This document discusses intellectual property (IP) management strategies in industry clusters. It begins by noting that collaboration between businesses, universities, and research organizations lags in Australia compared to other countries. The rest of the document provides examples of tools and programs from other countries to improve IP collaboration in clusters. It emphasizes the importance of building trust, shared values, and IP awareness among cluster participants to maximize the value generated through cluster projects.

1. IP Management in Industry Clusters
Richard Walker
Parallel 1.1 Common problems, common markets and shared value
creation
11 November 2014

2. IP Management in
Industry Clusters
Richard Walker
Director, TCI Network Oceania

3. Collaboration in Australian businesses lags
behind other countries
» Australia is 23rd out of 26 OECD countries in the
proportion of businesses collaborating on
innovation
» The Global Competitiveness Report indicators of the
extent of networking show that Australia is
considerably behind other OECD countries ranking
21st in cluster development and 34th in value chain
breadth.
» Collaboration between PFROs and innovation active
Australian businesses are particularly low

4. Intellectual Assets in Clusters
INTELLECTUAL
CAPITAL
HUMAN
CAPITAL
=knowledge that the
employee takes home
STRUCTURAL CAPITAL
+ what remains in the company
at the end of the day
MARKET CAPITAL
+ External relationships
More specifically More specifically More specifically
Knowledge Patents Collaborations
Know-how Trade-marks Partnerships
Competencies Designs Networks
Skills Copyright Customer lists
Education Trade secrets Product certifications
Experience Licences Brand
Training Franchises Goodwill
Inventions
Databases
Software
Work documents
Publications
After
Innovation Norway 2010

5. IP Management in Clusters
Requires
» Strong Collaboration between stakeholders
» Availability of easy to use tools to assist
collaboration
» Effective IP strategies to maximise value
from generated knowledge in cluster
projects
» Extent to which IP can be considered is
highly sector dependent

6. The mechanism of collaboration
» Creation of shared values
» Trust building – assisted by Cluster
Development Agent
» Open innovation
» Stakeholder commitment

8. Key challengers to collaboration
Lack of understanding of process by
potential collaborators, especially SME
industry
» Essential to build trust amongst
stakeholders and develop shared values
» Requires a Cluster Development Agent
» Managing intellectual property (IP)
» Negotiating terms of ownership

9. Actions to improve collaboration
» Establish consistent principles and model
contract templates for the management of IP
across public research organisations
» Encourage the development of educational
resources to assist PFROs, industry &
researchers to form and conduct collaboration.
» Ensure participants agree to a jointly developed
commitment codex
» Need a consortium agreement for each project

10. International programs developing Tools to
assist IP protection in collaborations
» Lambert Toolkit [UK]
» UIDP Contract Accords [USA]
» Recent European Research Areas Agreements [EU]
» Innovation Norway IP Rights for Clusters
» AEEMA – Intellectual Property in Clusters
» India – Cluster level IP Awareness Program
» Mexico, Nuevo Leon – Commitment Codex for Clusters
» Australia – IP Toolkit for Collaboration

11. UK (Lambert) & US (University-Industry
Demonstration Partnership)
UK Intellectual Property Office
• understand the issues
• understand the Model
Agreements
• improve communication
• reach agreement on principles
first
• choosing the right model
agreement & amend when
necessary
US UIDP Contract Accounts
• both university & industry
goals are met
• define project at the outset
• short-term wins should be
attainable and then outcome
built upon

12. Lessons learned, 2013 Lambert Toolkit
8 yr evaluation
Mixed results
• 80% of research community & 50%
of companies aware of toolkit
• Those aware mainly positive
• Templates (often modified) used for
only 10-15% of business-uni
collaboration
• Stakeholder experts needed in
design
• More effective communication
including case studies
For industry
• Lack of focus on new co-creation
mechanisms
• Large companies see Lambert
Toolkit biased towards unis
• Failure to address differences
between user groups
• Even when toolkit used SMEs
deterred by negotiation costs & time
frames
• Toolkit updated to remain relevant

