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Understanding and Profiting from Intellectual Property
Also by Deli Yang
INTELLECTUAL PROPERTY AND DOING BUSINESS IN CHINA
Understanding and Profiting
from Intellectual Property
A guide for Practitioners and Analysts
Deli Yang
© Deli Yang 2008

All rights reserved. No reproduction, copy or transmission of this

publication may be made without written permission.

No paragraph of this publication may be reproduced, copied or transmitted

save with written permission or in accordance with the provisions of the
Copyright, Designs and Patents Act 1988, or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency, 90
Tottenham Court Road, London W1T 4LP.

Any person who does any unauthorized act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.

The author has asserted her right to be identified as the

author of this work in accordance with the Copyright, Designs
and Patents Act 1988.

First published 2008 by

PALGRAVE MACMILLAN
Houndmills, Basingstoke, Hampshire RG21 6XS and
175 Fifth Avenue, New York, N.Y. 10010
Companies and representatives throughout the world

PALGRAVE MACMILLAN is the global academic imprint of the Palgrave

Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd.
Macmillan® is a registered trademark in the United States, United Kingdom
and other countries. Palgrave is a registered trademark in the European
Union and other countries.

ISBN-13: 978–1–4039–9172–0 hardback

ISBN-10: 1–4039–9172–3 hardback

This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging, pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.

A catalogue record for this book is available from the British Library.

A catalog record for this book is available from the Library of Congress.

10 9 8 7 6 5 4 3 2 1
17 16 15 14 13 12 11 10 09 08
Printed and bound in Great Britain by
CPI Antony Rowe, Chippenham and Eastbourne
 Tribute to Star Moon
For my Family and my Soul Pals
Brief Contents

List of Tables xiii

List of Figures xiv
List of Photos xv
List of Opener and Closer Cases xvi
List of Intellectual Property Facts xvii
List of Abbreviations and Acronyms xviii
Preface and Acknowledgements xxi

Chapter 1: Understanding and Profiting from Intellectual

Property: A Beginning 1

Part I: Intellectual Property Fundamentals 11

Chapter 2: Intellectual Property Theories 13
Chapter 3: Intellectual Property Systems 39

Part II: Intellectual Property Environments 69

Chapter 4: The Effects of Intellectual Property on
Political Economy 71
Chapter 5: The Effects of Political Economy on
Intellectual Property 99
Chapter 6: The Effects of Culture on Intellectual Property 116

Part III: Intellectual Property Management 135

Chapter 7: Managing Intellectual Property Assets 137
Chapter 8: Valuing Intellectual Property 162

Part IV: Intellectual Property Strategies 187

Chapter 9: Commercializing Intellectual Property Internationally 189
Chapter 10: Licensing and Contracting Intellectual Property
Internationally 219
Chapter 11: Global Piracy and Strategic Responses 251
Chapter 12: Understanding and Profiting from Intellectual
Property: New Beginnings 286
Index 293

vi
Contents

List of Tables xiii

List of Figures xiv
List of Photos xv
List of Opener and Closer Cases xvi
List of Intellectual Property Facts xvii
List of Abbreviations and Acronyms xviii
Preface and Acknowledgements xxi

Chapter 1: Understanding and Profiting from

Intellectual Property: A Beginning 1
Focus and structure 1
1.1 Aims and purposes 2
1.2 Rationale and intended readership 2
1.3 Methodological delineation 3
1.4 Structure and thematic overview 5
A beginning: A route map for the book 9
Note 10

Part I: Intellectual Property Fundamentals 11

Chapter 2: Intellectual Property Theories 13
Focus and structure 13
Opener: Harry Potter and how intellectual property creates
wealth 14
2.1 Intellectual property as a concept 15
2.2 Scope of intellectual property 18
2.2.1 Patent 19
2.2.2 Utility model 19
2.2.3 Industrial design 20
2.2.4 Mark 20
2.2.5 Copyright 21
2.2.6 Trade secret 22
2.3 Common characteristics of various intellectual property
forms 22
2.3.1 Intangibility 23
2.3.2 Exclusivity 23
2.3.3 Legality 24
2.3.4 Territoriality 24
2.4 Dialectic rationalization of intellectual property protection 25

vii
viii Contents

2.5 Academic schools of thought on intellectual property 28

Closer: Badges of allegiance or trademark use? 28
Intellectual property facts: A century of world patents 30
Summary 33
Notes 34
References and further reading 36

Chapter 3: Intellectual Property Systems 39

Focus and structure 39
Opener: The reward system: Virtue or vice? 40
3.1 Three-part nation-based intellectual property systems 42
3.2 Intellectual property systems in the US and China
compared 44
3.2.1 Objectives 44
3.2.2 Legislative guidance 45
3.2.3 Administrative control 46
3.2.4 Judicial enforcement 50
3.3 An international intellectual property system 51
3.3.1 How does an international intellectual property
system function? 51
3.3.2 Issues for an international intellectual property
system 52
Closer: The utility model: In need of standardization! 55
Intellectual property facts: Grant lags and grant ratios 58
Summary 62
Notes 63
References and further reading 65

Part II: Intellectual Property Environments 69

Chapter 4: The Effects of Intellectual Property on
Political Economy 71
Focus and structure 71
Opener: The microchip that has transformed the world 72
4.1 The effects of intellectual property on economic growth 74
4.2 The effects of intellectual property on international trade 76
4.3 The effects of intellectual property on foreign direct
investment 78
4.4 The effects of intellectual property on welfare 79
4.5 The effects of intellectual property on licensing 80
4.6 The effects of intellectual property on technology transfer
and innovation 82
4.7 Other effects of intellectual property 85
Closer: Opening the source of software technology 87
 Contents ix

Intellectual property facts: Measurements of intellectual

property systems 91
Summary 93
Notes 94
References and further reading 95

Chapter 5: The Effects of Political Economy on

Intellectual Property 99
Focus and structure 99
Opener: Copyright – How copying came to be wrong? 100
5.1 The effects of political systems on intellectual property 102
5.2 The effects of legal systems on intellectual property 104
5.3 The effects of economic systems on intellectual property 106
Closer: The ‘hot waves’ of intellectual property in China 107
Intellectual property facts: Income, individualism and piracy 110
Summary 112
Notes 114
References and further reading 114

Chapter 6: The Effects of Culture on Intellectual Property 116

Focus and structure 116
Opener: Dazzling the world: The Indian software explosion 117
6.1 Education and intellectual property 119
6.2 Religion and intellectual property 120
6.3 Social stratification and intellectual property 122
6.4 Language and intellectual property 123
Closer: Color marks: Transcending language barriers, or
causing disputes? 125
Intellectual property facts: Culture and intellectual
property in figures 128
Summary 130
Notes 131
References and further reading 132

Part III: Intellectual Property Management 135

Chapter 7: Managing Intellectual Property Assets 137
Focus and structure 137
Opener: The spies who loved Pemberton 138
7.1 Corporate contexts and managing intellectual
property assets 140
7.2 Managing intellectual property people 141
7.2.1 Corporate intellectual property positioning for
resources need 141
x Contents

7.2.2 Balancing resources distribution to maximize

intellectual property creativity 143
7.2.3 Internal people-management: The imperatives 144
7.3 Managing intellectual property products and services 146
7.3.1 Managing the intellectual property portfolio 146
7.3.2 Corporate tactics of intellectual property generation,
protection and dissemination 148
Closer: Down to intellectual property – feats and ventures of
the Googlers 153
Intellectual property facts: Intellectual property insurance:
Insure . . . or unsure? 156
Summary 158
Notes 159
References and further reading 160

Chapter 8: Valuing Intellectual Property 162

Focus and structure 162
Opener: An intellectual property deal starts with homework 163
8.1 Varied perceptions of intellectual property value 165
8.2 Three major valuation methods: Pros and cons 168
8.2.1 Market approach 168
8.2.2 Cost approach 170
8.2.3 Income approach 171
8.2.4 Method selection 173
8.3 Other methods in brief 173
8.4 The significance of intellectual property valuation 176
Closer: The intellectual property assets of the Green Eggs
and Ham man 179
Intellectual property facts: Royalties for value 180
Summary 183
Notes 184
References and further reading 184

Part IV: Intellectual Property Strategies 187

Chapter 9: Commercializing Intellectual Property
Internationally 189
Focus and structure 189
Opener: Singing karaoke with the cockroach-killer seller! 190
9.1 Pre-commercializing evaluation 193
9.1.1 Intellectual property owner’s capacity for
profiting internationally 193
9.1.2 The driving forces behind internationalizing
intellectual property 194
 Contents xi

9.1.3 Targeting countries 195

9.1.4 Timing 196
9.2 Internationalizing intellectual property – Costs, profits,
risks and control 196
9.2.1 International intellectual property trade 197
9.2.2 Intellectual property turnkey project 199
9.2.3 Intellectual property licensing and franchising 200
9.2.4 Intellectual property joint venture 203
9.2.5 Intellectual property operations with whole
ownership abroad 205
9.3 Selecting an appropriate intellectual property strategy 207
Closer: YouTube – Bubble up with intellectual property 209
Intellectual property facts: High impact patents and market
leadership 213
Summary 215
Notes 216
References and further reading 217

Chapter 10: Licensing and Contracting Intellectual

Property Internationally 219
Focus and structure 219
Opener: Compulsory licensing: Easier said than done! 220
10.1 Licensing and its forms 224
10.2 Licensing relationships 226
10.3 Intellectual property negotiation 231
10.3.1 Negotiation – an art 231
10.3.2 Intellectual property negotiation – a
complicated deal 231
10.3.3 Intellectual property negotiation – a team matter 232
10.3.4 Intellectual property negotiation – a protracted
process 235
10.4 Intellectual property licensing contracting and
implementation 240
Closer: Patent trolls: Legitimate dealers or harassers? 242
Intellectual property facts: Underexploited licensing assets
attract attention 245
Summary 247
Notes 248
References and further reading 249

Chapter 11: Global Piracy and Strategic Responses 251

Focus and structure 251
Opener: The Da Vinci Code case and the Smithy Code judgment 252
11.1 Three ways to lose an intellectual property 254
xii Contents

11.2 Piracy and its typology 255

11.3 Impact: Where there’s intellectual property, there’s piracy 258
11.4 Causes: Globalization of piracy 259
11.4.1 Intellectual property environment factors 260
11.4.2 Supply and demand reciprocity 261
11.4.3 Corporate factors 262
11.5 Solutions: Strategic actions for alleviating piracy 263
11.5.1 Prevention is better than cure – proactive
approaches 264
11.5.2 There is no panacea, but a cure is
necessary – defensive weapons 270
11.5.3 External backing and unremitting acts –
networking means 272
Closer: Starbucks: Infusing bliss and brewing agony 275
Intellectual property facts: Piracy quantification – an issue
for solution 277
Summary 280
Notes 281
References and further reading 283

Chapter 12: Understanding and Profiting from Intellectual

Property: New Beginnings 286
Focus and structure 286
12.1 Fundamental understanding for intellectual property
protection 287
12.2 Intellectual property environment assessment to
select profiting base 289
12.3 Management preparation to equip intellectual
property resources 290
12.4 Strategizing actions to profit from intellectual property 291
New beginnings: A route map for actions and challenges 291

