IP Evaluation for design

The tool does not give a value in monetary terms, instead it gives each design a score. The higher the score, the higher the value of the design to your business.

The tool can be used for both applications and registered design, which are both called design in this tool.

Preparatory work towards setting a price

If your business is relatively inexperienced with valuation you can still use the tool, as it leads you through a number of relevant considerations which you should make when trading rights. The tool focuses on the general opportunities and risks that are associated with the right, and by asking about specific factors that may affect the value of the right, it gives you an insight into the right?s particular strengths and weaknesses. IP Evaluation is considered to be a preparatory task for the meeting with your IP consultant, in which you can go through the results and find the correct price for your specific right together.


Do you plan to hold the score that this tool will provide you with up against other scores?


Do you use this tool because you plan to trade with IPR?


Questions and possible answers

The model consists of 8 questions, all contributing to providing an overview of the value of your design to your company. The topics covered are as follows:

  1. The validity of the design protection
  2. Geographic protection
  3. Time-related exploitation opportunities
  4. Supplementary protection
  5. The size of the market
  6. Growth in the market
  7. Market share
  8. Added value

The questions are carefully selected and are based on the theory and research already available in the field of evaluation.

Each of the 8 questions has 8 predefined answers to choose from. A score ranging from 1 to 8 points is attached to each answer. You should be aware that the extreme points 1 and 8 are only used for a design which on the given factor perfom in excess of the average. In this way it is possible to distinguish between the most valuable and the valuable design.

Some of the answers to the questions in the model are subjective. E.g., you need to answer whether a share is big or small, and in this connection it is important to have predetermined intervals according to which all the company's design are evaluated in order to ensure consistency in the event of a later comparison of the scores.

Be honest and realistic when you answer the questions, otherwise the model does not produce a usable result.

Information about the design which is requested evaluated




Has the value been evaluated prior by this method? If so, state the score and date for such prior evaluation


It is important to set up a working group

Typically, a different value will be attached to a design depending on the person who is to quantify or describe the value. It is therefore important to select the same persons to work with this model, when a business wishes to estimate the value of a design. Similarly, it is essential that all relevant stakeholders form part of the working group, who is intended to work with the model. A list of potential stakeholders may include the following, but is not limited to: the Marketing department, Management & Strategy, R & D department and the IPR department.

The working group should take notes in order that the whole process is documented. Thus a third party will get a better understanding of the result of the model, and it will be easier to trace prior results and, if needed, to continue working with them.

A chairman for the working group must be appointed. The chairman is responsible for implementing the evaluation.

A notetaker must also be appointed. It is the notetaker's responsibility to take notes during all discussions, and to see to it that all historical data are included. Such notes should subsequently be copied to the note fields of the model.

All members of the working group are recommended either to help one another in completing the model or to complete it individually, upon which the results should be compared and discussed. This leads to a good dialogue and matching of expectations in between the departments, and thus a more reliable resultat.

Below you can enter the members of the working group. Note that setting up a small group is highly recommended. The number of group members depend on your organisation.

1. Is your design valid?

The validity of a design is its ability to withstand challenges from others. The risk of your registered design being nullified is greatest in its first year, however, according to law, challenges can be presented during the entire lifespan of the design.

How will you assess the validity of your design?

1 point: You have registered the design, despite the fact that it is objectively not new, e.g. because you published the design 18 months before you applied for registration.
...
3 points: Your design is new, to the best of your knowledge, but no investigation has been carried out in the market or any registers to assess whether the design is new.
...
6 points: Investigations have been carried out in the market and registers to assess whether the design is new.
...
8 points: Your design has been tested by either an authority or a court of law.
If you are aware of information about the history of your design that may affect the validity of your design in one way or other, you can use an intermediate score of 2, 4, 5 or 7. Write your justification in the notes field below.


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Facts about design protection:

Attainment of design protection:

A design protection can be attained either by registering the design with a design authority or as an unregistered EU design.

The Danish Patent and Trademark Office is the Danish design authority, however you can also register your design in other countries via their design authorities, or you can register your design as an EU design with the European design agency OHIM. Registering a design with OHIM covers 27 countries, while national registration only covers one country. Another option is to apply for your design to be registered via the International organisation WIPO, where you select from a list the relevant countries in which you require protection. You can read more about which countries are currently members of the system here. Registration can entitle you to exclusive rights to the design for up to 25 years.

The unregistered EU design is protected for three years from the first publication, if published within the EU. If publication takes place outside the EU, the design is not necessarily protected as an unregistered EU design.

Definitions:

=> Innovation requirement and individual character

In order to obtain a sustainable design right, the registered design right should be new and have an individual character.

In order for a design to be considered as new, no identical or very similar designs may have been published previously.

We interpret individual character as being that the design should also differentiate itself from anything already in existence as well as providing a different overall impression than recognised from previous designs.

