IP Fridays - your intellectual property podcast about trademarks, patents, designs and much more

My Co-Host Ken Suzan and I are welcoming you to episode 163 of our podcast IP Fridays! Today’s interview guest is Lucy Wojcik, who is Chief Intellectual Property Counsel at OCADO GROUP PLC, and we talk about cross-border patent litigation, in-house organization of IP teams, agile IP and much more! Lucy has just been inducted into the IP hall of fame. But before we jump into this very interesting interview, I have some news for you. On May 22, the European Commission released its biennial report on the protection and enforcement of intellectual property rights in third countries. The report identifies countries where IP deficiencies cause significant economic harm to EU interests. China remains a top priority, followed by India and Türkiye. The accompanying Counterfeit and Piracy Watch List details trends in counterfeiting and piracy, listing problematic websites and marketplaces. In May, the Trump administration dismissed Shira Perlmutter, the top U.S. copyright official, shortly after removing Librarian of Congress Carla Hayden. These actions followed the Copyright Office’s report expressing concerns about using copyrighted content to train AI systems. The dismissals have sparked significant backlash from the copyright community. The UK government’s proposal to amend copyright laws to benefit AI developers has faced criticism. The plan would allow tech firms to use copyrighted content unless creators opt out, a mechanism deemed impractical by industry stakeholders like Sony Music. Critics argue that such changes could jeopardize investments and disrupt existing licensing negotiations. In May 2025, the U.S. Patent and Trademark Office (USPTO) rejected Tesla’s attempt to trademark the term “Robotaxi” for its vehicles, citing that the term is too generic and merely descriptive. The USPTO issued a “nonfinal office action,” providing Tesla with a three-month window to respond before the application is potentially abandoned. A separate application by Tesla to trademark “Robotaxi” for its upcoming ride-hailing service remains under examination. Additionally, Tesla’s efforts to trademark “Cybercab” have been delayed due to conflicts with existing trademarks containing the word “Cyber.” On May 9, 2025, the WHO and the Medicines Patent Pool (MPP) announced a sublicensing deal with Nigeria’s Codix Bio to locally produce rapid diagnostic tests using SD Biosensor technology. The agreement, part of WHO’s Health Technology Access Programme, aims to improve access to affordable diagnostics in low- and middle-income countries, initially targeting HIV and adaptable for other diseases and future health emergencies. Now, let’s jump into the interview with Lucy Wojcik! From Consultant to Chief IP Counsel: How Lucy Wojcik Built Ocado’s IP Powerhouse In the latest episode of IP Fridays, I had the pleasure of speaking with Lucy Wojcik, Chief IP Counsel at Ocado Group PLC, who shared her remarkable journey from external consultant to head of one of the most dynamic in-house IP teams in Europe. Recently inducted into the IP Hall of Fame and awarded “In-House IP Leader of the Year” by Managing IP, Lucy offered deep insights into how to build a scalable, resilient IP strategy inside a fast-growing tech company. A Career Built on Curiosity and Timing Lucy began her journey with Ocado in 2014, initially working just one day a month as an external consultant. It didn’t take long before she realized the company’s immense innovation potential. Gradually increasing her involvement, she joined full-time two and a half years later as Ocado’s first Head of IP. Today, she leads a team of 11–12 people, reflecting not only the company’s growth but also its expanding innovation pipeline in robotics, automation, and AI-driven logistics. IP Strategy in a Complex Business Model Ocado’s business model is unique: while the company operates its own online grocery platform in the UK, it also licenses its proprietary logistics and automation systems to other grocery retailers internationally. This dual role—as both operator and service provider—demands a sophisticated and forward-thinking IP strategy. According to Lucy, about 40% of Ocado’s patent portfolio protects technologies actively in use, with the remainder covering speculative innovations and future business directions. Some speculative patents filed as early as 2015 have since become core to the company’s latest commercial offerings. Orchestrating One of the Largest IP Litigations in Europe One of the most impressive parts of Lucy’s story is her leadership during Ocado’s multi-jurisdictional litigation against AutoStore. Beginning in October 2020, this sprawling legal battle involved more than 150 lawyers across forums such as the US International Trade Commission, the UK High Court, the EPO, and courts in Germany and Israel. At its peak, Ocado faced 28 EPO oppositions and simultaneous proceedings in numerous jurisdictions. Lucy candidly described the experience as “the world’s biggest project management challenge.” She served as the linchpin between Ocado’s executive team and its external counsel, ensuring a tightly coordinated response across legal, technical, and commercial teams. Her team developed simple tools—like one-slide patent summaries with visual elements—that proved essential in communicating complex legal developments to non-IP stakeholders across the business. Embedding IP into Agile Engineering Workflows One of Lucy’s most forward-looking approaches is how she embedded her team into Ocado’s agile engineering culture. Rather than acting as gatekeepers who respond to invention disclosures, the IP team participates in sprint planning, stand-ups, and engineering away-days. This integration allows the team to identify and protect innovations in real-time—even if it means occasionally filing imperfect or early-stage patents. Lucy sees this as a worthwhile trade-off for ensuring IP is deeply connected to the business’s fast-paced product development. A Culture of Practical IP Leadership Throughout the interview, Lucy emphasized the importance of delivering IP value that aligns with business reality. Her mantra: “Do the best you can in the moment with the resources you have.” Whether it’s advising on NDAs, coaching engineers on what they can say at conferences, or managing overlapping international filings, Lucy’s philosophy is grounded in practical, context-aware decision-making. Advice to In-House Counsel: Know Your Audience Lucy closed the conversation with timeless advice for IP professionals working in-house: always tailor your communication to the recipient. Whether writing to the CFO, CEO, or a junior engineer, it’s essential to consider what that person needs to know—and to deliver it clearly. She even introduced a practice borrowed from engineering culture: the “TL;DDR” (Too Long; Didn’t Read) summary at the top of her emails, followed by deeper analysis below. Lucy Wojcik’s journey is not just about managing patents—it’s about aligning IP with business strategy, empowering engineering teams, and leading under pressure. Her experience is a masterclass in modern in-house IP leadership. Rolf Claessen: Today’s interview guest is Lucy Wojcik. If you don’t know her, she’s the Chief IP Counsel at Ocado Group. She was recently inducted into the IP Hall of Fame and is also a member of the IAM Strategy 300. She was awarded “In-House IP Leader of the Year” by Managing IP. Thank you very much for being on IP Fridays, Lucy. Lucy Wojcik: It’s a pleasure. Nice to talk to you. Rolf Claessen: You lead quite a large IP team. Maybe you can tell us first how you got there. What was your role at the beginning, and how did you become Chief IP Counsel? Lucy Wojcik: It’s quite an interesting story. I sometimes call it the longest job interview in history. I started as a consultant in January 2014 for just one day a month. Over time, I realized there was a great team with lots of innovation and opportunity, so I gradually increased my involvement. After two and a half years, I officially joined as Head of IP—the first person in that role. Over time, I grew the team to around 11 or 12 people, especially as we faced significant litigation and an increase in R&D activity. I was named Chief IP Counsel in April 2021. Rolf Claessen: Let’s talk about your patent portfolio. It’s very diverse—autonomous vehicles, robotic arms, software. Can you give us an overview? Lucy Wojcik: The portfolio mirrors what the company does. Around 40% protects our active work—robots, software, methods. Some of it is speculative, and sometimes that pays off. For example, a speculative filing from 2015 turned out to be vital for a major new piece of equipment. We also invest in other ventures, like a 3D printing company or vertical farming, and our IP strategy reflects that diversity. Rolf Claessen: Ocado also licenses its systems to other retailers, who might be seen as competitors. How do you manage that? Lucy Wojcik: Ocado Retail operates only in the UK, in a joint venture with Marks & Spencer. Outside the UK, we are a systems provider. It avoids direct competition and allows us to test and showcase innovations in the UK before offering them abroad. Our retail operations also help us understand our partners’ challenges. Rolf Claessen: You’ve become well known for managing large-scale litigation. Can you walk us through that? Lucy Wojcik: We had extensive litigation with AutoStore, which started in October 2020. It involved cases in the US, UK, EPO, Germany, Israel, and even the UPC. At the peak, we were handling 28 oppositions at the EPO and coordinating over 100 legal professionals globally. My role was project management—connecting external counsel with internal stakeholders and ensuring a coherent strategy across jurisdictions. Rolf Claessen: How did you manage such complexity? Lucy Wojcik: Early on, we created one-slide summaries for each patent, which helped communicate internally. It’s about translating legal risk into business terms—especially when communicating with 5,000 employees who aren’t IP experts. Rolf Claessen: I was surprised to hear that your IP team works closely with engineers using agile methods, sprints, and scrums. That’s unusual for IP departments. Lucy Wojcik: Yes! We are deeply embedded in the tech teams. We join their meetings and sprints, which lets us identify protectable inventions early—even if that means filing provisional or imperfect patents. It’s not always efficient from a classic IP perspective, but it makes our work relevant and timely. Rolf Claessen: You’ve said that your role is about delivering the best IP value given commercial realities. Can you elaborate? Lucy Wojcik: In-house work is about context. You never have all the resources or time you’d like. Sometimes a “good enough” patent is all that’s needed to enable a commercial move. We try not to let IP slow things down—we offer practical solutions instead. Rolf Claessen: What’s your most important advice for in-house IP professionals? Lucy Wojcik: Always think about your audience. Tailor your communication. I often use the TL;DR method—”Too Long; Didn’t Read”—with key points at the top of an email, followed by analysis. Different stakeholders need different things: the CFO wants to know the cost, the CEO wants strategy, and engineers want to know what they can and can’t do. Rolf Claessen: What’s one thing you wish outside counsel would do differently? Lucy Wojcik: Honestly, I’ve had great experiences. But early in my time at Ocado, I was frustrated by firms charging for travel time. It might be better for law firms to take a long-term view, especially with smaller clients—build trust first, revenue later. And always be honest about your capacity and fit. Rolf Claessen: Thank you so much for this fascinating and wide-ranging conversation! I’m sure our listeners will find a lot of inspiration in your story. Lucy Wojcik: Thank you for having me. It was a pleasure.

My co-host Ken Suzan and I are welcoming you to episode 162 of our podcast IP Fridays! Today’s interview guests are Debbie Hoffman and Anna Mouland and my co-host Ken Suzan talks with them about bequeathing bitcoin, so what happens to cryptocurrency after death? “Bequeathing Bitcoin, Storing and Transferring Cryptocurrency Upon Death” published in the November/December 2024 issue of the American Bar Association Probate & Property Magazine  URL: https://issuu.com/rptelaw/docs/2024-aba-rpte-v38-06-november-december-issue/s/59716998 Debbie Hoffman https://www.linkedin.com/in/debbiekhoffman  Anna Mouland https://www.linkedin.com/in/annam44 https://bequest.com Before we jump into this interview, I have news for you! My book “Marken. Recht. Einfach.“ (which can be translated into something like trademarks in laymen’s terms) entered the bestseller charts of manager magazine in Germany for business books on rank 8! I am very proud and thankful for all the support by so many people, who made this happen! First I want to talk about two recent decisions by the Munich Local Division of the Unified Patent Court (UPC), where the court issued Anti-Anti-Suit Injunctions (AASIs) to prevent defendants from seeking legal orders in U.S. courts that would block European patent enforcement actions. In these cases, the patent holders owned standard-essential patents (SEPs) and had initiated infringement proceedings in Germany. The defendants attempted to obtain U.S. court orders—known as Anti-Suit Injunctions (ASIs)—to halt these European proceedings. The UPC responded by issuing AASIs, thereby prohibiting the defendants from pursuing such U.S. court orders. The court justified its decisions by emphasizing the need to protect the patent holders’ rights to legal recourse under European law and the EU Charter of Fundamental Rights. It also highlighted the urgency of the matter and proceeded without a prior hearing to prevent potential counteractions in the U.S. courts. These rulings align with existing German case law and underscore the UPC’s commitment to safeguarding the integrity of European patent enforcement. For laypersons, an Anti-Anti-Suit Injunction (AASI) is a legal measure used to counteract an Anti-Suit Injunction (ASI). An ASI is a court order that prevents a party from initiating or continuing legal proceedings in another jurisdiction. In this context, U.S. courts issued ASIs to stop European patent enforcement actions. In response, the European court issued AASIs to prevent the defendants from obtaining or enforcing those U.S. court orders, thereby ensuring that European legal proceedings could continue without interference from foreign courts.​ The president of the EPO has submitted his opinion regarding the case G 1 /24 pending before the Enlarged Board of Appeals of the European Patent Office. The President’s submission supports the view that interveners should have full party status, including the right to bring forward new arguments and requests, as long as this does not put other parties at a procedural disadvantage. This case could clarify important aspects of procedural law at the EPO, especially concerning third-party involvement in opposition and appeal proceedings. I just found out in Reuters that Chinese automaker Geely plans to open its pool of battery safety patents to the entire auto industry, the company said at a media event at the Shanghai auto show last Wednesday. Geely said it has obtained more than 1,500 safety patents.  

