In the dynamic world of industrial manufacturing, intellectual property (IP) management is not just a legal necessity but a strategic asset that can significantly influence a company’s market position and profitability. BHS Corrugated, a leader in corrugated board production machinery, has taken a pioneering approach to IP management, as detailed in a recent presentation by Dr.-Ing. Martin Bookjans, the head of the patent department at BHS Corrugated. Here’s a comprehensive summary of how BHS Corrugated is redefining IP strategy. The presentation was given by Dr. Bookjans on April 4, 2025, at the VPP/VDI seminar “IP in Innovation Processes” in the Düsseldorf Industry Club.

The Speaker: Dr.-Ing. Martin Bookjans

Dr.-Ing. Martin Bookjans, a German Patent Attorney and European Patent, Trademark, and Design Attorney, has a robust background in mechatronics and quality management. His career trajectory includes significant roles in academia and industry, culminating in his current position at BHS Corrugated since October 2021. His expertise in AI-supported quality management and his extensive experience in patent law make him uniquely qualified to lead the innovative IP strategy of the company.

BHS Corrugated: A Legacy of Innovation

BHS Corrugated is the leading provider of solutions for the corrugated industry with more than 3,500 employees at headquarters in Weiherhammer, Germany as well as in more than 20 countries. As Lifecycle Partner, BHS Corrugated is consistently strong across the entire product and service range: from development and production to installation and maintenance, to a variety of innovative Lifecycle Service solutions in the areas of corrugating rolls, individual machines, complete corrugators, industry 4.0, logistics and Single-Pass-Inkjet digital printing.

Significant aspects of digitalization, primarily regarding the optimization of process parameters and increasing degrees of automation and production efficiency, have been central issues of BHS Corrugated for many years. To meet the requirements of its customers as precisely as possible and to be always state-of-the-art, BHS Corrugated reinvests close to 5 percent of its turnover in research and development.

The Classical Approach to IP

Traditionally, IP strategies focus on:

  • Avoiding IP Infringements: Ensuring that the company’s products do not infringe on existing patents, which is legally mandatory with personal liability for business leaders. This approach is crucial to avoid costly legal battles and potential damages. It involves thorough patent searches and freedom-to-operate analyses to ensure that new products can be legally produced and sold.
  • Protecting Own Innovations: Aiming to prevent direct copying (plagiarism) of products, often with a single patent per product in multiple countries. This strategy seeks to create a legal barrier around the company’s innovations, deterring competitors from replicating the exact technology or design in extreme cases by just one single patent per product.

However, this approach has its limitations:

  • Patents Following Innovation: The traditional model, where patents are filed after the innovation has been developed, often leaves room for competitors to find workarounds or develop alternative technologies. This reactive approach can result in a lag between the innovation and its protection, allowing competitors to gain a foothold in the market. It also means that the company might not fully capitalize on the innovation’s potential before competitors catch up. This strategy can be particularly vulnerable in fast-moving industries where the window of exclusivity is short.
  • Real-World Challenges: Relying on a single patent can be risky, as competitors might find ways to work around the patent or develop alternative solutions. This approach can also limit the scope of protection, potentially leaving room for competitors to exploit similar but not identical technologies. Competitors of the company already have demonstrated the ability to bypass patents by BHS Corrugated by developing alternative solutions, highlighting the need for a more robust IP strategy. These competitors have shown that even with patents in place, there are ways to innovate around them, reducing the effectiveness of traditional IP protection. This underscores the importance of anticipating competitor moves and securing broader, more comprehensive IP protection. The experience of BHS Corrugated with these competitors illustrates the need for a proactive, business-driven approach to IP management.