Index 293
List of Tables

Table 2.1 Top 20 countries in terms of the number of invention

patent grants (1883–2005) 32
Table 3.1 A comparison of the patent system between the US
and China 48
Table 3.2 A brief summary of the international intellectual
property treaties, conventions and agreements 53
Table 3.3 A comparison of the grant lags and ratios for invention
patents between the US and China (1985–2002) 59
Table 4.1 Relations between income and intellectual property
protection 92
Table 6.1 Culture and intellectual property in figures 129
Table 7.1 Eight mistakes to avoid in managing confidential
information 147
Table 8.1 The intellectual property value of the football
clubs (£000) 170
Table 8.2 Intellectual property costs based on trended cost
approach (US$000) 171
Table 8.3 Other valuation methods of intellectual property 174
Table 8.4 Valuation differences (US$ million) 179
Table 8.5 Average royalties by company, product and industry 181
Table 9.1 Compare and contrast licensing and franchising
intellectual property 201
Table 9.2 The pros and cons of internationally commercializing
intellectual property 210
Table 10.1 Recent examples of alliance relationship established
in Asia 229
Table 10.2 Types of negotiators 233
Table 10.3 Reasons to patent product innovation 246
Table 11.1 Ten corporate strategies against piracy 266

xiii
List of Figures

Figure 1.1 A route map for the book 6

Figure 2.1 Construction of corporate assets 17
Figure 2.2 The number of invention patent grants in the
world (1883–2005) 31
Figure 3.1 Global applications for and grants of utility
models (1975–2002) 56
Figure 3.2 Global comparison of patent and utility model
grants (1975–2002) 57
Figure 5.1 Piracy–GNI relation (−0.8405) 111
Figure 5.2 Piracy–individualism relation (−0.7673) 111
Figure 6.1 Intellectual property rules, regulations and laws
across the hierarchy in China 124
Figure 6.2 A model of cultural impact on intellectual property 129
Figure 7.1 Corporate contexts and managing intellectual
property assets 140
Figure 7.2 Human resources distribution in the software
industry 143
Figure 7.3 EU country variations in patent insurance 157
Figure 8.1 Value–valuation decision chain 164
Figure 8.2 The top 100 best global brands ($m) 167
Figure 9.1 Relationship between high impact patents and
market leadership 214
Figure 10.1 Different forms of intellectual property licensing
depending on the geo-restrictions 225
Figure 10.2 Licensing relationships 226
Figure 11.1 Intellectual property obsolescence cycle 254
Figure 11.2 Types of piracy 256
Figure 11.3 Corporate strategies against piracy 265
Figure 12.1 A route map for actions and challenges 288

xiv
List of Photos

Photo 2.1 Matthew Reed 29

Photo 4.1 Jack Kilby in 1958 72
Photo 4.2 The First Microchip 72
Photo 5.1 The Statute of Anne 100
Photo 7.1 Williams, Dimson and Duhaney (left) on trial 2006–7 139
Photo 9.1 Inoue and the first karaoke machine 191
Photo 9.2 Inoue today 191
Photo 11.1 Starbucks, Xingbake, Starpreya and Excelsior Caffé 276

xv
List of Opener and Closer Cases

Chapter 2
Opener Harry Potter and how intellectual property creates
wealth 14
Closer Badges of allegiance or trademark use? 28
Chapter 3
Opener The reward system: Virtue or vice? 40
Closer The utility model: In need of standardization! 55
Chapter 4
Opener The microchip that has transformed the world 72
Closer Opening the source of software technology 87
Chapter 5
Opener Copyright – How copying came to be wrong? 100
Closer The ‘hot waves’ of intellectual property in China 107
Chapter 6
Opener Dazzling the world: The Indian software explosion 117
Closer Color marks: Transcending language barriers, or
causing disputes? 125
Chapter 7
Opener The spies who loved Pemberton 138
Closer Down to intellectual property – feats and ventures
of the Googlers 153
Chapter 8
Opener An intellectual property deal starts with homework 163
Closer The intellectual property assets of the Green Eggs
and Ham man 179
Chapter 9
Opener Singing karaoke with the cockroach-killer seller! 190
Closer YouTube – Bubble up with intellectual property 209
Chapter 10
Opener Compulsory licensing: Easier said than done! 220
Closer Patent trolls: Legitimate dealers or harassers? 242
Chapter 11
Opener The Da Vinci Code case and the Smithy Code
judgment 252
Closer Starbucks: Infusing bliss and brewing agony 275

xvi
List of Intellectual Property Facts

Chapter 2 A century of world patents 30

Chapter 3 Grant lags and ratios 58
Chapter 4 Measurements of intellectual property systems 91
Chapter 5 Income, individualism and piracy 110
Chapter 6 Culture and intellectual property in figures 128
Chapter 7 Intellectual property insurance: Insure . . . or unsure? 156
Chapter 8 Royalties for value 180
Chapter 9 High impact patents and market leadership 213
Chapter 10 Underexploited licensing assets attract attention 245
Chapter 11 Piracy quantification – an issue for solution 277

xvii
List of Abbreviations and Acronyms

AIDS Acquired Immune Deficiency Syndrome

BBC British Broadcasting Corporation
BSA Business Software Alliance
CEO Chief Executive Officer
CHF Swiss Franc
CNN Cable News Network
CN¥ Chinese Currency Renminbi Yuan
DNA Deoxyribonucleic Acid
DVC The Da Vinci Code
ECJ European Court of Justice
EPO European Patent Office
EU European Union
FBI Federal Bureau of Investigation
FDI Foreign Direct Investment
4Ps The Personal, the Persuader, the Practical and the Precise
GDP Gross Domestic Product
GNI Gross National Income
GNP Gross National Product
GSM Global System for Mobile Communications
HBHG The Holy Blood and The Holy Grail
HIV Human Immunodeficiency Virus
HQ Headquarters
IB International Business
IBM International Business Machines Corporation
IC Intellectual Capital
ID Industrial Design
IIT Indian Institute of Technology
INTA International Trademark Association
IP Intellectual Property
IPI Intellectual Property Integration
IPP Intellectual Property Protection
IPS Intellectual Property System
IPV Intellectual Property Value
ISP Internet Service Provider
IT Information Technology
JEDEC Joint Electron Device Engineering Council

xviii
 List of Abbreviations and Acronyms xix

JPO Japan Patent Office

JV Joint Venture
KFC Kentucky Fried Chicken
KTV Karaoke Box or Karaoke Music Video
LDCs Least-Developed Countries
MA Master of Arts
MBA Master of Business Administration
MIP Managing Intellectual Property
MNEs Multinational Enterprises
MOU Memorandum of Understanding
MU PLC Manchester United Public Limited Company
NBC National Broadcasting Company
NGO Non-Governmental Organization
NPC National People’s Congress
NT Net Tangible Assets (Total Tangible Assets – Total Liability)
OECD Organization for Economic Cooperation and Development
OSI Open Source Initiative
OSS Open Source Software
PPP Purchasing Power Parity
PRC People’s Republic of China
P2P Peer to Peer or Person to Person
PWL Priority Watch List
R&D Research and Development
RCA Radio Corporation of America
RIM Research in Motion
SIPO State Intellectual Property Office, the People’s Republic of
China
SMEs Small- and Medium-sized Enterprises
TCAs Treaties, Conventions and Agreements
TI Texas Instruments
TRIPS Agreement on the Trade-Related aspects of Intellectual
Property Rights
UD Utility Model
UNCTAD United Nations Conference on Trade and Development
UNESCO United Nations Educational, Scientific and Cultural
Organization
UPOV International Union for the Protection of New Varieties
of Plants
US United States of America
USC35 US Code Title 35 – Patent
US$ US dollar
xx List of Abbreviations and Acronyms

USPTO US Patents and Trademarks Office

USTR US Trade Representative
WHO World Health Organization
WIPO World Intellectual Property Organization
WOE Wholly Owned Enterprise
WTO World Trade Organization
WWII World War Two
Preface and Acknowledgements

This book addresses a dual audience of practitioners and analysts deal-

ing with IP-related business and analysis in the world business. Business
practitioners, including business managers and intellectual property (IP)
owners who intend to commercialize their IP can gain a systematic
understanding of the links between IP and business and how IP gen-
erates profits towards corporate success. This book will also enable IP
practitioners to devise a plan based on logically adopted strategic and
managerial approaches to commercializing an IP in a particular country.
It enables business practitioners to critically scrutinize their IP within
world business in a holistic manner from examining the IP environment
to assessing IP management and IP strategies. It also enables business
practitioners to critically evaluate their IP in an extensive manner bearing
in mind IP creation, protection and dissemination.
This book also serves a purpose of equipping IP analysts (corporate ana-
lysts and academic researchers) with enhanced IP analytical skills to serve
both research and practice. With the guidance of this book, IP analysts
will be able to sharpen their ability to analyse IP activities across borders,
to understand international innovative and technological activities and
evolve appropriate responses and solutions from corporate, industrial
and international perspectives. This book also serves as a helpful text
to provide postgraduate business and management students with: a crit-
ical understanding on IP theory and practice from the perspective of
international managers; an appreciation of the strategic importance of
IP to corporate success; and a comprehensive understanding of how IP
is managed and commercialized. It delineates various IP themes both
theoretically and empirically from the international business angle with
the help of supporting cases and statistics. It is, therefore, a source of
literature for IP to lead to further studies.
In the process of writing this book, I have been endowed with superb
support from friends across the world in various ways and my profound
thanks are expressed here as a gesture of my sincere gratitude. They are (in
alphabetical order) M. R. Abdulhamid, P. Clarke, J. Leontiades, J. Morgan,
R. Ni, H. Ntchatcho, M. Pautasso, W. Qu, N. Sabharwal, M. Sonmez and
Geoffrey Yu.
My special thankfulness is dedicated to all the managers, national
government officials and all the division directors from the World
Intellectual Property Organization, United Nations whom I have inter-
viewed. Without their support, the data presented in this book would be
scarce and unoriginal.

xxi
xxii Preface and Acknowledgements

I would also like to express my appreciation to several IP owners. I wish

to thank them for giving me permission to use their copyrighted photos.
The use has been acknowledged separately when photos appear within
the book.
I would also thank the Palgrave Macmillan Publishing Group for mak-
ing this book available to business practitioners and analysts. Many
people within the group that I do not know have made a contribution in
the publishing process of the book, and I sincerely appreciate their effort.
I am grateful to Emily Bown, Linda Auld and Mervyn Thomas because I
have benefited from their kindest assistance in the production process.
My special thanks go to Virginia Thorp, Senior Commissioning Editor
at the Business and Management division for her patience, enthusiasm
and assistance in the process of the book’s publication, particularly for
her help to finalize the book publication contract.
Last and not the least, my beyond-word gratitude belongs to my family
and my soul friends. Their unconditional love and support have given
me the confidence and strength to complete this book.
Deli Yang
Bradford, West Yorkshire, England
October 2007
1
Understanding and Profiting from
Intellectual Property: A Beginning

Contents
Focus and structure
1.1 Aims and purposes
1.2 Rationale and intended readership
1.3 Methodological delineation
1.4 Structure and thematic overview
A beginning: A route map for the book
Note

Focus and structure

This book investigates intellectual property (IP) within the context of
international business (IB), and presents IP fundamentals, IP environ-
ments, IP management and IP strategies in a way which is relevant
to both business practice and research. It aims to provide practitioners
and analysts with guidelines and an action framework on how to profit
from IP. The author has consulted the widest possible range of resources,
including primary and secondary data and grey literature, to serve these
research aims and objectives, and has structured the book thematically
to guide readers towards a full and clear understanding of IP in the IB
world.
This first chapter aims to set a clear picture of the book by addressing
four topics. First, it clarifies the focus of the book, by addressing the
aims and purposes. Second, the reasons behind the writing of the book
and its intended readership are discussed. Third, the methodological
approaches that have been followed in different areas of the subject are
briefly presented. Finally, the contents of each chapter are outlined to
provide the reader with a route map through the book.