I am Rolf Claessen and my co-host Ken Suzan and I are welcoming you to episode 161 of our podcast IP Fridays! Today’s guest is António Campinos, who is the president of the European Patent Office. We talk about the Draghi report, patent quality, the Unified Patent Court, AI, validation in non-European countries and many other topics! But before we jump into this interview, I have news for you: Our podcast IP Fridays has been named as one of the best intellectual property podcasts in the world by FeedSpot! You can find the link in the shownotes. The European Patent Office has published the Patent Index 2024. The US, Germany and Japan are the strongest patent filers at the European Patent Office, followed by China, South Korea and France. The biggest three patent filers are all from Asia, namely Samsung, Huawei and LG. The strongest US filer is Qualcomm in fourth place and the biggest German filer is Siemens at 6th place. Now for an unusual decision of a patent judge: magistrate Judge Valerie Figueredo of the US District Court for the Southern District of New York has ordered a patent litigator Bill Ramey to pay the attorney fees of the opponent Google. She said that the attorney “failed to conduct an adequate pre-suit investigation that would have uncovered information demonstrating that the patent-infringement claim lacked merit and also ‘unreasonably continued pursuing’ the claim despite notice from the defendant that the claim lacked a colorable basis,”. Google was represented by Barnes & Thornburg. The EUIPO has published CP15 Common Communication “Comparison of goods and services: treatment of terms lacking clarity and precision and common interpretation of Canon criteria and other factors”. It enhances consistency in the comparison of goods and services across the EU. Terms lacking clarity and precision must not be excluded from the outset but should be interpreted based on their natural and literal meaning, considering the Nice Classification. Such terms cannot be interpreted in a way that benefits the trade mark owner. If identical or synonymous unclear terms appear in both the earlier and the contested mark, they are deemed identical. Additionally, a single factor—such as intended purpose, relevant public, or distribution channels—may be sufficient to establish similarity. By introducing common definitions and interpretations of key comparison criteria, CP15 promotes transparency, legal certainty, and harmonized decision-making among IP offices. I have published a book “Marken. Recht. Einfach.” With the publisher Frankfurter Allgemeine Buch on 5th March 2025. Today I learned that I my book entered the bestselling list of manger magazine for business books at 8th place! I am very grateful for all who have helped me with this huge success! And now let us jump into the interview with António Campinos! In this episode of IP Fridays, Rolf Claessen interviewed António Campinos, who has been the President of the European Patent Office since July 1, 2018, and was previously the head of the European Union Intellectual Property Office (EUIPO). The first topic centered around the Draghi Report, which Campinos described as a much-needed wake-up call for Europe. He emphasized that the report underlined the continent’s innovation gap in comparison to global powers such as the United States and China. One of the critical messages of the Draghi Report, according to Campinos, is that Europe is hindered by excessive regulation, which weakens its internal market and impairs its ability to compete economically. He noted that although Europe has produced more startups than the US over the past five years, many of these startups eventually relocate to the US due to the lack of sufficient scale-up funding and a highly fragmented internal market. This fragmentation brings bureaucratic complexity, which especially impacts micro-entities and startups. Campinos argued that, to maintain its welfare model and remain competitive, Europe must become more productive by investing not just more, but smarter in innovation. Campinos continued by pointing out that while Europe leads in certain technological areas—such as transportation, mechanical engineering, chemistry, and clean technologies (especially hydrogen, power grids, and plastics recycling)—it lags behind in others. Batteries, for instance, remain a major area of concern where Asia is leading. In AI, although patent filings have grown significantly in Europe, the US and China are still far ahead. Similar gaps were observed in biotech and pharmaceuticals. He stressed that if Europe wishes to accelerate its innovation trajectory, it must both increase and improve the efficiency of its innovation investments. Rolf then asked how the European patent system could help mitigate fragmentation and complexity. Campinos responded with two perspectives. From a legal standpoint, the EPO launched a convergence program in collaboration with its member states to harmonize legal practices across Europe. This includes standardizing approaches in the granting process for computer-implemented inventions and AI-related patents. He argued that harmonized practices significantly reduce administrative burdens, particularly for SMEs and research institutions. The second and more strategic angle focused on improving data accessibility and usability. Campinos emphasized the importance of converting raw data into actionable knowledge and business intelligence. The EPO has made patent data available through tools like Espacenet, which saw over 18 million visits in the past year. The EPO is now investing in advanced technologies like large language models and natural language processing to make this data more readable and accessible. A notable example is the new “Technology Intelligence Platform,” which allows users—whether researchers, businesses, or policymakers—to explore innovation trends, leading companies, and technology landscapes without requiring prior expertise. Rolf brought up the unitary patent and the Unified Patent Court (UPC), asking about the insights gained since its launch. Campinos called it a “huge success,” citing over 50,000 requests for unitary protection and more than 700 court decisions delivered within six months. He highlighted that the system was deliberately designed to be attractive to smaller entities. Data shows that one-third of unitary patent requests came from SMEs and individual inventors, with half of these SMEs choosing the unitary effect after grant—figures that outpace participation in traditional European patents. He expressed hope that more EU member states would soon join the system, encouraged by the success and efficiency of the UPC. Ultimately, he suggested that political will could extend the system’s reach even beyond the EU. Reflecting on the long road to establishing the UPC, Campinos acknowledged past mistakes, particularly the lack of early stakeholder involvement. He believes the key lesson is the importance of listening to and working with all stakeholders—including industry, judges, and professionals—early in the process. Applying this lesson to current topics like standard-essential patents (SEPs) and supplementary protection certificates (SPCs), Campinos supported the European Commission’s decision to withdraw its SEP proposal, which he said had been widely criticized. However, he still sees the need for measures to improve transparency and licensing practices in SEPs, and he noted that any SPC reform should involve the jurisdiction of the UPC. The conversation then shifted to digital transformation and AI. Campinos stated that the primary challenge for any organization, including the EPO, is simplification. Digital tools must support simplified legal and administrative processes, otherwise, transformation efforts fail. He emphasized the importance of change management and the need to adopt an iterative development mindset with minimally viable products that evolve over time. With regard to AI specifically, the EPO maintains a “human-in-the-loop” approach, ensuring that all final decisions are made by humans, even when AI tools are used in the process. Rolf raised the issue of maintaining quality amid high user expectations and a growing volume of work. Campinos highlighted the EPO’s objective strengths: a highly skilled workforce of over 4,000 examiners, access to the world’s largest collection of patent and non-patent literature, and powerful search tools. One unique feature of the EPO’s process is the preliminary opinion on patentability included in the search report, typically delivered within six months. This early insight helps applicants secure funding and plan business strategies. Campinos also mentioned that the EPO has strengthened its quality control processes, expanded user consultations through stakeholder panels (SQUAPs), and introduced pragmatic quality assessments involving external patent attorneys and internal examiners. On the topic of applicant engagement, Rolf noted that informal in-person meetings with examiners had been helpful in the past and asked whether such interactions might return. Campinos responded that while all meetings are formally structured, the EPO has made extensive efforts to engage applicants through one-on-one meetings, company visits (virtual, in-person, or hybrid), and even company-led training sessions. A new initiative will send EPO teams to trade fairs to meet with multiple companies, including competitors, to learn about emerging technologies and collect feedback on the EPO’s processes and services. The discussion turned global as Rolf asked about the EPO’s efforts to meet the needs of international users. Campinos described the growth of validation agreements, which allow EPO patents to be recognized in non-member countries. From just 1.6 million global filings 15 years ago, the number has grown to over 3 million in 2023. The EPO now has agreements with six countries outside Europe, with Laos and Costa Rica recently joining. Together with its member states, the EPO’s validation system now covers a market of 720 million consumers. Campinos expressed optimism that further expansion in Latin America is likely in the future. In closing, Rolf asked Campinos for a message to users, innovators, and policymakers. Campinos responded by reaffirming the EPO’s commitment to delivering the highest-quality services and products. He acknowledged that mistakes may happen but emphasized that the office learns from them. To policymakers, he echoed a quote from Michel Barnier: “We have to understand before we act,” underlining the need for thoughtful, evidence-based policymaking in intellectual property matters. The interview concluded with mutual thanks and an appreciation of the opportunity to reflect on the EPO’s work, its role in the innovation ecosystem, and the future of patent law in Europe and beyond.

My co-host Ken Suzan and I are welcoming you to episode 160 of the IP Fridays podcast! Today`s interview guest is James E. Malackowski, the founder of Ocean Tomo, in my view the first successful patent auction venue. We talk about monetization and auctioning patents, use of blockchain technology for IP and especially for licensing, the economics of data rights and much more. But before we jump into this interview, I have news for you: The EUIPO and the EPO just released a new study ““Intellectual Property Rights and Firm Performance in the European Union.” on how intellectual property rights (IPRs) boost business performance in the EU. It looks at trade marks, designs, and patents, and shows that companies owning IPRs earn more revenue per employee and pay higher wages. Small and medium-sized enterprises benefit the most, with a 44% increase in revenue per employee compared to firms without IPRs. Yet, fewer than 10% of SMEs use registered IPRs—showing big untapped potential. https://www.euipo.europa.eu/de/news/observatory/epo-and-euipo-study-highlights-the-impact-of-intellectual-property-rights-on-firm-performance-in-the-eu The USPTO has unveiled a new strategy to guide the responsible development of artificial intelligence. This plan aims to clarify patent rules for AI inventions, foster public-private collaboration, and address ethical considerations like transparency and fairness. By creating clear guidelines and balanced regulations, the USPTO hopes to empower innovators and bring more AI-driven solutions to market. This strategy underscores the growing impact of AI on all industries and highlights the USPTO’s commitment to shaping the future of innovation. https://www.uspto.gov/subscription-center/2025/uspto-announces-new-artificial-intelligence-strategy-empower-responsible The European Patent Office (EPO) has introduced a new investor-mapping initiative to strengthen Europe’s innovation ecosystem. By identifying key investors, the project aims to bridge the gap between invention and market, helping inventors and businesses find the right funding and partners. The report introduces a new metric, the Technology Investor Score (TIS), which is the proportion of companies in an investor’s portfolio that have filed patent applications. This effort is designed to boost Europe’s competitiveness and foster greater collaboration across industries, research institutions, and venture capital. https://www.epo.org/en/news-events/news/bridging-gap-mapping-investors-strengthen-europes-innovation-ecosystem In this episode of IP Fridays, I speak with James E. Malackowski, an intellectual property (IP) pioneer best known for founding Ocean Tomo. James shares how Ocean Tomo introduced the world’s first large-scale public auctions for patents, trademarks, and copyrights. He also explains how these auctions helped create market-based “price discovery” for IP assets—something that had never been done so openly before. Beyond auctions, James discusses strategies for CEOs of mid-sized tech companies to extract real value from their R&D and patents. He emphasizes the importance of planning ahead, understanding your own portfolio, and making IP a regular topic at the board level. We also talk about why early, strategic patent filings can protect your company from missing out when others file first. Another major topic is the potential of blockchain technology for patent licensing. James outlines how blockchain can offer an immutable and transparent way to package and transfer patent rights—potentially even creating an “IP coin” to finance innovation. He notes that while blockchain is already starting to be used in data rights, it could reshape the entire licensing landscape by allowing more efficient trading and tracking of IP. We also cover the idea of the complete economic chain for IP licensing, which means recognizing everyone’s contribution from the first supplier all the way to the final product manufacturer. James says it may be more efficient to handle royalties and costs at the beginning rather than chasing every link in the chain later. Finally, we explore how the merger with J.S. Held has expanded Ocean Tomo’s services. With over 500 in-house engineers, J.S. Held brings deep technical expertise to help Ocean Tomo’s clients in areas such as valuation, expert witness services, litigation support, and more. Key Topics How Ocean Tomo’s patent auctions changed the market Strategies for CEOs to plan and manage their patent portfolios Blockchain’s role in creating more transparent and tradable licensing rights The “complete economic chain” concept for fair and efficient IP royalties Why data rights and new marketplaces for data are becoming more important Ocean Tomo’s expanded offerings and partnership with J.S. Held Connect with James Email: james.malackowski@jsheld.com Website: www.oceantomo.com (or www.jsheld.com) Enjoy the episode, and let us know your thoughts on these emerging trends in the IP world! Jim Malackowski: Hello everyone, my name is Jim Malackowski. I am the co-founder and senior managing director of Ocean Tomo, and I’m thrilled to be here on IP Fridays. Rolf Claessen: Today’s interview guest is James Malackowski, the co-founder and senior managing director of Ocean Tomo, a part of J.S. Held. Before founding Ocean Tomo over 21 years ago in 2003, Jim had several positions in the IP field. He holds a degree in business administration from Notre Dame in Indiana, and in 2022, Jim was inducted into the IP Hall of Fame. Thank you very much for being on our IP Fridays podcast, Jim. Jim Malackowski: Rolf, thank you for having me. I’m excited for the conversation. Rolf Claessen: Alright. So, I already mentioned that you are the founder of Ocean Tomo, and you introduced the world to the first public auctions of patents, trademarks, and copyrights. In my personal recollection, it was the first patent auction site that really worked on a larger scale. I think there were some tries before that, but no one really succeeded. So, tell me more about the story behind Ocean Tomo and why you think it was successful. Jim Malackowski: Sure, and Rolf, your question is actually a question within a question. Let me tell you about Ocean Tomo, and then let’s talk specifically about the auction, because that itself is a really interesting story. With respect to the firm, the history of Ocean Tomo is really very similar to the history of my career. So, we can trace our activities back to the Court of Appeals for the Federal Circuit in the United States changing and forming a new way of looking at intellectual property back in the 1980s. Jim Malackowski: I started my career as an accountant shortly thereafter and opportunistically happened to work on calculating damages for patent infringement litigation. I was the first in a very small team to do that straight out of college. Because I worked on the first assignment, they gave me the second. After the second, the third, and then I was declared a member of a small expert team as a result. So, I spent the early part of my career, the first three years, doing nothing but looking at intellectual property in a litigated situation. Jim Malackowski: In the late 1980s, a client came back and asked me to value a patent, not for the courtroom, but for a business transaction. I can remember that day well. I literally ran down the hall to the senior partner’s office talking about my first piece of revenue credit. His answer was no. He said it’s not something that we do. It wasn’t something covered by the accounting standards or their insurance. So, a week after my 25th birthday, I left the firm. Four of my peers came with me, and we started what was the first-ever intellectual property dispute accounting and valuation boutique. We got lucky. That firm grew from five people, later partnered with private equity, and ended up selling nearly 300 people in the late 1990s. Jim Malackowski: After that, I went to work at one of the investment houses that had invested in us and really had my eyes opened to the power and