

Create jobs, enhanceexport…

3 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

INPI, at the service of business development

IP applications fully digitalized

Meeting at local branches by

appointment only

Setting up a long term and regular

relation

A collaborative approach

(Chambers of Commerce,

Clusters, Patent attorneys ….)

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Our offer : INPI COACHING

March 13, 2018 / INPI – I3PM meets Academia 2018

IP STRATEGYI/ Company visit

First contact with the company

Informal exchange (no deliverable)

� Objective : answer questions, explain IP tools

Free of charge

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Our offer : INPI COACHING

March 13, 2018 / INPI – I3PM meets Academia 2018

IP STRATEGYII/ IP Prediagnostic

For deep IP problematics

Action plan delivered by a professional

� Objective : Give a written report with recommendations to optimize IP and

innovation

Free of charge(cost for INPI: 1500 €)

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Our offer : INPI COACHING

March 13, 2018 / INPI – I3PM meets Academia 2018

IP STRATEGYIII/ IP PASS

Help the company to apply our recommendations

Fund IP procedures :Patent Watch/Search

IP contractFile an IPR abroad

Litigation

INPI funds up to 5 000 €per company

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Our offer : INPI COACHING

March 13, 2018 / INPI – I3PM meets Academia 2018

IP STRATEGYIV/ IP Master Class

3 000€(real cost : 10 000 €, 70%

funded by INPI)

6 days training over 6 months

Including 4 coachings on a topic chosen by the company

� Objective : train the company to develop its IP strategy

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Other services and economic environment animation

Patent Landscaping Reports Workshops & conferences

Corporate IP Professional Association La PI en Fête

March 13, 2018 / INPI – I3PM meets Academia 2018

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INPI, startups and IP

March 13, 2018 / INPI – I3PM meets Academia 2018

What could we do to let startups enforce good IP pr actices ?

Do startups have specific needs in term of IP ?

Is there a need to adapt our offer to these possibl e specific needs ?

Step One : Definition � what is a startup ?

Step Two : Survey � ask startups, funders, IP Pro, Incubators & clusters

Step Three : Benchmark � What do other countries do ?

10 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

Independent and registered business

AND R&D expenses – Innovative

AND Needs financing (fund raising), high growth opportu nity

AND Flexible, agile

AND Young (< ten years)

OR

What is our definition of a start-up ?

Business/project considered as a Start-Up by econom ic organization

who are supporting Start-ups .

11 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

What 60 Startups told usTheir key concerns

Financing

Finding a way onto the governmental maze

Support systems too slow

About IP

70% poor IP awareness

Lack of time and money

INPI’s offer not clear enough

The e-filling trap

Their IP needs

Early-stage customized support

IP action toolkit

Long term support

Key-topics : Trademark, confidentiality,

traceability, Database, software…

12 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

What Funders told us

3BanksVenture capitalistsBusiness AngelsRegional Councils

How funders view IP

IP as a barrier to enter the market

No IP, no money

Mixed feeling in the digital economy

IP as a second-class topic

Their IP needs

IP in the digital area

(too ?) Strong focus on patent !

13 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

What IP Pros told us

We interviewed 16 patent attorneys and 11 lawyers

Key points

Startups = 20% of the client portfolio

Lack of money to correctly deal with IP

Low level of IP knowledge

Often in an emergency situation

No specific offer for Startups

Their needs

« It would be great if INPI could spend more resources

on educating startups »

Examination fast-track for startups

14 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

What Support Structures told us

We interviewed 2 competitiveness clusters , 11 incubators , 1 chamber of commerce , 2 Innovation Agencies and 1 TTO

What they told us

Over 60% of startups in the digital area

IP as a protection and valorization tool, critical

role to raise funds

Low level of IP awareness, growing interest

Startups need training and customized support

on IP, especially IP strategy

IP cost is a problem

Their needsSupport on IP valuation

Enhance communication

with startups

Lower fees

15 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

The Benchmark : India

Startup India (2016)

4500 startups

Bengalore Tech Park (IT, Finntech)

https://www.startupindia.gov.in/

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Startup Definition

Entity incorporated or registered in India

< 7 years, < 10 years for Biotechnology Startups

Annual turnover < 3,5 M€

Working towards innovation, R&D, improvement of products or services…

Scalable business model with a high potential of employment / wealth creation

Not formed by splitting up of a business already in existence.

Startups needs to be officially approved by an incubator certified by India

The Benchmark : India

17 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

India

Startup Definition (As defined by DIPP)

• entity, incorporated or registered in India :

• Not prior to seven years, however for Biotechnology Startups not prior to ten

years,

• With annual turnover not exceeding 3,5 M€ in any preceding financial year, and

• Working towards innovation, development or improvement of products or

processes or services, or if it is a scalable business model with a high potential of

employment generation or wealth creation

• Provided that such entity is not formed by splitting up, or reconstruction, of a

business already in existence.

The Benchmark : India

18 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

Facilitator services

General advisory on different IP rights on pro bono basis

Information on protecting and promoting IPRs in other countries

Assistance in filing and disposal of the IP applications

Drafting complete/provisional specifications for inventions of startups

Appearing on behalf of startup at hearings

Ensuring final disposal of the IPR application.

The Benchmark : India

Empaneled Facilitator : support entities labeled by the Indian Government to help startups.

Facilitator fees are regulated by the Indian govern ment. Startups only have to pay statutory fees for each IPR filed in In dia or abroad

19 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

The Benchmark : Korea

Startup definitionA company with a business model expected to grow rapidly on

new ideas or technologies , usually a company not listed on the

stock market or merged with a big company

20 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

The Benchmark : Korea

OASIS : Overall Assistance for Startup Immigration System (2014)

Objective : attract foreign startups in Korea, base d on their IP

Point system -based, mostly on innovation and IP

21 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

The Benchmark : Korea

OASIS : Overall Assistance for Startup Immigration System (2014)

80 points needed to get a Visa

Patent Application = +20 points

Patent Granted = +80 points (!)

18 hours beginner IP course participation = +15 points

25 hours advanced IP course participation = +25 points

22 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

The effect of OASIS Project on Korea

IPR as a collateral

IPR is known as a driver to fund raising

Prior to 2013 : banks quite reluctant to grant a financing based only on IP

After 2013 : the public authorities urge banks to grand loans based on IP as a

collateral

The Benchmark : Korea

23 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

IP Evaluation and financing

Patent evaluation carried out by KIPA (Korean Invention Promotion Association)

/free of charge for the SME : paid by the KIPO or the government

Korea Development Bank loan program launches in 2013 :

• Loan up to 1,6 M€ / 180 businesses, for a total of 150 M€

• Other system : IP based third-party guarantee (the risk taker is not a bank, but a

3rd party).

The Benchmark : Korea

24 / 37 March 13, 2018 / INPI – I3PM meets Academia 2018

Conclusion

Startup identification

Fast moving innovative structure, limited time resources

High need of money

Significant proportion in the digital economy

Low level of IP awareness

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Conclusion

Some tips to sell IP to startups

Be where startups are

IP wrapped for startup : digital protection, trademark…

IPR as a communication / fundraising driver

Adapt IPR examination timeframe to startup speed (IA,

Blockchain…) �Examination fast track, reduced fees

Do not only speak about Patent !

Expand your area of expertise : Personal data, Business Models,

infringement, counterfeit…

Are startups IP -compatibleA feedback from the French PTO

Alexis Martin, INPI – I3PM meets Academia 2018, March 13, 2018

Thank you for your attention