The Role of Intellectual Property (IP) in the Future of ...€¢ Competitive Forces Affecting ... •Industrial Relations: ... The Role of Intellectual Property (IP) in the Future

The Role of Intellectual Property

(IP) in the Future of the USPS

How Can We Use Innovation and IP to Define the

USPS in 2020 and Beyond?

© 2012, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information.

John Cronin Managing Director and Chairman


Agenda

• Introduction

• Intellectual Property, Innovation, and the USPS

• Models for the Federal Government’s Role in IP

• Status and Trends for Postal Industry Patents

• IP on the Postal Value Chain

• Potential USPS IP Models and Strategies

• Potential IP Disruptions to the Postal Value Chain

• Competitive Forces Affecting Postal IP

• Summary

2

© 2012, ipCapital Group, Inc. All Rights Reserved. Confidential and Proprietary Information. 3

Who We Are

• Intellectual property (IP) and innovation consulting firm since 1998

• Facilitators and managers with a systematic and data-driven approach

• Knowledge base established from over 600 clients, start-up to Fortune 50

• Aerospace/Defense

• Chemicals

• Computer Hardware

• Computer Software

• Consumer Products

• Electronics/Electrical

• Energy

• Key partners:

• Heavy Machinery

• Industrial Conglomerates

• Medical Devices

• Pharmaceuticals

• Semiconductors

• Telecommunications

• Transportation

Located in Williston, Vermont


Agenda

• Introduction








• Summary

4


What is Intellectual Property?

5

Patents are a

government right

granted to the inventor

to stop other parties

from making, using, or

selling your patented

invention!

This is done to

“promulgate the arts”!


Innovation, Invention, and Patents

6

Where is the Model for

the Postal Service?

Legacy Technologies Model

Innovation

Patents

Invention

Basic Model

High Technology Model


Agenda

• Introduction








• Summary

7


Areas Where the Federal Government

Passes Laws and Defines Policy

8

• Banking, Taxation and Currency

• Airports and Air Safety

• Defense

• Foreign Affairs

• Industrial Relations: Employers & employees

• Immigration

• Postal Services

• Social Services and Pensions

• Telecommunications and Broadcasting

• Trade


Government’s Influence on IP



• Defense

• Foreign Affairs


• Immigration

• Postal Services



• Trade

9

“Enforcement” Model

DataTreasury, a small Texas

company, holds key patents on

the electronic processing of

checks. Since Congress

passed the Check 21 bill in

2002, DataTreasury has

successfully sued or signed

licensing deals with numerous

banks whom allegedly have

infringed on DataTreasury’s

patents.

The proceeds from the

invention could total $30 billion!





• Defense

• Foreign Affairs


• Immigration

• Postal Services



• Trade

10

“Government Use”

Model

Although a patent owner

usually cannot enjoin a

contractor’s use of a patent to

perform a federal contract, or

sue the contractor directly for

patent infringement damages,

the contractor may incur full

liability to indemnify the

government for government-

compensated patent owners.





• Defense

• Foreign Affairs


• Immigration

• Postal Services



• Trade

11

“Open” Model

Technology is transforming

how people collect and share

information. Social workers

who refuse to acknowledge this

trend risk falling out of step

with the profession.

Many social services interact

through technology and remain

essentially “Open” from patent

infringement issues and move

to Open Source IP.





• Defense

• Foreign Affairs


• Immigration

• Postal Services



• Trade

12

“Hybrid” Model

The FCC (1) controls

frequency spectrum tightly but

(2) has been criticized for

ignoring international open

standards, and instead

choosing proprietary closed

standards (covered by

patents), allowing

communications companies to

implement the anticompetitive

practice of vendor lock-in,

thereby preventing a free

market.

Patent Wars are prevalent!

Government controls IP for

spectrum use but not

technology.





• Defense

• Foreign Affairs


• Immigration

• Postal Services



• Trade

13

Which Model will USPS have

by 2020?

How can the Value Chain be

ready?

How can the Value Chain IP be

leveraged to help define the

new USPS in 2020?


Summary of IP Models

14

Hybrid

Military & real public good (Safety)