impact of intangible assets and intellectual property, particularly as it relates to investment decisions. I worked on that for two years. Then, when the non-compete was over from the sale, literally to the day, we started Ocean Tomo in 2003. My history has been an amalgamation of those experiences. Jim Malackowski: Your question also asked about the auction, which is one of our favorite chapters within the firm in the early 2000s. One of my partners at that time, our vice chairman, was a very serious car collector. As we were explaining to him the frustration we had of selling patents as a broker, he basically said to me, “Jim, why do you make it so hard? Why don’t you try to sell patents like Sotheby’s would sell art, or like Gooding & Company sells cars? Publish a catalog, pick a date, hire an auctioneer, and let the buyers determine the market.” Jim Malackowski: That idea stuck with me. Within six months, we had our first auction in San Francisco in 2006. We published a fancy catalog, hired a British-accented auctioneer experienced in antiques and automobiles, and assembled 80 lots of patents for sale. That day, more than 400 people showed up, including CIPO’s, former directors of patent offices worldwide, and a large media presence. When the auction started, the room went silent—it was the first time anyone understood what manageable patent portfolios were worth. Up to that point, patent sales weren’t disclosed, and this was true price discovery. Jim Malackowski: At that first auction, we sold about a third of the catalog for several million dollars. In the years that followed, we sold over $100 million on the auction floor. That event was a game-changer in recognizing intellectual property and patent value. Rolf Claessen: Fascinating. So, what do you think attracted those 400 people to that first auction? Jim Malackowski: There were three reasons: First, it was price discovery—they wanted to know what these patents would sell for. Second, it was a market-building networking opportunity, as dedicated IP brokerage and valuation conferences didn’t exist back then. And third, fear—fear that a patent that could impact their business might sell, and they’d miss the chance to acquire it. Rolf Claessen: Very interesting. And it’s always a recurring question: How much is a patent worth? Many of my clients, especially medium-sized companies with maybe 500 to 1,000 employees, ask me, “We’ve filed all these patents—how much are they worth?” My response is often that the value of a patent is what someone is willing to pay for it. Do you agree? Jim Malackowski: Absolutely. The worth of patents can be evaluated in two ways. First, how do they help you build value in your business? If you’re able to raise capital or introduce products with unique features that maintain a proprietary position, there’s obvious value. Second, how do they create value for others? If others are using your intellectual property to generate revenue or capture market share, then it’s valuable to them. Ideally, those situations lead to win-win transactions where value is shared. Rolf Claessen: That’s a great point. Now, imagine you’re the CEO of a medium-sized, tech-driven company. What would you tell yourself to maximize the value of your research and patents? Jim Malackowski: Great question. Let’s break it down into three levels. At the highest level: Plan for it. Failing to plan is planning to fail, and that applies to intellectual property. I recommend designating someone on your board or advisory team to oversee IP. This ensures it becomes a regular part of board discussions and elevates the role of intangibles in your company strategy. Jim Malackowski: Next, develop a strategic IP plan. For us, that starts with a landscape analysis—understanding what you own and what your competitors own. Then, determine your principles: Are you willing to out-license, enforce, or in-license? Are you managing IP holistically across the business or within divisions? Once you know these principles, you can align your IP strategy with your business plan. Finally, educate your team about the importance of IP. Share your plan with the board, the C-suite, and even the broader organization so everyone understands the role of intellectual property in supporting the business. Rolf Claessen: That’s incredibly helpful. Now, let’s shift to new technologies like blockchain. I believe blockchain has great potential for patent licensing. Can you explain why blockchain is suitable and why it’s not widely used yet? Jim Malackowski: I agree that blockchain holds tremendous potential for IP, including patents, copyrights, data, and trade secrets. Blockchain is efficient, transparent, and immutable, making it ideal for documenting and packaging IP for transfer. For example, it allows you to wrap trade secrets or know-how into a blockchain container, ensuring everyone understands its scope and creation date. Jim Malackowski: Blockchain also enables valuation, balance sheet recognition, and secondary trading. Imagine licensing a patent wrapped in blockchain data—you could later sell that right to a third party. While adoption has been slow, it’s starting to gain traction, especially in data rights. Blockchain tools are now being used to codify, package, and transact data, and I believe we’ll see similar developments in patents. Rolf Claessen: That’s exciting. You mentioned earlier the idea of a blockchain-based IP coin. Could you elaborate on that? Jim Malackowski: Sure. An IP coin could function as a cryptocurrency secured by patents. For example, you could create a portfolio-backed cryptocurrency where each token represents a specific IP right. This could be used for financing, with patents serving as collateral. While we’re not there yet, it’s an area we continue to explore. Rolf Claessen: Interesting. But the legal framework for blockchain-based licensing seems outdated, at least here in Germany. Do you think the law will adapt? Jim Malackowski: It will have to. One exciting concept is using blockchain to unitize IP rights. For example, if a patent portfolio covers automotive technology, you could create a million unit license rights using blockchain. A manufacturer could buy 100,000 units today and sell unused rights to a competitor later. This approach benefits patent owners because they get paid upfront while allowing buyers flexibility. Blockchain makes this possible by enabling transportable, easily tradeable rights. Rolf Claessen: That’s a compelling vision. Before we move on, you mentioned the idea of considering the complete economic chain for IP licensing. What does that mean? Jim Malackowski: It’s about ensuring value is recognized and royalties are shared across the entire supply chain, from the original innovator to the final product manufacturer. Today, patent owners often have to approach each link in the chain separately, which is inefficient. A better approach would involve assigning royalties at the start and passing them along the chain in a clear, explicit way. This would reduce litigation and uncertainty while ensuring everyone is fairly compensated. Rolf Claessen: That makes sense. Now, let’s switch to data rights, another emerging topic. You’ve mentioned the need for a market for data rights. Can you explain what you mean by that? Jim Malackowski: Sure. Data rights can be viewed from two perspectives: personal and business. On a personal level, we often give apps permission to collect our data without receiving any compensation. There’s an opportunity to create a market that recognizes the value of individual data. Jim Malackowski: On the business side, there’s already an active market for data—like mailing lists or data sets used for AI and machine learning. Blockchain and other tools can make these markets more efficient by enabling secure, transparent transactions. We’re excited to see these markets evolve. Rolf Claessen: That’s a fascinating area to watch. Finally, Ocean Tomo is now part of J.S. Held. What services do you offer beyond auctions? Jim Malackowski: Ocean Tomo has always been known for different things by different people. Lawyers know us for litigation expertise, while others associate us with valuation or auctions. Today, as part of J.S. Held, we’ve expanded our offerings. We have four main practice areas: opinion services for litigation, management consulting for IP strategy and valuation, investment banking for transactions, and technical services like patent analytics and reverse engineering. Jim Malackowski: The partnership with J.S. Held has been transformative. With over 500 engineers on their team, we can now tap into deep technical expertise for any industry or technology. It’s been a very effective collaboration. Rolf Claessen: That’s fantastic. If listeners want to connect with you or learn more, what’s the best way to reach you? Jim Malackowski: They can email me directly at james.malackowski@jsheld.com or visit our website, where they’ll find an option to connect with us. We’re always happy to brainstorm and see how we can help. Rolf Claessen: Jim, thank you so much for this excellent interview. We covered so many exciting topics, and I’ve really enjoyed our conversation. It was a pleasure having you on IP Fridays. Jim Malackowski: Thank you, Rolf. It’s been a pleasure, and I look forward to doing this again.

My co-host Ken Suzan and I are welcoming you to the last edition #159 of IP Fridays in the year 2024 before the holiday season. We wish you all happy holidays and a successful year 2025! Our interview guest Ricardo Amigo is an IP lawyer in Argentina and will give us an update of the recent changes of the trademark law including the new Patagonia issue, the new trademark opposition procedure and much more. You can find the profiles of Ricardo here: https://bertonmoreno.com.ar/ricardo-e-amigo-en https://www.linkedin.com/in/ricardo-e-amigo-2b97467 Before we jump into this interview, I have news for you! First of all, my book “Marken. Recht. Einfach.” (translated into trademark law made simple) on trademarks will be published in March 2025. Many entrepreneurs and decision-makers feel overwhelmed by trademark law and make unnecessarily expensive mistakes – often out of ignorance. I am changing that with my book. I explain trademark law to the readers in an understandable way, without legalese, and show the readers how to recognize risks at an early stage and how to protect and enforce their trademarks securely. My knowledge from over 20 years of experience in this field will help the readers to make the right decisions with confidence. The link to the book is in the show notes (https://amzn.to/3D6IDKe, affiliate link). The European Patent Office has released its updated Guidelines for Examination, set to take effect on March 1, 2025. These revisions incorporate recent legal developments, user feedback, and the latest case law to ensure greater clarity and consistency in patent examination. By refining procedures and clarifying key points, the EPO aims to improve user experience and enhance the quality of granted patents. Users are encouraged to review the changes, as the Guidelines serve as an essential reference for navigating the European patent system. The United States Patent and Trademark Office (USPTO) has announced changes to its patent-related fees, effective January 19. These updates will impact various patent-related services, including filing, search, examination, and maintenance fees. The adjustments aim to reflect current cost recovery requirements and continue supporting the high quality of the U.S. patent system. Stakeholders should review the new fee schedule to ensure compliance and budget accordingly for upcoming filings and maintenance activities. The European Union Intellectual Property Office (EUIPO) has released a new report on the state of online piracy and copyright infringement in Europe, revealing that while overall piracy rates have declined, challenges persist. In particular, TV content accounts for half of all digital piracy, with viewers tuning into illegal TV content five times per month. To address these issues, the report emphasizes the importance of ongoing enforcement efforts, consumer education, and the availability of legal, affordable, and high-quality content. It also highlights the need for international collaboration to protect creators’ rights and nurture a healthy digital content market. Now let us jump into the interview with Ricardo Amigo with his update on the IP laws in Argentina! In this episode of the IP Friday’s podcast, intellectual property expert Ricardo Amigo, a partner at the Berton Moreno IP law firm in Buenos Aires, Argentina, provided insights into significant developments and best practices in Argentine trademark law. With over three decades of experience in IP, Amigo advises both local and international clients across a wide spectrum of industries. His areas of expertise include trademarks—both prosecution and litigation—as well as copyrights, industrial models, designs, patents, genetically modified organisms, biotechnology, and entertainment law. He is actively involved in professional associations such as the International Trademark Association, including its famous and well-known marks committee, and has academic credentials from the University of Buenos Aires and the Franklin Pierce Law Center’s IP Summer Institute. A central topic of the interview focused on a recent decision by the Argentine government to seek recognition of the term “patagonia” as an emblem under Article 6ter of the Paris Convention. The World Intellectual Property Organization’s recognition of this emblem, granted on September 30, 2023, has broad implications for trademark owners. In practice, since that date the Argentine trademark office has been rejecting all new applications containing the word “patagonia,” regardless of whether the applicant already owns a related mark. This situation puts established rights holders in a difficult position, with the only viable remedy being to challenge the decision in court. Amigo believes that, eventually, judicial rulings may force the Argentine trademark office to reconsider its stance, but warns that such a legal battle could span several years. Beyond these recent developments, Amigo emphasized the importance of thorough preparation before seeking trademark protection in Argentina. He recommends conducting comprehensive searches—identical, phonetic, and online—prior to filing an application. Many trademarks remain unregistered but are in active use, sometimes only on social media, so researching both official registries and the broader internet is crucial. Although unregistered trademarks may sometimes be enforced through the courts, the Argentine IP system, as an attribution-based one, places far more weight on registered marks. Securing a trademark registration ensures a stronger position when it comes to enforcement and can significantly improve the chances of obtaining injunctions against infringers. Amigo also discussed how the trademark opposition system in Argentina changed in 2018. Historically, an opposition would block the registration and require the applicant to pursue negotiations, mediation, and potentially lengthy court proceedings. Under the revised system, the burden has shifted more to the opponent. After a brief negotiation window, the opponent must ratify and provide additional arguments to the trademark office, leading to an administrative ruling rather than an immediate judicial case. This structural shift helps deter ill-founded oppositions and speeds up resolution times. In terms of maintaining rights, trademark owners in Argentina must declare use of their marks every five years and upon renewal. While the trademark office does not routinely verify the veracity of such declarations, use is essential for sustaining protection. Amigo also noted that the law now allows for partial cancellations: trademarks can be canceled for non-use of specific goods or services, although related goods may be considered a valid defense if the mark is used for them. Well-known trademarks, although not formally categorized in Argentine law, have long enjoyed judicial protection. Courts recognize and safeguard famous marks against unauthorized registrations or use, even if they are not registered. Nevertheless, Amigo recommends that owners of well-known marks should not rely solely on fame. Registering and using marks in the relevant classes of goods and services provides a stronger foundation for enforcement, whether through negotiations or legal actions. In summary, Amigo’s guidance for foreign and local businesses includes conducting careful pre-filing research, ensuring timely use and maintenance of marks, and understanding the complexities of Argentina’s evolving legal landscape. His advice underscores the importance of proactive IP strategies, from diligent searches to securing rights through registration, thereby providing trademark owners with a more secure footing in the Argentine market. Here is the transcript: Kenneth Suzan:Our guest today on the IP Friday’s podcast is Ricardo Amigo. Ricardo is a partner at the Berton Moreno IP law firm located in Buenos Aires, Argentina, and has been working as a lawyer specializing in IP since 1989. Ricardo represents local and foreign clients alike in almost all industries and has broad experience in trademark law—both prosecution and litigation—as well as copyrights, industrial models and designs, patents, genetically modified organisms, biotechnology, and entertainment law issues. He is a member of the International Trademark Association, including its famous and well-known marks committee, the Argentine Association of Industrial Property Agents, and the Coligio Publico de Abigados de la Capital Federal. Ricardo graduated as a lawyer from the University of Buenos Aires in 1994 and attended the Intellectual Property Summer Institute at Franklin Pierce Law Center in 1996. Welcome, Ricardo, to the IP Friday’s podcast. Ricardo Amigo:Thank you, Ken. Thank you very much for inviting me. Kenneth Suzan:Excellent, Ricardo. So I’ve heard there have been some recent developments in trademark law in Argentina in the last year. Can you share some information with our listeners? Ricardo Amigo:Yes, sure. The most relevant new issue that affects trademark rights in Argentina is that the Argentine government applied in 2023 for the term “patagonia” as an emblem under Article 6ter of the Paris Convention. On September 30, 2023, the World Intellectual Property Organization recognized the emblem “patagonia” in favor of the Argentine government. This is a very big issue for many trademark owners in Argentina who have acquired rights over trademarks that include the term “patagonia.” Since the emblem’s recognition, the Argentine trademark office has been rejecting all new trademark applications including “patagonia.” Even