E

WIPO/ECTK/SOF/01/1.7
ORIGINAL: English
DATE: May 2001

THE PRESIDENT OF THE WORLD INTELLECTUAL

REPUBLIC OF BULGARIA PROPERTY ORGANIZATION

INTERNATIONAL CONFERENCE ON
INTELLECTUAL PROPERTY, THE INTERNET,
ELECTRONIC COMMERCE AND TRADITIONAL KNOWLEDGE
organized
under the auspices of
His Excellency Mr. Petar Stoyanov, President of the Republic of Bulgaria
by
the World Intellectual Property Organization (WIPO)
in cooperation with
the National Intellectual Property Association of Bulgaria
Boyana Government Residence
Sofia, May 29 to 31, 2001

INTELLECTUAL PROPERTY, THE INTERNET AND ELECTRONIC COMMERCE

INTERNET TRENDS: ROLE OF THE INTERNET
IN THE DEVELOPMENT, MANAGEMENT AND COMMERCIALIZATION OF
INTELLECTUAL PROPERTY

Doument prepared by Mr. Andy Gibbs, President and CEO, PatentCafe.com

Yuba City, California, United States of America
 WIPO/ECTK/SOF/01/1.7
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INTRODUCTION
1. I would first like to thank His Excellency Mr. Petar Stoyanov, the World Intellectual
Property Organization and its Director General, Dr. KamilIdris, and the National Intellectual
Property Association of Bulgaria, for inviting me to speak to you today on Intellectual
Property, the Internet and Electronic Commerce.
2. We are living in an exciting time with regard to intellectual property. The Internet has
emerged as an industrial revolution of sorts, on both the technology and policy-making front
at the same time. Paradoxically, the Internet was created as a communication tool for
government and industry, in response to policy, but has emerged as a global medium which
now drives global economic development and policy-making.
3. On one hand, the Internet has spawned new and emerging industries related to
conducting business on an international scale, having extended the reach and depth of
technology and business data acquisition. Yet, at the same time, it has created opportunities
and counter-balancing liabilities related to the disciplines of intellectual property
development, enforcement and commercialization.
4. Business method patents relating to the Internet have become a new business frontier,
and they have caused reactionary policymaking around the world. Yet it is the Internet itself
that has been the genesis of so many business method patents.
5. So too has the Internet introduced new trademark and branding opportunities for
conducting business globally, yet it simultaneously created a new front of trademark and
domain name infringement and enforcement that routinely traverses territorial boundaries.
Companies that only intended to conduct business on a regional basis are thrown
unsuspectingly into an international intellectual property game the minute they launch their
small company website.
6. Not since the late 1700s when Eli Whitney’s milling machine became the tool that
propagated countless inventions and a new industrial economy has an invention such as the
Internet so inspired invention, business development and policy. Yet in 1804 Whitney, after
receiving his patent1 only to wind up embroiled in ten years of legal battles, never filed
another patent, stating that “An invention can be so valuable as to be worthless to the
inventor.”
7. The Internet is a powerful tool that has already demonstrated its ability to create new
jobs, advance technology, shorten product life cycles, circumvent international
communications barriers, and transcend political and social chasms.
8. Yet at the same time, it has become a tool that has caused the devaluation of some
intellectual property almost as much as it has created new value for others. It has caused
confusion amongst leading policy-makers, and while it has created new business
opportunities, it has itself threatening to become an impediment to future economic
expansion. Without proper management, the Internet will become ‘worthless to the
intellectual property community’.

1
Eli Whitney, United States Patent Number: 72X, Cotton Gin, March 14, 1794.
 WIPO/ECTK/SOF/01/1.7
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9. Understanding the historical impacts of the Internet upon intellectual property as a
whole, and being able to anticipate technology, IT, work flow and the future impacts the
Internet may have upon policy, technology, work flow management and intellectual property
value creation is critical if informed, sensible standardization, information technology
management, operations budgets and intellectual asset development and commercialization
are to reach its potential. Without properly managing operations to anticipate and meet the
new metrics brought about by the Internet, one’s seat at the table of intellectual property
prosperity may be lost for generations.

