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DL450ESS19 Final Exam StudentVersion
DL450ESS19 Final Exam StudentVersion
FINAL EXAM
Please provide the information required under nos. 1, 2 and 3 before proceeding and insert
your name in the box below. This page should serve as a cover page when you upload your
completed final exam paper.
I, Kealeboga Thato Molatlhegi , hereby affirm that this final exam represents my own
written work and that I have used no sources and aides other that those cited. All
passages quoted from publications, websites or paraphrased from external sources are
properly cited and attributed as mentioned under the Regulations & Plagiarism Warning
below.
Please read carefully the instructions below before you complete and submit your final exam:
It is estimated that completing this exam will take you around 8 hours of work. However, you
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SUBMISSION OF EXAM: Please note that your exam must be uploaded onto the course
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DL450ESS19 Final Exam
• We are very interested in your own thoughts and writing in response to the questions in
the exam. This is for your benefit – to show you have really learned the material to qualify for
the WIPO certificate. It is also for our benefit – to demonstrate that the materials we use and
our teaching techniques are effective.
Please adhere to the number of words that is suggested.
• WIPO Academy will check all submitted final exams for plagiarism, excessive
referencing and for exams which are identical or in which evidence of copying is apparent.
Failing to acknowledge and cite other people’s work or ideas, close paraphrasing, using
passages verbatim without referencing, extreme referencing (without any original work done
by the student), and copying other students’ work is considered academic dishonesty by
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in the personal file of the concerned participants for future reference.
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avoid the problem of similar exams being submitted.
• Accordingly, responses to the questions in the final exam should be original.
• Final exams which have been reported with apparent plagiarism/copying will be
returned without being marked, resulting in failure to pass the exam.
• WIPO Academy recommends that students use appropriate citation styles, for example
use:
Harvard referencing guide 2010 :
http://www.biosocsoc.org/sbha/reference/harvard_referencing_guide.pdf,
Open University Harvard guide to citing references
http://www.open.ac.uk/libraryservices/documents/harvard_citation_hlp.pdf
APA style: www.apastyle.org and http://www.apastyle.org/learn/quick-guide-on-
references.aspx
Chicago manual of style:
http://www.chicagomanualofstyle.org/tools_citationguide.html
and include a bibliography at the end of the final exam containing the necessary information
for the grader to identify the sources cited.
The 2010 Harvard Referencing Guide defines plagiarism in the following manner:
“1.2 Plagiarism
Plagiarism is passing off the work of others as your own. This constitutes academic
theft and is a serious matter which is penalised in assignment marking. The following
extract is from the Anglia Ruskin University Academic Regulations (2010). For full
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DL450ESS19 Final Exam
details see: Anglia Ruskin University. 2010. Anglia Ruskin University Academic
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Regulations. [online] 3rd edition. 2010 Available
at: http://web.anglia.ac.uk/anet/academic/academic_regulations.phtml Anglia Ruskin
University http://libweb.anglia.ac.uk/referencing/harvard.htm 5
“10.7 Plagiarism and collusion are common forms of assessment offence. They are
defined as follows:
“Plagiarism”
10.7.1 Plagiarism is the submission of an item of assessment containing elements of
work produced by another person(s) in such a way that it could be assumed to be the
student’s own work.
Examples of plagiarism are:
• the verbatim copying of another person’s work without acknowledgement
• the close paraphrasing of another person’s work by simply changing a few words or
altering the order of presentation without acknowledgement
• the unacknowledged quotation of phrases from another person’s work and/or the
presentation of another person’s idea(s) as one’s own.
10.7.3 Plagiarized work may belong to another student or be from a published source
such as a book, report, journal or material available on the internet.”
