Page 9 - IP-HANDBOOK-07-2018

II.
Intellectual Property refers to the results of intellectual activity in the industrial, commercial, scienti c, litera- ry and artistic eld. It can be found almost everywhere. But a mere idea or concept cannot be protected: only the expression of that idea, such as a brand, an inven- tion, designs or, literary and artistic works may be pro- tected by Intellectual Property rights.
IP provides an incentive to innovate because the crea- tors can exploit the results of their innovation. IP assets may be exploited in various forms: by commercializing exclusively the IP protected products and services, by licensing the IP (including franchising and merchandi- sing), by selling the IP, for securitization and nancing (e.g. using IP assets as collateral or for funding) by ente- ring strategic partnerships (e.g. joint ventures to exploit the IP assets).
valuable chocolate brands with Swiss origin. In 1899, when Lindt sold his company to Chocolat Sprüngli AG, the value of the IP - the trade secret in the manufactu- ring process, the trade secret in the recipe for the cho- colate mass and the trademark LINDT, contributed to a deal with the enormous sum of one-and-a-half-million Gold Francs.
Only two years later Chocoladefabriken Lindt & Sprün- gli AG (Lindt & Sprüngli), had to painfully notice that the value of IP can be destroyed if the necessary mea- sures to protect it are not in place.
The manufacturing process for smooth melting choco- late with the help of a “conche” was described in de- tail in the standard work Die Schokoladen-Fabrikation (“The Chocolate Production”).
What is Intellectual Property (IP) ?
LINDT Chocolat Surfin
(branding used almost unchanged since 1879)
By granting exclusive rights to the owner, IP protection is an investment that can enhance the market value of an enterprise, it keeps competitors at distance, and defends against those who freeload. Often IP rights are the most valuable assets a company can own.
IP has always played a major role in the commercial development of Lindt & Sprüngli and its predeces- sor companies. With the invention of the “conche”, Rodolphe Lindt succeeded in producing the world’s rst smooth melting chocolate. This pioneering new process together with a secret recipe for the choco- late mass was the foundation for the LINDT brand that has since evolved into one of the most famous and
With the disclosure of the precious secret for which a high price had been paid the competitive edge see- med to be lost. But the trade secret in the manufactu- ring process was not the only IP that Lindt & Sprüngli had acquired. There remained the trade secret in the chocolate mass recipe and the trademark rights to the LINDT brand. Such rights, if well protected, managed and defended can live eternally, creating sustainable competitive advantages for a company.
Recognizing the important added value that IP brings to the business, Lindt & Sprüngli is committed to pro- tecting, managing, monitoring and defending its Intel- lectual Property.
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Key Take-Aways
• IP are valuable business assets and their strategic utilization can enhance the competitiveness of an enterprise.
• IP needs to be protected, managed
and defended to extract its full value.