=> Publication

A design is considered to be published once it has been published in connection with registration or has been published in another way, e.g. exhibition, or via its commercial exploitation.

=> Period of grace

Once a design has been published, a designer will still have the option to register their design in all EU countries, as long as the applicant submits a design application no later than 12 months after the first publication of the design.

If your business wants to register the design in countries outside the EU, you must investigate which rules apply for these countries before publishing your design. Some countries do not have a period of grace, and it is therefore important that you apply before you publish your design. A period of grace may apply in other countries, but the length may be either shorter or longer than the European period of grace of 12 months.

Nullification of the design registration:

It is important to make it clear that the registered design can be invalidated and therefore there is a risk of nullification for several reasons:

- The design is identical or similar to a previous design which has been registered by another party, or which has been published before yours. The design is thus not new, nor does it have an individual character.

- The design does not comply with the grace period at the time of application, for example, because the design was published more than 12 months before the application date.

2. Is your design protected in all relevant countries?

The value of the design may depend on how widely protected it is.

How would you assess the coverage of your design protection?

If your design is protected by the unregistered EU design, this protection is worth less than a genuine design protection as the protection period is significantly shorter. You must therefore award your design 2 points, if this is the case.

1 point: My design is protected in few or no relevant countries
...
8 points: My design is protected in all relevant countries


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Purpose of the registration

A design registration may initially serve two purposes, and will more often also mean that:

1. A design registration awards an exclusive right in a country or region that may be enforced in the relevant location.

2. A design registration can be used as documentation to have a subsequent registration annulled due to the demand for innovation and individual character, also in another country.

This means that a person who registers their design in Denmark has an exclusive right that applies to Denmark, but not for example, France. However, the Dane will often be able to use the Danish registration to get a more recent registration of a similar design nullified in France, because this is neither new nor has individual character. In other words, the older Danish design negates the innovative character of the more recent French design.

Relevant countries

It is important that your design covers all relevant countries. Which countries are relevant for you, depends on the strategy for your design. The relevant countries can, for example, cover countries in which you market the design or products yourself, or in which you expect this to happen in the future. This may, for example, relate to producer markets, sales markets or even import and export markets. Relevant countries may also be countries in which piracy is common, or they could be countries in which your current or future buyer of the design is expected to operate, either now or in the future.

3. For how many years can you expect to be able to use the design?

In connection with the evaluation of the design?s value, it is important to assess how long you can maintain your exclusive right, and not least, how long the product life is for the design. A piece of furniture which will be sold for several years, may benefit from a protection term of 25 years, while a seasonal product, e.g. a jacket, may only be on the market for several months.

You must first calculate the remaining lifespan of the design. This is done by calculating the two lifespans below, then selecting the shortest lifespan as this is the maximum number of years the design will have a justification for existence. An assessment is then made as to whether this is a long or short time in the specific context in which you are acting.

a) Remaining design protection period

b) The expected lifespan of the product design is used in connection with

How would you assess your design?

1 point: I expect to be able to use the design for an extremely short number of years
...
8 points: I expect to be able to use the design for an extremely long number of years


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Ad a)

Example of remaining design protection period:

The remaining protection period for the design is the maximum number of years that you can maintain protection from the design authority from the current date. The maximum design protection period in most countries is up to 25 years from the application date, in 5-year periods. You should always check the length of the protection period in the specific countries in which your design is protected, as this can vary. The unregistered EU design is given protection for three years from the first publication, if this takes place within the EU.

NOTE: In some cases, you will have the opportunity to maintain an extension of this protection period through use of other rights such as copyright and trademark. You should disregard these in this question.

Ad b)

Example of the expected lifespan of the product:

The design is typically intended for a definite product or is included in a larger product, which means that it is just as important to consider the lifespan of the product. If the design forms part of several products, the lifespan should be considered for each of these products. In such cases, the lifespan of the product with the longest lifespan is selected, as the design still has justification as long as it forms a part of at least one product on the market. Please note that it is not necessarily your own product, but the design may still have a justification if it is used in other products via licensing.

4. Are there any options for supplementary protection?

In some cases, it will be possible to maintain supplementary protection for the design through copyright legislation or through trademark registration. This can have particular significance in relation to the time-related protection of the design, which can thus be extended beyond the 25-year maximum protection period for a design registration.

It should however be noted, that a design registration contributes more benefits than just time-related protection. Among other things, it can be used as documentation in enforcement procedures and customs requirements, and you can investigate the innovation in the design registration and thus get an indication of the sustainability of the design.

How will you assess your design?

1 point: The design is definitely not covered by supplementary forms of protection
...
8 points: The design is definitely covered by supplementary forms of protection


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Supplementary protection

Copyright:

In Denmark, in addition to being registered, a design can also be protected by the rules on copyright. If you hold a copyright, the protection will generally last for 70 years after the death of the copyright holder. In order to hold a copyright, demands are made on qualification as an artistic work, in other words, there must be a certain ?artistic? quality. In Denmark you cannot register your copyright, and you are often only able to obtain an assessment of whether the product is protected by copyright in connection with legal proceedings. It is important to pay attention as these rules can vary from country to country.