BENEFICIAL IMPACTS OF THE INTERNET ON INTELLECTUAL PROPERTY

10. The Internet has driven many changes in the intellectual property community. As a data
and resource access tool, the Internet has expanded the reach of every user from localized,
regional resources, to true global information access.
11. Correspondingly, the Internet has been the genesis of many new support industries.
Because of its low cost of access, it has allowed inventors, companies and governments not
otherwise able to compete with big-budget enterprises to leap-frog traditional growth curves,
thereby affording an opportunity to implement leading-edge information gathering, IP
analysis and Intellectual Asset Management (IAM) tools.
12. A short list of the benefits the Internet has substantially, or single-handedly brought to
the intellectual property community is impressive:
· increased Affordable Access to intellectual property resources, globally;
· challenged the world to increase standards of ‘Patent Quality’. The ability to find
invalidating prior art via the Internet retroactively calls into focus the quality or
validity of previously issued patents (conversely, the respected Mr. Joseph N.
Hosteny of Niro, Scavone in a recent article “Fourth, Don’t File a Patent” has
suggested that property holders consider trade secrets as opposed to patents for
intellectual property protection as more patents are surfacing as invalid or
unenforceable2);
· increased business, political and society awareness of the growing importance of
all types of intellectual property;
· shortened data access time: days or weeks have been shortened to minutes or
hours;
· geometric increase in the amount of accessible data and collections relative to IP;
· provided access to an expanding number of Web-based software and IP
management tools;
· reducing reliance on third party data providers (reducing cost, increasing access
speed);
· provided path for developing countries to catch up to world developments with
regard to IP data access, management and data access;
· increased ability of government agencies to deliver resources to a larger number
of their citizens;

2
Intellectual Property Today : Volume 8, No. 5, May 2001 [www.iptoday.com].
 WIPO/ECTK/SOF/01/1.7
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· spawned new industries and technology segments (online IP management tools,
monitoring software, technology exchanges, new patent classifications and
increased business for legal sector, accelerated time to market for new products
and technologies).

DETRIMENTAL IMPACTS OF THE INTERNET ON INTELLECTUAL PROPERTY

13. Notwithstanding the positive impact the Internet has had on the intellectual property
community, it has simultaneously created an alarming list of shortcomings. Although we can
accept the benefits with complacency, we cannot allow the detrimental impacts to continue
un-checked. The first step to problem resolution is problem identification. This list of
Internet-related shortcomings or detrimental impacts does not follow any priority schedule;
the priorities will differ based on country, objectives, operations, budget and available
resources:
· increased demands to become Internet proficient/Internet literate, or lose
competitive positioning (to varying degrees, this ‘self-improvement’ dictum
impacts inventors, IP practitioners, corporate managers, and government
agencies);
· increased complexity of distilling relevant content from the billions of available
web pages. The amount of available data has outpaced our ability to efficiently
extract meaningful citations;
· increased cost associated with obtaining highly relevant data of information.3 The
economic efficiencies of obtaining relevant data are declining since data volume is
increasing faster than search technology;
· promotes a higher standard of practice with regard to prior art searching by
practitioners. Although seemingly a benefit, the impact is an increase in the cost
of client legal services attributable to the increased time practitioners must
research the expanding universe of prior art data;
· exacerbated the “poor patent quality”; provides means to discover invalidating art.
This negatively impacts shareholder / stakeholder value, intellectual property
value, and overall economy;
· increased demands on Patent Office Examiners to expand prior art search.
Examiners must search not only the “field in which the invention is classified, but
also analogous arts.”4 This impact (a) increases pendency, (b) decreases time
available to prosecute any particular patent, and (c) decreases overall citation
quality and intellectual property validity. These are global phenomenon that affect
every patent office;
· has spawned new intellectual property problems, infringement possibilities and
enforcement challenges (Napster, Cybersquatting / cyber-slandering, trademark
infringement);
· created an ancillary industry in data analysis tools that are still primitive; the tools
can deliver a false sense of confidence in their ability to search through, and parse
applicable or relevant data and prior art citations;