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DL450ESS19 Final Exam
Each question states the number of possible marks and the approximate word/ page length
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for your answer to that question. Please use this information as a guide to appropriately
allocate your time and effort. Note the following general marks on case analysis:
The principle of a case is that it contains all the information available to answer the issues at
stake. The factual basis for your answer is the case study only. You may not use any outside
information or quote sources outside the case. (In this regard a case analysis is very different
from a “paper”. The concept behind a case is that you make a decision on the information
available, even if you would dearly like more data.) You must, of course, refer to legal
sources to substantiate your position. If a fact is missing from the case or the facts are
confusing or ambiguous to you and the resolution of a factual issue is dispositive or critical to
your analysis of the legal issue then you may state that fact, why it is dispositive or critical,
and show that the determination of that fact would change your legal analysis. (For example,
the facts are not clear whether a patent application has been filed in country A or country B.
Only country B recognizes widgets as patentable subject matter. You may then state that the
patentability of widgets depends on whether one files in country A or in country B, why, and
then proceed to answer the question.) You may not use such limited exceptions to avoid
difficult issues of law that are clearly presented by the case.
The bibliography is important and all references should relate specifically to issues raised in
the text, and be identified as such and not simply “general” sources. You may use the
Harvard Uniform System of Citation (The “Blue Book”) or any other referencing system as
long as the references contain sufficient information so that if necessary, your tutor may
locate the source that you are citing.
Answers should be written clearly and respond to the issues presented by the question. Your
paper must be submitted by the due date. Once you have submitted your paper, do not
resubmit without first contacting your tutor by email.
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DL450ESS19 Final Exam
Fredo and Mirana work in the marketing and design department of Karenjy, an innovative
food technology company based in Madagascar. Adi is a food microbiologist and she works
as a senior researcher in the research and development (R&D) department at Karenjy. Adi’s
job description includes research on the use of microbes such as yeasts, moulds, and
bacteria for the production of foods and food ingredients. All employees in the R&D
department of Karenjy are required to sign an employment contract that any intellectual
property (IP) developed in the course of their work for Karenjy is automatically owned by
Karenjy. Adi signed the employment contract agreement although she does not approve of
Karenjy’s IP policy. Adi thinks it is not fair that Karenjy should own all the economic benefit
gained from its employees’ inventive ideas. However, Karenjy does not have an IP policy
clause for its employment contract for employees working in other departments.
One hot summer’s day in December 2018 Mirana and Fredo were sitting in the gardens
surrounding the Karenjy manufacturing plant taking their lunch break. While drinking their
tepid lemonade drinks, they come up with the brilliant idea of designing an environmentally
friendly self-chilling can. They agreed that the name “FoldCan” would be perfect.
Neither of them has any scientific training so they consulted their scientist colleague and
friend, Adi, who also works at Karenjy. As noted above, Adi works in the R&D department at
Karenjy. Fredo and Mirana asked Adi whether their idea for the “FoldCan” was scientifically
possible. Adi suggested that the way to proceed might be to use vacuum heat-pump
technology, rather like a refrigerator, and a double-walled can, rather like a vacuum flask.
During her lunch breaks Adi drew up some plans for the new “FoldCan”. Fredo and Mirana’s
expertise lies in graphic design and advertising. They develop a slogan, namely “FoldCan –
Kwikwik” as a trademark.
Adi worked on the drawings for the design of the can during her lunch breaks. In any event,
Adi was confident that the work done during her lunch break was not covered by Karenjy’s IP
clauses in the employment contract and decided not to tell Karenjy about the work.
Adi developed an isotonic/sports drink over weekends during the last six months. Her drink
contains all the ingredients that help athletes replace water and electrolytes, and restore
energy after training. The drink has a very particular taste and colour, which makes it
enjoyable and differentiates it from existing drinks. Adi believes that her isotonic drink will
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DL450ESS19 Final Exam
become a success as currently there is nothing comparable on the market (in terms of
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efficacy, colour and taste).
Extracts of a plant that grows in a secluded area on a small island in the Indian Ocean
(whose qualities are not widely known) is a key ingredient of the isotonic drink. Adi has
combined the extract with other commonplace ingredients under specific temperatures and
with the use of a specific method. Adi is not sure whether she should apply for a patent for
the isotonic drink or if she should opt for trade secret protection. She seems to favour the
latter option because it is cheaper.
