In a world where the knowledge economy prevails, intellectual property has become the fundamental pillar of business success. In the most recent MAU Talk, led by intellectual property expert Mario Golab, we are offered a unique perspective on the evolution of wealth and the importance of protecting our innovations. On this occasion, Golab takes us on a journey from the dawn of humanity to the digital age, highlighting how intellectual property has become the most valuable asset in the global economy.
The Evolution of Wealth and the Power of Intellectual Property
Mario Golab is a distinguished academic; he obtained his Juris Doctorate in Intellectual Property from the University of New Hampshire School of Law and an MBA from Thunderbird – School of Global Management. With additional qualifications from the University of California Berkeley and the Technion Israel Institute of Technology, he is a versatile professional with over two decades of experience providing legal advice to inventors and entrepreneurs. Mario’s leadership ability extends to multinational corporations, and he has enriched the community through talks at institutions such as WIPO and the University of Guadalajara. An active contributor on AVVO.com, he has written numerous articles on intellectual property. Fluent in seven languages and having traveled to 108 countries, Mario’s global perspective and dedication are unmatched.
History of Wealth
Wealth, in its most primitive forms, was based on the ability to hunt, fish, and gather fruits, where the tribe was the means to capture those resources. However, with the advent of agriculture and livestock breeding, knowledge became a powerful tool to control and accumulate wealth. The invention of the printing press marked a turning point, democratizing knowledge and laying the foundations for what we know today as intellectual property.
The Knowledge Economy
Today, the knowledge economy dominates, with countries like the United States, Israel, and Switzerland, where intellectual property constitutes the majority of their GDP. This economy is based on the generation of creative ideas and their protection through intellectual property, which includes patents, trademarks, copyrights, and trade secrets.
Protection of Intellectual Property
The protection of intellectual property is not just a right, but a strategic necessity for companies seeking to maintain their competitiveness in the global market. Mario Golab emphasizes that defending these rights is to defend the very life of the company.
Trademarks
Trademarks are a form of intellectual property that identifies and differentiates products and services in the market. Golab illustrates their importance with the example of the silhouette of the Coca-Cola bottle, a globally recognizable brand.
Patents
Patents protect inventions, allowing inventors to benefit from their creativity. The patent application process is complex but essential to ensure that an innovation can be commercialized exclusively.
Copyrights
Copyrights protect artistic and literary works, granting control over their use and distribution. Golab points out that, although the lifespan of copyrights is limited, their impact on culture and the economy can be immense.
Trade Secrets
Trade secrets can be an effective and economical form of intellectual property protection. Golab shares strategies for keeping formulas, business practices, and customer lists secret, such as the case of KFC’s recipe.
Brand and Intellectual Property Strategy
A strong brand strategy is crucial for success in the market. Intellectual property is the tool that allows companies to protect their identity and their most valuable assets.
Practical Cases and Real Examples
The MAU Talks present case studies that show how intellectual property has been a determining factor in the success or failure of companies and products.
As we close the curtain on our in-depth exploration of intellectual property, inspired by the insightful MAU Talks and the wisdom of Mario Golab, we face an undeniable truth: in the information age, intellectual property is not just an asset, but the foundation upon which wealth and power are built and sustained in the modern world.
This talk has taken us through a historical journey, showing us how intellectual property has evolved from being an almost non-existent concept to becoming the most valuable currency in the global economy. We have seen how the great civilizations of the past paved the way for today, in the 21st century, intellectual property to be the driving force behind the innovations that propel our daily lives.
Through the lessons taught by Mario Golab, we have learned that the protection of intellectual property goes beyond mere legality; it is an essential business strategy that protects the essence of our innovations, the identity of our brands, and ultimately, the viability of our businesses. Trademarks, patents, copyrights, and trade secrets are tools that, when used wisely and with foresight, can ensure that ideas and creations are recognized and rewarded appropriately.
Furthermore, the talk has highlighted the importance of a well-defined brand strategy, which not only protects but also adds value and creates an emotional connection with consumers. In a saturated market, a strong and legally protected brand is a beacon that guides consumers to products and services they can trust.
The practical cases and real examples discussed have served as a powerful reminder that intellectual property can be the determining factor between success and failure. The stories of those who have triumphed, as well as those who have learned hard lessons, offer us a map to navigate the complex world of intellectual property.