3
Using the Internet for non-patent prior art searches Derwent IP Matters, July 2000.
www.ipmatters.net/features/000707_gibbs.html.
4
Manual of Patent Examining Procedure §904.01(c).
 WIPO/ECTK/SOF/01/1.7
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· increased costs and accelerated implementation of next-generation patent database
and IT infrastructure (USPTO, EPO, JPO, other gov’t. patent offices). The
unexpected increase in users, combined with the need to automate Web-based
systems have escalated costs and accelerated timetables. Reactive solutions are
proving to be short-lived, and will need to be scrapped when appropriate systems
are developed;
· increase in the amount of lost prior art. Many fledgling companies have filed
software or business method patents, but many businesses have not, or will not
survive the pendency of their applications. Many thousands of otherwise valuable
prior art citations will go abandoned, ultimately being lost. This opens the door
for subsequent, less deserving ‘inventors’ to obtain patents on previously filed
inventions. Correspondingly, the validity of such issued patents can later be
challenged by the earlier inventors who present non-patent citations used in the
original, but abandoned patents;
· increased demands on database and content providers to serve expanding market.
This forces expensive hardware / software infrastructure expansion.
14. What the Internet has NOT done with regard to intellectual property development:
· has failed to live up to a expectations as a technology transfer marketplace;
· has failed to bridge the chasm between industry and intellectual property creators:
has not significantly increased the adoption of IP by companies (has not
streamlined the process of IP commercialization)

STATE OF THE ART: INTERNET WITH RESPECT TO INTELLECTUAL PROPERTY

15. Recognizing the limitations and shortcomings of the Internet’s role with respect to
intellectual property, one can begin to craft an Internet-reliant IP management program that
maximizes the beneficial attributes while circumventing the now obvious limitations.
16. The number of patent applications continues to increase worldwide, with 12%/yr
(USPTO), and EPO running at a rate of increase of 24%/yr. Trademark applications
increasing in like manner.
17. Correspondingly, use of the Internet is increasing, with users expecting access to the
growing amount of data available via the Internet.
18. 300 million users hit 850,000 active, purposeful websites in 1999, with a total number
of sites hitting the 53 million mark.5 Contrast this with the total of 5.8 million users hitting
100,000 websites in 1995.6 Today there are more than 2.7 billion publicly availableindexable
pages and another 5 million added daily7, growing faster than the search and analysis tools
can respond.

5
Dunn and Bradstreet, Domain Stats; [www.emarketer.com, 2000].
6
Reported by Business Wire, 1996.
7
Argus Insights, Durango, Colorado, USA [www.argus.com].
 WIPO/ECTK/SOF/01/1.7
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19. The universe of useful and active intellectual property websites stands at about 35,000,
with about 1,000 being updated monthly or more frequently. A significantly higher number
of sites include references to various intellectual property, digital rights, law, policy or
technology, or data that is of interest to intellectual property practitioners.
20. Suffice to say, the growth of Internet resources and users is growing at an accelerating
rate, and there is no reason to assume that this trend will not continue, especially as emerging
countries become fully Internet enabled. Websites must respond with appropriate content to
serve these rising demands now, and into the future (chart - next page).
21. The challenge of Intellectual Property Information Management continues to drive the
development of search and analysis tools capable of distilling relevant information from the
expanding sea of information and data available on the Internet, although the current state of
the art of searching and analytical tools for the intellectual property community remains quite
primitive.
22. Although there are currently only a handful of suppliers of Web-based IP search and
analysis tools8, software developers continue to make strides in the development of data
management tools however, hopefully at a rate that will allow convergence with the growing
data resources.
23. Increasing the level of quality of patents remains one of the highest goals of patent
offices from every country. Efforts towards Internet-based universal filing, search and prior
art citation access systems continue. But, even with harmonization of 75% of the World’s