TASKS:
(a) What is the classification of technological innovation and apply this to the work that
Adi has been doing?
Ans:
Innovation is the generation of a new idea and its implementation into a new product. While
Technological Innovation is the knowledge of components, linkages between components,
methods, processes and techniques that go into a product or service. While looking at the
technological innovation that used by Adi, it will be identified at process which used to
produce the product of Foldcan though mould and Adi used a process to develop her isotonic
drink. outcomes can be only imperfectly anticipated. An innovation's impact may not be
known until it is too late for incumbents using older knowhow to compete successfully with
new competitors; gambling too early on a given innovation may jeopardize an incumbent's
survival if that technology turns out not to become dominant. The importance of innovation is
to have competitive advantage in this case Adi has developed the isotonic drink through
innovation and technology to gain competitive advantage against her competitors.
Trade Secret defined as any confidential business information which provides an enterprise a
competitive edge. Trade secrets may concern inventions or information that is not viable for a
patent and therefore can only be protected as a trade secret. However, some inventors with
patentable ideas still choose to hide their intellectual property. While Adi choose this model
to protect her invention. Adi will have competitive advantage while using trade secret rather
than patent since patenting the invention leads her to disclose all information related to
isotonic drink and will remain in public for a period of 20 years while controlling its monopoly.
(10 marks)
(b) Discuss the link between this type of innovation and intellectual property protection.
Ans:
As Adi has already chosen to protect her innovation of isotonic drink through trade
secret it is important that is one of way to protect her intellectual property against
exploitation. This has created her to have competitiveness edge among her
competitors with her product. It should be noted that Trade secret is one way to
protect your IP and it has its advantages where you keep your invention secret and
still make income through commercializing it through licensing.
(10 marks)
(c) Give advice to Adi on the implications of choosing either patent protection or trade
secret protection for the isotonic/sports drink.
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DL450ESS19 Final Exam
Advantages of patents; she will have a Advantages of Trade Secret; Adi will
monopoly for 20 years this gives her have the monopoly for indefinite. She
the right to stop others from copying, does not have to register the invention,
manufacturing, selling her inventions and this makes it cheap. Disadvantage
without her permission. She can to trade secrets is that her invention
alternately license her inventions as it can be reverse engineered once the
has more protection and gain monetary secret is made public and then anyone
value. Disadvantages of her patenting is at liberty to use the information. The
will be discloser of her invention to information about the invention must be
public and its expensive process to do kept secret for as long as it remains
and time consuming. She will need to secret, she cannot use it for collateral
be up to date with renewals dates for funding.
While looking at the model of the invention, it will be in her best interest to Trade
Secret to give her absolute right to keep her technology away from being publicly
disclosed while filling for Patent protection. And Trade secret is having been working
for companies that have similar technology or invention with her and this companies
are Coca Cola and KFC as an example.
(10 marks)
(d) Explain to Adi the advantages and disadvantages market, income and cost approach
to IP valuation and advise her on the best approach to determine the value of the IP
of her sports drink
Ans:
IP Evaluation is important to the company to determine the value of their invention or
technology while in this scenario its important for Adi to understand the IP value for
her technology or invention. While though this IP Evaluation follows three steps to
determine the value of such technology or invention. These three steps are market,
income and Cost value approach. Adi must follow these steps to know and
understand the value of her sport drink.
Market Approach
This is simple method as is reliable since the information is provided by the market
and this will act as advantage to her to understand. The approach has disadvantage,
since the information provided by market can lead to undervaluing her technology.
Income Approach
Income based methods measure the potential future benefits of the subject IP to
determine its worth and the advantage of these methods is that it is relatively simple
to assess the value on the basis of the conditions set up. It captures the value of IP
assets that generate relatively stable or predictable cash flows. The disadvantage of
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DL450ESS19 Final Exam
these methods is that both uncertain and distant cash flows and the discount rate
must be estimated. WIPO FOR OFFICIAL USE ONLY
Cost Approach
The Cost Approach is the cost used to determine cost incurred during the
development of the technology or invention while the advantage of the method is that
IP becomes visible in the assets register or books. The method is also a useful
indicator of IP value in the case of IP assets whose future benefit is not yet evident.
