In a recent episode of the podcast “IoT and IP Explained,” host Dr. Claudia Tapia Garcia sat down with Magnus Hakvåg, CEO of House of Knowledge, to discuss intellectual property (IP) strategies in the Internet of Things (IoT) landscape. With over 20 years of experience in innovation, IP rights, and standards, Hakvåg shared valuable insights for startups and small and medium-sized enterprises (SMEs) looking to navigate the complex world of IP in the IoT space.

The Foundations of IP Strategy

  • Learning IP
    Hakvåg emphasized that the first step in developing an IP strategy is to learn about IP itself. This may seem obvious, but many companies fail at this crucial starting point. Understanding the terminology and concepts of IP is essential for asking the right questions and getting the correct answers.
  • Asset Inventory
    The next step is to get an overview of your assets. This provides a starting point from which to build your strategy. Knowing what you have is crucial before deciding where you want to go.
  • Setting Goals
    With a solid understanding of IP and a clear inventory of assets, the next step is to set goals. This involves establishing a vision for where you want your company to be and then determining the steps needed to get from your current position to that desired endpoint.

Protecting Your Competitiveness

Hakvåg stressed that IP strategy goes beyond just protecting inventions with patents. It’s about safeguarding your overall competitiveness, which can involve various elements:

  • Access to Markets: This might require engagement in standards or ensuring certain elements are present in industry standards.
  • Reputation Management: If your core asset is your reputation, your strategy should focus on protecting and enhancing it.
  • Holistic Approach: Consider all aspects that give you a competitive advantage and how to protect them. This extends beyond IP law and marketing to include proper budgeting and resource allocation.

The Importance of IP Investment

One common complaint from SMEs is the high cost of IP protection. Hakvåg addressed this issue head-on, comparing IP investment to insurance:

“Do you own a car or a house? Do you have insurance? Do you think it’s stupid to have insurance? Would you drive a car without insurance knowing that if you crash without insurance you’re bankrupt the rest of your life?”

He argued that IP investment is a necessary cost of doing business. While it can be a difficult trade-off, especially for cash-strapped startups, it’s an essential investment for long-term success.

Collaborations and Consortiums in IoT

The IoT landscape is characterized by collaboration between sectors that previously had little interaction. This presents both opportunities and challenges for startups and SMEs.

Joining Consortiums

Consortiums can be valuable for startups in the IoT space. They offer opportunities to:

  1. Work with and learn from interesting firms
  2. Access funding (up to 100% financing in some cases)
  3. Develop capabilities and skills
  4. Disseminate results and make new business contacts
  5. Jointly develop and standardize new technologies

However, Hakvåg warned of potential pitfalls. It’s crucial to clearly define what IP you bring into the consortium and what rights you retain. Failure to do so could result in losing control of your core technology.

Bilateral Collaborations

When collaborating with larger companies, startups need to consider several factors:

  • Sustainability: Large companies may want assurance that the startup can sustain itself throughout the partnership.
  • Administrative Processes: Startups should understand that large companies have extensive administrative processes, which can slow down decision-making and payments.
  • IP Ownership and Access: It’s crucial to agree on who will own the IP resulting from the collaboration and ensure that all parties have the necessary access rights to monetize the results.

Common IP Mistakes and How to Avoid Them

Hakvåg highlighted several common mistakes that startups make regarding IP:

  • Impatience: Wanting things to happen too quickly can lead to errors.
  • Overuse of Formal Structures: Sometimes, non-disclosure agreements (NDAs) are necessary, but they shouldn’t be overused.
  • Oversharing: Not all information needs to be shared with everyone. Be strategic about what you disclose and to whom.
  • Premature Patenting: Filing patents too early, before the invention is fully developed, can waste resources and potentially limit future patenting opportunities.
  • Lack of Structure: Many startups lack a systematic approach to IP management, which can hinder learning and growth.

The Power of Applied Learning

Hakvåg emphasized the importance of “stickiness” in learning about IP and business strategies. His company, House of Knowledge, uses serious games and simulations to help teams apply their learning in practical scenarios. This approach not only enhances retention but also fosters team building and diverse thinking.