8
Patent Search, Analysis & Patent Analytics (including Web-based Software/ASP).
· Aurigin: http://www.aurigin.com/corproot.htm
· Copernic Aggregator: http://www.copernic.com/products/aggregator/index.html
· PatentCafe Café Doors™: http://www.ipsearchengine.com/index.asp?from=&id=01
· Wisdomain: http://www.wisdomain.com/index.htm
 WIPO/ECTK/SOF/01/1.7
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patent offices, there will continue to be a substantial amount of relevant prior art data that will
remain unincorporated into any standardized system for quite some time. Therefore,
harmonization efforts will not obviate the requirement for sophisticated tools, policies and
rights of access needed to evaluate the millions of non-patent art citations remaining outside
of any standardized data management system.
24. Increased pendency will also remain a concern to the world intellectual property
community. Patent pendency at the USPTO since 1998 shows a negative trend from
19 months, expanding to 24 months. Given the current policy and budgeting, US “patent
pendency to issue/abandonment will climb to 38.6 months by FY 2006"9 Although Japan is
making strides to reduce its pendency (38 months in 1996, now approaching the 28 month
mark), it continues as one of the longest pendency periods of developed countries.
25. The Internet has so far failed to perform as a tool to facilitate intellectual property
commercialization although there are nearly 75 websites dedicated to promoting technology
transfer10. Of the more than 35,000 technologies estimated to be listed and currently available
for licensing or transfer, the number of completed transactions attributable to the Internet
marginally hit the low hundreds, even after nearly a decade of online promotion. More than
$250,000,000 in venture investment has gone into websites dedicated to technology transfer
and invention commercialization.
26. It is my assertion that within the next few years, the ‘Intellectual Property Internet’ will
evolve into an International Trade Network built upon a global intellectual property backbone,
with an increased emphasis put on trade rather than intellectual property, following the time-
proven axiom that intellectual property protection is only valuable if it is responsive to market
and commercialization opportunities. Intellectual property, and IP protection means are
themselves of little value without first claiming market opportunity or commercial value.
Typically, IP does not create new markets, but remains responsive to them.
27. In response to the growth of Internet use related to intellectual property, costs11 to create
and maintain websites will continue to increase. Major commercial intellectual property
websites have been built at an average cost in the USD$1 million range. With the increasing
demands for depth of content, website high-speed performance, high traffic (bandwidth) and
multi-lingual support, new websites must budget significantly more for the construction and
maintenance of the next generation of intellectual property sites.
28. Government patent and trademark offices have an even more costly and time-
consuming task. That is, not only is there a growing requirement to construct meaningful
information resources for its citizens, it must begin to automate the application filing,
prosecution and publication of patents and trademarks by creating the e-commerce interface
that will serve the growing customer demands.

9
Fiscal Year 2002 Corporate Plan of the Department of Commerce for the United States Patent and
Trademark Office, published in April, 2001.
10
11
Argus Insights, Durango, Colorado, USA [www.argus.com].
Website Creation; Facilitating Invention Development and Commercialization via the Internet, HKPC Nov
2000 [www.CafeZine.com].
 WIPO/ECTK/SOF/01/1.7
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29. More importantly, we are already seeing the negative impact on increased Internet-
related traffic and sophistication and explosive growth of patent applications in various
technology sectors on internal patent and trademark operations. The growth rate of
intellectual property creation and applications filed, coupled with the piecemeal approach to
e-commerce and customer service automation systems has caused a significant overload on
Work Flow Processes within the world patent offices. Increased demands to use the Internet
to search for prior art have out-paced the ability to efficiently and confidently search the
world or prior art.
IP Website Characterization Chart
Type of Website Founding Geographic How Number of Frequency of Targeted User Web Technology,
Charter Reach Financed Web Content Updates Web Server
& Tech
Personnel
Local Non-profit, 200km Dues & Fees 1 to 2 Part- Monthly or less Local inventors Static, Hosted
Organization information Time Server
Regional IP Non-profit, 1000km Dues & Fees 1 to 3 Part- Monthly or less Inventors & Static, Hosted
Organization information Time regional service Server
providers
National Inventor Non-profit, Nationwide Fees & 1+ Full-time, Bi-weekly Inventors, other Static, Hosted or
Organization information Grants plus 1 -3 Part minimum inventor Co-located Server
Time organizations
Commercial For-profit, Web Regional Private - 1 to 2 - Seldom, as Buyers of Static, Hosted or
Product or Service marketing Marketing Occasional / required Provider's Services Co-located Server
Provider Commercial Expense Contract or Products
Item Support
Government Public Service Nationwide, Gov't Budget 5 to 10 Full Monthly, Inventors, Database-driven,
Resource Site some content Allocation Time except Attorneys, Contracted or In-
International databases Businessmen, House Server
Academia
International Non-profit, info, International Dues, Fees & 1+ Full-time, Bi-weekly National Database-driven,
Organization Invention Grants plus 2 -3 Part Organizations, Contracted or In-
commercialization Time Gov't, Trade & House Server
Commerce
Internet IP Portal For-profit, International Privately - more than 10 Daily All Database-driven,
information Hub, Business Co-located or In-
e-Commerce Operations House Server
Copyright © 2001, PatentCafe.com, Inc.