The best method to give to Adi will be Hybrid Approach since is determined by
combining the Income and market approaches to value the IP of her technology. This
is the best approach to determine the value of the IP of her sports drink while its limits
both the income and market approach to suit her technology.
(15 marks)
(e) Explain to Karenjy what the internal and external elements of an IP Strategy are.
Ans:
The basic elements of IP strategy should not differ from those of good business strategy. An
IP strategy must address the management of IP internally as well as externally. The internal
IP management is important because if IP is not identified and protected there will not be
anything to manage while the IP strategy must be directed externally to have any effect on
the product or innovation competitiveness and economic wealth.
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DL450ESS19 Final Exam
(8 marks)
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DL450ESS19 Final Exam
(f) List ten issues that should be addressed in the IP Policy and indicate how these
WIPO
issues would be relevant to FOR OFFICIAL
address USE ONLY
the IP created by Adi, Fredo and Mirana.
Ans:
An IP Policy aims to establish transparent procedures for managing IP within the company. It
is important to rely on during any invention or creation of IP. The list with issues that should
be used to address the IP created by Adi, Fredo and Mirana
3. IP Filling-The policy must address issues around protecting the IP created by Adi,
Fredo and Mirana through filling and maintenance. As well as issue to keep register
of the IP and to maintain the cost of filling.
5. Commercialisation of IPR’s-the policy must address this issue in clear to guide Adi,
Fredo and Mirana in terms of commercilisation of their IP. While this will also give
them proper information on income that could be generated through their IP.
6. Licensing and assignment- The IP policy should also address the issue of licensing
and assignment how the royalty will be paid to the Adi, Fredo and Mirana and who will
be carrying negotiations with third party.
7. Enforcement- The policy will give a guide in terms of enforcement where the third
parties have infringed on the IP created by Adi, Fredo and Mirana. The policy also will
have to address issues around incentives for staff to protect and report any
infringement towards the IP created.
8. IP Audit. the IP policy needs to include audit so that it can help the company to know
the value of the IP created by Adi, Fredo and Mirana. This will enable them to know
the strength and weakness of their IPRs.
9. Evaluation and Research and Development-The policy must address this issue in
detail to help the company to keep valuation of the IP protected and detailed of the
responsible employee to take up this evaluation. The Policy also must address issues
around research and development for improvements and take up on new IPRs for the
company to increase their book value.
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10. Public Policy- the policy must address issues that are on public policy to fully benefit
from the exploitation of WIPO FOR OFFICIAL USE ONLY
the IP. will enable the company to use the traditional
knowledge which they use in food technology to address the benefit sharing among
the community who shares the same traditional knowledge.
(12 marks)
[65 MARKS]
QUESTION 2
In the buying, selling, licensing or franchising of Intellectual Property (IP) some simple
precautions need to be undertaken to turn a good deal into a great investment, and to make
significant savings or gains depending to which side of the transaction fence you belong. It is
very common during the selling or licensing process to concentrate solely on the number
crunching exercise and to overlook certain crucial aspects that are equally important.
TASK:
Draft a check list of consideration to be made when conducting a due diligence.
Ans:
“IP due diligence” is the assessment of the IP owned or used by a company, or of third-party
IP rights which may impact on the company’s business. IP due diligence can therefore be
critically important in deciding whether to purchase or invest into a company or enter into
some other agreement with the company where IP is a factor. According to the module notes
Intellectual Property Commercialisation has become the money maker to companies without
raising any capital to establish more branches but through franchising and selling of licenses.
The reference can be derived from the cases study provided through the module of IBM. As
when this aspect of buying, selling, licensing or franchising of Intellectual Property (IP) is
raised the seller or the buy needs to have a proper due diligence to help them to identify
issues raised into commercializing the intellectual Property. According to European IPR
HelpDesk Fact sheet (2015) notes that companies these days are taking Intellectual Property
as an asset to the companies’ books to raise its value. The due diligence is so important to
address issues that may be raised during the selling and buying processes of Intellectual
property. It is important to note that taking the process of due diligence for Intellectual
Property, one needs Intellectual Property professional as it’s a technical process. The Due
diligence will address the gaps that may rise during the selling and buying process.
