Wednesday, May 10, 2006


* Source

good reference:

Value Transference
Value transference, in a nutshell, is the premeditated use of multiple intellectual property regimes at specific points across the product lifecycle, in order to realize sustainable differentiation.
The critical design elements central to the cognitive touch point (shape, color, sound) are then secured with a registered trademark. To complete the strategy, carefully orchestrated advertising builds the association in the mind of the target consumer. (Recall that trademarks can last indefinitely if used properly, and hence sustain the competitive advantage.) When done correctly, value transference helps to mitigate the enormous cost reduction pressures inherent in markets with short product life cycles such as electronics.

Great design however, in and of itself, is not a sustainable form of differentiation. In today's global marketplace, it is axiomatic that successful innovations based on great designs will be emulated—and in some cases, boldly copied—without any regard for the intellectual property of the innovators.

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