30. The unexpected commercial development of the Internet, combined with the explosive
Internet user base and increasing emphasis on intellectual property protection by industry has
been responsible for the creation of the rough landscape of Internet-based resources.
31. A decade after the first wave, Internet is beginning to mature. We must now take stock
of the opportunities, costs, liabilities and economic benefits of global, Internet-based,
intellectual property and IT systems, and develop a plan to manage them profitably, and
wisely.
32. The chart (above) broadly outlines the variety and types of Internet sites related to
intellectual property. Nearly every IP website falls within one of these classifications.
 WIPO/ECTK/SOF/01/1.7
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INTERNET RESOURCES RELATED TO INTELLECTUAL PROPERTY
33. Website categories for IP information, web-based tools and database access:
· Databases:
· Patent Databases (Government & Commercial)
· Trademarks (Government & Commercial)
· Non-Patent Art (Government, Educational & Commercial Research)
· Scientific / Research
· Chemical
· Technology/Materials
· Bio & Life Sciences
· University Thesis & Research Studies
· Technology Disclosure Publications
· Domain Registries: TLDs/ccTLDs (240 ccTLDs, com, net, gov, edu, org)

· Information and Directory Resources (includes IP development, law, protection,

enforcement, commercialization references, information, services and products)
· Patent Resources
· Trademark Sites
· Copyright Sites
· Management Tools
· Specialized Search Engines
· Patent & Trademark Search Tools
· Technology Transfer (University, Non-Profit, Exchanges, Auctions )

· Primary language of Web-based IP resources (PatentCafe research, 2001)

· English: 78% (Declining as percent of total from 92% in 1995)
· Spanish 4%
· French 6%
· (Cyrillic) 2%
· German 4%
· Asian (various) 4%
· Indian 1%
· Other 1%
Total 100%
· Internet Directory to many Websites contained in the above categories [English]:
http://www.patentcafe.com/directory/directory.asp
Additional references:
Bush’s Proposed 2002 Budget Slashes USPTO Funding
NameProtect, PatentCafe Magazine, April 2001
www.cafezine.com/news_template.asp?id=509&deptID=8
 WIPO/ECTK/SOF/01/1.7
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Bush Budget Fuels Technology Time Bomb - Portends 4-Year NASDAQ and US
Technology Downturn
A. Gibbs, PatentCafe Magazine, March 2001
www.cafezine.com/news_template.asp?id=509&deptID=8
US Trademark Applications Latest NASDAQ Predictor?
A. Gibbs, PatentCafe Magazine, March 2001
www.cafezine.com/index_article.asp?cat=35&deptId=3&id=334
Website Creation; Facilitating Invention Development and Commercialization via
the Internet
A. Gibbs, Presentation Paper: Hong Kong Productivity Counsel, November 2000
www.cafezine.com/Articles/China_HKPC.zip
Using the Internet for non-patent prior art searches
A. Gibbs, Derwent IP Matters, July 2000
www.ipmatters.net/features/000707_gibbs.html
Idea Validation Research (White Paper in Three Parts)
A. Gibbs, PatentCafe Magazine, June 1998
www.cafezine.com/index_article.asp?deptid=2&id=125