1
2 Understanding and Profiting from IP

1.1 Aims and purposes

The book aims to provide practitioners and analysts with guidelines on
how to profit from IP, particularly in world business. Four major aspects
of IP are addressed. First, IP fundamentals are outlined to establish an
overall understanding of the subject, covering conceptual issues and dif-
ferent schools of thought, before narrowing the focus down to IP in the
IB context. Second, it discusses the question of IP environments, providing
readers with critical insights into the factors that affect IP-related busi-
ness activities in different countries. Third, the section on IP management
emphasizes the importance of managing IP valuation, people and prod-
ucts. Finally, it examines IP strategies, focusing on business dissemination
(that is, the process of gaining value from the spread and development
of IP), including a systematic introduction to different possible business
strategies for IP-related activities, specific explanations about various
forms of IP licensing, and diverse corporate strategies against piracy.
This book has a dual purpose in its aim to provide its audience with
a critical understanding of the significance and implications of IP issues
in world business.

• The first is to provide knowledge and understanding about IP in world

business. It offers a critical understanding of IP from the perspective of
practitioners, demonstrating the strategic importance of IP to corpo-
rate success, and presenting a comprehensive discussion of how the IP
environment is analysed and IP assets can be managed and strategized
for onward dissemination.
• The second is to enhance readers’ ability to conduct cross-border IP
analysis by understanding how to acquire and interpret data and
evaluate the relevance and validity of the data. This understand-
ing will assist them in planning appropriate responses and solutions
to IP-related activities from corporate, industrial and international
perspectives, and in negotiating IP-related collaboration.

1.2 Rationale and intended readership

This book was written to address two needs. First, it is to offer practi-
tioners a ‘guidebook’ on how to profit from IP. Although there has been
much interdisciplinary research on IP, a book addressing the subject sys-
tematically from an IB angle is still lacking. Practitioners associated with
IP businesses – such as creators, IP owners, business managers, research
institutions and government organizations – need a comprehensive
 A Beginning 3

understanding of IP and IB to assist them in managing cross-border IP

activities. While existing publications primarily emphasize the creation
and protection of IP, this book steers in the direction of IP dissemina-
tion, i.e. deriving value from IP. Second, there is a need for an educational
and analytical guide for corporate researchers, academics and students:
indeed, the idea of writing this book was driven initially by classroom
demand. Having designed a module to teach MBA and MA business and
management students, the author found she had to prepare everything
from scratch – writing cases, collecting statistical data for analysis, and
synthesizing existing theories and practice – a process which convinced
her a book on IP from the business angle would be of value to both
practitioners and analysts.
There are also academic voids to fill as far as IP in the context of IB is
concerned. As a business subject and practice, IP has gained in impor-
tance in recent decades. While it is still mainly perceived as a legal and
economic subject, it is becoming more recognized as an interdisciplinary
subject due to its importance in history, sociology, politics and the nat-
ural sciences. With the signing of the Agreement on the Trade-Related
aspects of IP Rights (TRIPS) by the member states of the World Trade Orga-
nization (WTO), IP has become an integral part of business practice and
an essential element of business transactions. However, there appears to
be little research linking IP and IB that supports practice with a synthesis
of contemporary theory: this book is written with this intention.

1.3 Methodological delineation

This book combines analyses of primary and secondary data and ‘grey
literature’, and is organized thematically, that is, the data in each chapter
has been collected and analysed in various ways to provide evidence to
demonstrate particular IP features. For primary data sources, two meth-
ods of collecting and analysing data have been used. One involves survey
data (e.g. data collected from corporate managers involved in IP-related
businesses), which tends to reveal statistical facts about IP businesses.
For example, for the discussion on measuring different IP systems (IPS)
in the world (in the IP Facts section of Chapter 4), the author has coded
data based on government documentations and questionnaire surveys
with government bodies and international organizations. The other pri-
mary data source is interview data and case analysis, such as is used in
Chapter 11, where the discussions are all based on cases collected from
interviews with corporate managers.
4 Understanding and Profiting from IP

A rich array of secondary sources is also employed. All data sources,

including journal papers, books, periodicals and magazines, and Inter-
net resources have their merits and demerits. Journal papers and books,
such as specialist monographs, tend to target a particular specialist field,
and lay great emphasis on their thoroughness in covering the relevant
literature and the soundness of their methodology and interpretation of
results. However, this type of work can take a long time to be published,
particularly in the leading journals, and thus the data is often out of date.
Such problems can be overcome by using professional resources, such as
books, magazines and periodicals published by specialists in a particu-
lar field and oriented towards practitioners that place greater emphasis
on the freshness of their information. This type of data complements
academic publications by addressing particular problems and offering
pragmatic solutions, although perhaps lacking methodological detail.
Web data from a variety of sources are also used: while this shares similar
merits and demerits with professional data, it is even more up to date,
and can add the different angles of views from government sites, practi-
tioners, journalists and IP owners, and can thus be even better grounded
in practice to provide insights for IP businesses. The author has taken
care to use Internet information selectively to avoid unreliable sources
and ensure the trustworthiness of information. Many of the book’s cases
have been written from a synthesis of professional and Internet sources
to bring them up to date and to allow a wide range of views to be taken
into account.1
This book has also benefited from a wide range of ‘grey literature’,
mostly in the form of reports from companies, government bodies,
international organizations and so on that are not widely publicized.
Such sources provide the author with quasi-primary data on which
to conduct original analysis. For example, the World IP Organization
(WIPO) compiles IP statistics on a yearly basis, presenting data by
country of origin, types of IP applications, and granting of IP rights
to domestic and foreign applicants. On their own, such data present
a broad-brush picture of the technological and other creative activ-
ities in a particular country. However, they may not indicate, for
instance, whether different countries treat domestic and foreign IP
applicants equally. The availability of such ‘grey’ data has allowed the
author to subject it to further analysis to answer more detailed ques-
tions, such as in Chapter 3, where raw WIPO data from the US and
China – two countries perceived as being at the extremes of IP protec-
tion (IPP) – are compared to show where their processing of applications
differs.
 A Beginning 5

This integrated approach to consulting a wide range of information

sources benefits the book, allowing its thematic discussions to take into
account a wide range of views from professionals to academics, besides
allowing the author to make her own contribution to the discussions.
The approach is also methodologically beneficial: the breadth of meth-
ods used allows the research outcomes to take advantage of the merits
of each method, while their individual demerits can be overcome by
triangulation to achieve maximum validity and reliability.

1.4 Structure and thematic overview

The book is structured thematically to address a range of IP topics within
the framework of IB: its ‘route map’ is shown in Figure 1.1. Each chap-
ter follows a common structure to aid clarity. Besides a ‘Focus and
structure’ section, a chapter ‘Summary’ and a ‘References and further
reading’ section, the theme of each chapter in introduced by a case
discussion (the ‘Opener’). The main body of the chapter constitutes dis-
cussions of the chapter’s specific theme and the relevant IP issues in
relation to world business. The ‘Closer’ cases elaborate further themat-
ically relevant real-life IP cases. Besides the case studies, each chapter
contains an ‘IP Facts’ section, addressing the chapter’s theme from a
statistical point of view. Thus, besides additional simple cases within
each chapter’s thematic discussion, 20 opening and closing cases are
outlined and 10 ‘IP Facts’ sections presented to supplement chapter
discussions.
The book’s overall structure is as follows:

Chapter 1: Understanding and Profiting from Intellectual Property:

A Beginning sets the route map for the book, and outlines its aims and
purposes; the rationale behind the book (for the benefit of both practi-
tioners and analysts), and the methodology used to draw its conclusions.

Part I: Intellectual Property Fundamentals

Chapter 2: Intellectual Property Theories addresses some fundamental
issues to aid the reader’s overall understanding of the subject. It clarifies
different types of IP concepts, discusses the ever-expanding scope of IP,
the common characteristics of different types of IP, and the motivations
for countries to strengthen their IPP. Finally, this chapter sets the aca-
demic context by discussing the increasingly interdisciplinary schools of
thought on IP.
 6

Parts Chapters Contents Cases IP Facts

Aims and purposes, rationale,

1 A Beginning
methodology and book overview

Harry Potter and how IP

Concept, scope, commonality, creates wealth A century of world
2 IP Theories and rationalization of IPP and
Badges of allegiance or patents
Part I schools of IP thought
trademark use?
IP FUNDAMENTALS
The reward system: virtue or
Nation-based IP systems, vice?
3 IP Systems comparative cases of the US and Grant lags and ratios
China, international IPS Utility model: in need of
standardization!

The Microchip that has

IP Effects on Costs and benefits of IPP transformed the world Measurements of
4 Political Economy on political economy Opening the source of software the IPS
technology

Part II Copyright – how copying came

Political Economy Political, legal, and economic to be wrong? Income, individualism
IP ENVIRONMENTS 5
Effects on IP systems and their effects on IP and piracy
The ‘hot waves’ of IP in China

Dazzling the world: the Indian

Education, religion, social software explosion
Cultural Effects
6 stratification and languages and Culture and IP in figures
on IP Color marks: transcending
their effects on IP
language barriers, or causing
disputes?
 The spies who loved
Managing IP Corporate context and managing Pemberton IP insurance: insure . . .
7 IP assets, managing IP people and
Assets Down to IP – feats and or unsure?
IP products and services
Part III ventures of the Googlers

IP MANAGEMENT
Perceptions of value, three major An IP deal starts with
valuation methods, other valuation homework
8 Valuing IP Royalties for value
methods and the significance of The IP assets of the ‘Green
IP valuation Eggs and Ham’ man

Singing karaoke with the

Commercializing Pre-commercializing evaluation, High impact patents
9 cockroach-killer seller
IP Internationally internationalizing IP, selecting an and market leadership
appropriate IP strategy YouTube: bubble up with IP

Part IV Compulsory licensing: easy

Licensing and Concept, licensing forms, said than done! Underexploited licensing
10 Contracting IP relationships, IP negotiations,
IP STRATEGIES Patent trolls: legitimate assets attract attention
Internationally and contracting and implementing
dealers or harassers?

