Using IP to create and enhance innovation and business development

Uso de IP para crear oportunidades de negocio e innovación. Camino desde las patentes hacia la innovación

1. Using IP to Create and Enhance Innovation and Business Development Opportunities Getting from Patents to Innovation Corey Salsberg, VP, Global Head IP Affairs WIPO National Seminar on Patents and Innovation Quito, Ecuador November 20 , 2017

2. Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 Who we a re: Novartis at a glance 2 3 Global Operating Divisions Innovative Medicines : Oncology + Pharmaceuticals Alcon – Surgical + devices (eyes) Sandoz – Generics + Biosimilars 123,000 employees, 142 countries Operate in 140+ countries Medicines in 155+ Global Reach Nearly one billion people annually. 50 million + through access programs.

3. Sandoz: First-ever biosimilars in EU and US Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 3 Novartis-Google “smart lens” technology. Who we a re: Innovation and patient h ealth AssessMS First breakthrough in decades for heart failure with reduced ejection fraction New standard of care (US, EU)

4. What do these have to do with patents? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 4 “The very first official thing I did, in my administration—and it was on the very first day of it too—was to start a patent office; for I knew that a country without a patent office and good patent laws was just a crab, and couldn’t travel any way but sideways or backwards.” A Connecticut Yankee in King Arthur’s Court (1889) Time travel Scrap Books Camelot

5. The Adventures of Tom Sawyer The Adventures of Huckleberry Finn Life on the Mississippi Following the Equator Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 5 Which W as Twain’s Most Profitable Book? Twain’s patented self-pasting scrapbook ( 1873) sold over 25,000 copies, earning more money in his lifetime than any of his other books. This “was well enough for a book that did not contain a single word that critics could praise or condemn.”

6. Not all inventions are innovations. Innovation requires more than patents! Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 6 Do Patents = Business Success? A M eans, Not an End Invent = Create something new Innovate = Create something new that adds value to people’s lives US Patent No. 5,830,035 UK Patent GB2272154 US Patent No. 395,189 US Patent No. 6,293,874 Compare . . . US Patent No. 459,516

7. Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 7 Brazil’s Achē isolates compound from Amazonian plant, shows promise as pain reliever . . . All trademarks are property of their respective holders. . . . but Brazil does recognize pharmaceutical product patents, so drug is not developed. Achē develops drug, which becomes Achéflan ®, first patented medicine ever developed by a Brazilian firm Brazil joins TRIPS, begins to recognize pharmaceutical patents 1980s 1996 Provide a limited term of market exclusivity through which to recoup investment and establish customer loyalty.

8. More than 90% of all successful innovations start off as failures Innovation leads to business success and transforms and saves lives In our industry, risky & costly R&D fueled by patents has transformed medicine Why else take risks? Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 8 Average life span of all-sized companies in Japan and Europe is only 12.5 years Average life of a multinational (Fortune 500) is around 45 years Of the top 500 U.S. firms in 1980, only 202 had survived by the year 2000. 460 BC - 1850s AD Mark Twain’s sister died of a fever when he was 4. 3 years later his brother died from the same. At age 8, a measles epidemic led Twain to expose himself to infection through contact with his infected friend. Cholera killed at least 24 people in his small town. In 1847 his father died of pneumonia . 1880s - Present Enable risk-taking through R&D

9. Secrecy does not work well for many fields today (or for society)! Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 9 33,000 examples from 1851 and 1876 World’s Fairs Food processing & scientific instruments vs. machinery Real-world impact of patent laws on direction of innovation Lessons from History: The 19 th Century World’s Fairs Moser, P., “How do Patent Laws Influence Innovation?” National Bureau of Economic Research Enable entrepreneurs to innovate in directions where other forms of IP (e.g. trade secrets, TMs, know-how) do not work .

10. Beam Brush – Toothbrush with built-in-sensor and link to mobile app. One of first “smart” brushes (app-connected) Tracks and records brushing habits Rewards from company for regular use 2011 patents venture capital to fund development, making product a reality. Today, Beam merges technology with novel insurance models, competing with Oral B Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 10 Sources : Reuters, “Small businesses likely to benefit from patent law overhaul,” Sept. 25, 2012; https:// beam.dental/ ; Fortune , “Meet a startup building an insurance business around a connected toothbrush,” June 26, 2015. All trademarks are property of their respective holders. Jacob Davis Levi Strauss US Patent 139,121 (1873) Attract investment to convert inventions into innovations (enable product development)

11. Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 11 Over 70% of the “great inventors” of the 19 th century had only a primary school education (half had no formal schooling at all) In 1894, American Bell Telephone Co. licensed 73 patents from outside inventors, and developed only 12 inventions in-house Thomas Edison licensed or assigned most patented inventions to third parties to fund full-time R&D efforts Charles Goodyear invented and patented process for vulcanized rubber (1844), but never manufactured or sold rubber products Sources: A. Mossoff , “The History of Patent Licensing and Secondary Markets in Patents,” George Mason U. School of Law, Dec. 2013; H. Nothhaft & D. Kline, “Was Thomas Edison a Patent Troll?”, IP Watchdog June 1, 2010 Scientific American (Aug. 12, 1854), p. 383. Provide licensing income for those who do not/cannot practice inventions directly

12. Increase value of overall enterprise (for eventual investment or purchase) Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 12 All trademarks are property of their respective holders. 1880s: Herman Hollerith obtained series of patents on tabulating machine technology which became the standard for tabulating and computing data input . 1911: Financier Charles Flint took notice and bought the company for $ 2.3m. Merged with 3 other companies, and formed Computing Tabulating Recording (CTR) Company. 1924: Business spread to Europe, South America, Asia and Australia. The company was renamed. ®

13. Knowledge dissemination (compare with trade secrets) Enabling improvements or new products through cross-licensing, JVs, collaborations. Defining scope and allocation of rights in JVs and partnerships. Getting From Patents to Innovation What Can Patents Do for Entrepreneurs? Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 13

14. Increasing the Odds of Metamorphosis: 8 Patent-Related Steps to Get to Innovation Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 14

15. Corey Salsberg Vice President, Global Head IP Affairs [email protected]

16. Using IP to Create & Enhance Innovation & BD | Corey Salsberg | November 20, 2017 WEF-WIPO IAP: How I t Works 16 WIPO Host Governments/Patent Offices of Developing Countries WIPO Clearing House Pro Bono IP Attorneys Supporters           WIPO                           WORLD              INTELLECTUAL PROPERTY              ORGANIZATION Steering Committee