CONCLUSION: ANTICIPATING INTERNET TRENDS TO MANAGE INTELLECTUAL

PROPERTY
34. The Internet is a new medium that demands planning, attention and integration.
(a) Business: The corporate community must embrace the Internet as a means to
compete in a global marketplace, and must develop an awareness of the potential benefits and
impacts on a global basis regardless of its regional strategy, operations and decisions. The
increased commercial and IP protection opportunities must be balanced with an inadvertent
increase in exposure to infringement claims, increased requirements and costs to assert IP
ownership globally, and the higher standard of practice in prior art citation, and prior art
clearance.
(b) It’s incumbent upon every growing company to develop an economic and
business strategy associated with patents, trademarks and branding, copyrights, and defensive
and offensive intellectual property. Typically, this calls for the creation of an intellectual
property manager or specialist who’s job it is to become educated with regard to the fast-
moving landscape of IP on the Internet.
(c) Government & Policy Makers: Plan on a continually increasing rise in the
number of patent and trademark applications, and understand the financial and operational
impact of accelerating intellectual property activity.
 WIPO/ECTK/SOF/01/1.7
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(d) Without implementing the next generation information technology (IT)

infrastructure, in a few short years most patent offices will be faced with an almost impossible
task of managing an out-of-control traditional paper-based system. It’s imperative that a long
range plan be developed, and that a budget commitment be obtained to ensure the vitality of
their patent systems, and to maintain the requisite quality standards in light of the burgeoning
volumes of prior art data.
(e) Without implementing a 3-5 year budget plan to develop automated intellectual
property database, search, analysis and work flow management systems, patent offices will be
unable to catch up to the demands without an extraordinary allocation of personnel and
money.

(f) It’s also important to provide for a staff position that is dedicated to the
harmonization of your patent systems with emerging standards, insofar as it is practical,
possible, and within long range budgets.
35. You’ll note from the chart (above) the relationship between the frequency of website
update and operations costs. Keep these costs in mind when developing your IT strategy, as
too often the incredible costs of maintenance are overlooked in the budgeting process.
36. It is recommended that the majority of budget and effort be put on exclusive content.
Since there are many websites which continually monitor the Internet for IP related resources,
and keep their hypertext links current and active, it is a poor use of budget dollars to develop
one’s own directory of Internet resources. Without frequent updating, this section will
become dated, even out of date, and will likely contain broken links when linked Websites
change their Web address.
 WIPO/ECTK/SOF/01/1.7
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PatentCafe.com, Inc. Internet Web Properties

http://www.PatentCafe.com The Original Intellectual Property Portal
http://www.CafeZine.com The Leading Invention Magazine Online
http://www.LockMyDoc.com IP Portal for Digital Rights Management
http://www.CafeForums.com Invention Community; Chat and Boards
http://www.IPSearchEngine.com Web-based IP Management Software
http://www.IPBookStore.com Books and Essential Gear for Inventing
http://www.FeeBid.com Quote Fees: Patent Attorneys - Clients
Contact Information:
Andy Gibbs, CEO
PatentCafe.com, Inc.
441 Colusa Avenue
Yuba City, California, USA 95991
tel: 530-671-0200 Extension 204
fax: 530-671-0201
e-mail: [email protected]

[Annex follows]
 WIPO/ECTK/SOF/01/1.7

ANNEX

INTERNET TRENDS:
ROLE OF THE INTERNET IN THE DEVELOPMENT, MANAGEMENT
AND COMMERCIALIZATION OF INTELLECTUAL PROPERTY
Andy Gibbs
CEO, PatentCafe.com, Inc.
International Conference On Intellectual Property, The Internet,
Electronic Commerce And Traditional Knowledge
Sofia, Bulgaria
May 29 - May 31, 2001
 WIPO/ECTK/SOF/01/1.7
Annex, page 2