Free Enterprise Open Source

Open Enforcement

Hybrid

Government

Use


Agenda

• Introduction








• Summary

15


Patent Filings Count - Industry

16

Patents positions amongst the major players

*US Apps, US Granted, EP Apps, EP Granted, WO Apps

758

1491

113

870

0

200

400

600

800

1000

1200

1400

1600

USPS UPS FED-EX DHL

Filings


Patent Filings by Year

17

0

20

40

60

80

100

120

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

# o

f Fi

lings

UPS

FEDEX

DHL

USPS

Patents have started to increase amongst the major players


Agenda

• Introduction








• Summary

18


Postal Value Chain

19

Delivery Postage Collection Outbound

Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution

•USPS

•Vendors

•IT Software

•Tracking

•Business

•Private

•Sales logistics

•USPS

•Vendors

•IT Software

•Letter/Parcel

•Production

•USPS

•Vendors

•IT Software

•Distribution

•Tracking

•USPS

•Vendors

•IT Software

•Tracking

•USPS

•Vendors

•IT Software

•Tracking

•USPS

•Business

Models


IP on the Postal Value Chain

20

573

60

769

138

769

111 59


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution

•USPS

•Vendors

•IT Software

•Tracking

•Business

•Private

•Sales logistics

•USPS

•Vendors

•IT Software

•Letter/Parcel

•Production

•USPS

•Vendors

•IT Software

•Distribution

•Tracking

•USPS

•Vendors

•IT Software

•Tracking

•USPS

•Vendors

•IT Software

•Tracking

•USPS

•Business

Models


Postal Value Chain IP - Examples

21

US Patent 8195579 - - Assignee: Stamps.com

“System and method for printing postage indicia with mail-by date”

A method comprising:

• Determining a mail-by-date for a postage indicium, wherein said mail-by date is a date by which said postage indicium must

be introduced into a mail stream to be valid;

• Printing by a printer, on a printing date, said postage indicium comprising said mail-by date, wherein said printing date is a

day which is before in time than said mail-by date, and wherein said printing date is a different date than said mail-by date;

and

• Introducing said postage indicium into said mail stream on any date before in time than said mail-by date and after in time

than said printing date.


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



22

US Patent 6789727 – Assignee: Lockheed Martin

"Mail processing apparatus and collection box with a mail article sealer”

A mail processing apparatus, comprising:

• Container adapted for receiving deposited mail articles and being capable of retaining a plurality of the deposited mail

articles therein;

• a depository port, operably connected to said container, adapted for passing the deposited mail articles into said container;

and

• a sealing apparatus operatively associated with said depository port and adapted to enclose the deposited mail articles in a

sealing layer.


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



23

US Patent 7943879 - - Assignee: Siemens

“Method for sorting unaddressed mail items”

A method for sorting unaddressed mail items stored in a number of batches, the method comprising:

• Providing a number of the batches, each of the batches being defined by respective identical unaddressed mail items;

• Registering each batch by recording at least one pictorial reference feature of at least one of the mail items belonging to the

respective batch,

• Linking the pictorial reference feature to a sorting plan,

• Detecting the pictorial reference feature on the unaddressed mail items during a subsequent sorting of all the unaddressed

mail items of all the batches; and

• Distributing the unaddressed mail items in accordance with the sorting plan linked to the detected pictorial reference

features.


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



24

US Patent 8047432 – Assignee: Intelligent Technologies International

“Package tracking techniques” A method for tracking packages in a cargo container, the packages including optically readable indicia, comprising:

• movably mounting at least one optical imager to an interior surface of the container capable of reading the optically

readable indicia on the packages;

• operatively reading the indicia from the packages using the at least one optical imager that obtains images of the indicia;

• converting the read indicia into an identification of the packages using a processor on the container;

• transmitting the package identifications from the container to a location off of the container using a transmission system;

• attempting to read the indicia on each package via the at least one optical imager when the package is first placed into the

container; and

• moving the at least one optical imager to vary its field of view when the indicia on a package is unable to be read via the at

least one optical imager when the package is first placed into the container.


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



25

EP Patent 2039437– Assignee: Solystic

“Method of sorting postal dispatches with RFID envelope’

A postal sorting machine comprising:

• A special mailpiece of the "declared-value mail" or "registered mail" type bearing an RFID tag equipped with a memory in

which a unique identification code (IDc) is recorded, said special mailpiece being characterized in that, with said mailpiece

being in the form of an envelope having a flap disposed to fold down over a flap-receiving zone of the envelope, said

mailpiece bears said unique code that is printed in the form of alphanumeric characters in the fold-receiving zone so that,

once the envelope is closed, the code is no longer visible..


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



26

US Patent 6665422 – Assignee: Siemens

“Method and device for recognizing distribution data on postal packets” A method of recognizing distribution information on mail items, in which an image of a surface of each mail item containing the distribution

information is obtained and evaluated by means of automatic OCR recognition methods and video coding, the method comprising:

• performing a first automatic search of a region of interest (ROI), the ROI being a region of the mail item containing the distribution

information, the search including determining an orientation of the distribution information and performing a first automatic OCR recognition;

• displaying an entire image of the surface containing the distribution information on a video-coder monitor if the first automatic OCR

recognition yields an ambiguous result;

• dividing the image on the video-coder monitor into image segments with a grid;

• manually selecting the image segment from the displayed image that contains a portion of the ROI via a single keystroke;

• performing a second automatic search of a new region containing the distribution information, where the new region is designated by the

manually selected image segment and includes marginal regions of segments adjacent to the manually selected image segment such that

the new region encompasses the distribution information; and

• performing a second automatic OCR evaluation of the new region containing the distribution information.


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution



27

US Patent 7693942 – Assignee: Nale, David S.