The Da Vinci Code case and

Global Piracy and Three ways to lose an IP, concept the Smithy Code judgment Piracy quantification:
11 Strategic and types, impact, causes and
Starbucks: infusing bliss and an issue for solution
Responses strategic actions to alleviate piracy
brewing agony

Fundamental understanding, IP
12 New Beginnings environment Assessment,
management preparation
and strategizing actions

Figure 1.1 A route map for the book

7
8 Understanding and Profiting from IP

Chapter 3: Intellectual Property Systems shows how IPS across the world
are still fundamentally country-based, despite the efforts to internation-
alize IPP, administration and enforcement. To illustrate such differences,
the similarities and differences of the IPS operations in China and the
US are considered.

Part II: Intellectual Property Environments

Chapter 4: The Effects of Intellectual Property on Political Economy
high-
lights the costs and benefits to a country of IPP. Why is IPP beneficial
for the political economy of a country? What conditions are needed to
allow countries to achieve optimal benefits from IP? Is IP suited to all
countries? What are the costs to a country of strengthening its IPP?

Chapter 5: The Effects of Political Economy on Intellectual Property turns

the previous chapter’s discussions around to consider how a country’s
political economy systems impact on the development of IP. The nature
of a country’s political economy environment – be it a democratic or a
totalitarian political regime, a capitalist or a planned economy, operating
within a common or civil law regime – can all have bearings on the
establishment and strengths and weaknesses of IP.

Chapter 6: The Effects of Culture on Intellectual Property discusses how

national cultural elements can influence a country’s attitudes towards
IP. Education, religion, social structure and language all have their role
to play in influencing ways of thinking about IP.

Part III: Intellectual Property Management

Chapter 7: Managing Intellectual Property Assets focuses on the cor-
porate management of IP related assets. This includes outlining the
corporate context as it affects managing IP resources, categorizing IP
firms according to their capabilities in dealing with IP and their tactics
for managing IP information.

Chapter 8: Valuing Intellectual Property analyses the different methods

available for valuing IP assets. As a background context, the chapter first
discusses various perceptions about value. Then the three major valua-
tion methods – the cost, market and income approaches – are discussed
in terms of their pros and cons, and how they are used. Other methods
are also discussed briefly. Finally, the chapter emphasizes the importance
of conducting IP valuation for different business purposes.
 A Beginning 9

Part IV: Intellectual Property Strategies

Chapter 9: Commercializing Intellectual Property Internationally stresses
the dissemination of IP throughout the international market, and dis-
cusses the two stages involved in the commercial decision-making
process. Stage one is the pre-commercializing evaluation, where the fea-
sibility of a company expanding its IP products or services to another
country is examined, in terms of the analysis of corporate capacity, the
motivations for the expansion, the IP environments and IP competition
in the targeted country, as well as matters of timing, etc. Stage two is the
assessment of strategy fits and the selection of the best strategy in the
circumstances.

Chapter 10: Licensing and Contracting Intellectual Property Internationally

is the most frequently adopted strategy for IP commercialization. This
chapter outlines the concept of licensing, and clarifies the complicated
forms of licensing and the relationships between licensor and licensee
inherent in different types of licensing activity. The importance of licens-
ing deal negotiations, and the need for the inclusion of specific elements
designed to prevent future frictions, are also discussed.

Chapter 11: Global Piracy and Strategic Responses systematically exam-

ines the unwelcome companion of IB – globalized piracy. It starts with
the clarification of the three ways to lose an IP and different forms of
piracy, and then focuses on its impact and its causes in relation to IP
environments, supply and demand reciprocity and corporate factors.
The suggestion here is that relying entirely on governments to tackle
piracy is not an immediate solution for companies, who should instead
take their own strategic actions to alleviate specific piracy problems: ten
strategies frequently adopted by multinationals are discussed.

Chapter 12: Understanding and Profiting from Intellectual Property: New

Beginnings sets the route map for practitioners and analysts for actions
and challenges to understand and profit from IP. The map shows a four-
stage process of assessing IP, including the route to follow, actions to take
and outcomes to anticipate for the profitability of IP.

A beginning: A route map for the book

Practitioners and analysts alike have noted that business is becom-
ing more internationalized than ever, that operating environments are
becoming more fast-moving and unpredictable, and that innovation
10 Understanding and Profiting from IP

and creativity are becoming the keys to securing competitive advantage.

Thus, concerns about IP will increasingly occupy management thinking
and research attention. In social terms, too, there are major problems on
the agenda: must piracy at some level be accepted as inevitable, or should
originators commit huge resources to defending their turf? And how can
the need for maintaining high rewards for creativity to pay for continu-
ous original development be squared against the needs for, for instance,
cheap drugs for HIV sufferers in Africa? Such problems challenge the cur-
rently dominant (Western) world view of the optimum balance between
the private and the public good: fine brains and subtle analysis will be
needed to sort out both ethics and practice for the future. IP is important
now, and promises to become increasingly so in the future – both prac-
titioners and analysts therefore need to understand IP and know how to
profit from IP in the international arena. This route map (Figure 1.1) sets
out a beginning of journey for them to do so.

Note
1. The author tends to compile case and IP facts references into an endnote and
most academic references into ‘References and further reading’ at the end of
each chapter.
Part I
Intellectual Property Fundamentals

Chapter 2: Intellectual Property Theories

Chapter 3: Intellectual Property Systems
This page intentionally left blank
2
Intellectual Property Theories

Contents
Focus and structure
Opener: Harry Potter and how intellectual property creates
wealth
2.1 Intellectual property as a concept
2.2 Scope of intellectual property
2.2.1 Patent
2.2.2 Utility model
2.2.3 Industrial design
2.2.4 Mark
2.2.5 Copyright
2.2.6 Trade secret
2.3 Common characteristics of various intellectual property
forms
2.3.1 Intangibility
2.3.2 Exclusivity
2.3.3 Legality
2.3.4 Territoriality
2.4 Dialectic rationalization of intellectual property
protection
2.5 Academic schools of thought on intellectual property
Closer: Badges of allegiance or trademark use?
Intellectual property facts: A century of world patents
Summary
Notes
References and further reading

Focus and structure

This chapter focuses on the theoretical components of IP. First, IP as a col-
lective concept is critically discussed, and some identical or similar terms

13
14 Understanding and Profiting from IP

are explained to avoid possible confusion in later chapters. Second, this

section explains some major concepts covered under the IP ‘umbrella’,
the scope of which has expanded considerably over recent years. Third,
different types of IP that have common characteristics will be identified
and discussed. Fourth, this chapter also focuses on the theoretical argu-
ments for IPP, emphasizing both the importance and the difficulties of
balancing the public interests with those of intellectual owners. Finally,
the relevant theoretical schools of thought are summarized to position
the book’s focus in its academic context.
Relevant topical cases and facts are studied throughout the text. The
first such considers the success of the Harry Potter books and the wealth
that has been created from the exploitation of their copyrights. The
closer is a case discussion of the Arsenal Football Club mark dispute.
The IP facts section takes the IP example of invention patents to dis-
cuss the history of IP development over the past century and across
the world.

Opener: Harry Potter and how intellectual property creates

wealth1
The quality of narrative, ambiguity, mystery and entertainment in the
Harry Potter books, published since 1997, have made them a magical
success with enthusiastic audiences of all ages. While precisely accurate
statistics of the number of Harry Potter books sold are difficult to come
by, a few examples can provide a broad picture. In 2000, the fourth
book became the ‘fastest-selling book in history’, selling three million
copies within 48 hours of its release. When the sixth book came off
the press in July 2005, millions of children and adults formed excited
queues outside book-stores for their copy of the new story: 11 million
copies were sold on the first day of publication in the US alone. By April
2007, over 350 million copies of Harry Potter’s adventures had been sold
in 64 languages in over 200 countries. Each book has become the No 1
bestseller in the UK, USA and elsewhere, and their success has brought
the author honour and fame, the profession awarding her the Whitbread
prize, and the Queen appointing her an Officer of the Order of the British
Empire.
Success makes success! Beyond the author’s personal triumphs, further
wealth has been created via over 400 products that have been licensed
under the Harry Potter copyright, as the few examples below indicate.
Warner Bros. hold the world licensing rights to produce films based on
all the books: five have so far been released and the remaining two are
 IP Theories 15

in the production or planning stages. Other subsidiary licenses allow

Hasbro and Mattel to produce Harry Potter-related toys, Cap Candy to
manufacture magical flavour beans, Wizards of the Coast to manufacture
card and role-play games, Ten Tiger Electronics for Harry Potter electronic
appliances, Electronic Arts for computer and video games, while Coca
Cola won the marketing rights for Harry Potter films.
The reason for illustrating Harry Potter’s huge success is to demon-
strate how relevant and important IP is both to business and to ordinary
people. IP, including copyright and rights under licence for the manu-
facture and sale of related products, is involved throughout, from the
early author/publisher negotiations to the point where a licensed prod-
uct is sold to a consumer. One type of IP – copyright – is elaborated in
this chapter, while licensing rights – the authorizations given by an IP
owner allowing a licensee to disseminate the IP into related product or
service areas – will be discussed at a later stage. The Harry Potter case can
lead us to the core of this chapter – the fundamentals of IP: the concepts,
scope and characteristics involved, the arguments for IP protection (IPP)
and the relevant academic schools of thought.

2.1 Intellectual property as a concept

Intellectual property covers the whole area of legal rights over the cre-
ations of the mind. These rights give the IP owner – the original creator,
or any person or entity succeeding to their title – exclusive rights over the
making, use, selling, importing or other commercial exploitation of the
IP into related products or services, but usually only within defined geo-
graphical and temporal parameters. The concept encompasses a wide
range of rights, including the more conventional notions of patents,
trademarks, industrial designs and utility models as well as copyrights,
together with more unusual forms, such as integrated circuits, business
method patents and geographical indications.2
Two authoritative IP agencies under the auspices of the United Nations
have offered definitions of IP, both of which, arguably, have some defi-
ciencies. The World Trade Organization (WTO) defines IP as ‘the rights
given to persons over the creations of their minds’.3 While the WTO notes
that the creator usually enjoys exclusive rights over the use of their cre-
ation only for a certain period of time, there are two other areas where
it might be said to be incomplete. First, IP owners may not necessar-
ily be the original creators – inventors may pass on the rights in their
patented invention to others, and an IP owner may well be a company.
Second, the definition misses the important point of the geographical
16 Understanding and Profiting from IP

limitations of IP rights. IP is fundamentally nation-based, and rights are

only protected within particular geographical boundaries, unless some
form of regional or international protection is involved. Without such
multi-national protection, where owners only have their rights protected
in one country (the costs of multiple applications can be highly forbid-
ding), another person (or company) may legally apply for the rights to
use their invention in another country.4 For these reasons, the author
has chosen ‘creations of the mind’ rather than ‘of their minds’ in the
definition at the start of this section.
The World IP Organization (WIPO) presents a more all-embracing con-
cept of IP. The definition pays particular attention to the forms of IP, but
also appears to overlook the significance of ownership and of limitations
of time and geography. It defines that:

