1. Intellectual Property Right in
Digital Camera
IPR Movie
1m32
Lecture by:
Djadja.Sardjana@gmail.com
http://www.slideshare.net/djadja
23 January 2010 IMT MM-Biztel 1

2. Spotlight is on knowledge
in today’s economy
• Knowledge, Weightless, Information, Digital
or Service Economy
• Factors of production:
Land, Labor, Capital, Intangibles
(Knowledge)
• Knowledge as useful Information (or
Service)
• Information as a “Public Good”
• Information as Property

3. Centrality of Knowledge
KNOWLEDGE
underpins
PERFORMANCE

4. Knowledge Capital
Knowledge
Capital
Labour
Labour
Pre -industrial era Industrial era
Capital
The « knowledge
economy »
Knowledge
Labour

5. US COMPANIES’ INTANGIBLE
ASSETS AS % OF TOTAL ASSETS
Intangible assets
Physical assets
1982 2000

6. Market-oriented Economy
• Playing Field: Unfair competition; free riding
• National Legal Systems: Diversity (bilateral/regional/
international treaties or agreements)
• Adding Value : Meeting or exceeding market needs
or expectations
• Market research: Consumers’ needs, competing
products or substitutes, gaps
• Technological innovation as an element of
marketing

7. Challenges in Today’s Economy
• Government regulation, market participants and consumers;
globalization, deregulation, quotas, tariffs, subsidies, market
access or non-tariff barriers
• Supply exceeds demand; fickle demand, risk, lean retailing
• Trust and relationships: Consistency vs. Innovation
• Changing needs: need for creativity and/or innovation
• Mass production, custom made, personalization, co-
creation/designing
• Supply, demand, production, value chain or network
• Innovation/creativity:
Customer, supplier, consultant, partner, competitor, standards
, product liability, risk sharing, ownership

8. Competition and Cooperation in
Today’s Economy
• Property: Right to Exclude/use/enjoy
• Share/leverage
• Physical vs. Intellectual Property
• One to one vs. one to many
• Physical manifestation/link to carrier/medium or
fixation
• Nature of competing/substitute products:
Functional, equivalent, class, set, related goods

9. What is intellectual property?
• An exclusive
• property right
• in intangible products
• of investment, creative intellect, or labor
• owned by the creator or by someone who
purchased it from the creator
23 January 2010 IMT MM-Biztel 9

10. Why does it exist?
• Incentive to create
– Ability to recoup investment
– Control over how a creation is used
– Recognition for unique ideas
• But without unduly restricting competition
– Limited duration
– Some public uses are still allowed
– Disclosure encouraged so others can improve on
the idea
23 January 2010 IMT MM-Biztel 10

11. Intellectual Property:
A Tool for Development
“In the age of the knowledge economy, the efficient
and creative use of knowledge is a key determinant of
international competitiveness, wealth creation and
improved social welfare.”
“An effective intellectual property (IP) system
embedded within a national strategy which anchors IP
considerations firmly within the policy-making process
will help a nation to promote and protect its
intellectual assets, thereby driving economic growth
and wealth creation.”
Kamil Idris
23 January 2010
WIPO Director General
IMT MM-Biztel 11

12. Types of IP Rights
• Trade Secrets
• Copyright and Related Rights
• Industrial Designs
• Trademarks (Brands)
• Geographical Indications
• Utility Models and Patents
• New Varieties of Plants
• Unfair Competition
23 January 2010 IMT MM-Biztel 12

13. The Needs of Each Stage
•Recruitment
•Business
•Corporate and
Development
Secretarial
•A & P
$ •Financial
•Market Access
•Training
•PR and Marketing
•Networking
•Business Expansion
•Business Plan Development
•Prototype/ POC •International support and
•Project Management Mkt. Access
•Business Premises Start-Up •Diversification strategies
•Project Management and support
•Management Training •Recruitment
Seed •Training and Incentives
Idea / Concept
Time
IP Management Needed in all stages
23 January 2010 IMT MM-Biztel 13

14. The Challenges to the IP System
• Expand, adapt, fine tune, harmonize
• New categories (Sui generis systems)
• National, regional or global
• National treatment vs. reciprocity
• Digital environment and E-commerce
• Legal jurisdiction, applicable laws
• Fit for purpose: Clear, fast, cheap and
effective
• Simple and cogent

