IP portfolio management Maaike van Velzen Philips Intellectual

IP portfolio management Maaike van Velzen Philips Intellectual Property and Standards April 03, 2011

Agenda • • Introduction to Philips IP&S in the Philips organization Philips IP strategy Value creation from IP in Philips IP portfolio management IP scouting & acquisition Conclusions Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 2

A well-respected, blue-chip company for 120 years Founded in 1891 Headquartered in Amsterdam, the Netherlands Sales over EUR 25. 4 billion in 2010 (USD 33. 8 billion) 33% of sales generated in emerging markets Globally recognized brand (world top 50) Our brand value doubled to $8. 7 bln since 2004 119, 000 employees Sales and service outlets in over 100 countries € 1. 6 billion investment in R&D, 6% of sales 50, 000 patent rights – 36, 000 registered trademarks – 63, 000 design rights Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 3

IP&S in the Philips organization • IP&S is part of Corporate Technologies • Organized in business groups that match the Philips sectors • Working closely with research and the sectors Redhill Bothell Cleveland & Pittsburgh Burlington Beijing Eindhoven Aachen Briarcliff Seoul Tokyo Shanghai Taipei San Jose Sao Paolo Mexico Madrid Buenos Aires Paris Mumbai Bangalore Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 Hong Kong Shenzhen Jakarta Singapore 4

Facts & Figures • Philips IP portfolio – Number of patents (=inventions) filed in 2010: 1300 – 50, 000 patents – 36, 000 trademarks – 63, 000 designs – 3, 900 domain names • Philips Intellectual Property & Standards – 26 IP&S offices worldwide in 16 countries – 450 IP&S employees: 300 IP professionals , 150 support – Founded in 1924 Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 5

Maaike van Velzen • Responsible for Healthcare IP portfolio activities within IP&S – Includes all types of IP – Worldwide – Portfolio built from in-house inventions and acquired IP • CV: – – 2008 – Philips IP&S IP portfolio manager Innovation and emerging business 2005 – 2008 Philips IP&S IP counsel 1996 – 2005 Unilever IP counsel <1996: Masters degree in chemistry Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 6

Philips IP Strategy Create IP solutions to support growth, competitiveness and profitability of Philips’ Sectors 1. 2. 3. 4. Create own IP positions that can be leveraged in the market for Sector benefits (building IP control points) Establish standards together with third parties to create or support business opportunities for Sectors Manage risks w. r. t. third party IP to avoid businesses being blocked and/or to secure access at favorable terms Counsel Sectors in IP matters in transactions with third parties to safeguard IP interests of Sectors Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 IP focus is on creating value 7

Philips IP Strategy IP strategy has to be integral part of business strategy : “A Business strategy without IP strategy is no strategy” • Strategy alignment with Sectors and Research through: – Participation in strategy meetings Sectors – Discussion of IP&S strategy and annual plans with Sector/BU/CTO management Strategy – Quarterly meetings IP&S BG management teams and Sector management teams Execution Research Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 Sectors IP&S Operational Plans 8

Value creation from IP in Philips Royalty income Royalty savings via cross licenses Exclusivity Market share/margins Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 Assign/license patents to obtain share in JV's / spinins/outs 9

IP portfolio management • • • Define IP needs of Business Define IP value model and IP policy per BU File IP on own ideas and/or acquire IP from 3 rd parties Ensure benchmarking of competition Make SWOT of own portfolio and major competitors Build and prune portfolio Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 10

IP portfolio management • Annual IP Portfolio Management Plan per Sector with detailed plans for each Sector BU • IP creation follows technology / product lifecycle • We look at the different IP rights together i. s. o in isolation in order to create optimal protection and enforcement opportunities for BU’s Patents TM Designs DN IP Portfolio Management Plan Trade Secrets Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 Copyrights 11

IP scouting & acquisition • Scout market on availability of IP based on IP needs • Use extensive network of brokers • If matching IP is found, make business case to assess and determine value of IP • Acquire or in-license the IP when price is within predetermined range Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 12

Lean and mean IP portfolio • Monitor costs – biomarker filings with multiple selected groups generally expensive • Do not go too fast at beginning • Review portfolio at least every 3 years • Go through the cycle – Add young IP for future of business Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 13

Conclusions • • • Managing IP has to be done with IP value model in mind No business strategy without IP strategy IP value creation comes as revenues and cost savings/benefits Central management of IP is effective and allows to run it as a business Strengthen IP portfolio through IP scouting and IP acquisition • Thank you for your attention ! Maaike. van. Velzen@philips. com Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011 14

Philips Intellectual Property and Standards, Maaike van Velzen, April 03, 2011