if you already own a “patagonia” mark and try to file a new design or variation, it is automatically rejected. This situation is disturbing for trademark owners—local companies, Argentine individuals, US companies—basically everyone. We are dealing with acquired trademark rights here. Kenneth Suzan:Wow. Are there any legal remedies that trademark owners have so they can fight back, or do they have to live with this ruling? Ricardo Amigo:When the trademark office issues an official action rejecting a trademark with “patagonia,” you can file an answer with all the arguments at hand, including that you already have an acquired right. But the trademark office won’t consider these arguments and automatically rejects the application. The only legal remedy would be to go to court and seek to have the administrative ruling reversed. You would argue that it’s unconstitutional because you already have property rights recognized under the Argentine constitution. We don’t know how the first ruling will go, but eventually I believe judges may rule in favor of trademark owners, forcing the trademark office to change its stance. Kenneth Suzan:We’ll have to keep an eye on that. Do you think a ruling might come out in the next year or two? Ricardo Amigo:No, it will take longer. Complaints were filed in 2024, and I expect at least four years until the first instance ruling, with the potential for appeals all the way to the Supreme Court. We’re talking about at least seven or eight years until we have a final ruling. Unfortunately, that’s the current situation in Argentina. Kenneth Suzan:We’ll certainly monitor that. Let’s shift topics. What do you consider the main issues that a trademark owner should address when seeking protection in Argentina? Any best practices? Ricardo Amigo:First of all, don’t use an emblem as a trademark. For any foreign company seeking trademark protection, it’s crucial to conduct a search—at least an identical search in the class of interest, and if possible a full phonetic search. This helps you find both identical and confusingly similar marks. Given today’s importance of social media, I also recommend conducting an internet and social media search. Many trademarks in Argentina are used but not registered. You don’t want to apply for a mark, start using it, and then face a claim from a third party claiming prior unregistered use. So, searches in the registry and online are both very important. Kenneth Suzan:You have many years of experience with trademark enforcement. Is it important to obtain a registration in Argentina to enforce trademark rights there? Ricardo Amigo:Yes, Argentina uses an attribution system where ownership and the right to exclusive use are obtained through registration. Courts have protected unregistered marks based on notoriety and evidence of use, but having a registered mark puts you in a much stronger position to enforce your rights and obtain injunctions. Without registration, it’s much harder and you need to prove extensive use. Kenneth Suzan:The trademark opposition system in Argentina was modified a few years ago. What changes can you share with us? Ricardo Amigo:Before 2018, when an opposition was filed, the application was blocked. The applicant had to negotiate, attempt mediation, and, if unresolved, go to court. This put the burden on the applicant. Under the new system, after the opposition is filed, there is a brief negotiation period of 90 days. Then the opponent must ratify the opposition and provide additional arguments. If the opponent doesn’t ratify, the opposition falls. If they do, it leads to administrative proceedings before the trademark office rather than a court action. Both sides present arguments and evidence. If the trademark office rules against the applicant, they can appeal directly to the Court of Appeals. This system shifts the burden to the opponent and reduces ill-founded oppositions. It also speeds up the process compared to the old system. Kenneth Suzan:What about trademark renewals in Argentina? Do you have to declare or prove use to keep a registration alive? Ricardo Amigo:Yes. You must file an affidavit under oath declaring that the trademark was used in the last five years. The trademark office doesn’t examine the truth of the declaration, but you need this to renew. Also, you must file a mid-term declaration of use after five years of registration. This helps prevent cancellations for non-use and strengthens your position against third parties. Kenneth Suzan:Can a trademark be partially cancelled for lack of use? Ricardo Amigo:Yes, under the new law. Previously, a cancellation action cancelled the entire mark. Now, a third party with a legitimate interest can seek partial cancellation for certain goods or services. You can defend against this by proving use of related goods or services, even if not exactly those specified. Defining what counts as “related” is complex and case-specific. Kenneth Suzan:What about well-known brands? How are they protected in Argentina? Ricardo Amigo:Well-known brands are not specially categorized in the Argentine law, but courts have long recognized their protection. Even without prior registration, courts have granted rights to owners of famous marks when someone tries to register or use them without authorization. That said, it’s always better to register the trademark in the relevant classes before entering the market. Don’t rely solely on fame. Have your trademark registered to put yourself in a better position when dealing with potential infringers. Kenneth Suzan:Ricardo, thank you for sharing your insights into Argentine trademark law. We appreciate your time on the IP Friday’s podcast. Ricardo Amigo:Thank you very much, Ken.

You can find the profile of Prof. Martin Bader here: https://www.thi.de/en/persons/prof-dr-oec-hsg-martin-bader My co-host Ken Suzan and I are welcoming you to episode 158 of IP Fridays. Today’s interview guest is Prof. Martin Bader. In my view, he is THE expert when it comes to IP management and in particular patent management. He is consulting some of the top patent filers in the world and I can pick his brain today. But before we jump into the interview, I have news for you! For years, German retailers faced legal uncertainties when using the term “Black Friday” in promotions, as it was registered as a trademark. Unauthorized use risked costly cease-and-desist letters. However, after multiple legal challenges, the German Federal Court of Justice (BGH) confirmed that “Black Friday” is no longer protected as a trademark. This decision allows retailers to freely use the term in their marketing without fear of legal repercussions. On November 25, 2024, the German Patent and Trade Mark Office (DPMA) began participating in WIPO’s Digital Access Service (DAS) as a depositing office for patents and utility models. This allows applicants to request priority documents electronically through WIPO DAS, enabling secure and efficient sharing of these documents with participating IP offices worldwide. Applicants can request electronic priority documents for free using Form A 9164 or opt for paper copies at a fee. Upon processing, the DPMA provides a confidential access code for retrieval of the documents via DAS. On October 31, 2024, the European Commission fined Teva Pharmaceuticals €462.6 million for abusing its dominant market position to delay competition against its multiple sclerosis drug, Copaxone. The Commission determined that Teva misused the patent system by filing multiple divisional patents to extend Copaxone’s exclusivity and engaged in a systematic campaign to spread misleading information about a competing glatiramer acetate product, thereby hindering its market entry. This decision underscores the EU’s commitment to maintaining competitive markets in the pharmaceutical sector, ensuring affordable drug prices, and fostering innovation. The Unified Patent Court’s Düsseldorf Local Division ruled that Aarke AB’s “Carbonator Pro” infringed SodaStream Industries Ltd.’s European Patent EP 1 793 917, which pertains to a device for carbonating liquids with pressurized gas. The court interpreted the term “flask” in the patent claims broadly, encompassing Aarke’s design despite differences from SodaStream’s illustrations. Aarke’s defense, invoking the “Gillette defense”—asserting that their product mirrored prior art and thus couldn’t infringe a valid patent—was rejected, as Aarke hadn’t filed a counterclaim challenging the patent’s validity. Consequently, the court granted SodaStream a permanent injunction against Aarke’s product in seven UPC member states, reinforcing the importance of precise claim interpretation and the limitations of the Gillette defense in infringement-only proceedings. Gibson has issued a cease-and-desist letter to 16 Creative, the company behind the newly launched Trump Guitars, alleging that the design of their electric models infringes upon Gibson’s protected Les Paul body shape. The Trump-endorsed guitars, marketed as the “only guitar officially endorsed by President Donald J. Trump,” feature designs with slogans like “Make America Great Again” and are priced up to $11,500 for autographed versions. Gibson, known for vigorously protecting its intellectual property, has previously taken similar legal actions against other manufacturers to safeguard its iconic designs. Key Insights on IP Management: Interview with Prof. Dr. Martin Bader In a recent episode of IP Fridays, I had the pleasure of interviewing Prof. Dr. Martin Bader, an esteemed expert in intellectual property (IP) management and Professor of Technology and Management at the Technical University in Ingolstadt, Germany, as well as an Adjunct Professor at McGill University, Canada. Over his extensive career, Prof. Bader has consulted numerous companies, authored a standard book on patent management, and shared his expertise on navigating IP challenges in today’s dynamic business environment. Here are the key takeaways from our conversation: 1. The Growing Importance of Innovation for SMEs Prof. Bader emphasized that medium-sized enterprises (SMEs) are under increasing pressure to innovate. Customers are less willing to pay premium prices, and SMEs face fierce competition from global players, particularly from emerging markets like China and India. This situation is compounded by technological shifts, such as digitalization and artificial intelligence (AI), which require companies to rethink their value chains and adapt their IP strategies accordingly. For instance, SMEs in engineering must shift focus from traditional hardware protection to safeguarding services and software. Companies that fail to adapt risk losing ground to competitors who understand the new value drivers. 2. Overcoming the Challenges of IP Collection and Management One striking insight was the difficulty SMEs face in identifying and managing IP effectively. Prof. Bader noted that many potential inventors within companies don’t even realize the value of their innovations, especially in areas like software development or new business models. Without an IP-savvy management team, companies may miss out on critical opportunities. Large corporations often struggle with similar challenges, particularly in global organizations where identifying inventors across departments and geographies is daunting. Prof. Bader stressed the importance of fostering an internal culture that encourages innovation and supports IP awareness across all levels of the organization. 3. Lessons from 20 Years of Patent Management While the fundamentals of IP strategy have remained consistent—focusing on strategy, implementation, and execution—the dynamics of value creation have shifted dramatically. Prof. Bader highlighted that companies now need to integrate IP into agile project teams and adapt their processes to keep up with technological advancements, such as AI-driven innovations. He also warned against relying entirely on external law firms for IP management. While external advisors are valuable, companies must build internal IP competencies to effectively steer their strategies and ensure alignment with long-term goals. 4. Prof. Bader’s Top Three Tips for SMEs For medium-sized companies looking to improve their IP portfolios, Prof. Bader offered the following advice: Take IP seriously: Management must understand IP’s value, not just as a cost but as a strategic tool for mitigating risks and creating opportunities. Protect where value is created: Shift focus to protecting software, services, or systems rather than just traditional engineering outputs. Use a combination of formal and informal protection mechanisms to safeguard innovation comprehensively. Develop internal IP capabilities: Build a robust internal IP function with dedicated processes and resources. Avoid outsourcing everything; instead, balance internal and external efforts to maintain strategic control. 5. What Investors Look for in IP Investors and corporations evaluating startups place significant importance on IP. Prof. Bader pointed out that beyond having patents, the strength and relevance of those patents to the market and competitors are crucial. Investors also value teams with IP expertise and strategies that align with their business models. Startups without a strong understanding of their IP landscape may face challenges in attracting serious investment. Final Thoughts Prof. Bader’s insights underscore the evolving nature of IP management and the need for companies to stay proactive and adaptive. SMEs, in particular, must recognize the importance of IP as a driver of value creation and competitiveness. By building internal capabilities, focusing on where value is created, and aligning IP strategies with business goals, companies can position themselves for success in today’s fast-changing market. If you’d like to learn more or connect with Prof. Martin Bader, he’s available on LinkedIn. For the full interview, tune in to the latest episode of IP Fridays. Transcript: Dr. Rolf Claessen: Today’s interview guest is Professor Dr. Martin Bader. He is a Professor of Technology and Management and Entrepreneurship at the Technical University in Ingolstadt, Germany, and an Adjunct Professor at McGill University in Quebec, Canada. He is the founder of BGW IP in St. Gallen, Switzerland, and Chairman of the Supervisory Board of BGW Management Advisory Group in Switzerland. Before that, he held several industry positions at MTU, ABB, Siemens, and Infineon, where he served as Vice President and Chief IP Counsel. Most importantly, he is an expert in IP management. Thank you very much for being on the show. Prof. Martin Bader: Yeah, thank you for your invitation. Dr. Rolf Claessen: You are the expert, in my view, in patent management, and you are the author of the standard book on patent management, now in its fifth edition. For over 20 years, you’ve been distilling advisory and research insights into practical takeaways and consulting with many companies in this field. What are the top challenges for medium-sized technology-driven companies, let’s say with 500 employees, compared to the top challenges for large corporations? Prof. Martin Bader: Thank you for the introduction and the first question. The challenges for SMEs today are significant. One major challenge is innovation. European SMEs, in particular, are under pressure to remain innovative. Customers no longer want to pay top prices for top quality, which increases the need for these companies to innovate continuously. This challenge is compounded by technological changes, like digitalization, which forced many SMEs to rethink their value chains and adapt their IP strategies. For instance, a shift from protecting static machines to focusing on services and software has been a major change. Additionally, globalization has brought increased competition from emerging countries like China and India, adding further cost pressure, particularly for Swiss companies dealing with unfavorable currency exchange rates. Compared to large corporations, SMEs face a more significant struggle in maintaining a strong IP position while managing resources efficiently. This includes challenges in identifying inventions, particularly in new areas like digitalization, where traditional R&D methods might not capture the full spectrum of innovation happening in software or services. Dr. Rolf Claessen: What do you think about collecting ideas or new inventions—do you think it is more difficult for smaller companies or for large corporations? Prof. Martin Bader: I have a quote from a global corporation executive who said, “You don’t know how lucky you are if you know where your inventors are.” The challenge lies in finding inventors and inventions that may not be obvious, especially in areas like software development or new business models, where employees might not traditionally think of themselves as contributors to IP. This issue is compounded by a lack of IP-savvy management, which may miss out on opportunities in these emerging areas. Dr. Rolf Claessen: What are the topics that have remained the same in IP management over the past 20 years, and what has changed the most? Prof. Martin Bader: The foundational structure, based on the St. Gallen Management Model—strategy, conceptual, and implementation levels—has stayed consistent. However, the main change is that SMEs have become more familiar with basic IP tools, like patents, trademarks, and trade secrets. Yet, as value creation shifts from traditional engineering to software, services, and systems, SMEs need to adapt their IP strategies to these new realities. Companies also need to be proactive in integrating IP functions into agile project teams and ensuring they keep up with technological advancements, such as AI, which require both internal expertise and efficient use of external advisors. Dr. Rolf Claessen: What are your three most important tips for medium-sized companies to improve their IP portfolios and IP management? Prof. Martin Bader: First, take IP seriously. Management must understand both risks and opportunities, and not just view IP as a cost. Second, focus on protecting where value is truly created—this may now be in services or software rather than traditional engineering. Third, develop an internal IP function with proper processes and organizational structures. Avoid relying entirely on external law firms; instead, actively manage and steer outsourced activities to ensure they align with your company’s strategic goals. Dr. Rolf Claessen: Thank you for these insights. If listeners want to reach you, where can they find you? Prof. Martin Bader: The easiest way is via LinkedIn. You can find me under Martin Bader, and my email is also available there or via my affiliations. Dr. Rolf Claessen: Thank you very much for being on IP Fridays. Prof. Martin Bader: Thank you for the opportunity to share my thoughts.