In conclusion, this conference has equipped us with the knowledge and tools to understand and value intellectual property not just as a legal right, but as a strategic pillar for any venture in the knowledge economy. We are urged to act, to be proactive in protecting our innovations, and to seek the guidance of experts like Mario Golab to ensure that our intellectual assets are secure and productive.
Therefore, we invite you to reflect on intellectual property in your own context, to evaluate how you are protecting your creations, and to consider how you can strengthen your market positions through a more robust intellectual property strategy. For those looking to delve deeper into this vital topic, Mario Golab is available to share his experience and guidance. Do not let your ideas and genius be exposed; take the necessary steps to protect and prosper in the world of intellectual property.
For more information, personalized advice, or to schedule a consultation, do not hesitate to contact Mario Golab through [contact information]. His expertise and knowledge may be the key to unlocking the true potential of your intellectual assets and ensuring that your legacy and wealth are well protected for future generations.
Video Transcript Translation
Well, I introduce myself as Jairo, my name is Mario Golab. So, let’s start by asking ourselves: Where does wealth come from? Let’s go back 20,000, 30,000, 50,000, up to 100,000 years ago. Wealth came from hunting, fishing, and gathering fruits. And 99% of the resources we used for our wealth were natural resources. The tribe was the means by which we captured wealth.
But if we wanted to be richer, what could we do? Simply go with the tribe and steal from another. That is, he who had better animals, better fruits, and more facilities for living, and where it was not cold, we could go to the beach or whatever, was considered richer. To do that, which is to steal it from the other, we used the tribe. 15,000 years ago, someone thought of planting in some way. We don’t know how, but agriculture and livestock breeding were born to have this land. So, we needed that 5% of knowledge to learn how to cultivate, what to plant. To control that, we needed an army. The army was used for one thing and one thing only: to steal the other’s lands and thus become richer. Time passed and only 500 years ago, the first machine, the printing press, was invented. The first product produced was a book. But why were books produced? Because writing a book by hand by a scribe took a year and cost a fortune.
So, with his little machine, in two or three days he could make 100 books. Except that, instead of using the open books, he could steal the author’s book and have it printed. At that time, raw materials were obtained at about 40%. Knowledge was used to develop a finished product and then we already needed 60% of intellectual property, which is knowledge.
Although they associate that intellectual property with knowledge, we come to modern times, and with them, the knowledge economy, which is the economy produced by human beings through creative ideas. In this case, we only use 15% of natural resources. So much so that, of the 30 most industrialized countries in the world, between 70 and 90% of their economies are based on intellectual property. That is, if we look at all the agriculture, industry, mining, and oil that the United States has, that does not reach 30% of the economy; the rest is intellectual property. Not to mention countries like Israel, South Korea, or Switzerland, where Switzerland is almost absolutely intellectual property.
Now, how do we produce intellectual property? Or how do we steal intellectual property? Or how do we combat intellectual property? If I want to eliminate it, the only way to do it is not to send an army, destroy buildings, bottling plants, or steal the formula. None of that works. Only a judge has the power to say that the company is dissolved or that the brand is canceled. And that is done in a special court where specialized lawyers, like me, litigate those cases and “kill” companies. And you think it’s a joke, but the amount of litigation in the area of intellectual property amounts to trillions of dollars.
From the creative mind, ideas are born, and these ideas are protected in different ways. You can clearly see four fruits here, right? Let’s take four fruits, not four waters. Let’s start the war. You have seen brands, products with brands. On any label, there is an “R” with a circle, the registered trademark. The one who reads a book will realize, or even the one who sees a “C” with a circle, that is the copyright. The “P” stuck in a circle, that is a patent, it is not put there just to put it. And regarding the fourth fruit, you see nothing, that is a secret, industrial and commercial secrets. These are the four most important manifestations of intellectual property. Intellectual property, basically, is the creation of the human mind.
It cannot be discovered, fixed, selected, chosen, positioned. Nothing created by artificial intelligence has intellectual property rights, nothing. So, let’s identify intellectual property. Ok, so we talk about four particular areas of property. There are many brands. Brands are the commercial identity of something. The brand is that, an association with an identity that is used for commerce, only for commerce.
