A Point of View On Intellectual Property Management: History, Challenges, and IBM Thought Leadership

Business Consulting Services
A Point of View on Intellectual Property Management:

History, Challenges, and IBM Thought Leadership
Cameron Crosby/Vincent Balembois
| 08/12/21 | © Copyright IBM Corporation 2002

Agenda
Intellectual
Intellectual Property
Property
 Evolution of the “Intellectual Property” conceptual framework
 Evolution of the “Intellectual Property” conceptual framework
 Challenges in managing Intellectual Property
SAP’s IS-Media Intellectual Property Management
 First release features and capabilities
 Unique aspects of SAP’s offering
 IPM schedule
IBM thought leadership on IPM
 Suggested IPM implementation path
 IPM implementation methodology
 IBM’s commitment to SAP IPM
Page 2 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework
Common Law until the 18th century

• Control for censorship purposes
• Disputes enforced by common law
1700 1800 1900 2000

1710 Statute of Anne Act

• 1st copyright act in the world
• Established principles of ownership
• Fixed term of protection – 14 years
• Created "public domain"
• US Copyright Act used it as a model
1710
Statute of Anne Act
1700 1800 1900 2000

1790
US Copyright Act


1886 Berne Convention
• Mutual recognition of copyright
between sovereign nations
• Development of international norms
• Replaced the need for separate
registration
1710 1886
Statute of Anne Act Berne Convention
1700 1800 1900 2000
1790
US Copyright Act

1908 Berlin/1909 US copyright

Revision
• Extended copyright terms
• Expanded the scope to newer
technologies (e.g., “Mechanicals”) 1909
Revision of the U.S.
Copyright Act
1710 1886
1700 1800 1900 2000
1790 1908
US Copyright Act Berlin Act


1923 First Profit Participation
• Net Profit - WB and David Belasco
1941 AFRA Residual Agreement 1941
• Compensation for radio rebroadcasts AFRA Residual
Agreement
‘51-’52 AFM/SAG Residual Agreements
1909
Revision of the U.S.
• Residual payments for television Copyright Act
rebroadcasts
1710 1886
1700 1800 1900 2000
1790 1908
US Copyright Act Berlin Act
1923
1st Profit Participation Contract
1951-1952
AFM and SAG Residual
Agreements

1960 Until Present

• Increased globalization of copyright law
1974
• Further extension of ownership terms 1941 Agreement on
AFRA Residual Satellite
• Continued expansion of technology and Agreement Transmission
usage covered
1909 1961 1985
Revision of the U.S. Rome Convention TRIPS Agreement
Copyright Act
1996
WIPO Copyright
1710 1886
Treaty
1700 1800 1900 2000
1790 1908 1998

US Copyright Act Berlin Act Sonny Bono Act
Digital Millennium
1923 Copyright Act
1976
1st Profit Participation Contract Revision of US
Copyright Act 2002
1951-1952 Introduction of
AFM and SAG Residual CBDTPA to
Agreements Senate
1971 1988
Creation of WIPO US joins Berne
Convention

Challenges in Managing Intellectual Property
 Complex underlying data architecture/integration requirements
 Multi-dimensional rights sold in any dimension/combination
 Multi-step/party contract process impacting availability and terms
 Complex and constantly evolving royalty calculation rules

Complex Underlying Data

Architecture/Integration Requirements IP and Related Components
 Intellectual property is associated with many

related “objects” “Brand” “Theatrical
Film”
 Each object has varying hierarchies and
IP Title
(Right) (P&L)
groupings
 Complex relationships between objects – 1 to

1; 1 to many; many to 1; many to many
 Today, each object is typically managed by a Digital SKU

separate system Asset (Physical
“Trailer” (Content) Product) “Gift Set”

