BREDEMA

Special industrial property retrospective 2004 

During the interview pertaining to the merger of the firm BDM, Pierre Breese also shared his vision of the industrial property market for the years to come.
The market is constricted and very competitive, but should continue to develop in the next few years. It remains a profitable market for players who know how to be innovative for their clients....

Interview with Pierre Breese.

The IP market has undergone a great transformation for the first time in its history. This evolution is a potential risk for those firms that will not know how to adapt and a terrific opportunity for others who will know how to capitalize on it.
How do you envision the evolution of industrial property in the next ten years?

Historically, the (IP) consultant market is an insiders market, a closed market with limited expansion.

Recently, we have seen a globalization of IP titles (community trademarks, community design patents, the extension of the PCT patent, the eventual community patent,...) which leads to an inherent competition between the firms from different countries. Among other things, the demise of mandatory use of local Agents opens new possibilities and perspectives.

It is a market that is advancing, incidentally, along with technical innovation and marketing. The importance given by all countries to innovation as a source of growth provides a positive positioning for the IP Consultant industry. Intellectual Property is the cement and catalyst of innovation and creativity and a key factor for companies in the most technologically advanced countries.

• - the “Lisbon Process” clearly summarizes, and one can hope that it will go beyond the statement of intent to be effectively administered and implemented by corporations.
• - taking into consideration accounting in the context of the connection of the IFRS and IAS regulations offers a financial clarity of the assets characterized as intangible, and perceived by many Directors as negligible.

At the same time, we witness certain global trends signaling IP rejection (" No Logo ", " anti-advertising ", counter globalization,...) which confirms that politics significantly influences this market. The uprising protest of “counter globalization” introduces to the public including a number of small and medium business directors, an uncertainty regarding the social utility of Intellectual Property.

Progression of the competition.
Otherwise stable and civilized, the competition of tomorrow will be much stronger. We are witnessing the creation of a true IP Consultant market, open and global. It is increasingly becoming a consumer
demand driven market as opposed to a supply driven market.

In France, there are 160 intellectual property consultant firms with the majority (63%) located in the Paris region: representing a little less than 600 industrial property consultants (CPI).
The Key factors of a competitive market place are the following:

• - The size of the firm is a prime incentive for the client
• - Years of experience in the industry is a ingredient that insures security
• - The collaborator’s years of professional experience is a key component for successful negotiations and building client relationships.
• - Law firms take part of the market share especially in small/medium businesses.
• - International IP Firms are becoming formidable competitors in the key accounts market.

Development of client’s needs for strategic IP counsel.
Assistance which used to be primarily technical is fostering corporate strategy to the point of implementing operational IP action plans.

In the past, clients were only expecting “legal” protection services. Today their primary requisite is value-added service and pro-activity. The ability to hear and comprehend their concerns translates into an important expectation and need in IP strategy consultation or complex operations.
We are witnessing increased negotiations regarding the fee schedules, not in the sense of a base price, but a comprehensive service offered with an elevated value-added level at a reasonable price.



The five major trends to watch...

1. - reinforcement of IP’s role in the fastest growing corporations with a qualitative approach rather than quantitative
2. - increased consideration of the bottom-line return on investment regarding expenditures in the constitution and defense of IP rights: Fee negotiations, public bidding by IP consultant firms…
3. - the expectation by American and Asian corporations for an IP services offer for all of Europe, and not just France: increased competition between French, German, and English firms, however, not necessarily to the detriment of French firms
4. - increased disparity between the American and European practices regarding business methods protection and software, are obliging European corporations to adopt a protection strategy by know-how validation in Europe, and only filing patents in the United States
5. - let us keep in mind as well the possible statutory evolutions (such as the regrouping of IP Counselors and Attorneys) which disturbs a handful of professionals, but will grossly impact only those who subscribe to a sincere willingness and an ambitious strategy by French professionals, whatever their background to conquer the European IP rights stratosphere.