Patents are granted on inventions, on creative and useful things that improve the world. Copyrights are granted on artistic things like paintings, sculptures, music, and everything to do with art and that is not related to the practical; that is copyright. And finally, there are industrial and commercial secrets. What are industrial secrets? It’s how we do things, how one prepares, what order follows, what is the regime, who are my suppliers, who are my distributors, where do I get the product, and what quality I have.
“How do I know what to do? How do I perform my work? As I mentioned earlier, trademarks are the commercial identity of a product or service. A trademark is about capturing a part of the customer’s mind. Let’s do an exercise that I have here. It’s going to fail us. And how do you know? How do you recognize the silhouette of the bottle?
The silhouette of the bottle is a trademark that is unique to Coca-Cola. The trademark achieves all of that. And that’s why it’s so important. We have several registrations. Look at the circle. That applies only to trademarks that are registered in the Federal Register. The others are trademarks. Be careful. And that is the Service Mark, which is used only for trademarks that are not registered in the United States and that can be registered or not in the states.
For example, Florida has a separate trademark registry from the federal government. How long does a trademark last? Well, it depends. Initially, it takes about one or two years until it is registered and then it lasts five years. In those five years, you have to use the trademark, sell, go to market, offer it for sale. For example, with a promise, this bouquet of flowers or whatever, then it is renewed for five years and then every ten years.
How long does a trademark last? As long as you are marketing. There are trademarks that are 100 or 200 years old in Europe and there are places, there are hotels that are 400 years old. In the Middle East as well, that is, the trademark has rights only as long as it is used. The symbol with the R is because this is a positive right. What does a positive right mean? It is a right that you have to exercise.
You can’t just sit back and wait for something to happen. The trademark affects both products and services. For example, does anyone know the case of ValuJet? It was an airline that had a plane with an oxygen generator that, upon takeoff, crashed in the middle of the Everglades, killing everyone on board. What did they do after the plane crashed? They canceled the trademark.
They opened a new trademark because the negative impact of a plane destroyed by negligence was so great that they did not want passengers to associate it with them. They changed the trademark and continued flying. So, I will tell you about degradation. That is, they can increase the value or decrease it; if the reputation goes down, so does the value of the trademark. Patents are the jewel of intellectual property. To work on patents in the United States, you have to be a scientist, have a juris doctorate, and pass the intellectual property exams of the Patent Office, number 46,490, from which it started. Very few people work on patents, they warn that that is not patentable. It’s very simple, so simple that it’s unbelievable. Three things are sought: it has to be something practical, that is, that it serves for something. For example, the camera, a device would need a can opener to open and to open the Coca-Cola bottle. Anything practical deserves a patent, as long as it is new. “New” means that on the entire planet Earth, no one has come up with anything similar, nothing if it is published, nothing if it has been talked about, nothing, nothing exists. And that requires a worldwide search to make sure it doesn’t exist anywhere in the world. That’s why it takes so long to get a patent.
What kind of patents are there? Utility patents are the best known, they are the ones that protect products such as, for example, a vehicle, the wheel. You have heard of them. The utility patent protects products, cars, and processes of how to make products. It also protects a process of how to do something, a chemical process, how to cause a reaction, how to produce something, for example, how margarine is made. But do you know how margarine is made? You take a tank of oil, introduce a high-pressure hydrogen tube, release the hydrogen, and on the other side comes out the margarine, it’s a hydrogenation process.
For example, pharmaceuticals are chemical compositions that also have patents, as well as software and business methods. The latter is a bit disputed, but design patents, in some South American countries known as utility models or design models, are considered only for the ornamental part of something practical. For example, we genetically modify plants to be resistant to glyphosate and have higher production.
So, sometimes they are called “frankenfood,” genetically modified foods. These are also patented, and happily or not, they have patents. That is a negative right, which means that one can sit down and forbid everyone to do anything with that. They cannot touch, they cannot use, they cannot open. I don’t even have to sell, I don’t have to do anything.
I sit here and I don’t want the world to do anything with my invention. That is a negative right, it is the right to exclude the world from doing anything with a patent. Why is that used? Because sometimes, from a commercial point of view, I have a product that is working well, I am selling well and I don’t want to start over, but I want to block my competitor from doing it.
