"Intangible asset protection must keep pace with innovation"

Leaders League: What are the main challenges and opportunities as regards intellectual property protection in the modern world?
Intellectual property is extremely complex and dynamic. The challenges are numerous and can vary depending on the territory, industry/sector, and type of intellectual property to be protected, but some of the most common include:

•    New technology: With the technological revolution and the creation of technology such as artificial intelligence (AI) and the Internet of Things (IoT), new challenges have arisen for society. Besides the numerous ethical and moral challenges surrounding the topic, in the field of IP, we can highlight: (i) Authorship identification: with AI and IoT, it is difficult to accurately identify the authorship of an intellectual creation. For example, how can we determine who is the author of a machine learning algorithm? Who holds the copyrights to a computer program generated automatically by an AI? It is difficult for legislation to move at the same speed as technology, but companies and the public sector need to engage in dialogue to develop new ways to address these issues; (ii) Unintentional infringement of intellectual property: AI and IoT can enable the creation of new technologies and innovative products, but they can also inadvertently lead to violations of existing rights. Companies that use these technologies need to create governance mechanisms to ensure that such inventions comply with laws. 

•    Effective protection: Ensuring an effective protection strategy for innovations and creations is a major challenge. Most IP rights have limited validity periods, which can be a hindrance for companies that depend on these rights to generate revenue, especially for companies with global operations.

•    Infringement of rights: Often, the protection provided by IP laws is not sufficient to prevent the unauthorized copying or use of an innovation or creation. IP infringement is a constant challenge worldwide, and it can include the unauthorized reproduction or imitation of copyrighted products, patents, industrial designs, trademarks, and copyrighted content. In addition to counterfeiting and piracy harming the formal economy, recent studies have also linked these activities to organized crime and terrorism. This is why it is important that the private sector is always very close to and aligned with the authorities, encouraging and training public agents worldwide to combat such practices.

Although there are countless challenges related to the topic, there are also a range of opportunities for companies that invest in innovation and in the protection of their intangible assets, as well as for specialized professionals who provide legal advice. Among the main opportunities, I highlight the following:

•    Monetization and business development: IP can be a valuable source of revenue for companies and inventors. The definition of a robust strategy for the inventive portfolio can be a strong ally, allowing its holders to monetize through the effective technology exploitation or through licenses or assignment of rights, enabling greater legal security for the development of new businesses and creating competitive advantages.

•    Collaboration, partnerships and incentive to innovation: IP can also be used to facilitate closer ties between companies and educational and research institutions. According to the latest statistics released by the INPI (the Brazilian National Institute of Industrial Property) in 2019, public universities led the way in terms of patent registration, representing 76% of all patents filed in the country. This presents immense potential for promoting strategic public-private partnerships that foster the development and commercialization of new products and services. Researchers, inventors, and holders of IP rights over creations can benefit financially from their work and encourage future innovation.

•    Consulting: IP professionals such as lawyers and intellectual property agents can provide consulting services to companies and individuals, guiding them on how to protect and exploit their IP rights, as well as assisting in identifying possible infringers and taking legal measures to protect their clients and employers. 

•    Training: With the increasing importance of intellectual property there is also a need to promote IP training. Companies can provide training for their employees on how to protect and manage their IP rights, and what considerations should be taken into account in the creative process, promoting a culture of innovation in an effective way. When comparing the field of intellectual property with other fields of law, for example, we notice that there are not many courses focused on this sector in our country, so I see that there are opportunities to expand the number of educational programs in IP for universities and other educational institutions. 

What specific challenges are entailed in working for the protection of one of the best-known brands in Brazil? 
Alpargatas is a global power house of desired and hyperconnected brands, with more than 100 years of history and a portfolio focused on iconic brands, such as Havaianas. In addition to investing in protecting its IP rights for decades (the first rubber slipper patent was granted to Alpargatas in 1966), a company of this size always needs to plan in advance how it will maintain its IP rights or develop new technologies and products before its rights expire, maintaining its competitive advantage. 

Besides the global protection, it’s important that the brand continues evolving to keep relevant in the market, and it’s indispensable that intangible asset protection keeps pace with innovation. Even though conventions and international treaties have standardized many IP questions, laws and proceedings vary from one country to another, which can complicate rights protection at the international level and make the whole process more expensive and bureaucratic. 

In general, companies with this profile need to count on the support of consulting firms and qualified professionals to understand the IP laws in each country where it operates, enabling the swift adoption of measures to protect its rights worldwide. Working in a Brazilian company which is known globally and has a rich collection of brands and products in its portfolio is very challenging, but having a legal team qualified to act in fashion law, that understands deeply how the company operates, makes a huge difference. This class of professionals is more and more required by the market.