ALMOST 10 YEARS OF RAPID INTERNET EXPANSION

• Unplanned Impact on IP
• Created Many Benefits
• Brought New Problems

• Look at Recent History

• Lessons We Learned
• Planning for the Future
 WIPO/ECTK/SOF/01/1.7
Annex, page 3

BENEFICIAL IMPACTS ON INTELLECTUAL PROPERTY

· Affordable, Global Access to IP Resources

· Evolved Standards for Higher Patent Quality
· Increased Awareness of Patents, Trademarks,
Copyrights
· Expanded Global Access to Intellectual Property Data
· Created Internet Access to IP Management Tools
· Developing Countries Catching Up to World IP Leaders
· Government Agencies Serving Their Citizens Better
· Spawned New Industries and Technology Segments
 WIPO/ECTK/SOF/01/1.7
Annex, page 4

DETRIMENTAL IMPACTS ON INTELLECTUAL PROPERTY:

· Internet Access and Educational Demands (Time & Money)

· Difficulty and Cost of Finding Highly Relevant Data
· More Litigation & Legal Costs: Impacts Small IP Owner
· More Prior Art Challenges to Issued Patent Validity
· Demands on Patent Examiners: Better Searching
· Increased Patent Office Costs: Computer Infrastructure
· Inadequate International IP Policies & Laws
· New Online Software Tools Promote False Confidence
 WIPO/ECTK/SOF/01/1.7
Annex, page 5

INTERNET SHORTCOMINGS VS. EXPECTATIONS:

· Has Not Emerged as an Online Marketplace for

Technology Transfer or Licensing
· Has Not Appreciably Changed Industry Attitudes
Towards
Acquisition of IP, or Technology Commercialization
· Has Created a “Digital Divide” Between Leading and
Emerging Economies in a Global Internet Environment
 WIPO/ECTK/SOF/01/1.7
Annex, page 6

INTERNET STATE-OF-THE-ART
• 5,000,000 Indexible Pages Added Daily - Growing Faster
Than Online Search Capability
· 35,000 Web Sites With Searchable IP Data Resources
· Maturing Online Tools for Data Mining, Patent Analysis,
and Researching Prior Art
· $1,000,000 (USD) Commercial Web Site Development
· Emerging Web-based IP Management Software
· Digital IP Protection and Infringement Monitoring
Solutions
· Web Sites Use Technology Not Accessible By Users of
Older Computers [Java Script, Flash, Large Graphic Files]
 WIPO/ECTK/SOF/01/1.7
Annex, page 7

ANTICIPATING INTERNET TRENDS: BUSINESS

· IP/IT Specialist: Track Web Tools, Databases,
Technology
· Establish New Company IP Policy:
· E-mail and Digital Rights Management Policy
· Patents, Trademarks, Copyrights, Online Brands
· Domain Management / Server Security
· Monitoring: Competitors / Infringers
· Trade Secret Espionage: Security Firewalls & Audits
· Education on Efficient Use of Internet for Intellectual
Property Searching and Intellectual Asset Management
 WIPO/ECTK/SOF/01/1.7
Annex, page 8

ANTICIPATING TRENDS: GOVERNMENT & POLICY-MAKERS

3-5 Year Budget Plan for Patent Office Automation:

· $10 -100 Million (USD) Total 3 Year Costs: 2002-2004
· Don’t Invest in Content Duplication if Available Elsewhere
· Implement Most Advanced System: Delay Obsolescence
· Staff: Internet Technologists and IT Specialists
· Design System for Lowest Level Technology Access by
Internet Users (Older computers, Slow Internet Access)
 WIPO/ECTK/SOF/01/1.7
Annex, page 9

CHALLENGE TO THE WORLD IP COMMUNITY

International Standards for Internet-related IP Issues

· Recognize International Intellectual Property Rights
· Promote Exploitation and Commercialization
· Countries Comply With National Policy
· While Protecting the Rights of its Citizens
 WIPO/ECTK/SOF/01/1.7
Annex, page 10

INTERNET FOSTERS A GLOBAL IP COMMUNITY

Blagodaria
Dankeschoen
Dankie
Koszonom
Merc
i
Wado
Thank You

[End of Annex and of document]