Multi-Dimensional Rights Sold in any

Dimension/Combination IP Rights
 Ownership can be “multi-dimensional” IP
 Rights can be sold on any Theatre e.g. Right 1:
Market
 Cinema
dimension/combination  Europe
Video
 German
 Systems tend to be siloed and non-
TV
standardized
a
• Risk of double selling product e
si
op
A
• Risk of delays in determining r a
Eu ric
e
Te
G
Sp
En
availability Am
er
an
rri
gl
e.g. Right 2:
m
is
is
an
to
h
 TV
ry Language  America
 All languages

Multi-Step/Party Contract Process Impacting

Availability and Terms
Illustrative Contract
 Contractual process for acquiring and selling Management Process
rights involves:
• Multiple steps and iterations
(amendments)
• Multiple parties (approvals to contract
fulfillment)
 Difficult to track status and final terms of the

agreement
 Requires synchronization with availability and

royalty calculation engine

Complex and Constantly Evolving

Illustrative Royalty
Royalty Calculation Rules Management Process
 Constant introduction of new deal
types creates increasingly complex
rules
 Calculations require multiple input

sources
 System limitations lead to:
• High dependence on work-
arounds (i.e., Excel)
• Risk of miscalculation due to to
higher manual review

Agenda
 Evolution of “Intellectual Property”
 IPM schedule
IBM thought leadership on IPM

First Release Features and Capabilities

IP Acquisition IP and Rights
Management
IP Creation and
Li
ce
Production
ns
e
2
3 mySAP CRM
1
mySAP PLM
IP
IP
Intellectual
IntellectualProperty
Property 4
7 IP and Rights
Availability Reporting
6
5
Outgoing Royalty
Accounting
IP Rights/License
Sales
mySAP FI Incoming Royalty Accounting (of

IP Rights/License Revenues)
First Release Features and Capabilities - Step 1: IP Creation

First Release Features and Capabilities - Step 2: IP Acquisition
Acquisition Contracts:
 Short form contract (Deal Memo)
 Service contract: (work for hire: deals with e.g.
actors, producers, directors)
 Acquisition contract (deals with exploitable rights,
such as entire IPs, titles Negative Pick-up)
 Underlying rights contract, primary rights
 Joint Ventures, Co-Production, -Publishing, -Finance
 Term deals
First Release Features and Capabilities - Step 3: IP Rights Management

First Release Features and Capabilities - Step 4: Rights License Sale
Sales Contracts:
 Rights (License) Deal
• Distribution Deal Outright Deal
• Output Deal (Entertainment)

First Release Features and Capabilities - Step 5: Right Availability


First Release Features and Capabilities - Step 6: Incoming Royalties
Available Today
 Atomized Billing Process
 Billing items from Contracts
 Collective Billing - scheduling
 Usage Confirmation Data assigned to Sales Contract
 Partial Payment (Cash application in R/3)

First Release Features and Capabilities - Step 7: Outgoing Royalties
Available Today
 Atomized Billing Process
 Billing items from Contracts
 Collective Billing - scheduling
 Data Collector for external data (non-SAP Sales systems)

Unique Aspects of SAP’s Offering

 Ability to tightly integrate
• Financials
• Distribution
• Human Resources
 Ability to expand
• Extended CRM system
• Portal and web applications
• Data warehouse and analytical tools
 Ability to leverage size and industry clout
• Technology leader; product likely to remain technically relevant
• Overall R&D spending: $ 1 billion/year
• ERP package already established in five of the major studios
 Ability to support
• Industrial strength processing
• Full international capability
• Large pool of trained SAP resources

IPM Schedule
 Project start 09/00 with requirement analysis
 Development phase 01/2001 until Q4 2002
 Shipment for charter clients end of Q2 2003
 GA shipment Q4 2003

Agenda
 Evolution of “Intellectual Property”
 IPM schedule
IBM thought leadership on Intellectual Property Management

Suggested IPM Implementation Path
Foundation Integration Exploitation
Rights, ERP/Legacy/ Customer and Third Party

IP and Product
Contracts, IPM System Usage Capture Product Access and
Standards
Partners Setup Integration Analytics Collaboration
Business Rights Inventory
Partner In Out
Intellectual created sold

Properties Acquired blocked
Con
trac
t
licensed licensed
• IP (Rights)
• Title,
Property • Licencees • Business Warehouse • SAP Markets
• Metadata • Licensors • SEM • CRM
• Physical • Artists, producers ERP
ERP IPM
IPM Legacy
Legacy • Additional
Products • Contracts Portal
• Etc.