https://www.bobross.com The iconic artist Bob Ross, known for his gentle demeanor and captivating landscapes, continues to inspire millions around the world. Behind the scenes, a dedicated team works tirelessly to protect his legacy and intellectual property (IP). In a recent interview on the IP Friday’s podcast, Joan Kowalski, President of Bob Ross, Inc., shed light on the challenges and strategies involved in safeguarding the valuable IP of Bob Ross. A Family Affair Joan’s journey with Bob Ross, Inc. began in 1988, a few years after she graduated from college. Her family’s relationship with Bob Ross dates back even further. Joan’s mother attended one of Bob’s painting classes in 1982 and was so impressed that she and Joan’s father partnered with Bob to form a company aimed at promoting his work. This partnership laid the foundation for what would become a global phenomenon. The Unique Challenge of Protecting a Person One of the primary challenges Joan highlighted is the difficulty of protecting the IP of a person rather than a static piece of art or literature. Bob Ross’s image, voice, catchphrases, and even his mannerisms are all integral parts of his brand. “When your intellectual property is a person… it’s a different ballgame,” Joan explained. Many people mistakenly believe that Bob Ross is a public domain figure, freely available for use. This misunderstanding complicates efforts to control how his image and likeness are used commercially. The Double-Edged Sword of the Internet The internet has amplified both the reach of Bob Ross’s work and the challenges of protecting it. While online platforms have introduced Bob to new generations, they have also made it easier for unauthorized use of his image and content. “The internet is both a gem and a curse,” Joan noted. Unauthorized merchandise, digital forgeries, and misuse of Bob’s image in ways that do not align with his values have proliferated online. To combat this, Bob Ross, Inc. employs professional monitoring services and relies on vigilant fans who report infringements. Selective Licensing and Brand Integrity Joan emphasized the importance of being selective with licensing agreements. Over-licensing can dilute the brand and make it harder to control IP use. Bob Ross, Inc. carefully chooses partners who align with Bob’s legacy and values. “Be a little bit choosy about who you give a license to… It just makes it easier to protect your assets,” Joan advised. Navigating New Technologies: NFTs and AI Emerging technologies like Non-Fungible Tokens (NFTs) and Artificial Intelligence (AI) present new IP challenges. Joan shared that the company was cautious about entering the NFT space, granting licenses only to a select few like Funko to maintain control and monitor the market effectively. Regarding AI, Joan expressed concern over AI-generated images and voices that mimic Bob Ross without authorization. The company is exploring ways to address these issues, often relying on the right of publicity laws to protect Bob’s likeness. Legal Protections and the Right of Publicity The right of publicity is a legal doctrine that protects a person’s image, name, and likeness from unauthorized commercial use. Joan mentioned the company’s reliance on this right to enforce IP protections, especially as it pertains to new laws like Tennessee’s “Elvis Act,” which prohibits the unauthorized use of a person’s likeness through AI. Advice for IP Protection Towards the end of the interview, Joan offered valuable advice for others looking to protect their IP: Be Selective with Licensing: Choose partners who respect your brand and have values aligned with yours. Professional Monitoring: Don’t attempt to monitor and protect your IP alone. Employ professional services that specialize in IP protection. Educate the Public: Work on informing fans and the general public about the importance of respecting IP laws, especially when it comes to individuals. Stay Informed on Legal Developments: Keep abreast of new laws and regulations that may affect your IP rights, especially with the rapid advancement of technology. Continuing Bob Ross’s Legacy Joan and the team at Bob Ross, Inc. remain committed to preserving the integrity of Bob’s work. Their efforts ensure that fans worldwide can continue to enjoy and be inspired by Bob Ross while respecting the legal protections that keep his legacy intact. “We’ve been at this for 40 years now. I think we’re doing pretty good,” Joan concluded with pride. The full transcript: Kenneth Suzan: Our guest today on the IP Friday’s podcast is Joan Kowalski. Joan is the president of Bob Ross, Inc. Bob Ross is a true icon in the art world. He is an American painter, art instructor, and both creator and host of the acclaimed television series, The Joy of Painting, which aired from 1983 through 1994 on public television, both in the United States and in other markets around the world. Kenneth Suzan: Joan started working for Bob Ross, Inc. in 1988, a few years after graduating from college. She answered 1-800 number phone calls, wrote letters, and processed mail orders with Jane Ross as her supervisor. Kenneth Suzan: On the official website for Bob Ross at bobross.com, Bob’s legacy is captured best. Quote, “He’s recognized everywhere as one of the most iconic and memorable personalities on public television, with his gentle approach and homespun humor. Bob Ross has taught, inspired, and entertained millions of people around the country and around the world.” Close quote. Kenneth Suzan: Branding, licensing, monitoring, and enforcement are front and center for Bob Ross, Inc. And I am pleased to have Joan Kowalski on our podcast today so we can get a clear picture on how this innovative company protects the valuable IP of Bob Ross worldwide. Kenneth Suzan: Welcome, Joan, to the IP Friday’s podcast. Joan Kowalski: Hi, Kenneth. Thank you for having me. Kenneth Suzan: Joan, can you tell our listeners a bit about your family, their relationship to Bob Ross, and how you became president of Bob Ross, Inc.? Joan Kowalski: I sure can. My mother took a painting class with Bob all the way back probably in 1982. She thought he was so remarkable that she went home at night and told my father, “I think I’ve stumbled on something. Let’s have dinner with him one night and talk to him.” And so they went to the local Waffle House because Bob loved eating breakfast for dinner. And they talked a little bit about what they could do to enhance his attendance in his classes. He was teaching up and down the East Coast pretty much. And they just sort of talked, and Bob told them some of his dreams and ideas. Joan Kowalski: And they decided to form a little company and promote Bob wherever they could. And the classes turned into a television series, turned into what you see today, couldn’t be more proud. Kenneth Suzan: Let’s dive right into the IP issues, Joan. What are some of the key issues that face your company with respect to protecting Bob Ross’s IP? Joan Kowalski: There are some challenges, certainly. Most notably when your intellectual property is a person as opposed to a piece of art or a storyline or a book or something like that. When you are protecting a person, it’s a different ballgame, sort of, first of all, in that most people don’t realize that you can protect a person—his image, his name, the way he speaks, his voice, his mannerisms, his little quotes that he uses. These are, in fact, all protectable, which I think the vast majority of the public don’t realize. And that, I would say, is our biggest challenge, is trying to sort of overcome the idea that he’s sort of a public domain figure or he’s something that is sort of free to everyone to use, that his family is the owner, those sorts of things. I think the biggest challenge being protecting a person. It’s called right of publicity, and not everybody understands it. Kenneth Suzan: What about the internet, Joan? How has the internet impacted brand protection? And what are some of the ways in which you monitor for infringing activity? Joan Kowalski: So the internet is both a gem, a treasure, and a curse, which is probably true of anybody that has the need to protect intellectual property. You can lose control as it just sort of morphs farther and farther away from the core, and it just sort of becomes its own thing that you then have to try and rein in, explain that this isn’t necessarily—because it’s on the internet, it’s not necessarily available to you for your product. And it doesn’t help also that Bob Ross being just such a gentle, wonderful man, that he still did have in place certain controls over the way that people would portray him, both in life and online. And it’s just hard—I would say, again, the public just doesn’t necessarily understand. And the internet just doesn’t wholly understand that it’s not just a free-for-all. Kenneth Suzan: What are some of the tools that you use to find out what’s going on? Do you work with services to monitor for infringement? Or do you yourself look at the internet? Or do you have fans that are writing to you? Or is it a combination of all of these things? Joan Kowalski: So I will tell you that we do use a monitoring organization. And we’ve given them all of our literally hundreds of trademark certificates that we’ve applied for and been granted from around the world. They’ve put all of that into their database, and they go to town. And they start just scrubbing the internet of infringements. And again, right of publicity was sort of a hard concept for us to explain, even to the monitoring system. But they are getting the hang of that as well. And I will tell you also that we get a lot of emails from fans that just want to make sure they know that we are ferocious in making sure that Bob is shown and identified in the best positive light. We get a lot of emails from them saying, “Such and such company is using Bob’s face, and I just don’t like it, and I don’t think you will either.” Our fans are like our little policemen. They know that the goal is to keep Bob as wonderful as he is. Kenneth Suzan: Now, I’ve seen a lot of merchandise in the last few years in my travels. I assume these were all mostly licensed products. What’s driving this trend? And can you comment on the need to protect IP? Joan Kowalski: Yes. So the reason for the sudden—maybe in the last, I’d say, five, six, seven years, you may have started noticing a lot of product, a lot of non-painting products like socks and sweaters and t-shirts and puzzles and that sort of thing. And that comes from, first and foremost, Bob experienced an enormous and just lovely resurgence when we allowed Twitch TV, which is a very—it’s something that the kids watch, Twitch TV. They play video games on it. Yes. And they were opening a new channel called Creative, and they wanted to do a Bob Ross marathon to open this channel seven-ish years ago. And it was a huge success, a huge success. And this just created—it didn’t really create Bob Ross fans. They had always been fans. They just didn’t know that half of their friends were already fans and half of their family were already fans. So it’s like fans identified each other with each other, and it just exploded. It just exploded. And in response to that, we did start doing finally what Bob had always wanted, which was to kind of become a household name. And so we started satisfying this younger generation with lots and lots of products that they could enjoy and collect. And today’s younger generation loves to collect things and show them off to their friends and that sort of thing. So that’s where—but then again, that’s where we realized the intellectual property, the images, the name, the voice, his little quotes, that sort of thing started leaving us, started floating out farther and farther from our arm’s reach. This is about the time also that we determined that we could not scour the internet by ourselves anymore, which we had been doing for years, but just in-house, but that we had to sort of find ways to reach out as far as the intellectual property was going to try and maintain. There are certain things that Bob really, really wanted and that sort of fit into this. The one thing that I can think of is he was very, very proud of his painting technique, and he didn’t really want his name being used for other painting techniques. He had worked hard to develop this wet-on-wet technique of his. And so that’s one thing that we were and still are having to really be careful of is that people aren’t using his name and face to show other forms of painting with teachers that are not certified. That sort of thing has really, really, really bothered Bob and made him worry that the technique of his would sort of fade away as more and more people started sort of using his image to describe and teach other methods of painting. So that’s one thing that we’re doing a lot of. The other thing is that because there are not a lot of Bob Ross original paintings for sale out in the wild, we’re now having to deal with forgeries, which is something a little bit new for us. But we’re working on that as well. It’s funny because people that aren’t really used to art and studying various artists—Bob’s fans, by and large, aren’t studying artists and going to museums and that sort of thing. Their approach to art is something they can do themselves. And normally, if they see a painting that’s got a tree in it, they just naturally assume that Bob painted it. And forgers are sort of taking advantage of that. They’ll take a painting that’s not a Bob Ross painting, but it’s a landscape, and they’ll forge his signature on there and try to sell it. So we’re having to work with our monitor and with our attorneys with that particular subject, which is awfully painful. And I think Bob would have been terrified to think that people were doing that. Kenneth Suzan: And another thing Bob probably would take issue at are these NFTs. I had read a few years ago that NFTs are an issue for your company. What do you do to protect against unauthorized NFTs bearing Bob’s work or his image? Joan Kowalski: So NFTs are a very interesting animal. Maybe three years ago, they were absolutely the biggest thing ever. And we were very careful to only license maybe two of our licensees with the ability to create one NFT. We were really—mostly for the ability to monitor, we weren’t going gung-ho with NFTs so that we could watch better. And so that we knew that if there were only these two—Funko was one of the companies that we licensed an NFT to—but that we could chase and monitor and make sure that it wasn’t going out of control. So we were very hesitant to sign on with NFT creators. And there were bunches that came to us. And we knew that NFTs, unless it was Funko’s, could be scrubbed from the internet. Now, the good news is—or maybe not good news—but the thing about NFTs is they have quieted down quite a bit now. And they really—our monitor, again, is just in all the NFT marketplaces daily. And they’ve only found one in a very long time that is using our intellectual property to create NFTs. So I think the reason that we were able to sort of maintain and protect in regards to NFTs is because we just didn’t give licenses out like—we had a tight control over the market. Yeah. Very tight control. And I’ll tell you why. It’s because I didn’t understand NFTs enough to feel comfortable to hand out licenses. It’s a silly reason, but I just could never wrap my head around the appeal or how they work and what they were. But boy, we got pressure like crazy. We got inquiries daily to get a license for NFTs. And we just held back on that. And I think in the end, mostly just to be able to control and to watch and be able to see clearly what is the infringement and what has to be studied and that sort of thing. Kenneth Suzan: Joan, let’s talk about AI because there’s not a day that goes by that I don’t hear something about AI. Are you worried about the threat of AI? Have you seen anything yet with respect to Bob’s image and likeness and voice? What are your plans in dealing with AI? Joan Kowalski: I think everybody’s a little nervous about AI. And it could also be because, again, I don’t think we have a full understanding of it. I only know that we’re being infringed on in regards to AI when I see it. Otherwise, I wouldn’t be able to explain it to you from the ground up because it’s just still very complicated in my mind. But again, with AI—and we are seeing some images that are being created of Bob. Lately, we’ve been seeing a lot of pictures of Bob looking like he’s been beat up and bleeding and black eyes and cuts on his face and that sort of thing. And that’s when I know that AI has been in play because it’s clearly not real, but it sure does look like him. So there is fear always in that way. It’s not like it used to be where you could just tell automatically that this was a picture that was taken from somewhere and used for something, end of story. But now with this, there’s—and again, I think it has to do with just not handing out licenses right and left and worrying about the consequences later. We’ve been approached by lots of entities that we’ve rejected a licensing opportunity just because the protection—the more you give out, the more you’re having to monitor and protect. So we’re a little bit choosy, and I think we’ll be the same where AI is concerned if it’s controllable. Again, I have to say that with us having the protective tool of right of publicity, it does help that it’s much more definable that the person, if used in commerce—and Bob had granted right of publicity to his company—that you can more quickly and easily identify AI fake voice sounds, fake signatures, fake faces, AI-generated sort of things that normally, if it’s a person and you’ve got right of publicity, it’s an easier go to attempt to protect and enforce and litigate if needed. Kenneth Suzan: Earlier this year, Joan, in March, the state of Tennessee signed into law the Ensuring, Likeness, Voice, and Image Security Act, or known as the Elvis Act, which is designed to protect musicians from the unauthorized use of artificial intelligence. In particular, this state law prohibits people from using AI from mimicking an individual’s voice without first obtaining their permission. Violation carries a Class A misdemeanor under Tennessee law, and civil actions can also be filed. Your thoughts about this new law? Joan Kowalski: I actually, when I heard about it, I freaked out a little bit because it’s almost identical to what it is that we’ve been able to protect through right of publicity. Voice—people don’t understand that your voice is still yours. It is protectable, depending on how you do that, whether the person is living or deceased. And it’s very close. I’ve read a little bit about it. And it’s just sort of very close to what we’re dealing with protecting Bob Ross, the full person. And I think that the idea that you don’t have to sort of splice away and explain using somebody’s voice or mimicking somebody’s voice is really the same as using somebody’s face or name. There isn’t any—if protected properly and if given the rights to the certain attributes of a human, it makes it just a lot easier moving forward. Kenneth Suzan: But with respect to the right of publicity, Joan, I understand back in 2018 that your company ran into a challenge with respect to the right of publicity. What was that challenge? And can you comment on how that was resolved? Joan Kowalski: We were challenged in 2018 simply because of, again, the public not understanding right of publicity. And by public, I mean that one of Bob’s family members didn’t understand Bob’s company and what he had set up within his corporation that would then carry us after his death into being able to, in his honor, commercialize his features, his being. And again, I think because of what I said at the top of the hour, it’s a hard concept unless you really understand it. So the family member just did sort of naturally assume that Bob being his relative and a lot of the public behind him thinking that these Bob Ross attributes would belong to Bob’s family. Now, the part that was missing was that Bob had already granted the rights of publicity to his company that he and three other partners—his wife and my parents—had already granted to the corporation back in the 1980s that he wanted and he knew. He knew that the company could do what he wanted once he died. And this is the reason that he granted these rights to the company so that we could continue. We’ve been at this for 40 years now. I think we’re doing pretty good. Do you agree? Kenneth Suzan: Oh, yes. No, I’ve been a fan of Bob Ross for many, many years. So it’s certainly an honor to talk with you. Joan Kowalski: That is wonderful. Kenneth Suzan: We’re coming up towards the end of our interview today. But I was wondering, can you provide to our listeners any best practices for protecting IP? What should they be doing? Are there things that you do regularly that you could share with them? Joan Kowalski: I would say I have two things, and I’m so glad you’re asking. The first thing being to be a little bit choosy about who you give a license to. And not because you do or don’t like the product, or do or don’t like the company, or whatever. But it just makes it easier to protect your assets when you are very diligent in who you give a license to. If you start sending licenses to everyone that inquires, it just gets farther and farther and farther away from you. The second thing I would suggest is don’t try to protect everything yourself. We did try to do that for years. And it just—something that goes out into the internet just multiplies like crazy. You need a professional monitor to help with that. Kenneth Suzan: Very, very important words of wisdom. Joan, I want to thank you so much for spending time with us today on the IP Friday’s podcast. This has been fascinating. And I thank you for your time today. Joan Kowalski: Thank you very much. I enjoyed it.