Intellectual property shall include the rights relating to literary, artistic

and scientific works, performances of performing artists, phonograms
and broadcasts, inventions in all fields of human endeavour, scien-
tific discoveries, industrial designs, trademarks, service marks, and
commercial names and designations, protection against unfair com-
petition, and all other rights resulting from intellectual activity in the
industrial, scientific, literary or artistic fields.5

As a term, IP became internationally adopted when WIPO was estab-

lished in Stockholm in 1967. Before that, terms and definitions for
the concept varied across countries. The term Gestiges Egentum (intel-
lectual property) appears to have been first used in Germany in the
mid-eighteenth century, although it only referred to copyrights, and
had the same meaning in Spain and in the Philippines (Zheng 1996).
Meanwhile, France adopted the term la Propriété Industrielle (‘industrial
property’), and expanded the concept to include other IP rights (Yang
2003; Zheng 1996: 5).
In recent years, some similar expressions have appeared in both
academic and business contexts. Intellectual capital (IC) has become a
popular business term since the 1990s to emphasize the significance of
‘brain’ assets (Stewart 1991, 1994 and 1997). It refers to any knowledge
assets that can bring functionality and benefits to a firm or an orga-
nization. Some other terms have similar meanings – intangible assets,
intangible resources, and intangible competencies (Hall 1993: 608). They
can be differentiated from and connected with IP in equations, such as
those given below. In these, codified knowledge refers to human capital
recorded on paper, such as learning materials and trade secrets (Sullivan
 IP Theories 17

Firm assets

Tangible assets Intangible assets Financial assets

Structural Relational IP Human

assets assets assets assets

Examples Examples
Computers

Reputation

Customers

Copyrights
Equipment

Expertise

Dividend
System

Culture

Bonds
Desks

Marks

Share
Cash
Skills
Cars

Figure 2.1 Construction of corporate assets

Source: Created by the author.

1999: 133), as opposed to tacit knowledge, i.e. knowledge imbedded in

employees.

Intellectual assets = IP + codified knowledge

Intellectual capital = intangible assets = intellectual assets + tacit
knowledge

In comparison to IC, IP is much narrower a concept. Figure 2.1 positions

IP as part of a company’s IC and overall assets. It is well worth noting
that the gravity of IC can vary significantly across firms. For example, a
software firm will put greater emphasis on IP assets than a wholesaler,
who will pay more attention to their market assets, such as customer
networks, distribution channels, licensing and franchising agreements.
Some assets may fall into two asset categories: know-how embedded in an
employee may involve both IP and human assets, such as entrepreneurial
and managerial skills (Brooking 1998). A production process may be cat-
egorized under structural assets, although technologies, methodologies
and processes for production might also be protected as IP elements.
Industrial Property, which excluded copyrights, used to be a very dis-
tinct concept from IP, but the boundary between them is becoming
increasingly blurred with the expansion of IP rights. The term mainly
includes patented inventions, marks, industrial designs, geographical
indications and utility models, whereas copyright refers to literary and
artistic works, and related rights, such as performing, phonograph and
broadcasting rights. Since the 1980s, the scope of copyright protection
for commercial purposes has significantly expanded. In 1980, the US
18 Understanding and Profiting from IP

extended its copyright protection to cover computer programs (Rapakko

1990: 7), while copyright has been used to protect functional objects
(such as car exhaust systems) in the UK since before 1988 (Yang 2003).
It is worth noting the debate about the significance of separating IP
rights from IP. One view is that IP and IP rights should not be divided
on two grounds: First, the two authoritative organizations – WIPO and
WTO – often mix the use of the two terms. Second, the notion of ‘prop-
erty’ implies a private possession (as opposed to a public sharing) and
therefore includes the concept of (private) rights. The other view is that
there should be a clear distinction about the two concepts. IP is a broad
concept encompassing IP rights, i.e. IP can be a corporate asset, but with-
out there necessarily being a legal right involved. As Pitkethly defines
(1993: 1), ‘invention is a piece of IP, but a patent is an IP right protecting it’.
This differentiation is crucial when commercial activities are to be val-
ued, for example, during mergers and acquisitions. The value of a patent
relies on the worth of the invention. A firm may decide not to produce
one of its inventions in tangible form for various reasons, such as lack of
resources, choosing to license or transfer its rights outright to seek rapid
financial returns. A patented invention will also bear different values at
different stages of its patent life-cycle. Clearly, it can be more valuable at
the beginning than at the end of the patent life, when it is about to enter
the public domain where everyone will be free to use or improve it.

2.2 Scope of intellectual property

The scope of IP has become increasingly multi-dimensional with the
escalating need for protection in businesses and the constant stream
of new issues under discussion. For instance, there have been heated
debates among scholars on the ethical issue of patent protection and
access to drugs in poor countries; on e-commerce and the whole Internet
domain; and on ‘traditional knowledge’ and ‘expressions of folklore’.6 Some
products raise the question of the need for protection across different
IP rights. A typical example is computer programs and databases which
may be protected by patents, trade secrets or copyrights depending on
the country concerned (Branscomb 1990: 48). It has been said that ‘IP
today is shorthand for a whole list of disparate rights that have this in
common: they protect some products of the human mind, for varying
periods of time, from others using those products in various ways’ (Vaver
1999). Given the expansion of the scope of IP issues, there is ‘no single
generic term that satisfactorily covers them all’ (Cornish 1999: 3). Hence,
the discussion below cannot be exhaustive, but serves to emphasize and
 IP Theories 19

illustrate the most common forms of IP in terms of concepts, duration

of protection, conditions for authorization of rights and any relevant
sub-categorization.

2.2.1 Patent
A patent is an official document issued to an invention owner by a
national government (or a regional or international organization of
member states) that contains a full description of the invention and
confers legal protection on it. A patented invention is one that provides
technological solutions to a specific problem where exploitation of the
creation must be authorized by the owner within defined geographical
limits (usually nation based) and time (usually 20 years by TRIPS stan-
dards). An illustrative example is the Intelligent Oven, which can be
remotely controlled (e.g. from the office) so busy people can have food
cooked by the time they get home, and was rated by the Times as one of
2003’s smartest, coolest and most trendy inventions.7
Three criteria must be present for a patent to be granted –
inventiveness, novelty, and utility.8 Inventiveness (‘the inventive step’ or
‘non-obviousness’) means the invention should not be obvious to a person
with average knowledge or skill in the field in the country concerned.
The patent applicant also needs to prove the novelty of the idea: the
invention should be clearly original, and not have been disclosed in oral
or written form (or in actual use) at the time of the application. Utility
(or industrial applicability) must also be proved, meaning the techno-
logical solution must be capable of being converted into a product or an
industrial process.
Patents can further be categorized into ‘product’ and ‘process’ patents. In
a product invention, a technological solution is embedded in a product,
and the patent gives the owner(s) the exclusive right to ‘make, use, sell
and import the products that include the invention’ (WIPO 1997: 8).
A process patent covers the situation where a technological solution
is imbedded in a production process, and bestows on the owner the
exclusively right to use the process for the making, use and trading of
associated products.

2.2.2 Utility model

A utility model (or petty patent) is an official certification for a minor inven-
tion (Bosworth and Yang 2002: 4; WIPO 2001: endnote 134: 26; Yang
2003: 44–5). There are four major characteristics that distinguish util-
ity models from invention patents. First, although the general criteria
are the same, the utility model covers the situation where the ‘inventive
20 Understanding and Profiting from IP

step’ is a minor one – in effect, the utility model is a ‘second-tier’ patent.

Second, the length of protection for a utility model is shorter (usually
10 years). Third, the application fee for applying for a utility model
grant is usually lower and the administrative procedure simpler than
for a full patent, due to the simpler technical specification and shorter
time period involved. Finally, while all countries with an IPS authorize
invention patents, not all of them authorize utility model patents: thus,
while Japan, China and most European countries make wide use of utility
models, the UK, the Netherlands and Luxembourg do not use them.

2.2.3 Industrial design

An industrial design is a legal right given to the creator over an ornamental
creation – shapes, patterns, colours, configurations and so on – which has
industrial applications (Bosworth and Yang 2002; WIPO 2001: 134). In
the eighteenth century, industrial design rights encouraged the growth
of the UK textile industry by offering two months’ protection to designs
for linens, cottons, muslins and calicos. From the nineteenth century,
such design rights were extended to a wider range of industries (WIPO
2001: 98). Novelty or originality is fundamental for the grant of a design
right, and the normal protection duration is 10 years.9

2.2.4 Mark
A mark is a sign, symbol, words, or their combinations, which distinguish
goods or services in terms of quality or features. The right to a mark
gives the owner the exclusive right to use the sign or symbol for their
products or services, and prevents others from using it without the mark
owner’s authorization. The protection usually lasts for 10 years, but can
be extended indefinitely where the mark is in continuous use.
The authorization of mark rights is conditional on three counts. First,
the mark must be distinctive, i.e. easily distinguishable so that consumers
can tell one product from another; manufacturers can differentiate their
products from those of their rivals; and the relevant authorities can exert
quality control. For example, coffee is a generic term and cannot be
used as a mark, whereas ‘Nescafé’ is a ‘mark’ for coffee. Second, in many
countries, government organizations monopolize certain signs: national
emblems and flags are national symbols, and their registration as marks
is not allowed. Third, marks must avoid causing deception, undermining
public morality, and/or jeopardizing the public interest. And each coun-
try will usually stipulate forbidden marks in its trademark law, taking
into account national defence, ethical and religious beliefs.
 IP Theories 21

A good example of how countries take care in this last case con-
cerns the name BinLadin. After the 9/11 attack, the Swiss Trademark
Office revoked the trademark ‘BinLadin’ – which had been registered to
Yeslam BinLadin, one of Bin Laden’s 54 siblings for Arabic style T-shirts
and trousers – fearing it would cause public offence.10 In Pakistan and
Afghanistan, in contrast, the name Bin Laden has been used to sell fake
Nike T-shirts carrying slogans, such as ‘Look out United States, Osama is
coming!’.11 Needless to say, registration of the name as a mark was not
part of the enterprise.
There are mainly two types of marks. A trademark refers to a legally pro-
tected mark that identifies the products of a firm and distinguishes them
from those of their counterparts in the same industry. Illustrative exam-
ples are Coca-Cola drinks, Valentino suits, Levi’s jeans, Aston Martin
cars, Microsoft Office software and Kellogg’s cereals. In contrast, a service
mark, such as HSBC, Barclays, Holiday Inns, Shangri-La and McDonald’s,
identifies a firm and its services. A mark can sometime represent the iden-
tity of both a product and a firm – thus both Coca-Cola and McDonald’s
are the corporate images and also the product identities.
As well as these two main types of marks, collective marks and certi-
fication marks are two other marks, which are similar in their use, but
differ as to limitations on the eligibility of their use: A collective mark
is exclusive to an organization (such as a product or industrial asso-
ciation), whose members use the mark on their products or services.
A good example is Green Cross International, an organization devoted to
environmental protection. In contrast, certification marks are more ‘open-
plan’ giving wider opportunities for use by both organizational members
and ‘outsiders’ that follow the organization’s standards. For example,
Open Source Initiatives (OSI) allow the dissemination of software and
related knowledge to any firm that agrees to follow the relevant standard.