IPM Implementation Methodology
Standard
StandardAscendant
AscendantSAP
SAP
Process Track
Process Track
Intellectual
IntellectualProperty
Property
Rights
RightsManagement
Management
Contract
ContractManagement
Management
Fees/Royalty
Fees/RoyaltyManagement
Management

IPM Implementation Methodology

IBM’s Commitment to SAP IPM
 Formal partnership with SAP
 Premier implementation partner
 Trained resources on IPM available
 Investment in methodologies and tools
 Integration experience with related systems (ERP, Contract

Management Document Management, Content Management
systems)
 Thought leadership on standards boards (e.g., MPEG 7, 21)

Discussion
Questions:

A Point of View On Intellectual Property Management: History, Challenges, and IBM Thought Leadership

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Point of View On Intellectual Property Management: History, Challenges, and IBM Thought Leadership

Uploaded by

Copyright:

Available Formats

Business Consulting Services

A Point of View on Intellectual Property Management:

Cameron Crosby/Vincent Balembois

| 08/12/21 | © Copyright IBM Corporation 2002

Page 2 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

Common Law until the 18th century

1700 1800 1900 2000

Page 3 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

1710 Statute of Anne Act

1700 1800 1900 2000

Page 4 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

1700 1800 1900 2000

Page 5 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

1908 Berlin/1909 US copyright

1700 1800 1900 2000

Page 6 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

1700 1800 1900 2000

Page 7 | 08/12/21 | © Copyright IBM Corporation 2004

Evolution of the “Intellectual Property” Conceptual Framework

1960 Until Present

1700 1800 1900 2000

1790 1908 1998

Page 8 | 08/12/21 | © Copyright IBM Corporation 2004

Challenges in Managing Intellectual Property

 Complex underlying data architecture/integration requirements

 Multi-dimensional rights sold in any dimension/combination

 Multi-step/party contract process impacting availability and terms

 Complex and constantly evolving royalty calculation rules

Page 9 | 08/12/21 | © Copyright IBM Corporation 2004

Challenges in Managing Intellectual Property

Complex Underlying Data

 Intellectual property is associated with many

 Complex relationships between objects – 1 to

 Today, each object is typically managed by a Digital SKU

Page 10 | 08/12/21 | © Copyright IBM Corporation 2004

Challenges in Managing Intellectual Property

Multi-Dimensional Rights Sold in any

Page 11 | 08/12/21 | © Copyright IBM Corporation 2004

Challenges in Managing Intellectual Property

Multi-Step/Party Contract Process Impacting

 Difficult to track status and final terms of the

 Requires synchronization with availability and

Page 12 | 08/12/21 | © Copyright IBM Corporation 2004

Challenges in Managing Intellectual Property

Complex and Constantly Evolving

 Calculations require multiple input

Page 13 | 08/12/21 | © Copyright IBM Corporation 2004

Page 14 | 08/12/21 | © Copyright IBM Corporation 2004

First Release Features and Capabilities

mySAP FI Incoming Royalty Accounting (of

Page 16 | 08/12/21 | © Copyright IBM Corporation 2004

Page 18 | 08/12/21 | © Copyright IBM Corporation 2004

First Release Features and Capabilities - Step 4: Rights License Sale

Page 19 | 08/12/21 | © Copyright IBM Corporation 2004

Page 20 | 08/12/21 | © Copyright IBM Corporation 2004

Page 21 | 08/12/21 | © Copyright IBM Corporation 2004

First Release Features and Capabilities - Step 6: Incoming Royalties