15. Basic Message 1
IP adds value at every stage of the value chain
from creative/innovative idea to putting a
new, better, and cheaper, product/service on the
market:
Patents / Trademarks/ GIs
Utility Models/Trade secrets Ind. Designs/Patents/Copyright
All IP Rights
Patents / Industrial Designs/
Utility models Trademarks/GIs
Invention
Commercialization
Marketing
Financing Product Design Exporting
Literary / artistic Licensing
creation
Copyright/Related Rights
23 January 2010 IMT MM-Biztel All IP Rights 15

16. Basic Message 2
• IP Strategy should be an integral part of the
overall business strategy of an Enterprise
• The IP strategy of an Enterprise is influenced
by its creative/innovative capacity, financial
resources, field of technology, competitive
environment, etc.
• BUT: Ignoring the IP system altogether is in
itself an IP strategy, which may eventually
prove very costly or even fatal
23 January 2010 IMT MM-Biztel 16

17. Basic Message 3 (More for Less)
• Own Use
• Licensing
• Franchising
• Merchandising (Mickey
Mouse, Hello Kitty)
23 January 2010 IMT MM-Biztel 17

18. Camera Industry Analysis
• Fierce competition between camera makers
Market Share in the Digital Camera Industry, 2006
Canon
18,70%
Sony
31,50%
Kodak
Olympas
15,80%
Samsung
7,60% Nikon
10%
7,80% Other
8,60%

19. Camera Industry Analysis
The Tendency of Digital Camera Industry:
• The designs of the digital cameras become
more classic and stylish.
• A higher level of face detection technology
and intelligent scene recognition
technology make shooting easier.
• Intellectual Property Rights become matters
as many patents and licensing involve.

20. Camera Data Structure & IPR Elements
• Image Creation metadata
– Camera capture, scanner capture, image
source, creator, <capture settings>, <scanner
capture>, <captured item>
• Content Description metadata
– Caption, capture
time, location, person, thing, organization, event, audio, di
ctionary reference
• Metadata History metadata
– Processing summary, processing hints
(cropped, transformed, retouched)
• Intellectual Property Rights metadata
– Names, description, dates, exploitation, identification, con
tact point, IPR history
To Have and To Hold: Metadata
and Institutional
Repositories, 18 May 2004

21. Challenges of Camera Maker
• The continuous price reduction
- the brand image
- lead to a shortage of capital
• The image of is too complicated
- In India, SPE
- In Japan, an electronic company
- In U.S., an Entertainment company

22. Competition Analysis
Canon
• The number one company in the digital camera industry
• Strong technical strength and marketing ability
• Produces the best cameras for shooting portraits
• Not as fashionable as Sony’s
• Relies on its brand recognition

23. Competition Analysis
Nikon
• Top-ranking SLR digital cameras
• High-end consumer digital camera market
• Not well accepted by low-end market users
• No self-produced CCD
(Charge-coupled device, an electronic
light sensor used in digital cameras )

24. Competitor Analysis
Kodak
• Wrong decision in 2006
• Boring color
• Appearances are less
prominent
• Quit the digital camera
industry on August
1, 2006

25. Competitor Analysis
Samsung
• Slim appearance and colorful design
• Strong capability in electronic technology
• Shortage of core technologies

26. Competition Analysis
Panasonic
• The leader of electronic products
• Develops its own CCD sensor device
• Weak fundamental of optical technology
• Higher prices

27. Camera Maker SWOT Analysis
(Sony Case)
Strengths
• Brand image: new and high quality, CCDs
• Global operations: 204 countries. Sales(2007):
US(26.9%), Japan(25.6%),Europe(26.6%).
Global producing ability: Japan(50%).
• Professional design and R&D team. Survey:
30% customers; Technology

28. Camera Maker SWOT Analysis
(Sony Case)
Weaknesses
• SG&A expenses. Operating profits 69.3%
(2007)
• Legal proceedings. In 2004, Eastman
Kodak VS Sony for 10 patents.
• Not easy to operate. Survey: 24% customers.

29. Camera Maker SWOT Analysis
(Sony Case)
Opportunities
• Business reorganization: $1.2 billion
and $0.3 billion in 2006 and 2007.
• Partnership with FIFA (Federation
International de Football
Association), 2007,8,40,2

30. Camera Maker SWOT Analysis
(Sony Case)
Threats
• Integration of alliances and joint ventures.
S-LCD(Samsung) 2004. SONY BMG (Bertelsmann)
Cultures and Interest Conflicts.
• Intellectual Property Rights
• Raw material prices. $350 (2008).
• Intense competition.
Patent Wars
4m32