2.2.5 Copyright
A copyright is a right that recognizes the creators of literary and other
artistic works as the owners of rights over their expressions of these ideas,
but not, however, of the ideas themselves. Traditionally, copyright bestows
legal protection on their ownership until 50 to 70 years after the owner’s
death in the fields of literature, music, arts, maps, technical drawing, and
motion pictures (WIPO 2001). Copyright allows authors to assert their
authorship, and ‘to object to certain modifications and other derogatory
actions’12 to their work, as well as giving owners the right to claim
remuneration from those who exploit their intellectual creations, and
to preclude such exploitation without their permission. Copyright also
22 Understanding and Profiting from IP

protects the interests of performers, artists, producers, publishers, and

broadcasters under so-called ‘neighbouring rights’. Following the rapid
development of computer technology, computer software and domain
names have also become protected by copyright.
In comparison to the rights previously mentioned, copyright has
distinctive features and conditions. It is an automatic right, with no regis-
trations or granting needed. In Britain, for instance, the requirement for
copyright protection is to lodge a copy in the British library, and ‘Copy-
right © owner Year’ must be clearly shown on published works (Yang
2003). The other distinction of copyright from other rights is that two
independently created works based on the same idea are both eligible for
copyrights, since (as is noted earlier), it is impossible to have monopoly
ownership of an idea. In comparison, if two identical inventions are
filed for a patent, although the owners may prove the independence of
their individual creativity, the patent will be granted to the first to file an
application, who then becomes the sole ‘true’ owner (unless they agree
to ‘share’ the right as joint patentees).

2.2.6 Trade secret

Trade secrets or Corporate know-how refers to information of either indus-
trial or commercial value (or both), the public divulgence of which might
be damaging, and which the owner therefore endeavours to prevent.
Different countries protect trade secrets under anti-unfair competition
laws or anti-trust laws, but because of their commercial importance,
companies mostly rely on their own efforts to protect their secrets.
Kentucky Fried Chicken (KFC) claims to keep such ‘trade secrets’.13
KFC declares the six billion14 pieces of chicken it sells annually across the
world are coated according to a secret recipe only known to a handful of
people, and kept in a Kentucky bank. The recipe is usually mixed in two
separate locations and combined in the third location. It may be felt that
the exotic nature of these arrangements have more to do with marketing
‘hype’ than keeping ingredients secret.

2.3 Common characteristics of various intellectual

property forms
Despite the obvious distinctions discussed above, all these IP forms
share some common characteristics that collectively differentiate them
from tangible assets. They are intangibility, exclusivity, legality and
territoriality (Liu 1996; Sherwood 1990; Yang 2003; Zheng 1997).
 IP Theories 23

2.3.1 Intangibility
IP is sometimes called ‘intangible property’, and this intangibility dif-
ferentiates it from ordinary tangible assets in three respects. First, the
transfer of IP assets is more complicated than that of tangible assets,
where ownership of the asset itself simply shifts from seller to buyer.
While an outright transfer of IP (such as might occur when a university
scientist sells a patented invention to a company for commercial devel-
opment) involves a similar simple reassignment of ownership, most IP
asset transfers are not so straightforward. Instead, IP transfers generally
entail the transfer not of ownership, but of the authorization of the rights
to use, make or sell a product or service that involves the IP. This is a
licensing situation – the IP rights owner retains ownership, but autho-
rizes an exclusive (or non-exclusive) licence to the use of the IP in return
for payment, usually in the form of royalties.
Second, due to the intangible nature of IP, rights can easily be
infringed, either intentionally or inadvertently. With unintentional
(‘innocent’) infringement, a user or manufacturer may not be aware of
the protective scope set out by the owner. Due to the complexity of
separating ownership of IP assets and IP embedded products, conflicts
between owners and users/manufacturers are more likely to arise than in
the case of tangible assets.
Third, an IP is often embedded in a product or a production process,
and therefore the borderline between tangible and intangible assets is
often unclear to outsiders. For example, an author sending a manuscript
to a publisher for publication will retain the copyright on their creativ-
ity, although not the ‘ownership’ of the book when it has been printed
and distributed. In such a case, the intangible asset – the copyright –
remains with the author – but it is ‘embedded’ in the tangible asset –
the printed books. These are owned by the publisher, until shifting
to the book-buyer, who then becomes the owner of the tangible asset,
which nevertheless still has the author’s copyright (the intangible asset)
embedded in it.