“Method and system for postal service mail delivery via electronic mail”

A method for processing mail, comprising:

• receiving a mail item, wherein the mail item is a postal item having recipient information and one or more pages enclosed in

the mail item;

• scanning the mail item including the recipient information and the enclosed one or more pages into an image file, the image

file including image data of the recipient information and image data of the enclosed one or more pages;

• identifying a recipient from the recipient information in the image file


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution


Distribution of Postal Value Chain

Patents by Year

28

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Delivery

Distribution

Sorting

Transport

Collection

Postage


Agenda

• Introduction








• Summary

29


IP Models

30

Hybrid


Free Enterprise Open Source

Open Enforcement

Hybrid

Government

Use


Open Source

Platform Model

• USPS opens up all of their IP to the private sector to spur innovation

• Private Sector develops contributions to the platform using IP

• Private Sector battles it out

31

Pro

du

ces

Private Sector Value Chain


Lawsuits

Postal Platform

Hybrid


Free Enterprise

Open Source

Enforcement Open

Hybrid

Government

Use

Products, Apps, Services


Open up IP

The Public


Free Enterprise

Platform Model

• USPS leverages their IP (licenses) to the private sector to spur innovation

• Private Sector develops contributions to the platform using licenses– makes $$

• Private Sector battles it out

32

Pro

du

ces



Lawsuits

Postal Platform

Private Sector gets value from IP

$$$

Hybrid


Free Enterprise

Open Source

Enforcement Open

Hybrid

Government

Use



License IP

The Public


Military

Platform Model

• USPS leverages their IP (controls licenses) to the private sector to spur innovation

• Private Sector develops contributions to the platform using licenses – makes less $$

• Private Sector battles it out, but Government may interfere

33

Pro

du

ces



Lawsuits

Postal Platform


$

Hybrid


Free Enterprise

Open Source

Enforcement Open

Hybrid

Government

Use



License IP

The Public


Hybrid

Platform Model

• USPS controls their IP and leverages it (licenses) to the private sector in some cases to

spur innovation • e.g. Government controls privacy, geo-locations, but not technology

• Private Sector battles it out, but Government may interfere

34

Pro

du

ces



Lawsuits

Postal Platform


$

Hybrid


Free Enterprise

Open Source

Enforcement Open

Hybrid

Government

Use



License IP

The Public


Agenda

• Introduction








• Summary

35


Potential IP Disruptions to the

Postal Value Chain

36


Sorting

Transport

Long Haul

Inbound

Sorting

Transport

Distribution

Self-Sorting

Collection Box

Digitalization Streamlining

Email to USPS,

They print and

deliver “Reverse

Hybrid Mail”

Change in Transport

Methods

Smart mini

containers Robotic vehicles

Leapfrogging

Letter is scanned

upon collection &

reprinted near

delivery location

Change in Transport

Methods

Leverage

Non USPS Vehicles

Real Time

Tracking

Digitalization Biz Model

Changes

Postage by the Mile

Subscription

Postage

Web-Generated

Postage

Automation Streamlining

Smart

Envelopes

Postage image

linked to recipient

Sorting while in

Transit

Automation

Private

Pick-up models

Recipient

email

Digitalization Automation

3D

Printing

Scan & Email

“Hybrid Mail”

Robotics


Agenda

• Introduction








• Summary

37


Competitive Forces Affecting

Postal Intellectual Property

38

SUPPLIERS

• Do your suppliers have IP?

• Are they moving into your

space?

LITIGATION

• How well does your IP protect

your core business?

• Have you protected where your

competitors are headed and

amassed IP trading cards?

SUBSTITUTES

• How broad is your IP?

• Have you protected invent-

arounds?

CUSTOMERS

• Do your postal customers have

IP?

• Are they moving up the value

chain?

LICENSING

• Are your competitors licensing

IP to enable adoption?

COMPLIMENTS

• Have you protected invent-on-

top-ofs?

• Have you protected add-ons &

interfaces?

POTENTIAL ENTRANTS

• How well does your IP protect

your core business?

• Is your 1st mover advantage

protected?

TECHNOLOGY ADVANCEMENTS

• Will your IP become obsolete

with next generation

technologies?

STANDARDS

• Have competitors protected

industry standards?

• Is your IP position supporting

or inhibiting your ability to

become the de-facto standard?

BUSINESS MODEL

• Is your business model

protected?

• If the postal industry adopts

alternative business models, is

your IP still valuable?


Agenda

• Introduction








• Summary

39


Summary

• Intellectual property and innovation will become more relevant to the USPS in the

future

• The postal value chain needs to be ready for the Federal Government’s future IP

model, and the USPS must know how to leverage their IP in that model

• IP is trending up in the postal industry, and is distributed across the postal value

chain

• Potential USPS IP models provide strategic

choices for how the USPS can best leverage

their IP

• There is a large potential for IP disruptions

across the postal value chain

• Will you be prepared?

40

Thank You


John Cronin Managing Director and Chairman

[email protected]

+1 (802) 859-7800 x210

mailto:[email protected]

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The Role of Intellectual Property (IP) in the Future of ...€¢ Competitive Forces Affecting ... •Industrial Relations: ... The Role of Intellectual Property (IP) in the Future