Rethinking IP Strategy at BHS Corrugated

BHS Corrugated has shifted its IP strategy to align more closely with business objectives:

  • From Good Practice to Best Practice: Moving beyond merely avoiding infringement and protecting innovations, BHS Corrugated now focuses on:
    • Blocking Entire Business Cases: Treating IP not as a byproduct of development but as a managed asset integral to the company’s value chain. This approach involves a fundamental shift in thinking, where IP is no longer seen as an afterthought but as a core component of the company’s strategy. By integrating IP into the primary value chain, BHS Corrugated ensures that its intellectual assets are actively managed to block competitors from replicating entire business models or strategies. This proactive stance helps in securing market exclusivity and maintaining competitive advantage.
    • IP as a Profit Driver: Transforming IP from a cost center to a revenue generator. Traditionally, IP management was viewed as a necessary expense to protect innovations. However, BHS Corrugated has recognized the potential of IP to drive profits directly. By strategically leveraging patents, trademarks, and other forms of IP, BHS Corrugated can create new revenue streams through licensing, partnerships, or even selling IP rights. This shift in perspective turns IP into a valuable asset that contributes to the company’s bottom line.
  • IP Strategy Driven by Business Case: The strategy now starts with understanding:
    • What is being sold, how, and to whom?: This involves a deep dive into the company’s products, services, and target markets. By understanding the specifics of what is being sold, BHS Corrugated can tailor its IP strategy to protect the most valuable aspects of its offerings. This includes identifying key features, technologies, or processes that differentiate the products of BHS Corrugated in the market.
    • Ensuring customer desire for the product: BHS Corrugated focuses on creating products that customers not only need but also desire. This involves market research, customer feedback, and aligning product development with customer expectations. By ensuring that the product meets or exceeds customer expectations, BHS Corrugated can leverage IP to protect these unique selling points, making it harder for competitors to offer similar value propositions.
    • Securing exclusivity to maintain pricing power: Exclusivity through IP protection allows BHS Corrugated to maintain higher pricing for its products. By securing patents, trademarks, or designs that are critical to the product’s appeal, the company can prevent competitors from offering similar products at lower prices. This exclusivity ensures that BHS Corrugated can command premium pricing, thereby protecting its profit margins.
  • Front End and Back End Considerations:
    • Front End: Ensuring customers want the product and can only get it from BHS Corrugated. This involves not just product development but also marketing and sales strategies. The company ensures that its products are positioned as unique, desirable, and exclusive, making customers actively seek them out. By securing IP rights that cover these unique features, BHS Corrugated can control the market and ensure that customers have no alternative but to purchase from them.
    • Back End: Ensuring efficient production that competitors cannot easily replicate. This aspect focuses on the internal processes, technologies, and know-how that give BHS Corrugated a production advantage. By patenting or protecting these processes, the organization can prevent competitors from copying their efficient production methods, thereby maintaining a cost advantage and making it difficult for others to compete on price.
    • Work Arounds: Anticipating how competitors might try to capture market share and preemptively blocking these strategies with IP. This involves a proactive approach to IP management where BHS Corrugated not only protects its current innovations but also anticipates future competitive moves. By understanding potential workarounds or alternative technologies competitors might develop, BHS Corrugated can file patents or secure other IP rights that cover these potential strategies, effectively blocking competitors from entering the market or capturing share through alternative means.

The Results of an Effective IP Strategy

The new approach of BHS Corrugated has led to:

  • A Comprehensive 360º IP View: Integrating IP into every aspect of business strategy, from product development to marketing. This holistic approach ensures that IP considerations are not an afterthought but a fundamental part of the company’s strategy, enhancing innovation, protecting market exclusivity, and aligning with customer needs and expectations. By embedding IP into the core of business operations, BHS Corrugated can proactively manage its intellectual assets to drive growth and competitive advantage.
  • Enhanced Market Position: By securing IP that directly supports business cases, BHS Corrugated can maintain higher pricing and protect its market share more effectively. This strategic alignment of IP with business objectives allows the company to command premium pricing for its unique offerings, deterring competitors from entering the market with similar products. The result is a stronger market position, where BHS Corrugated can leverage its IP to maintain profitability and market leadership.