2.3.2 Exclusivity
Exclusivity in this context covers the original IP owner’s rights to exclude
others from exploiting their creativity without their express authoriza-
tion. Many people can own a tangible product with the same design and
function, but only one person or entity can own a patented invention.15
In order to establish this exclusivity, anyone applying for recognition
of their IP rights must satisfy whichever authority grants the rights that
Other documents randomly have
different content
Scissors, a pair of, ih po tsien-tau, 一把剪子.
Scorch, to, hyuin, 燻, tsiau, 焦.
Screen, a, ih sen° bing-foong, 一扇屏風.
Sea, °he, 海.
Seal, to ⸺ a letter, foong, 封.
Season, a, kyi°, 季, the four ⸺s, s°-kyi°, 四季.
Seat, a, zoo°-we°, 坐位, please take a ⸺, °tshing °zoo, 請坐.
Second, the, di° nyi°, 第二.
Secretly, ‘en°-‘en-°li, 暗喑裏, theu-ben°-ts, 倫伴之.
Secure, °‘wung-taung°, 穩當, bing-oen, 平安.
Sedan, a ⸺ chair, ih °ting jau°-°ts, 一頂轎子, a coolie, jau°-
pan, 轎班, jau°-foo, 轎夫.
See, to, khoen, 看, khoen-kyien°, 看見.
Seek, to, zing, 尋.
Seize, to, tsauh, 捉, nau, 拿.
Self, z°-ka, 自家.
Sell, to, ma°, 賣, ma°-theh, 賣脫.
Send, to, soong, 送, to ⸺ a person, tsha, 差, to ⸺ a letter,
kyi°, 寄.
Sentence, a, ih kyui° seh-wo°, 一句說話.
Separate, to, fung, 分, fung-khe, 分開, li-khe, 離開, fung-bih,
分別.
Servant, a, ih kuh yoong°-nyung, 一個用人.
Settle, to ⸺ the price, °kaung-ding°, 講定.
Seven, tshih, 七.
Seventy, tshih-seh, 七十.
Sew, to, ling, 紉.
Shall, iau°, 要, pih-iau°, 必要.
Shallow, °tshien, 淺.
Shameful, than-°tshoong, 攤寵.
Shanghai, °Zaung-°he, 上海.
Sharp, khwa°, 快.
Sharpen, to, moo, 磨.
She, yi, 伊.
Sheep, yang, 羊.
Sheet, a, ih diau °bi-tan, 一條被單, a ⸺ of paper, ih tsang
°ts-deu, 一張紙頭.
Ship, zen, 船.
Shirting, a piece of, ih phih yang-poo°, 一疋洋布.
Shoes, a pair of, ih saung ‘a-°ts, 一雙鞋子.
Shoot, to ⸺ with a gun, faung°, 放, to ⸺ birds, °tang tiau,
打窵.
Shop, a, ih ban tien°, 一爿店, a tea ⸺, ih ban dzo-kwen°, 一
爿茶館.
Shore, ngoen°, 岸, to go on ⸺, °zaung ngoen, 上岸.
Short, °toen, 短, a ⸺ time, ih hyih koong-foo, 一歇功夫.
Should, khau-°i, 可以, iung-ke, 應該.
Shroff, a, seu yang-dien kuh, 收洋鈿個, a ⸺’s room, ih kan
tsang°-vaung-kan, 一間帳房間.
Shut, to, kwan, 關.
Sick, °yeu bing°, 有病.
Side, pien, 邊, pien-deu, 邊頭, baung-pien, 旁邊, right ⸺,
yeu° pien, 右邊, left ⸺, tsi°-pien, 左邊.
Sign, a, kyi°-‘au°, 記號, ‘au°, 號.
Silk, s, 絲, dzeu, 綢.
Silver, nyung-°ts, 銀子.
Sin, °dzoe, 罪, °dzoe-nyih, 罪孽.
Since, kyi-zen, 旣然, °i-°‘eu, 以後, ⸺ it is so, kyi-zeu zeh-ke°,
旣然實蓋, ⸺ then, di°-kuh °i-°‘eu, 第個以後.
Single, tan, 單, dok, 獨.
Sink, to, dzung-°‘au-chi°, 沉下去.
Sister, older, ah-°tsi, 阿姊, younger ⸺, °tsi-me°, 姊妹, me°-
me°, 妹妹.
Sit, to, °zoo, 坐, to ⸺ down, °zoo °zoo, 坐坐, to ⸺ quiet,
°zoo-ding, 坐定.
Six, lok, 六.
Sixty, lok-seh, 六十.
Size, doo°-°siau, 大小.
Skin, bi, 皮.
Sky, thien, 天.
Slack, water, bing-°s, 平水.
Slander, to, wo°-°liau, 話𣩢, hwe°-°paung, 毀謗, wo°-°wa, 話
壊.
Sleep, to, khwung°, 睏.
Slippery, wah, 滑.
Slow, man°, 慢, ⸺ly, man°-man°-nung, 慢慢能, to walk ⸺,
man°-man°-nung-°tseu, 慢慢能走.
Small, °siau, 小, very ⸺, ih ngan-ngan doo°, 一顏顏大, a
⸺ quantity of, tien, 點, °yeu-°yien, 有限, ⸺ money,
°siau kauh-°ts, 小角子, °siau yang-dien, 小洋鈿.
Smash, to, se°, 碎, °tang-se°, 打碎, khau-se°, 敲碎.
Smoke, ien, 烟, to ⸺ meat, hyuin, 燻, to ⸺ tobacco, chuh-
ien, 吃烟.
Smooth, kwaung, 光.
Snake, ih diau-zo, 一條蛇.
Snow, sih, 雪, lauh sih, 落雪.
So, zeh-ke, 實蓋, ⸺ that, °i-ts°, 以至, about ⸺, tsho-’veh-
too, 差勿多.
Soap, bi-zau°, 皮皂.
Socks, a pair of, ih saung mah, 一雙襪.
Soft, °nyoen, 軟.
Soldier, a, ih kuh ping-ting, 一個兵丁.
Some, °yeu kuh, 有個, °kyi-kuh, 幾個.
Somebody, °yeu nyung, 有人.
Somehow, dzoe-bien° na°-nung, 隨便那能.
Sometimes, dzang-z, 常時, °yeu kuh z-°eu, 有個時候.
Son, ih kuh nyi-°ts, 一個兒子, ih kuh ‘eu-°ts, 一個兒子, your
⸺, ling°-laung, 令郞, my ⸺, siau-noen, 小囝.
Soochow, Soo-tseu, 蘇州.
Soon, °tsau, 早, ’veh too ih-hyih, 勿多一歇.
Sorrow, ieu-dzeu, 憂愁.
Sort, ih yang, 一樣, ih le, 一類.
Sound, sung-iung, 聲音.
Soup, thaung, 湯.
South, nen, 南, ⸺ east, toong-nen, 東南, ⸺ west, si-nen,
西南.
Southern, nen-pien, 南邊.
Sparrow, ih tsak moo-tshiak, 一只麻雀, ih tsak moo-tshiang, 一
只麻將.
Speak, to, wo°, 話, bak-wo°, 白話.
Spectacles, a pair of ⸺, ih foo° °ngan-kyung°, 一副眼鏡.
Split, to, phih, 劈.
Spoil, to, wa°, 壞, wa°-theh, 壞脫.
Spoon, ih °po tshau, 一把鈔.
Spring, tshung, 春, tshung-kyi°, 春季.
Square, faung, 方.
Squirrel, ih tsak soong-su° (tshu), 一只松鼠.
Stairs, voo-thi, 扶梯.
Stamp (postage), nyung-deu, 人頭, or yeu-phiau, 郵票.
Stand, to, lih, 立, ⸺ still, lih-ding°, 立定, ⸺ up, lih-chi-le,
立起來.
Star, ih kuh sing, 一個星.
Start, to commence, khe° °seu, 開手, to ⸺ on a journey,
°doong-sung, 動身, to ⸺ a boat, khe° zen, 開船, to
⸺ a rumour, zau yau-yien, 造謠言, to ⸺ a fire, sang-
°hoo, 生火.
Stay, to, tung-la°, 等拉, dzu, 住, to ⸺ with a person, be, 陪.
Steal, to, theu, 偷.
Steam, a ⸺ boat, ih tsak °hoo-lung-zen, 一只火輪船.
Step, a, ih boo°, 一步.
Stick, a, ih kung °baung, 一根棒.
Still, yet, wan, 還, dzung-jeu°, 仍舊, ⸺ more, kung°-°ka, 更
加, yoeh-°ka, 越加, ⸺ (not yet), wan-’veh-zun, 還勿曾.
Sting, to, ting, 叮.
Stitch, to, ling 紉, to take a ⸺, ling-ih-tsung, 紉一針.
Stockings, a pair of ⸺, ih saung mah, 一雙襪.
Stone, a, ih khwe° zak-deu, 一塊石頭, a ⸺ mason, ih kuh
zak-ziang°, 一個石匠.
Stool, a, ih tsak ngeh-°ts, 一只杌子.
Stop, to, ding, 停, ⸺ a minute, ding-ih-ding, 停一停.
Story, classifier for stories of a house, dzung, 層.
Stove, a, ih tsak °hoo-loo, 一只火爐, a cooking ⸺ (foreign),
ih tsak thih-tsau, 一只鐵竈, a cooking ⸺ (Chinese), ih
tsak tsau-deu, 一只竈頭.
Street, ih diau ka, 一條街.
Strike, to, °tang, 打, khau, 敲, to ⸺ against, bang°-dzak, 碰
着, to ⸺ a match, wak, 劃, to injure by ⸺ing, °tang-
wa°, 打壞.
String, to (as cash), tshen, 穿.
Study, a, ih kan su-vaung, 一間書房, dok, 讀, dok su, 讀書.
Such, zek-ke, 實蓋.
Suddenly, hweh-zen, 忽然.
Suffer, to, °zeu-°khoo, 受苦, °zeu-nan°, 受難, to ⸺ an
injury, °zeu-‘e°, 受害, to ⸺ a defeat, °tang-su, 打輸,
°tang-ba°-tsang°, 打敗仗, °tang-ba° 打敗.
Sufficient, keu°-z°, 殼事, keu°-z°-tse, 殼事哉, °yeu-tse, 有哉.
Sugar, daung, 糖.
Summer, ‘au°, 夏, ‘au°-kyi, 夏季.
Sun, nyih-deu, 日頭.
Sunday, °li-pa°-nyih, 禮拜日.
Supper, ya°-van°, 夜飯.
Suppose, °khoong-pho, 恐怕.
Suppose, to, or to think, tau-nyung-ts, 倒認之.
Surprised, to be, hyi-ji, 希奇.
Swallow, a, ih tsak ien°-°ts, 一只燕子.
Sweet, dien, 甜.
Sword, a, ih °po tau, 一把刀.
T
Table, a, ih tsak de-°ts, 一只檯子, a dining ⸺, chuh-van° de-
°ts, 吃飯檯子, a ⸺ boy, ih kuh si°-tse°, 一個西崽.
Tablet, a Chinese ink ⸺, ih kuh nyien-°ts, 一個硯池, ih kuh
nyien-de, 一個硯台.
Tailor, ih kuh ze-voong, 一個裁縫.
Take, to, tan, 担, nau, 拿, to ⸺ (by force), tshiang, 搶,
tshiang-doeh, 搶奪, to ⸺ away, tan-chi, 担去, nau-chi,
拿去, to ⸺ off (remove), nau-theh, 拿脫, to ⸺ off
(clothes), thoeh, 脫, thoeh-thoeh, 脫脫, to ⸺ off (hat),
dzu, 除, to ⸺ hold of, nyah, 揑, to ⸺ with one, ta°-
chi, 帶去, to ⸺ care, °taung-sing, 當心, °siau-sing, 小
心, to ⸺ great care, too° °taung-sing, 多當心, to ⸺ a
wife, °thau nyang-°ts, 討娘子.
Talk, to, wo°, 話, bak-wo°, 白話, to ⸺ to, te° (yi) wo°, 對
(伊)話.
Tall, dzang, 長.
Taoist, a ⸺ priest, dau°-°z, 道士, a ⸺ idol or god, ih tsung
zung-dau, 一尊神道.
Tea, dzo, 茶, a box of ⸺, ih siang dzo-yih, 一箱茶葉, a ⸺
shop, ih ban dzo-kwen, 一爿茶館, ih po° dzo-°oo, 一把茶
壺.
Teach, to, kau°, 敎, a ⸺er, ih kuh sien-sang, 一個先生.
Tell, to, kau°-soo°, 告訴.
Temperature, °lang-nyih, 冷熱.
Temple, ih zoo° miau, 一座廟.
Ten, zeh, 十, a ⸺ cent piece, ih kauh, 一角.
Texture, tshoo-si°, 粗細.
Than, °pi, 比, more ⸺, ’veh °ba, 勿罷.
Thank, to, zia, 謝.
That, i-kuh, 伊個.
Thee, noong°, 儂.
Their, theirs, yi-la°-kuh, 伊拉個.
Them, yi-la°, 伊拉.
Then, nan-meh, 難末.
There, leh-la, 垃拉, i-deu, 伊頭, i-khwe°, 伊塊, ⸺ is, yeu, 有.
Therefore, °soo-i, 所以, keh-lau, 蓋佬.
These, di-kuh, 第個.
They, yi-la°, 伊拉.
Thick, (not thin), °‘eu, 厚.
Thickness, °‘eu-bok, 厚薄.
Thief, ih kuh zuh, 一個賊.
Thin, bok, 薄, ⸺ (in reference to person) seu, 瘦.
Thine, noong°-kuh, 儂個.
Thing (concrete), ih kuh meh-z°, 一個物事, ⸺ (an affair), z°-
°thi, 事體, ⸺s of every sort, yaug°-yang°, 樣樣.
Think, to, °siang, 想.
Thirty, san-seh, 三十.
This, di°-kuh, 第個.
Those, i-kuh, 伊個.
Thou, noong°, 儂.
Though, soe-zen, 雖然.
Thought, i°-s°, 意思.
Thousand, ih tshien, 一千.
Thread, a, sien, 線, to ⸺ a needle, tshen °yung-sien°, 穿引
線.
Three, san, 三.
Through, koo, 過.
Throw, to, tieu, 丢.
Thursday, °li-pa°-s°, 禮拜四.
Thus, zeh-ke°, 實蓋, zeh-ke°-nung, 實蓋能.
Thy, noong°-kuh, 儂個.
Tide, dzau, 潮, dzau-°s, 潮水, ⸺ flowing in, tsang°-°s, 漲水,
⸺ flowing out, lauh-°s, 落水.
Tie, to, vok, 縛, to ⸺ (a small parcel), tsah, 糺, to ⸺ up,
paung, 綁, to ⸺ firmly, vok lau, 縛牢, vok lau dzu°, 縛
牢住.
Tiger, ih tsak °lau-°hoo, 一只老虎.
Timber, a pile of ⸺, ih te mok-deu, 一堆木頭.
Time, z-‘eu°, 時候, zung-kwaung, 晨光, koong-foo, 功夫, what
—?, °kyi °tien-tsoong, 幾點鐘, a long ⸺, dzang-°yoen,
長遠, dzang-°yoen-tse, 長遠哉, ta-z-tse, 多時哉.
Tin, sih, 錫.
Tired, sa-doo, 弛瘏.
To, tau°, 到, say ⸺ him, te yi wo°, 對伊話, give (it) ⸺ me,
peh ngoo, 撥我, ⸺ and fro, le-le chi°-chi°, 來來去去,
⸺ no purpose, bak-bak-li, 白白裏.
Tobacco, ien, 烟.
To-day, kyung-tsau, 今朝.
Toe, a, ih tsak kyak-tsih-deu, 一只脚指頭.
Together, da ka, 大家, ih dau, 一淘, ih doong, 一同.
To-morrow, ming-tsau, 明朝.
Tongue, zeh-deu, 舌頭.
To-night, kyung-ya°, 今夜.
Too, thuh, 忒.
Tools, a set of, ih foo ka°-sang, 一副傢生.
Touch, to, mok, 摸.
Towards, tau°, 到.
Towel, ih diau °seu-kyung, 一條手巾.
Town, dzung, 城.
Travel, to, ‘ang, 行.
Treat, °de, 待, to ⸺ rudely, de°-man°, 待慢.
Tree, a, ih khoo zu°, 一棵樹.
Tricky, diau°-bi, 調皮.
Trousers, khoo°-°ts, 褲子.
True, tsung, 眞,°lau-zeh, 老實.
Truly, zeh-dze, 實在.
Trunk, a, ih tsak siang-°ts, 一只箱子.
Trust, to, khau°, 靠, thauh, 託, worthy to be ⸺ed, khau°-
tuh-dzu, 靠得住, unworthy to be ⸺ed, khau°-’veh-dzu,
靠勿住.
Try, to, s°-s°-khoen, 試試看.
Tub, doong, 桶.
Tubular, classifier for ⸺ things, kwen, 管.
Tuesday, °li-pa°-nyi°, 禮拜二.
Turn, to, tsen, 轉, zien-°tsen-le, 旋轉來, to ⸺ over, fan, 翻,
fan °tsen-le, 翻轉來, to ⸺ around, zien, 旋, zien °tsen
le, 旋轉來.
Twelve, zeh-nyi°, 十二.
Twenty, nyan°, 廿.
Twice, °liang-we, 兩回, °liang-thaung, 兩 [C3].
Two, nyi°, 二 °liang, 兩.
U
Ugly, pho°, 怕, pho°-le, 怕來.
Umbrella, an, ih po° san°, 一把傘.
Unable, ’veh nung-keu, 勿能殻.
Under, ti-°‘au, 底下.
Understand, to, °toong, 懂, ming-bak, 明白, °hyau-tuh, 曉得.
Universal, °phoo-thien-°‘au, 普天下, ‘eh-thien-°‘au, 合天下.
Unmarried, an ⸺ woman, °siau-tsia, 小姐.
Unripe, sang, 生.
Unroll, to, than-khe-le, 攤開來.
Unstable, °doong °lau °doong, 動佬動.
Until, dzuh-tau°, 直到, °tung-tau°, 等到.
Up, °zaung, 上.
Upon, la° laung°, 拉上.
Upset, °tang-fan, 打翻.
Us, °ngoo-nyi°, 我伲, nyi°, 伲.
Use, to, yoong°, 用.
Useful, °yeu yoong°-deu, 有用頭.
Useless, bak-bak-li, 白白裏.
V
Vain, in ⸺, bak-bak-li, 白白裏.
Value, (price), ka°-dien, 價錢.
Variegated (colours), °ng-ngan-lok-suh, 五顏六色.
Vegetables, tshe°, 菜, ⸺ (served on table), °siau-tshe°, 小
菜.
Vegetation (general), hwo-°tshau-zu°-mok, 花草樹木.
Venerable, °lau, 老.
Very, ’man, 蠻, tsoe, 最, °ting, 頂.
Victory, to gain a ⸺, °tang-sung°-tsang, 打勝仗, °tang-yung,
打赢.
Visit, to, maung°, 望, pa° maung°, 拜望, to return a ⸺, we
pa°, 回拜, wan pa°, 還拜, to pay ceremonial ⸺, pa°
khak, 拜客.
Visitor, a, ih we khak-nyung, 一位客人.
W
Wages, koong-dien, 工錢.
Wait, to, °tung, 等, ⸺ a minute, °tung-ih-°tung, 等一等,
hyih-ih-liyih, 歇一歇, °tung-ih-hyih, 等一歇.
Walk, to, °tseu, 走, °tseu-loo°, 走路, to ⸺ slowly, man°-
man°-ts-tseu°, 慢慢之走.
Wall, ziang, 墻, build a ⸺, tshi°, 砌, tshi° ziang, 砌墻.
Want, to, iau°, 要.
Warm, °noen-nyih, 暖熱.
Wash, to, zing, 淨, to ⸺ the face, kha mien°, 揩面.
Washbasin, or bowl, a, ih tsak mien°-bung, 一只面盆.
Washerman, zing°-i-zaung-kuh, 淨衣裳 個, da°-i-zaung-kuh,
汏衣裳個.
Washstand, ih tsak kha-mien° de-°ts, 一只揩而檯子.
Waste, to, saung, 喪, fi, 費, fi-theh, 費脫.
Watch, a, ih tsak piau, 一只錶.
Water, °s, 水, a bucket of ⸺, ih doong °s, 一桶水, boiling
⸺, khe °s, 開水, hot ⸺, nyih °s, 熱水, cold ⸺,
°lang °s, 冷水, a ⸺ buffalo, ih tsak °s-nyeu, 一只水牛.
Way, loo, 路.
We, °ngoo-nyi°, 我伲, nyi°, 伲.
Wear, to, tsak, 着, to ⸺ a hat, ta° mau-°ts, 戴帽子.
Weasel, ih tsak waung-laung, 一只黃狼.
Wednesday, °li-pa°-san, 禮拜三.
Week, a, ih °li-pa°, 一禮拜.
Weigh, to, tshung, 稱.
Weight, chung-dzoong, 輕重.
Welcome, to, (guest), nyung-tsih, 迎接.
Well a, ih °kheu °tsing, 一口井, hau, 好.
West, the, si, 西, si-pien, 西邊.
Wet, sak, 濕.
What, sa°, 啥, sa°-kuh, 啥個, na°-nung, 那能, ⸺ is the
matter? sa°-z°-°thi, 啥事體? ⸺ is the price? sa° ka°-
dien, 啥價錢? sa° ‘aung-dzing, 啥行情? ⸺ is your
honorable name? tsung-sing° da°-ming, 尊姓大名? ⸺
is your honorable age? kwe°-kang too-°sau, 貴庚多少?
°kyi-hau° kwe°-kang, 幾化貴庚?
Whatever, whatsoever, ’veh lung° sa°, 勿論啥, dzoe-bien° sa°,
随便啥,’veh kyui-sa°, 勿拘啥, ⸺ time you please, dzoe
bien° kyi-z, 隨便幾時.
Wheat, mak, 麥.
Wheelbarrow, a, ih boo tsho-°ts, 一部車子, °siau-tsho, 小車.
When, °kyi-z, 幾時, sa° z-‘eu°, 啥時候.
Whence, ‘a-li, 那裏, sa°-di°-faung, 啥地方, sa° dzang-hau°, 啥
場化, sa° °‘oo-daung°, 啥戶蕩.
Which, °‘a-li, 那裏, °soo, 所.
Whichever, dzoe-bien°, 隨便.
White, bak, 白.
Who, sa° nyung? 啥人, (relative), °soo, 所.
Whole, the ⸺ of a thing, ih tshih, 一切.
Whosoever, van-i°, 凡係.
Why, we°-sa, 爲啥, we°-sa°-°lau, 爲啥佬.
Wicked, auh, 惡.
Wide, khweh, 闊.
Wife, to marry a ⸺, °thau-nyang-°ts, 討娘子, a husband and
⸺, ih te° foo-tshi, 一對夫妻.
Will, the, °tsu-°i, 主意, ⸺, auxiliary, iau°, 要, tsiang-iau°, 將
要.
Willing, to be, °khung, 肯.
Wind, foong, 風.
Window, a, ih sen° tshaung, 一扇窗.
Wine, °tsieu, 酒, a ⸺ shop, ih ban °tsieu-°tien, 一爿酒店.
Winter, toong, 冬.
Wipe, to, kha, 揩.
Wise, tshoong-ming, 聴明.
Wish, to, iau°, 要.
With, tah, 搭, doong, 同, ih dau, 一淘.
Wolf, ih tsak za-laung, 一只豺狼.
Woman, °nyui-nyung, 女人, unmarried ⸺, °siau-tsia, 小姐.
Wonder, to, hyi-ji, 希奇.
Wood, mok-deu, 木頭.
Word, seh-wo°, 說話, wo°-deu, 話頭.
Work, koong-foo, 功夫, sang-weh, 生活, to commence ⸺,
°doong-°seu, 動手, khe-kong, 開工, tsoo sang-weh, 做生
活.
Worship, to, pa°, 拜.
Wound, to, °tang-saung, 打傷, to be ⸺ed, °zeu-saung, 受傷.
Write, to, °sia, 寫.
Y
Ye, na°, 㑚.
Year, a, ih nyien, 一年, half a ⸺, pen-nyien, 半年, this ⸺,
kyung-nyien, 今年, last ⸺, °jeu nyien, 舊年, next ⸺,
khe-nyien, 開年, ming-nyien, 明年, le-nyien, 來年, New
⸺, sing-nyien, 新年, New ⸺’s day, nyien tshoo ih, 年
初一, every ⸺, nyien-nyien, 年年, °’me-nyien, 每年, the
end of the ⸺, nyien-ya°, 年夜, nyien-°ti, 年底, at the
beginning of the ⸺, nyieu deu laung, 年頭上, to pass
from the old ⸺ to the new, koo-nyien, 過年.
Yellow, waung, 黃.
Yes, °z-kuh, 是個.
Yesterday, zau° nyih, 昨日, day before ⸺, koo°-nyih-°ts, 過
日子, zien-nyih-°ts, 前日子, i-nyih-°ts, 伊日子.
Yet, dzung-jeu, 仍舊, not ⸺, ’veh zung, 勿曾, still not ⸺,
wan ’veh zung 還勿曾.
You, noong°, 儂, (pl.), na°, 㑚.
Your, yours, noong-kuh, 儂個, (pl.), na°-kuh, 㑚個.
 Transcriber's Notes