13. University-Industry Demonstration Partnerships
» The purpose of the University-Industry Demonstration
Partnership (UIDP) is to enhance the value of collaborative
partnerships between university and industry in the United
States.
Ten sections:
Preamble
Statement of Work
Indemnification
Publications
Other Research Results
Background Intellectual Property
Foreground Intellectual Property
Expert Control
Copyright & Software
Confidential Disclosure Agreements
Material transfer Agreements

14. European Research Areas Agreements on IP
Management
Main elements of effective system to protect &
exploit IP
A system that enables the protection of IP that includes clarity
about the ownership of IP rights, rights to use IP, freedom of
parties to transfer [assign] IP & freedom to publish
A technology transfer framework, preferably with the provision
of specialised knowledge transfer offices with professional
staff
A fair law enforcement system in partner’s countries that
caters for dispute settlement but also that can award penalties
& sanctions

15. India – Cluster IP Awareness Program
» To sensitise the clusters about IP Rights & their
protection
To identify protectable innovations
» To suggest steps for transforming innovations
into proprietary assets
» To use IP information, particularly related to
patents & designs, for further R&D in developing
new products & processes
Utilise the IP information in their business
development

16. Commitment codex
» Participate actively in Committees
» Experience sharing
» Respect Confidentiality
» Strengthen the value chain
» Back up the projects
» Facilitate the needed resources
» Collaborate to create
Automotive Cluster of Nuevo Leon

17. AEEMA – Enhancing National Economic
Benefits through a new cluster paradigm
» Management of IP in Clusters
Inflexibility & generally undesirable outcome of leaving IP
ownership to the default statutory position
Need for an environment to foster participation and to cope
with the changing nature of participants in projects
Sometimes poor understanding by small firms of the basis
of IP and commercialisation of IP, particularly jointly
developed IP
Frameworks need to be developed for the fluid nature of
cluster participation in projects

18. Norway: Intellectual Property Rights for
Clusters
» IP issues should be addressed at application stage
IP policy guide should be a standard element in the
‘start’ package
IPR is an important tool for building a climate for co-operation
Acute need for IP awareness sessions for participants
Lack of commercial focus among Universities key
inhibitor to bringing output to market

19. Types of IP Protection
PROTECTION
METHODS
FORMAL
IPR
SEMI-FORMAL
Contracts
INFORMAL
This deals with: This deals with: This deals with:
Patents Confidentiality Secrecy
Trademarks Employee Inventions Publishing
Design Rights Recruitment freeze Restrictions
Copyright Non-competition Division of duties
Business Names Commercial use Circulation of duties
Geographical
indications
Fast innovation cycle
Integrated circuit
layout
Complex product
designs
Domain Name After Innovation Norway 2010

20. Effective IP management strategies to
maximise value of Clusters
» Build IP strategies around the cluster
business model
Need an IP awareness program for cluster
participants
» Develop a long term approach using
multiple informal/formal protection
mechanisms e.g. patents, trademarks,
copyright, secrecy etc.
» Have a program of commercialisation

21. References
» AEEMA AEEMA Enhancing National Economic Benefits through a new
Cluster paradigm Submission to Aust Govt Jan 2004
IP Australia IP Toolkit for Collaboration Consultation brief & presentation
June 2014
India CGPDTM & CII, FICCI, ASSOCHAM Cluster Level IP Awareness Program
2104
Innovation Norway Intellectual Property Rights for Clusters NCE & ARENA
2014
Matiaki, E Building Trust in SME Clusters SME Global Network 2012
Ryan,C & Phillips, P Intellectual Property Management in Clusters: a
framework for analysis University of Saskatchewan
UK HM Treasury Lambert Review of Business University Collaboration 2003
UK IPO Collaboration between Business & University: The Lambert Toolkit 8
years on 2013/26