Sustainable Integration into the Company

To ensure the longevity and effectiveness of this new IP strategy:

  • Corporate Philosophy: BHS Corrugated has updated its corporate philosophy to include the active use of IP for long-term business strengthening. This update reflects a strategic shift towards viewing IP not just as a legal necessity but as a core component of the company’s long-term growth and competitive advantage. By embedding IP into the company’s ethos, BHS Corrugated aims to foster a culture of innovation and protection, ensuring that intellectual assets are leveraged to secure market leadership.
  • IP Policy: A detailed IP policy has been established, focusing on:
    • Protection and Management of IP: Systematic identification, protection, and management of all forms of IP. This involves a proactive approach to securing patents, trademarks, and other forms of IP to safeguard the company’s innovations. By managing IP systematically, BHS Corrugated ensures that its intellectual assets are well-protected, reducing the risk of infringement and enhancing the company’s market position.
    • Fostering Innovation: Encouraging continuous innovation and early recognition of IP opportunities. BHS Corrugated promotes an environment where employees are motivated to innovate, recognizing that early identification of IP can lead to stronger protection and market exclusivity. This policy supports the company’s commitment to staying at the forefront of technology and market trends.
    • Value Creation through IP: Actively using and monetizing IP to create economic value. BHS Corrugated leverages its IP portfolio to generate revenue through licensing, partnerships, or selling IP rights, transforming IP from a cost center to a profit driver. This approach not only protects innovations but also creates new business opportunities and revenue streams.
    • Risk Management and Compliance: Ensuring all IP activities comply with legal standards and manage risks effectively. The IP policy of BHS Corrugated includes measures to mitigate risks associated with IP infringement, ensuring that all activities are in line with legal requirements. This focus on compliance helps in avoiding costly legal disputes and maintaining the company’s reputation for ethical business practices.
  • IP Strategy: This involves:
    • Analyzing Business Cases: Identifying where IP can contribute to business objectives. BHS Corrugated conducts thorough analyses to understand how IP can support its business goals, ensuring that IP strategies are aligned with market needs and company growth plans. This analysis helps in prioritizing IP protection efforts where they can have the most significant impact.
    • Applying IP Policy: Using the policy as a filter to develop specific IP strategies. The IP policy serves as a guiding framework, ensuring that all IP-related decisions are made with a clear understanding of the company’s objectives and values. This application of policy helps in creating targeted, effective IP strategies that support business cases.
    • Regular Reviews: Ensuring the strategy remains relevant and effective through annual reviews by top management. BHS Corrugated conducts regular assessments of its IP strategy to adapt to changing market conditions, technological advancements, and business goals.

Next Steps: Processes and Documentation

Starting in Q3/2025, BHS Corrugated will also focus on documenting and introducing IP Processes: It recognizes the importance of a structured approach to IP management. This involves documenting and introducing a range of processes to ensure that all aspects of IP management are well-documented and followed. Key areas include:

  • Inventor Information Obligations: Ensuring that inventors are aware of their responsibilities regarding IP disclosure and protection. This process helps in capturing all potential IP assets early in the development cycle.
  • Internal Audits: Regular audits are conducted to assess the effectiveness of IP management practices, identify areas for improvement, and ensure compliance with the company’s IP policy. These audits help in maintaining the integrity of the IP system.
  • Introduction of IP KPIs: BHS introduces Key Performance Indicators (KPIs) to measure the success of its IP strategy. These KPIs might include metrics like the number of patents filed, the success rate of patent grants, the revenue generated from IP licensing, and the reduction in IP-related risks. By tracking these KPIs, BHS Corrugated can gauge the effectiveness of its IP management and make data-driven decisions.

This comprehensive approach to documenting and introducing IP processes ensures that IP management of BHS Corrugated is systematic, transparent, and aligned with its business objectives. It fosters a culture of innovation, accountability, and continuous improvement in IP management practices.

Conclusion

The journey of BHS Corrugated in redefining its IP strategy showcases a shift from traditional defensive tactics to a proactive, business-driven approach. By aligning IP with business goals, fostering innovation, and ensuring robust protection, BHS Corrugated not only secures its market position but also sets a benchmark for how companies can leverage IP for competitive advantage. This strategic pivot underscores the importance of viewing IP not just as a legal necessity but as a core component of business strategy, driving innovation, and securing long-term success in a competitive landscape.

About the author

Martin Bookjans is a German and European patent attorney and trademark and design attorney as well as UPC representative. He studied mechatronics at the Friedrich-Alexander-University Erlangen-Nürnberg and has a PhD in engineering in the area of AI-based quality management. Since 2021 he is Head of IP Management at BHS Corrugated Maschinen- und Anlagen GmbH.