Obvious minor typographical errors have been silently corrected in this text.
This book contains some rarely used forms of some Chinese characters. Any eReader
should contain as full a set of fonts as possible.
Characters not found in the Unicode 13 set are replaced by ‘[Cn]’ where ‘n’ is a
unique number. Images and descriptions of the unknown characters are at the
bottom of this document. At the time of this transcription, Unicode 13 was in
draft form. This book should be updated if more Unicode characters become
available.
The 1913 edition of this book was used to help read illegible letters and characters in
this version.
The original book is available at the HathiTrust Digital Library.
Tones marks for given words are inconsistent throughout the book. They were
corrected when possible.
Tone marks were standardized to be placed before leading apostrophes (i.e. °‘ rather
than ‘°).
Hyphenation of Romanized text has been left unchanged. English text hyphenation
has been standardized.
The book uses 之 rather than 仔 for the past participle. The earlier editions of this
book used 仔 and that use is still visible in some examples in this book.
Edkins’ 1868 grammar book uses 子.
The book uses 拉拉 rather than 垃拉. The earlier editions of this book used 垃拉 and
that use is still visible in some examples in this book. Edkins’ 1868 grammar
book uses 勒拉.
The book uses 無末 rather than 無沒. The earlier editions of this book used 無沒 and
that use is still visible in some examples in this book. Edkins’ 1868 grammar
book uses 無沒.

Some character usage is inconsistent in this text:

Sometimes the variant 念 has been used for 廿.
Sometimes the variant 担 has been used for 擔.
Sometimes the variant 蘋 has been used for 苹.
Sometimes the variant 咾 has been used for 佬.
Sometimes the variant 困 has been used for 睏.
Sometimes the variant 莊 has been used for 庄.
Sometimes the variant 秃 has been used for 禿.
Sometimes the variant 略 has been used for 畧.
Sometimes the variant 只 has been used for 隻.
Sometimes the variant 梱 has been used for 捆.
Sometimes the variant 回 has been used for 囘.
Sometimes the variant 嘸 has been used for 無.
Sometimes the variant 鈿 has been used for 錢.
Sometimes the variant 用人 has been used for 傭人.
Sometimes the variant 勿 has been used for 吥.
Sometimes the variant 礮 has been used for 砲.
Sometimes the variant 鬭 has been used for 鬥.
Sometimes the variant 掽 has been used for 碰
 Transcriber’s Notes: Unknown Characters
[C0] The actual representation is an i with a double dot underneath.

[C1] 幸 on left, 九 with horizontal line on right. Ideographic Description

Sequence: ⿰幸⿻九一

[C2] [C2] tsiang, 爿 + 手 stacked over 鳥. Ideographic Description Sequence: ⿰爿

手⿱鳥

[C3] [C3] [C3] [C3] thaung, 辶 + 湯 as one character. Ideographic Description

Sequence: ⿺辶湯
 *** END OF THE PROJECT GUTENBERG EBOOK LESSONS IN THE
SHANGHAI DIALECT ***

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