Navigating Brand Restrictions, Sustainability, AI, and Anti-Counterfeiting with Myrtha Hurtado Rivas of Nestlé On this episode of IP Fridays, I had the pleasure of interviewing Myrtha Hurtado Rivas, the General Counsel for Brands, Marketing Properties, Licensing, and Anti-Counterfeiting at Nestlé. Our conversation delved into several pressing issues in the field of intellectual property (IP), including brand restrictions, sustainability claims, artificial intelligence (AI), and anti-counterfeiting challenges. Here are the key takeaways from our engaging discussion: Brand Restrictions: Impact on Businesses and Consumer Choice Myrtha began by explaining brand restrictions, which are often implemented by governments to nudge consumers toward healthier or more environmentally friendly choices. These restrictions can take various forms, such as prohibiting certain branding, implementing traffic light labeling systems (e.g., for sugar or fat content), or even banning toys associated with products, like Kinder Eggs in certain countries. One of the biggest challenges of brand restrictions is the impact on consumer choice and business innovation. Myrtha pointed out that limitations on brand usage, including packaging and advertising, can sometimes inadvertently stifle consumer access to safer products and even hinder efforts to combat counterfeiting. During her recent moderation of a panel on brand restrictions at the International Trademark Association (INTA) annual meeting, Myrtha emphasized that these restrictions are not only a problem for brand owners but also limit consumers’ freedom to make informed choices. Brand restrictions, when applied broadly, also pose challenges for IP professionals trying to maintain consistency across markets, especially in smaller countries where product variations could make it economically unviable to continue offering the same products. Sustainability and Green Claims: Defining the Difference We also discussed the increasingly important topic of sustainability claims and green claims. While these terms are often used interchangeably, there are distinctions—especially in the legal and regulatory frameworks emerging around them. In Europe, for instance, green claims are commonly discussed in the context of a new Green Claims Directive, which governs the kinds of statements companies can make about their environmental impact. Myrtha explained that sustainability claims generally cover a broader range of factors, from how products are manufactured to how waste is managed and how packaging is produced. However, there remains a lack of clarity and uniform regulation across jurisdictions, which can lead to confusion and even legal risks for companies making these claims. At Nestlé, sustainability claims are vetted carefully, and Myrtha’s team plays a central role in ensuring that any statements made are accurate, legally compliant, and aligned with business strategies. The collaboration between IP, marketing, and compliance teams is key in navigating this complex area. AI in Business: From Early Adoption to Everyday Use Nestlé has been a pioneer in using artificial intelligence (AI) in its business processes, especially within Myrtha’s legal and IP teams. Myrtha recounted how she has been using AI tools for years, starting with her time in the pharmaceutical industry, where AI was essential in clinical trials and data gathering. Today, AI tools like Copilot and Nest GPT (Nestlé’s internal AI system) are embedded in many of their day-to-day operations. These tools help with tasks such as negotiation support, summarizing emails, drafting contracts, and data analysis. Myrtha noted that AI significantly enhances efficiency and allows even junior team members to handle more complex tasks with greater accuracy. As a result, teams are better equipped to make business-focused decisions, with AI helping to ensure that the legal aspects are clear and easy to understand for non-lawyers. Anti-Counterfeiting: A Global and Growing Challenge One of the key areas of focus for Myrtha at Nestlé is the fight against counterfeiting, particularly in the food and beverage sectors. The rise in counterfeiting has been exacerbated by the economic downturn caused by both the COVID-19 pandemic and the ongoing Russia-Ukraine war, which has driven up the cost of raw materials and made consumers more price-sensitive. As a result, counterfeit products are thriving in the market, especially online. Myrtha highlighted several challenges related to anti-counterfeiting, including cross-border collaboration, privacy laws, and the difficulty of tracking counterfeit products across various online marketplaces. She also pointed out that counterfeiters have become increasingly sophisticated, often operating in countries where law enforcement is limited. In some cases, counterfeiters even use the same production facilities as legitimate manufacturers, making it harder to shut down these operations without affecting legitimate goods. Nestlé’s approach to counterfeiting is built on collaboration with governments, law enforcement, and other stakeholders. However, the company faces hurdles such as lenient punishments for counterfeiters and cultural acceptance of counterfeit goods in certain markets. Key Takeaways for Startups and SMEs on Anti-Counterfeiting Towards the end of our conversation, I asked Myrtha for her top three recommendations for businesses, especially startups and small-to-medium enterprises (SMEs), that are looking to protect themselves from counterfeiting. Here’s what she shared: Anti-counterfeiting is everyone’s responsibility: It’s not just the legal department’s role; the entire company, from the CEO down to the operational staff, needs to be on board with the strategy. Collaboration is key: Whether with competitors, consumers, or government authorities, businesses must work together to tackle the global counterfeit market effectively. Leverage your entire team: Often, junior team members, paralegals, and assistants play a crucial role in gathering data, monitoring activity, and supporting anti-counterfeiting efforts. Every member of the team should be trained and empowered to contribute. In conclusion, this interview with Myrtha Hurtado Rivas provided invaluable insights into how a global giant like Nestlé navigates complex IP challenges, from brand restrictions to anti-counterfeiting. Whether you’re a large corporation or a startup, these insights are applicable across industries and highlight the need for collaboration, transparency, and innovation in tackling today’s most pressing IP concerns. Myrtha Hurtado Rivas: Hi, this is Myrtha Hurtado Rivas. I’m the General Counsel for Brands, Marketing Properties, Licensing, and Anti-Counterfeiting at Nestlé. And you’re listening to IP Fridays. Rolf Claessen: Today’s interview guest is Myrtha Hurtado Rivas. She is the General Counsel, Brands and Marketing Properties, Licensing, and Anti-Counterfeiting at Nestlé. Thank you very much for being on the show. Myrtha Hurtado Rivas: My pleasure to be here. Rolf Claessen: So we both just attended the INTA annual meeting in Atlanta, where not only trademark professionals go, but basically all IP professionals gather there. It’s just the biggest meeting of all IP meetings, and also the patent and design people come there. You are on the Brand Restrictions Committee of INTA. And I first want to talk about that. So maybe first of all, can you briefly explain what brand restrictions are and how they are hurting businesses? Myrtha Hurtado Rivas: Sure. Thanks for raising that question. So brand restrictions essentially can take many different forms. But in essence, what it is, is that governments or authorities try to nudge consumers into making more healthy choices. So that can be either when they choose an infant formula, for instance, a product where some authorities are convinced that it’s better to breastfeed children instead of giving them infant formula. But it also can be, for instance, traffic lights on packaging with respect to maybe sweet foods where there is too much sugar, or too fatty products where the fat content is too high. And so you can have traffic lights, or you can have restrictions that forbid you from using certain brands on certain products. For instance, you can also forbid small toys from being sold together or gifted with a brand, like the Kinder Surprise Egg, which in some countries has been forbidden because you cannot incentivize the sale of a chocolate product by adding a toy to it. We also have restrictions in areas like fossil fuels, tobacco, pharmaceuticals, and alcohol. It’s pretty much everywhere where some authority wants to influence consumer behavior. Rolf Claessen: Okay. We all know, in Germany at least, the cigarette packaging with gruesome pictures on it. The government wants to scare people away from buying cigarettes. Some of the brand restrictions are very visual and impactful. But you were also a moderator on a panel about brand restrictions at the INTA meeting. The panel was called “Navigating Brand Restrictions.” What were your main takeaways from this panel? And what, in your opinion, are the most pressing issues at the moment? Myrtha Hurtado Rivas: The idea of the panel was to explain to INTA members why INTA had to publish a resolution with respect to the topic of trademark use versus advertising. Why is this relevant for brand restrictions? Because INTA has already been advocating against brand restrictions in general. But we are now being confronted with situations where authorities are trying to limit advertising, and advertising is not trademark use per se. There are jurisdictions that recognize the advertising function of a trademark, but there are many where this is not the case. INTA needed to clarify its stance to be able to advocate against restrictions on both trademark usage and advertising. During the panel, we discussed several examples, such as a proposed fossil fuel law in Canada and new WHO guidelines on infant formula. The takeaway was that brand restrictions limit not only businesses but also consumers’ choices. In some cases, it may even limit safe choices for consumers because brands and packaging cannot communicate important differences in products. Rolf Claessen: Right. You mentioned infant formula. And maybe there are other products in Nestlé’s portfolio affected by these restrictions. What are the main challenges for you at Nestlé regarding brand restrictions? Myrtha Hurtado Rivas: Thank you. Obviously, what I’ll share is my personal view, not the company’s. At Nestlé, the challenges are similar to those faced by other companies. We have to carefully consider how we brand our products, especially when extending product lines. Some changes may be required in certain countries, and we need to stay ahead of what might happen in the future regarding restrictions. Our job is to advise the business to make decisions that will allow products to remain on the market, ensuring growth while also navigating these restrictions. We’re constantly balancing today’s restrictions with future business strategies. Rolf Claessen: You mentioned smaller countries. Could you give an example so people can better understand this challenge? Myrtha Hurtado Rivas: Sure. When I worked in pharma, there were big discussions about Ecuador. The Ecuadorian government wanted specific packaging for pharmaceuticals, which was different from neighboring countries. Ecuador is a small country, so pharmaceutical companies had to decide whether they would continue selling products there or increase prices because of the different packaging requirements. For life-saving medicines, price increases can be a sensitive issue. Rolf Claessen: Great example, thank you. Let’s switch topics to sustainability claims. Consumers want to know where products come from and how they’re produced. What are sustainability claims, and how are they different from green claims? Myrtha Hurtado Rivas: That’s a great question. In Europe, we have the Green Claims Directive, which gives an official framework for green claims. But sustainability claims tend to be broader. These are claims about how products are manufactured, how waste is handled, or the type of packaging used. It can also cover services, like the sustainability claims around air travel. The issue is that we don’t have a precise catalog of what is and isn’t allowed. At Nestlé, our IP team reviews sustainability claims to ensure they are accurate and compliant, which helps us stay connected to the business. Rolf Claessen: So you work closely with compliance and marketing on sustainability claims? Myrtha Hurtado Rivas: Exactly. We collaborate with compliance, marketing, and other departments to ensure that sustainability claims are legally sound. However, the challenge is the lack of a clear, uniform definition of sustainability and green claims across jurisdictions. Rolf Claessen: What are your concerns about sustainability claims in the future? Myrtha Hurtado Rivas: My main concern is the lack of consistent regulation. Many different authorities have the power to impose fines related to sustainability claims, from food safety authorities to advertising regulators. Monitoring the constantly evolving laws and regulations across more than 180 countries is a massive task. There’s also the growing concern that IP offices are starting to equate certain symbols, like a leaf on a logo, with sustainability or eco-friendliness, even when that may not be the case. This opens the door to more refusals of trademark registrations based on ambiguous interpretations. Rolf Claessen: Let’s shift to another topic—AI. I remember an interview where you talked about using AI five years ago. How does Nestlé use AI in its daily business? Myrtha Hurtado Rivas: Yes, I’ve been using AI for many years, starting in the pharmaceutical industry. Today, we use tools like Copilot for recording, transcribing, summarizing, and managing emails. We also have Nest GPT, our internal AI tool, which allows us to safely feed internal business information for analysis. AI is embedded in almost everything we do—from negotiations to contract drafting. It helps junior team members handle more complex tasks, allowing them to work more efficiently while being guided by AI. Rolf Claessen: That’s very impressive. You also mentioned using AI to summarize complex legal documents for non-lawyers. How has AI impacted your team? Myrtha Hurtado Rivas: AI has been a game-changer. It allows our junior lawyers to take on tasks that previously required senior lawyers, as AI tools can simplify legal opinions and make them easier for the business to understand. It’s a great tool for training and improving efficiency across the board. Rolf Claessen: Let’s now talk about anti-counterfeiting. Nestlé has a large portfolio of food and beverage products. What are the challenges you face in combating counterfeit products? Myrtha Hurtado Rivas: The biggest challenge today is the global economic crisis, which has led to an increase in the price of raw materials. This has created a fertile ground for counterfeiters, as consumers are looking for cheaper alternatives. Counterfeiters exploit this by offering fake products at lower prices, especially online. During COVID, we had good collaboration with authorities, and many platforms are now more cooperative. However, online marketplaces remain a significant challenge. Counterfeiters can quickly reappear under different names, and privacy laws sometimes prevent us from getting the information we need to take action. Rolf Claessen: You mentioned changing counterfeiting routes. Could you expand on that? Myrtha Hurtado Rivas: Yes, we’ve noticed new channels emerging to bring counterfeit products into markets where production is limited. In some cases, the same production facilities are used for both legitimate and counterfeit products, making it difficult to shut down these operations without disrupting legitimate goods. Rolf Claessen: Food and beverage counterfeiting seems particularly dangerous. Could you elaborate on the risks for consumers? Myrtha Hurtado Rivas: Absolutely. Counterfeit food products may not meet safety standards. They could contain harmful ingredients or be packaged in substandard materials that don’t preserve the product properly. Over time, consuming such products can pose serious health risks. Rolf Claessen: Thank you for those insights. As we wrap up, what are your top three recommendations for businesses, especially startups, looking to tackle counterfeiting? Myrtha Hurtado Rivas: First, anti-counterfeiting must be a company-wide effort. It’s not just a legal issue—everyone from the CEO to the operations team needs to be involved. Second, collaboration is key. You won’t solve the problem alone, so reach out to others in your industry, including competitors and authorities. Third, empower your entire team. Anti-counterfeiting requires everyone’s contribution, from paralegals to senior lawyers. It’s crucial to train all team members and involve them in the process. Rolf Claessen: Thank you so much, Myrtha. This has been a very insightful discussion, and I appreciate your time. Myrtha Hurtado Rivas: You’re very welcome, Rolf. It was my pleasure.