Trademarks:

Under certain conditions it is possible to protect the appearance of a product as a trademark. For example, depending on the circumstances, a bottle with a characteristic and special design can be registered as a trademark for specific products, e.g. wine or soft drinks. The advantage of trademark registration is that, in principle, you can obtain infinite protection, as long as the trademark is renewed. It is however, also important to note that it is typically more difficult to register a product as a trademark as consumers will not be used to viewing a product as its own distinguishing feature. Sometimes a greater degree of recognition, or several years of use of the design may mean that the product can be registered as a trademark on the basis that it has been established.

5. How large is the market for your design?

You should carry out a thorough market analysis before you answer this question. This market analysis must look closer at supply and demand on each individual market (geographic, industry-specific, consumer segments, etc.).

You may already know the market, but still carry out an updated analysis placing specific focus on alternative supplementary areas of exploitation that may contribute to expanding the size of the market for your design.

If your current market consists of your local market, it is important to determine how large the total global market is estimated to be.

You should ensure that you do not calculate your own market share of the market, but instead assess the whole market as this can be considered as an option for the design. You should however, carry out a realistic assessment of the market.

How would you assess the market for your design?

1 point: The market is extremely small
...
8 points: The market is extremely large


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Realistic assessment:

You have designed an expensive and exclusive mobile phone holder which is compatible with three different phone models. The market can be regarded as everyone who uses any one of these three phone models, but this market assessment would not be realistic as not all mobile phone users will be able or want to pay for this expensive design. Instead, a realistic assessment could be made to look at how large a proportion of these owners of the relevant phone models could realistically be considered to buy this exclusive mobile phone holder.

6. What is the growth rate in the market?

Investigate the expected future growth in the market. If the trademark covers several markets, you will have to carry out an average reflection of the growth, weighted in consideration to the significance of the individual market. The growth in the market indicates the future value of the design.

Be aware that this is not the growth for the individual design, but the growth for the entire market for products in the same category as yours.

Your answer must factor in, as best possible, the chance that a specific design such as yours will experience renewed popularity in the future. Retro trends, where older designs become fashionable again are an example of this.

How will you assess the growth on your market?

1 point: The growth rate in the market is extremely low
...
8 points: The growth rate in the market is extremely high


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

7. How large is your market share?

You may already know the market and your market share, but still carry out an updated analysis of these so that you are working with the newest and most up-to-date information.

How would you assess your market share?

1 point: My market share is extremely small
...
8 points: My market share is extremely large


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here

Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

8. Does your design create added value for the products of which it forms a part?

A good design will influence the price you can ask for your product. The design creates an added value either via the functionality of the design itself, its physical expression or the fact that the consumer has previous knowledge of the designer/business in regard to delivering quality design and therefore has a preference for this specific design.

A good design creates the opportunity to increase the sales price of the product, sometimes as a result of the cost savings, other times due to consumer preference. This applies not only to consumer goods, but also e.g. for machinery and other work equipment.

Whether it is more practical to measure the added value as a percentage of the product?s sales price or in monetary terms depends on your use of the tool, but please note that it is important for all designs to be assessed according to the same measurement scale.

You register a design because you want to prevent others from copying it. Be aware that the design is not used in all products in such a way that it affects the consumer?s preference and willingness to pay in a sales situation. For example, your design may be so closely linked to a brand that the actual design does not create any value, but is used as a means for allowing the consumer to recognise your brand, or even your products. One example of this type of design could be specially designed packaging, which does not create added value in itself, but clearly tells the consumer that the contents comes from a specific brand. This type of design will thus have an internal value in the business selling the product, but will not typically have an independent value if the business wants to sell the design. When allocating points you should therefore carefully consider whether your design fits into this category.

How will you assess your design?

If you believe that your design does not have any independent value and you want to sell it, you should award it a small number of points, while the same design can score anything from 1-8 points if you want to keep it within the business.

1 point: The design creates an extremely small added value for the product
...
8 points: The design creates an extremely high added value for the product


In your opinion, which measures can be taken in your specific situation to improve this score?

See possible suggestions here


Below please state your thoughts, discussions, background, reservations etc. which have influenced the rating so that others can gain insight into the factors contributing to the value of the design.

Rapport

Warning

You have chosen to retain the score of 1 for one or more questions.

You should consider whether the specific factors are so critical that they deduct value from the design. This could, for example, be because you do not have the correct protection in the countries for which this is absolutely necessary.

Factors for which you have given a score of one:

Do you find one or more of these factors so critical that they devalue your design?

State the reason for your selection

Du har angivet 8