The following will be check list to follow during the process of Due Diligence,
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NO ISSUES INVESTIGATION
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1 IP identification Trademarks owned by the
company-this will provide all the
list of trademarks owned by the
company
List of Trade Names and Logos
List of Design Patents
List of all software owned though
Copyright
Utility Patents
Software used by the company
Trade secrets
Domain names-will have to list all
domain names registered by the
company.
[10 MARKS]
QUESTION 3
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companies train their staff through Proprietary software, with so many to coders
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working on the same software you might not be aware of the upgrades and new
releases and it has legal challenges since you cannot control the other users and
coders.
(8 marks)
c) Distinguish the differences and similarities between open source, open access and
open innovation and explain the policy objectives that underlie each of these forms of
“openness”.
1. Ans:
In open innovation the user of technology i.e in order to use patents, the user need
permission from the owner. In open access most of publishers own the rights to the
copyright, anyone who want to use or access copyright must obtain permission from
the publisher while in open source the users of software are allowed to use software
freely such that they can study, copy, edit, modify and distribute the source code
under liberal license.
2. Open innovation and open access require payment of royalty/license fees in order to
access the technology and copyright respectively while in open source the users do
not need to pay royalty/license fees in order to access the software.
3. Open innovation deals with patents while open source and open access are involved
with not access to copyright i.e Software, books and articles.
4. Open source has well-known licenses that clarify the copyrights and Contributor
License Agreement, they clarify the intent of the contributors while in open innovation
and open access do not have the same clarity many companies have their own
custom IP Agreements.
5. Open innovation refer to open in collaboration especially during R & D. Open source
refers to freely access to software, modification and distribution of source code while
in open access refers to unrestricted public access, usually in the context of research.
6. Open source software provides businesses with value through access to knowledge
and innovation capacity resident in value networks. Open source software works thus
as a mechanism for value creation and capture. These value networks enable rich,
open and transparent interactions between all members, which is unlike than with
normal transaction oriented focus of other traditional international relations.
1. Open Source and Open Innovation both approaches call into question the boundaries
of the traditional business, emphasizing collaboration, sharing, decentralization. They
lower the barriers of language and geography (although there is a strong dominance
of English and the United States), thus allowing a global flow of ideas and
information;
2. Open Innovation and Open Source value what is today called collective intelligence,
recognizing that “the whole is greater than the sum of its parts”, that diversity,
independence and decentralization of opinions and ideas allowed by the internet
provide access to a richness which was difficult to implement before;
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3. An important element of motivation is the desire to work for the common good. This
WIPOin
concern is probably stronger FOR
theOFFICIAL
Open USE ONLYmovement (and especially in the
Source
Free Software), but we often find this motivation among participants in Open
Innovation processes, whether experts, employees or individuals;
4. Finally, the information and communication technologies play a key role in both the
access to information and knowledge, in the production and proliferation of data, and
in the circulation of ideas. The Open Access movement promotes unrestricted online
access to peer-reviewed scholarly research. This enables a better flow of scientific
ideas that need to be read and criticized in order to progress.
(10 marks)
[25 MARKS]
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Biblilography
European Union (2015) Fact sheet on “IP due diligence: assessing value and risks of
intangibles”: http://www.iprhelpdesk.eu/Fact-Sheet- IP due diligence: assessing value and
risks of intangibles
Jyri W., Marko Ö., & Jarmo K., (2013) The Relationship Between Open Source and
Open Innovation. P. 8 -10
Morgan, L., Feller, J., & Finnegan, P. (2012). Exploring value networks: Theorising
the creation and capture of value with open source software. European Journal of
Information Systems.
http://www.optimusinfo.com/downloads/white-paper/open-source-vs-proprietary-
software-pros-and-cons.pdf Accessed on 25/11/2019
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