Bio of Tina Dorr Bio of Loretta Freeman In the latest episode of the IP Friday’s podcast, hosts Kenneth Suzan spoke with two distinguished intellectual property (IP) attorneys, Tina Dorr and Loretta Freeman, from Barnes and Thornburg LLP. The discussion provided valuable insights into patent law, focusing on the career paths of the guests, patent marking, virtual patent marking, and the implications of these practices for recovering monetary damages in infringement cases. Career Paths to Patent Law Both Tina and Loretta shared their unique journeys into the field of patent law, emphasizing that many patent attorneys enter the profession as a second or third career. Tina transitioned from a background in science to patent law, driven by a passion for solving business problems and helping clients achieve their goals through legal tools. Loretta, who started as a product development engineer at 3M, discovered her passion for IP while working with attorneys on patentability issues, eventually leading her to pursue a legal career in this field. Both emphasized the importance of a strong technical background for those interested in patent law, but also highlighted the diverse opportunities available in IP law, even for those without a science or engineering degree. Patent Marking and Virtual Patent Marking The conversation then delved into the crucial topic of patent marking, a practice that, while optional, can significantly impact a patent holder’s ability to recover damages in cases of infringement. Tina explained that proper patent marking provides constructive notice to the public that a product is patented, which can allow for the recovery of monetary damages from the date of infringement. She also discussed the legal requirements for both physical and virtual patent marking, emphasizing the importance of consistent and continuous marking to maximize potential damages. Loretta expanded on this by discussing the complexities of virtual patent marking, particularly for companies with large patent portfolios. She highlighted the cost-effectiveness and flexibility of virtual marking but warned of the challenges in maintaining accurate and up-to-date patent information on a dedicated website. Both guests stressed the importance of coordination between legal teams, R&D, and management to ensure that patent marking is handled correctly, thereby reducing the risk of false marking and ensuring compliance with legal standards. Monetary Damages in Patent Infringement Cases The discussion also covered the types of monetary damages available in patent infringement cases, with Tina explaining the three main categories: reasonable royalties, lost profits, and triple (triple) damages. She noted that while calculating these damages can be complex, they can range from thousands to billions of dollars, depending on the case. The importance of proving willful infringement for obtaining triple damages was also highlighted, with Tina emphasizing the role of patent marking in demonstrating that an infringer had knowledge of the patent. Best Practices and Pitfalls Both Tina and Loretta offered practical advice on best practices for managing patent marking, particularly in the context of licensing and product transfers. They underscored the need for clear agreements on who is responsible for marking in licensing deals and the importance of maintaining accurate records to avoid pitfalls such as false marking. In conclusion, this episode of the IP Friday’s podcast provided a comprehensive look at the strategic importance of patent marking and the potential financial implications in IP law. The insights shared by Tina Dorr and Loretta Freeman are invaluable for businesses and legal professionals looking to navigate the complexities of patent law effectively. Kenneth Suzan: Our guests today on the IP Friday’s podcast are Tina Dorr and Loretta Freeman. Kenneth Suzan: Tina is a partner in the Atlanta Office of Barnes and Thornburg LLP. She represents clients in a wide range of technology areas, including chemical, material, life science, mechanical, aerospace, and semiconductor technologies, including those within batteries, as well as water treatment, fibers and textiles, pharmaceuticals, apparel, consumer products, nutritional supplements, food and beverage, and construction. Kenneth Suzan: Tina holds a BS in Biology summa cum laude from the University of Georgia, a PhD in Chemistry and Biochemistry from the Georgia Institute of Technology, and a JD cum laude from Georgia State University College of Law. Also joining us today from Barnes and Thornburg is Loretta Freeman. Loretta is a partner with the firm, and her practice involves virtually all aspects of intellectual property law with particular emphasis on domestic and international patent and trademark procurement. Kenneth Suzan: Her practice includes preparing and prosecuting patent applications in the mechanical arts, design patents, trademark applications, trade dress, and due diligence investigations. Kenneth Suzan: Loretta holds a BS in Chemical Engineering cum laude from Florida A&M University, and a JD from the William Mitchell College of Law. Kenneth Suzan: Welcome, Tina and Loretta, to the IP Friday’s podcast. Tina Dorr: Thanks, Ken. Thanks for having us. Loretta Freeman: Thank you. Thanks so much. Kenneth Suzan: So let’s talk about your backgrounds and your paths to becoming patent attorneys. Any words of wisdom for those interested in following this path? Tina Dorr: Sure, I’ll start. Loretta Freeman: Go ahead, Tina. Tina Dorr: Okay, thanks, Loretta. So, as a patent attorney, almost everyone that becomes a patent attorney does so as a second or third career because I’m sure your listeners know that you have to have a technical background in a science or engineering field. And I would say that if you have a love for science or engineering, you have to do this job as a patent attorney every day. But you really have to also love reading and writing. You have to enjoy those things, and you also have to really enjoy—this is my favorite part of my job as a partner in a law firm—helping people and developing relationships with my clients. And that’s something that takes time and is not something that you have a chance to do very much when you first begin practicing as a junior attorney. You really have to learn how to write the patents, do the work, but ultimately, as you get further in your career, you get to truly become partners with your clients and help them advance their business goals. And we use legal tools that I learned in law school and along the way as an attorney, but really helping people solve their business problems is something that I truly, truly enjoy. And it’s the reason that I am happy that I transitioned from science to patent law. Kenneth Suzan: Loretta, what are your thoughts? Loretta Freeman: Yeah, my path to becoming a patent attorney was quite interesting. And I agree with you, Tina, that most of us who are probably practicing in this field, it’s either a second or third career, right? But that’s certainly true for me because I really didn’t have any knowledge of what intellectual property was when I was doing my undergraduate degree. No one really told me or gave me any information on what this field was at that time. I had no clue until I started working in the industry as a product development engineer at 3M. And working at a company like that, you get exposed to a lot of things. And one of the requirements as an engineer was you had to know the field in which you were developing products. And so we really had an obligation to understand the arts. And that’s where I got exposed to IP, sitting across the table with these attorneys, talking about what it was I was developing in the lab and what we were following on for patentability. It just became a real passion of mine. And I just said, “Wow, this is something else I can do.” And that was my path to becoming a patent attorney—going to law school to take this route. Loretta Freeman: And I think the advice I would just kind of tell people is, for me, practicing in this field is so awesome because not only do you continue to work with a team and inventors and being able to see a variety of things, it’s just so complex. I mean, there’s just so many things that you can do and see as an IP attorney because IP law is so varied. There’s just a lot of things that you can do, either on the patent prosecution side or the litigation side; there’s just a whole gamut there. And so I would just say, even if you don’t have a technical background, if you’re not in the sciences, if you don’t have an engineering degree, IP law is still a field that can be very exciting for you because you can do litigation. And a lot of folks would enjoy that as well, even without having the science background. So that was kind of my path to becoming a patent attorney—just being exposed to it as an engineer working for a major company. Kenneth Suzan: Well, thank you, Loretta and Tina, for sharing your backgrounds. We’re gonna jump now into the substance of today’s podcast, which is in the area of patent marking and virtual patent marking. I know we’ve touched upon this topic in another podcast episode, but we’re gonna go deeper into those issues. We’ll start with Tina today. Tina, what are the basic legal requirements for patent marking and virtual patent marking? Tina Dorr: Thanks, Ken. So, patent marking is optional. It’s not something that’s required by patent owners at all. It’s optional, but by statute, it’s something that gives patent owners the option to provide what’s called notice to the public of their patented products. And so by providing this notice, by marking products or virtually marking them, you provide this notice which allows you, if someone infringes your patent, to recover monetary damages for the infringement that go all the way back to that notice. So while you don’t have to provide this notice, the benefit is that if someone infringes your patent, you can collect damages. And so the statute says that there are two ways to do it. You can provide constructive notice by marking your product itself. And you can either say “patent” or “patent with the patent number” actually on the product. And that is what you want to do if at all possible—mark the product itself. Now, say that, for example, you have a cup with your company name on it and any other writing. If your product has any other writing on it, then the court’s gonna want you to actually provide that notice on the product itself if you’re using constructive notice by marking the product. Tina Dorr: Another way to provide notice is through letting a competitor or potential infringer know in writing. So if you don’t mark your products but you discover someone infringing your patent, you can send them a letter, give them the patent number or a copy of your patent. And that’s another way to provide notice. And then again, potential damages would go back to that if you didn’t mark your products to the timing or the date of that letter. Kenneth Suzan: Sure, sure. No, that’s very interesting. We’re gonna, along those lines, we’re gonna turn to Loretta. Loretta, what factors must be considered when determining whether to use virtual patent marking? Loretta Freeman: Yeah, determining whether to virtual mark and how to use virtual marking can be more complex than you think. And companies should definitely give this some serious thought, especially those companies with large patent portfolios and/or extensive product offerings. In some cases, the expense in marking the product may be disproportionate to the cost of the product itself. So it may be easier and more cost-effective to virtually mark. For example, just think about the expense that can come with modifying your labeling and packaging information or a manufacturing process to change mode tooling in order to reflect a change in the patent information. Loretta Freeman: Of course, there are other things that could be done if the patent marking is included in the tooling. Manufacturers can consider using removable inserts that have the patent marking information on them, which can be easily updated and replaced when needed, rather than having to make an entirely new tool. Loretta Freeman: So there are ways to make this more cost-effective, but you also have the likelihood of needing to scrap old packaging and labeling inventory as you’re trying to maintain accurate patent information. So it’s much easier to update a virtual marking website, and companies can avoid the expense and effort required to update and maintain patent information on products. So e-marking or virtual marking can definitely provide cost-effectiveness, flexibility, and transparency. But if you’re going to virtually mark, companies must ensure that their designated URL remains functional at all times, or you risk the public and potential infringers not being noticed that the products are patented. So the marking system may be a little burdensome to maintain. So you want to consider whether or not your company would be able to commit to keeping such a website updated with the patent information related to each product. Loretta Freeman: And back to what Tina was mentioning as far as marking on the product itself, the size of the product and whether you can physically mark directly on it should also be considered. Some patented parts may be so small that physical marking would be unfeasible or difficult to even read. And in these cases, you might consider virtually marking and perhaps virtually marking the packaging, which is acceptable only if marking the product cannot be done. And in some cases, there are patented products that are enclosed within a larger product and are never seen by the public, right? For example, products such as computer software, which require special considerations. You might want to indicate the patent during startup or include the information in the documentation of the software. You would also want to include the patent marking within links if the software is internet-based. So these are just some factors that you want to think about when you’re considering whether to virtually patent mark. Kenneth Suzan: Thank you, Loretta. Following on our discussion here, I want to talk about some best practices. What are some best practices for virtual patent marking, and what steps can patent owners and their counsel take to develop their virtual patent marking program? Loretta Freeman: I would say for corporations, I like to emphasize having the legal team work closely with management and R&D engineers to identify which products actually fall under the protection of a particular patent. It is important that everyone understands the marking obligations to ensure full compliance with the rules. And so when you work closely together, you can avoid any confusion. And this also will maximize any potential damage awards in cases of infringement. So for sure, one best practice is to just work closely together with your team and making sure that you probably have everything identified. Another one I would just note is having a formal marking program in itself, right? It’s very important to maintain good records. And so having a formal marking program can help with that. And being sure to document its implementation when you actually start this marking program because you want to meet the substantially consistent and continuous aspect of the marking requirement. So having routine monitoring and updating of the URL website is key, as I mentioned earlier, to ensure all the information is accurate and up to date. And you want to indicate on the website when your patent listing was last updated so you can ensure the marking program is consistently followed by manufacturers or licensees, whomever. And so you want to make sure that you’re working closely with those individuals as well. Loretta Freeman: And another thing to consider is whether a single URL is appropriate, right? I mean, if your company has multiple divisions, perhaps consider whether a different URL should be used for each division or business unit or product family or product line. You might have multiple URLs to help with providing the product-to-patent association that’s required under the law. And it also may be very well helpful in making a divestiture. If there’s anything that were to come up in a particular business later, that could be easier for you down the road. Kenneth Suzan: Very, very useful. Yeah. Are there any other things that come to mind in this area? Loretta Freeman: I think from a patent owner’s perspective, I think just maintaining good records to show any