How well prepared is your IP department for company growth?

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Earlier on this week we caught up with Dr Michael Kock, Global Head IP at Syngenta International AG, to find out how Syngenta AG, which operates in over 90 countries, has dealt with global expansion. The ultimate aim was to learn how an IP department can support international company growth and how to structure IP departments in new regions. Michael will be sharing his insights on this topic as a speaker at the Global IP Exchange taking place from the 25th – 27th March, 2012 in Dolce Munich Hotel, Germany.

When a company decides to expand into a new region, there are a number of factors that Heads of IP need to consider when establishing IP support for the company in that region. According to Michael it depends on the activities which are being expanded – is it sales & marketing or Research & Development – and the likelihood that inventions will be developed on the ground in that country or not. For example if you are simply bringing products to market through marketing and sales, you will not need the local representation of IP unless it’s a risky country from a freedom to operate perspective or a country with high anti-counterfeiting activities: an example Michael identified was the United States, where it’s worth considering establishing both sales and IP support.

Among other factors Michael distinguishes between the complexities of the legal environments in different countries. One example Michael discussed is China, he explained “it starts with the language issues, plus a very complicated legal framework which is always mixing IP law and other laws. Here it’s very demanding to get any decent IP opinion without having your own people on the ground. This is a learning from the last two decades – even if there are plenty of law firms, it’s very rare you get a law firm which is really up to the legal challenges you find.”

During the expansion process Heads of IP often make mistakes, so we asked Michael which mistakes he has observed when re- restructuring a global IP team. He recognises two common errors. The first one is to do with recruiting the right people for specific roles. The second common mistake is linked with the people lifecycle and retention. Michael advises that you need to start by hiring “…a chief and an assistant who after three years becomes the chief, so you are not losing your whole IP support...You need to build lifecycle management upfront otherwise you have so many bumps on your road, every three years you’ll need to hire a new person so will lose all knowledge and experience you have gained.”

To identify the best candidates for a new region Syngenta works with local recruiting firms. According to Michael it is essential to create the right profile for each role. For example, when recruiting for an R&D supporting attorney the candidate has to come from similar industry; as Michael explains “it doesn’t help if you are in biotech and they get you someone from the electronics industry”. If the role is business focussed, industry background is not so important; it is the experience in areas such as licensing, and technology transfer that are of greater importance.

During the second stage of the interview process it is vital that the IP head who is recruiting has knowledge of the legal framework in that country. Michael believes you need to “gain at least some initial understanding about imminent risks and business or IP challenges in the respective country you are recruiting for”. He also advises to use case studies to test the candidate’s experience in that region. Candidates, especially in regions such as China, are very good at self-promotion and it is necessary to test their substance. Investigating the candidate’s career development path to see if they frequently change their employers and talking to their previous employees helps you to investigate their motivation and commitment.

As it’s not possible to have an IP specialist in each R&D location, Syngenta is creating a network of ‘IP Ambassadors’. These are research scientists, or business people with passion for IP. Their task is to raise IP awareness, proliferate IP policies, and provide the first point of contact for local colleagues in IP matters. IP ambassadors get additional IP training courses, further boosting their careers.

Final points made by Michael focussed on the overall role of IP in the business, which of course impacts on the global IP department. He talks about IP as a function which is evolving from a function primarily supporting R&D and driving protection strategies to a function shaping business, go-to-market and value capture strategies, which requires one to think “broader” than patent and trademark only. Michael recognises how IP is becoming more holistic and that if companies and IP attorneys do not adapt and also become more holistic in their approach they will not be able to compete in the market place. This development has to be taken into account when it comes to recruitment, since not only excellence in technical skills is required but also highly developed communication skills and a business mind-set.

For the full programme of events on this subject, please visit http://www.legaliqonline.com/events/ to request information call: 44 (0) 207 036 1300, alternatively email: enquire@iqpc.com