M.I.T. Enterprise Forum of Chicago Delves Beyond Intellectual Property into ‘Ownable Distinction’
M.I.T. panel discussion focuses on creating "ownable distinction" – a compelling new strategic concept for achieving and sustaining business growth.
Chicago, IL (PRWEB) April 26, 2005 -- While the topic of intellectual
property (IP) is often talked about and largely misunderstood, a company’s IP is
only half the battle in carving out market command, according to a local panel
of IP experts. A compelling new notion called “ownable distinction”, which is
being used as a powerful business tool to fully leverage corporate IP, was
debated last week at the April gathering of the MIT Enterprise Forum of
Chicago.
In reality, IP is a poorly understood “legal fiction,” according
to Darren Cahr, a partner with the Chicago office of Gardner Carton &
Douglas LLP and one of three MIT Enterprise Forum panelists. An intangible
asset, a company’s intellectual property is nothing more than a “piece of paper
saying you have a right to defend it,” Cahr said.
On the other hand,
applying the concepts of ownable distinction (OD) to its intellectual property
is how a company gains and holds a strong position in the market. With OD, a
company has the ability to ultimately create a market in which it is the
undisputed leader.
“It’s not enough to have a clever brand or a unique
technology. IP is irrelevant without OD,” Cahr said. “IP has little value unless
it’s on a strategic vector taking you in a direction. With OD, you must choose
and know that direction. IP without OD is like a car without a steering wheel.”
He added: “IP is a hammer. It’s not a pot of gold. It’s a tool that needs a
goal.”
Companies often have lots of IP of different kinds floating around
the organization without a clear executive understanding of what it is, where it
is and what business applications it can best serve. A notion emanating from a
combination of business, legal and branding strategy, OD is grounded in the
context of the market’s dynamics and its customers -- and done correctly, OD is
a force that helps prevent commoditization.
"With 75 percent of today’s
companies not knowing what their IP is worth and 80 percent of the value of U.S.
companies locked up in their IP, the need for IP to be thought of differently is
more pressing now than ever before," Cahr said. Added Pragmaxis LLC founder and
fellow panelist Peter Balbus: “Businesses today face essentially two choices:
commodify your competition or be commoditized yourself. OD is the antidote to
commoditization.”
For OD to become a reality within a company, it must
receive top-down support and be driven with “intentionality,” Balbus said. “It
must directly address the question of where a company’s IP stands in the context
of the market and its future direction.” Balbus, a recently elected MIT
Enterprise Forum board member, cited hockey legend Wayne Gretzky as being great
because he skated to where the puck was going rather than where it
was.
One obvious example of solid OD is the Apple iPod. While consumers
can buy competing products that are at least as advanced technically, Apple has
built and branded an immersive experience around the device and consumers have
responded overwhelmingly. Other notable examples of successful OD include the
Volkswagen Beetle, Starbucks and the Motorola Razr.
On the flip side,
various companies have been innovative with their IP but failed to follow up
with solid OD. You may recall the Sony Betamax from 1975, the original Radio
Shack laptop in 1983 or the Motorola “brick phone,” which spawned an entirely
new cellular telecommunications industry before market leadership was captured
by Nokia.
On a humorous note, Balbus highlighted examples of other
trinkets which were innovative but lacked clear ownable distinction, including
an alarm clock on wheels that hides until its user finds it and a toilet paper
dispenser worn on a person’s head for convenience in blowing the wearer's runny
nose.
About the MIT Enterprise Forum of Chicago
The MIT Enterprise
Forum is a non-profit organization that promotes the formation and growth of
innovative and technologically oriented companies through a series of
specialized executive education programs. Through these programs, the Forum
provides networking, leadership opportunities, and provocative new ideas to
senior business leaders while showcasing MIT's role in entrepreneurship in
communities around the world. The Enterprise Forum was formed in 1978 and has 25
chapter organizations worldwide. Participation and membership is open to the
general public.
www.mitefchicago.org
# # #
Source : http://www.prweb.com/releases/2005/4/prweb233566.htm