Key Takeaways for IoT Startups

  • Invest in IP Education: Make sure you and your team understand the basics of IP before developing your strategy.
  • Take a Holistic Approach: Consider all aspects of your business that contribute to your competitiveness, not just your inventions.
  • Be Strategic in Collaborations: Whether joining consortiums or partnering with larger companies, clearly define IP ownership and access rights.
  • Avoid Common Pitfalls: Be patient, strategic in your disclosures, and timely in your patent filings.
  • Embrace Structure: Develop a systematic approach to IP management to facilitate learning and growth.
  • Learn from Mistakes: Use failures as opportunities to learn and improve your processes.
  • Foster Diversity in Thinking: Encourage diverse perspectives within your team to develop more robust strategies.

Conclusion

As the IoT continues to evolve, bringing together previously disparate sectors, effective IP strategy becomes increasingly crucial for startups and SMEs. By understanding the foundations of IP, investing wisely in protection, navigating collaborations carefully, and learning from both successes and failures, IoT companies can position themselves for long-term success in this dynamic field.

Magnus Hakvåg’s insights serve as a valuable guide for companies looking to build and protect their innovations in the IoT space. His final piece of advice – “Life is good” – reminds us to maintain a positive outlook even as we navigate the complex world of IP and innovation. In the fast-paced, often challenging environment of IoT startups, this perspective can be as valuable as any business strategy.

About the discussants

Magnus Hakvåg is CEO of House of Knowledge a Company working with capability building in the Innovation, IP and standards domain. Magnus has over 20 year of experience in the in innovation, IP/IPR and standards domain and seres as Convenor of the ISO working group on innovation management terminology (leading to the publication of ISO 56000:2020) and was involved in the revision of the OECD Oslo Manual (4th edition, 2018). He was part of the European Commission’s “Joint Initiative for Standardization (Action 3) and is part of DG Grow’s AAstaRT (academics active in standardisation-related research and training), which highlights the need for standardization as an element of formal education, academic and vocational training. Magnus is also part of the ISO TMBG CCCC(Climate Change Coordination Comity) and he has been an consultative body for the Norwegian Ministry of Trade and Commerce on IPR and standards. Magnus earned an MSc in Biophysics and Medical Technology from the Norwegian University of Science and Technology.

Dr. Claudia Tapia Garcia is 𝗛𝗲𝗮𝗱 𝗼𝗳 𝗚𝗹𝗼𝗯𝗮𝗹 𝗜𝗣𝗥 𝗣𝗼𝗹𝗶𝗰𝘆 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗮𝗻𝗱 𝗔𝗰𝗮𝗱𝗲𝗺𝗶𝗰 𝗥𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀 at 𝗘𝗿𝗶𝗰𝘀𝘀𝗼𝗻. She is at the forefront of steering innovation and growth within the dynamic world of 5G network infrastructure, working for a global leader with a vibrant community of around 100,000 employees. Dr. Tapia Garcia leadership extends to 𝟰𝗶𝗣 𝗖𝗼𝘂𝗻𝗰𝗶𝗹, where she serves as 𝗣𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁, championing robust empirical research activities on intellectual property rights and their relationship with innovation. In addition to these roles, she contributes her insights and expertise as a Member of the Advisory Board at C-IP2 and as an Editorial Board Member for both The Patent Law and Intellectual Property Magazines. Her passion for knowledge sharing extends into her roles as a speaker, writer, lecturer, and executive coach. These platforms afford her the unique opportunity to collaborate and engage with a diverse spectrum of professionals—from academia and policymakers to practitioners and various stakeholders—fostering a rich exchange of ideas and advancements. Among the highlights of her career are leading and mentoring a brilliant group of young professionals within the 4iP Council and Ericsson’s research program, as well as cultivating close relationships with senior professionals to drive forward the shared vision for the future of technology and intellectual property. Dr. Tapia Garcia has recently ventured into the digital social space with the launch of her Instagram account @ipwithclaudiatapia and the 𝗣𝗼𝗱𝗰𝗮𝘀𝘁 “𝗜𝗼𝗧 𝗮𝗻𝗱 𝗜𝗣 𝗘𝘅𝗽𝗹𝗮𝗶𝗻𝗲𝗱”🎙️.