Patents can infringe the rights of third parties, because, just like a book protected by copyright, they are an idea, a practical idea. That practical idea does not exist alone, there is not an isolated building called “patents”. There is a building above, another below, to the right, to the left, in front, on the side, where other ideas live.
And in that three-dimensional world, it is possible that a patent affects the rights of others’ patents. So, all this makes up a complex world. That is, the web is like a simultaneous war, very complex and it is a mental war. Ok, the owner of a patent can even infringe the rights of third parties with licenses and can forbid someone to open the product.
Copyright, as you have seen, is manifested in any book or work. It is born with a “C” and a circle around it. This is important: it is the tangible expression of an artistic work created by the human mind. It must be something that endures over time, that is not ephemeral. Therefore, if there is artificial intelligence involved, there are no copyright rights.
What copyright grants is the protection of ideas. The life of the author plus 70 years is a considerable term. I know that you will not even meet your great-great-grandchildren, and they will have rights over what you created. It’s an exaggeration, and I hope that changes with artificial intelligence, as with patents.
Copyright is a negative right. You don’t have to do anything. You can forbid someone to import or sell your work, but once the right is exhausted, when you sell the book or the music, for example, there the rights end. Well, this affects all artistic creations, and it is also influenced by artificial intelligence, which plagiarizes what it needs from the data to replicate it, even if it reorders it.
Plagiarism infringes the law and, as I explained, copyright is exhausted once the work is sold. If I have a book and I sell it, I no longer have any rights over that copy, but I do have derivative rights. There are not many disputes because, generally, the owners of intellectual property have interests opposite to those of the author, so many disputes arise between rights, between authors and owners. Perhaps you have heard of NFTs, which are digital trademarks to verify that a digital creation is original.
It’s quite a show, that is, a technology based on blockchain. A few months ago it was everywhere, today it is not talked about so much, but basically, that’s it. And here in the United States, there are no moral rights, but in Europe and South America, there are. What are moral rights? They are those that protect, for example, if they have a black and white movie and someone wants to color it, or if they want to change the race of the artist and put another one.
Then, the author can, despite not being the owner, prohibit certain modifications. Trade secrets are the simplest thing that exists, but also the most difficult and the most economical to protect, since it requires the character to keep it secret. People often do nothing with this. For example, what is a trade secret? It can be a process, a formula, anything.
It includes the list of suppliers and distributors, everything we keep in our company to be more competitive and gain a greater advantage. The important thing is that it cannot be disclosed or published, because then everyone would know what we want to protect. Once disclosed, the secret is over. To avoid this, we make everyone sign confidentiality agreements.
This includes colleagues, those who enter and leave the office, those who pass by, and the people who clean. Not just contractors, but everyone who has physical access to my secret. The right over a trade secret is exhausted when we publish it. In contrast, a patent has a useful life of up to 20 years.
A secret can last 100 years or more if kept secret, as part of an exit strategy. Well, then in the strategy the first thing we have to do is make sure to create a trademark that is distinctive, not descriptive, attractive, and memorable, because in the end, if consumers associate something with a product or service, you will be richer. It is essential to take care of the trademark as if it were a baby.
A baby that, as it grows, may stumble, and as it grows, becomes more valuable, because the day we sell, we are not going to sell the desks, or the computers, or the building. What we sell is the trademark, the reputation, which is what perpetuates the company. It is crucial to protect and enforce the rights of trade and industrial secrets.
Defending them as if it were life itself is crucial because the company depends on it. It is a mistake not to patent not only in the market where we want to have the rights, which is where we sell, but also where we produce. For example, I sell in the United States and I request my patent from a Chinese manufacturer to produce it, which is fantastic, and the Chinese manufactures it. But, since there is no right that prohibits him from doing so, he can also sell it to my competitor or to any other country or person. To no one in the United States, but yes in the more than two hundred countries of the world where he can sell, and that is the way to “legally steal”. You take the patent of another that is not registered in that country and practice it, because there is no violation, there is no crime. If these rights are not defended, they are lost, because it is the war that I explained to you. A full team is needed and it is expensive, but that is the way to get rich and all the companies that play in these leagues do it.
Thank you for your attention and to those who are still online. I hope that if you have any questions, you will contact me. This is my email, which I will provide to you at the end of this talk.”
Check out the event page: Intellectual Property Considerations for Businesses Operating in Florida