How to secure the IP created from a focus group?
Securing intellectual property is a tricky problem. The growing trend towards open innovation methods makes it even more confusing. In reality what you’re trying to achieve is securing the value you can gather from the intellectual property.
Noted security expert Bruce Schneier points out that the best security is in layers and intelligently handles failures.
Non-disclosure agreements are one way but those often make people unwilling to participate. You can attempt to give members of the focus group some benefit for keeping it quiet. Perhaps offer them some shares for the products? Or maybe just offer future cash payments contingent on it remaining secret? This is the carrot versus the stick of a non-disclosure agreement.
Bruce Schneier has said many times that secrecy can’t be the basis of security. Ideas get out. So you need layers that catch the failures of each other. That way no single failure will penetrate the barrier.
If one focus group can come up with the idea, another would also be able to come up with that idea. So instead of using focus groups to get ideas of “how” to solve a need use the focus group to accurately understand “what” will satisfy their need. A product or service is a “how”. The customers don’t really care about “how” they just want their needs satisfied.
The specific “how” ideas that come from a focus group help you better understand “what” they are trying to accomplish and “what” will satisfy their needs. Its the innovators job to find the best “how” ways to satisfy all their needs related to the task they are trying to perform.
Every “how” idea covers less than 1% of the entire intellectual territory. This presentation explains that math. http://www.slideshare.net/MarkProffitt/predictive-innovation-overview
Using that technique you can uncover ALL the “how” ways to satisfy the needs for the task. With that information it is possible to then develop a layered approach to securing your intellectual property. One part of that can include patents.
OutCompete developed an approach and software that allows development of airtight patent fences around any valuable IP. this approach is based on thorough consideration of principles of protection of IP (after the patent is granted), as well as on research of patent trolls’ successes and techniques they use. So even if the 1% idea from the focus group leaks out you have built a patent fence covering the other 99%
The first layer was secrecy. The second layer is the patent fence. The next layer is flexibility.
Innovation = Satisfying Customers’ Unmet Desires. To produce the highest consistent value from innovation you must be satisfying unmet desires. When copy cats move in the pricing war begins. Its time to move quickly to the next area. With the complete innovation map you can both quickly and efficiently step to the next high value area. Plus you can do it in such a way that it builds on your strength which makes it harder and harder for others to copy cat you.
“The Mind of the OutCompete Strategist” by Len Kaplan describes strategies that do that. “Fat Product, Lean Process” and “Catch Me If You Can” are two strategies to build that third layer of security.
The forth layer is business models that benefit from sharing. Open Source projects have found business models that actually benefit from “giving it away”. The key element to these types of models is finding something not directly part of the intellectual property and can’t be easily copied, that is your unique competitive advantage. There are many ways to do this and the Predictive Innovation® will uncover your unique competitive advantage.
When you are ready to secure the value of intellectual property, I can help you with each layer.
WCBN – Interactive Technology Interview – Part 1 – 2006 Dec 19
We discuss viral marketing, the online TV show I produce being spotlighted on Veoh.com, video advertising systems such as Revver.com, BitTorrent, Creative Commons, and business models that use file sharing and how artists and other creators of intellectual works can get paid for their works in a world of unlimited file sharing.
WCBN – Interactive Technology Interview – Part 1 – 2006 Dec 19
WCBN.org radio University of Michigan Ann Arbor
Interactive Technology Radio Show
BBC moves to file-sharing sites
Hundreds of episodes of BBC programmes will be made available (legally) on a file-sharing network for the first time, the corporation has announced.
The move follows a deal between the commercial arm of the organisation, BBC Worldwide, and technology BitTorrent firm Azureus through their Zudeo service.

This is really great news. People all over the world have enjoyed BBC programming but its sometimes hard to get it. In the US BBC television is mostly available through public television. And more recently through file sharing. Its great to see the BBC recognize the value of global distribution made possible using BitTorrent.
I’ve been involved with BitTorrent since 1999, my business partner The Shad0w created BitTornado, a BitTorrent client, to enhance the protocol. Many of BitTornado’s enhancements have been accepted as standards to the protocol.
The original reason we got involved in BitTorrent was to create alternative business models to allow artists to get paid for their work. We realized that file sharing was the natural state and trying to stop it was impossible. So how can artists get paid if making copies is free? We tried to help performers get concert gigs and built a web site that allowed you to audition performers online and then book them for performances. We found paying for bandwidth was too expensive at the time; this led Shad0w to work on the BitTorrent open source project and became one of the major contributors to the technology.
I continued working on business models, and discovered there are four basic types of business models for information. The key factors are:
| Paid Before Creation | Paid After Creation | |
| Paid By Consumer |
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| Paid By Another Person |
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Copyrights focus on paying after creation or publication. By focusing on business models the pay the artist before creation or publication sharing isn’t a problem, and in general is helpful.
Advertising benefits from file sharing. I spent a lot of time promoting integrated advertising also known as branded entertainment. The Apprentice was one of the biggest successes of branded entertainment. I was unable to get the idea to widely catch on. Oddly enough it wasn’t people rejecting the idea, it was because companies didn’t know how to purchase it. The advertising world is based around the idea of empty space. You buy empty space and place your ad in the empty space. Since branded entertainment is the content there isn’t an empty space to fill with a 30 second spot. The big companies didn’t know which department should handle it. And is the case with most innovations, if its disruptive they ignore it.
We have seen an interim solution with such companies as Revver.com. They tack an ad on the end of videos. So far this is missing the important content targeting to make the ad beneficial to the viewer. Viewers HATE commercials. The post roll approach used by Revver is better than others because the ad is at the end so there is no interruption but advertisers don’t want to pay for something that isn’t seen. There isn’t a strong win-win-win feedback loop.
Patronage and charity are very similar but patronage is more interesting. A patron gains benefit from having the work created. And now that copying and sharing is free groups of people can be patrons of an artist and everyone get a copy of the work. A method of doing this is The Street Performer Protocol. I believe this is the next big innovation, its already being used and I’ll discuss it more in future posts. I’m currently working on a service to make patronage easy and reliable. This will allow consumers to directly fund new movies, books, music, and software that can then be released with a Creative Commons license. No ads, total artistic freedom and consumers choose what is made.
After seeing Zudeo and the ability deliver HD content with an easy to use interface it is one of the outlets we will use for distribution.
Action Items
- Visit Zudeo and try the Azureus client to download high quality video.
- Visit Inagada.com, read about the project and sign up for the newsletter to stay informed of the progress.