changes that are made to the website, the dates that the changes were made, you want to make sure that you keep good records on that. Products, packaging, labeling—all that should be reviewed from time to time to ensure accuracy. Like, you want to make sure expired patents are removed. You want to make sure that new patents are included and that any patents listed do, in fact, cover the marked products. So having this routine audit program in place to monitor and update patent marking may help a manufacturer or company demonstrate that it did not have intent, which is a requirement for proving false marking, to falsely deceive the public and help to avoid penalties associated with false marking. Kenneth Suzan: Very good, Loretta. Very helpful and useful information. So now we’re gonna shift gears and talk about monetary damages. We’ll talk to Tina about that. So Tina, what types of benefits and potential damages could you gain from properly marking? Tina Dorr: Good question, Ken. And we’ve been talking about damages. And so damages—there are several types of damages that can be awarded, and these can be hundreds of thousands, millions, billions of dollars potentially. But the three main types are reasonable royalties, lost profits, and occasionally, triple damages. And reasonable royalties are—everyone’s probably heard this term—the fair market value of a license or a royalty for what your infringer would have paid you to use your patents. So to calculate this—and there are experts and companies that do this kind of thing—it’s very complex, it’s dependent on facts, but it also involves a lot of imagination because to calculate the reasonable royalty, the parties are supposed to go back in time and envision a potential amicable situation prior to any litigation, prior to any infringement, a licensing agreement. And they are to consider the licensing agreement that they would have reached based on factors at that time, such as their mindsets, financial situations, and other similar deals. Tina Dorr: Lost profits is the second type that I mentioned, which would compensate a patent owner for money that they would have made if not for the infringement. So this type of damage requires a showing that your business suffered losses because of the infringement. Tina Dorr: And then the last type is triple damages, and that’s triple money damages—if the defendant’s infringement was willful. So to prove—I think Loretta might’ve mentioned this—to prove that the infringement was willful, intentional, that they knew about the patent, you have to prove those two things: that the defendant knew about that patent (that’s why patent marking is important) and that they copied or tried to design around it so that it was intentional. And so that, of course, is gonna probably only come out during discovery where documents and emails are reviewed. Kenneth Suzan: Thank you, Tina. Now let’s also look at patent infringement. If you’re sued for patent infringement, what steps should you take to determine whether the plaintiff properly marked their patented goods to assess your risk for owing damages? Tina Dorr: Great question. Now, we’ve mentioned a few times that marking isn’t—or maybe I didn’t mention this earlier, I’m not sure if I did or not—but marking isn’t effective until substantially all of the patented products being sold are properly marked. So say that you’re selling some in Georgia and then you’re selling some in California and you’re only marking the products in Georgia for whatever reason. That is not substantially all the patented products. So if you receive a letter—a cease and desist letter, or a complaint for alleged patent infringement—the first thing you want to do, and you can do this informally (of course, this will be done in discovery as well), but you want to look and see that all of the products are consistently marked because if the patent owner has failed to consistently mark, it’s possible that the issue can be decided very early on in summary judgment. Kenneth Suzan: Mm-hmm. Kenneth Suzan: And Loretta, let’s talk about how virtual patent marking is being looked at in the federal courts. How are the federal courts treating virtual patent marking these days? Loretta Freeman: Yeah, I think one of the things—so I was looking at this question, and I really just wanted to focus on the liability for false marking, right? And just making people aware of this liability because marking a product with a patent that does not cover the product can create liability for false marking. And the courts really view that quite seriously, as well as marking a product with a patent number without consent from the patent owner or marking an unpatented product or marking a product “patent pending” when there is no patent pending, right? So there are certain liabilities that you can be at risk of if you do any of those things. And marking a product with an expired patent is no longer considered false marking. A very famous lawsuit involved false marking with expired patents, but the courts eventually found no violation of patent marking laws because there was no intent to deceive. And so Congress amended patent laws under the AIA in 2011 to exclude expired patents for false marking. In addition to this, false marking suits can no longer be filed by ordinary citizens. Only the government can pursue false marking claims, and as such, these suits have dropped off significantly. But I think having a routine audit program can help show that there was no deceptive intent. And so you can kind of move yourself away from these types of risks. Kenneth Suzan: Very, very helpful information indeed. Tina, if you sell or license a patent, who is responsible for marking? Tina Dorr: Great question. And this issue comes up all the time. So a significant problem can arise when products are sold or entire businesses are acquired or divested by a device maker and patent owner. And when a patent or patented device is transferred between entities, it is important in that deal to identify who has the responsibility to maintain the marking. Because courts are very clear that the law requires substantially all products to be marked and that, as Loretta mentioned, the marking is substantially consistent and continuous. And this holds true with licensing too. So if a patent owner licenses a patent to a licensee, in order to maintain that consistency in that licensing agreement, it needs to be clear who is going to maintain that mark. And there’s some tension there because, for example, if you’re licensing a patent, of course, the licensee may not wish to have that if it’s virtually marked with the patent owner’s URL website, which is probably going to have its name on that website. That licensee probably doesn’t want that patent owner—who could be a supplier competitor—on their product. But again, it’s really important that those deal lawyers are working closely with IP lawyers together to make it very clear who’s going to continue to and how that marking is going to continue to ensure that the marking is substantially consistent and continuous. Kenneth Suzan: Very, very good. So we’re coming up near the end of our podcast today. We have one final question that is for Loretta. Loretta, what are some pitfalls and uncertainties around virtual patent marking that you can share with our listeners? Loretta Freeman: I think, well, there could be a few things, but I want to highlight one for sure that we’ve talked about already. And it’s mostly around the difficulty of linking patents to products and making sure that you have that accurately when you virtually mark. It is so important to have your legal team working closely with your R&D team and management to ensure that you are marking your product with patents that cover the product to provide constructive notice, which may allow collection of higher damages in infringements. I mean, it just really starts there, right? Incorrect patent marking can make a manufacturer liable for false marking. And ineffective patent marking requires routine monitoring and updating to ensure the marking is accurate. So you want to make sure that you have an effective marking system and routine to ensure that you don’t fall into these pitfalls of not having your website accurate and up to date and actually available for those that you’re trying to put on notice. Kenneth Suzan: Very, very helpful. Tina, do you have any comments on the pitfalls and uncertainties at all? Tina Dorr: Yeah, I’ll highlight again that, as Loretta mentioned, in many cases, the parties that are responsible for maintaining the virtual patent website and the virtual marking program are their marketing team, and they’re not working necessarily very closely with the innovation team or the R&D team. And maybe they don’t understand the importance. And so I think having regular internal education—and this can come from outside counsel who are, I’m sure, happy to provide a 30-minute lunch and learn on why it’s important to maintain this website and maybe best practices and some of the things that Loretta mentioned to ensure that you’re accurately maintaining the site up to date—and why it’s important. I think understanding that “why” will really help drive and help make that virtual patent marking program robust and continuous. Kenneth Suzan: Excellent. Tina, Loretta, thank you so much for joining us today on the IP Friday’s podcast. This has been fantastic. And we will list in the show notes both of your firm bios if people want to get in touch with you. Thank you both once again. Tina Dorr: Thank you very much, Ken.

STOPfakes.gov Information pages of the German Patent and Trademark Office for SMEs Summary and Main Takeaways Episode Overview: This episode features an interview with Michelle Sara King, the intellectual property team lead and senior international trade specialist at the International Trade Administration in the U.S. Department of Commerce. The discussion centers on her role, the initiatives she leads, and advice for businesses on protecting intellectual property (IP) internationally. Main Takeaways: Role and Responsibilities: Michelle leads a team focused on protecting U.S. IP rights internationally. She has extensive experience in IP and international trade, contributing to improved IP enforcement globally. Key Initiatives: Stop Fakes Program: Educates businesses, especially SMEs, on protecting their IP. Provides resources, training, and support. International Collaboration: Works with global partners to enhance IP enforcement, involving negotiations, best practice sharing, and technical assistance. Challenges in IP Protection: Evolving IP Threats: New forms of IP theft and counterfeiting emerge with technological advancements, requiring constant updates in strategies. Complex International Cooperation: Varying levels of IP protection across countries necessitate continuous negotiation and diplomacy. Advice for Businesses: Proactivity: Register trademarks and patents in key markets, monitor for infringements, and act when necessary. Education: Utilize resources like the Stop Fakes program for best practices in IP protection. Professional Support: Engage experienced IP professionals for guidance and support. This episode highlights the critical work being done to protect intellectual property rights globally and provides practical advice for businesses to safeguard their IP assets. Rolf Claessen: Good afternoon. I am Rolf Claessen, and welcome to IP Fridays. Today, our special guest is Michelle Sara King, the intellectual property team lead, senior international trade specialist, and the Stop Fakes team lead at the International Trade Administration in the United States Department of Commerce. Michelle, welcome to the podcast. Michelle Sara King: Good afternoon. I am Michelle Sara King. I am the intellectual property team lead, the senior international trade specialist, and the Stop Fakes team lead at the International Trade Administration in the United States Department of Commerce. Happy to be here. Thanks, Rolf. Rolf Claessen: So tell us, what is the Stop Fakes program of the US government, and where does it come from? What is the main goal? Tell us more about it. Michelle Sara King: The Stop Fakes program was created by a presidential order in the Bush administration as an opportunity to provide outreach and education about intellectual property to businesses of all sizes as well as consumers. The name of the Stop Fakes program is a bit of a misnomer because it’s focused primarily on education, outreach, and engagement about intellectual property. It is not an enforcement mechanism per se, though we do provide opportunities and referrals for issues of enforcement. The Stop Fakes program is over ten years old and operates through a digital platform with a website, stopfakes.gov. We conduct outreach and engagement via virtual webinars, in-person roadshows, speaking at industry events, and specialized business consultations for businesses of all sizes, all at no charge. Our programs partner with various entities, including the US Export Assistance Centers, which operate in every state and are part of the International Trade Administration. The International Trade Administration was established over forty years ago by President Reagan as a key component of promoting and protecting US businesses internationally. Rolf Claessen: That’s very impressive. What are some of the major accomplishments of the Stop Fakes program? Michelle Sara King: One of our key accomplishments is the development of extensive resources and tools to help businesses protect their intellectual property. We’ve created guides, webinars, and training materials that are accessible to everyone. Additionally, we’ve held numerous events and consultations that have directly assisted businesses in safeguarding their IP. Another significant achievement is our collaboration with international partners to strengthen IP enforcement globally. This involves negotiating agreements, sharing best practices, and providing technical assistance to help other countries improve their IP systems. Rolf Claessen: Can you give us some examples of the kind of support and resources you offer to businesses? Michelle Sara King: Absolutely. We provide a range of resources, including IP toolkits tailored to specific industries, which outline best practices for protecting intellectual property. Our webinars cover various topics, such as how to register trademarks and patents in foreign markets, how to detect and respond to counterfeit goods, and strategies for enforcing IP rights. We also offer one-on-one consultations where businesses can get personalized advice and support from our team of experts. Rolf Claessen: What do you see as the biggest challenges in the field of intellectual property today? Michelle Sara King: One of the biggest challenges is the constantly evolving nature of IP threats. As technology advances, new forms of IP theft and counterfeiting emerge. Keeping up with these changes and developing effective strategies to combat them is a continuous challenge. Additionally, working with multiple countries with varying levels of IP protection and enforcement can be complex. It requires constant negotiation and diplomacy to achieve meaningful improvements. There’s also the challenge of raising awareness among businesses about the importance of protecting their IP and the steps they need to take to do so effectively. Rolf Claessen: Given these challenges, what advice would you give to businesses looking to protect their IP internationally? Michelle Sara King: First and foremost, businesses need to be proactive about protecting their IP. This means registering their trademarks and patents in key markets, monitoring for potential infringements, and taking action when necessary. Education is also crucial. Businesses should take advantage of the resources available to them, such as the Stop Fakes program, to learn about best practices for IP protection. Finally, working with experienced IP professionals can provide invaluable guidance and support. It’s important to have a comprehensive IP strategy that covers all aspects of protection and enforcement. Rolf Claessen: Thank you, Michelle. It’s been a pleasure talking with you. Your insights and expertise are incredibly valuable to our listeners. Michelle Sara King: Thank you, Rolf. I’m glad to have had the opportunity to share some of our work and hopefully provide some useful information to your audience. Rolf Claessen: That wraps up this episode of IP Fridays. Thank you for tuning in, and we’ll be back with more discussions on intellectual property soon.