Wharton - Chapter 11

This chapter explores the four main components a company should use, in compliment to each other, in order to appropriate the gains on their technology. First Patent protection is defined. Patents are good to protect the use of an invention (in a utility patent)for a period of twenty years from the date of application. What the author do not mention is that from the date the patent is applied for and the date the patent is granted can be up to three years (http://www.law.cornell.edu/uscode/35/154.html), and that would be more than enough time to be infringed upon in the IT world. Although the product by the competitor would have to be off the market by the time the patent issued, they would still have plenty of time to copy the invention, and invent around it to avoid infringing on any important claims in the original patent. But patents are good to have, especially for a pharmaceutical company where inventing around is significantly difficult. Second protection discussed is secrets. Secrets are good in that if no knowledge is published (a patent is published 18 months after application)and if the company clearly identifies and acts accordingly to keep something a secret,(http://library.findlaw.com/2000/May/1/130451.html) then this type of protection can be even better than a patent. Coke's formula for Coca-Cola is a humongous trade secret, and they obviously do not want to patent it, because then the formula would be published. Secrecy can get compromised, though, by espionage or spies, and the complexity can become very out-of-reach if the process or invention is very complex.
Complementary Assets is the third protection, and Starbucks was used as an example here. Anybody can sell coffee, so Starbucks knew there had to be something identifiably theirs if they were going to attract and retain customers. Starbucks sells an experience along with their coffee. It is the expertise of the baristas and the decor of the Starbucks stores that compliment their coffee, and those kinds of things are extremely difficult to duplicate. Lastly, and given the highest priority by both the Yale and the CMU study, was Lead Time. Being first to market does not guarantee success, and moving too quickly could compromise quality or service support, but combining first to market with the protection of a patent or first with a product nobody has ever thought about before can be a huge advantage to gaining customer loyalty, relationships, and visibility.