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IP Views Patents, Profits, and Putting: Technology's Role in Fuelling the
Golf Industry Tiger’s success has mirrored that of the entire golf industry, with golf now enjoying tremendous popularity not only in the United States but all over the world. Within the last 5 years, the golf industry has seen a significant growth rate of 5-15% annually. The golf club industry alone is already a $3.9 billion industry. Tiger, however, is not the only “T” driving the golf industry to record profits. Technology has also been an important factor in the game of golf, with constant innovation lifting sales of golf equipment and accessories to unprecedented heights. The golf industry, like the automobile, telecommunications, computer and videogame industries, is technology driven. Golf equipment makers spend millions of dollars annually on research and design to come up with new products that help both professional golfers and weekend warriors not only save strokes on the golf course, but perhaps more importantly, help them rack up on style points as well. Like other technology driven businesses, golf equipment companies are relentless in seeking patent protection, given the fact that the more patents a company holds, the more restricted competitors are in creating competing products and developing new technology. As a sport, golf is perhaps the most dependent on technology. A search for ''golf'' on the United States Patent and Trademark Office (USPTO) database would yield more than 11,000 hits. A search for ''tennis'', on the other hand, would get fewer than 1,000 hits. In just the five year span from 1997 to 2002, more than 8,000 patents were granted by the USPTO on golf-related equipment and gadgets. More than 1,400 of these are associated with golf clubs, including the Nike driver used by Tiger Woods. Nearly 1,000 more patents are related to golf balls, a $763 million dollar market in the United States. One of these patents includes a new composite ball from Titleist, whose website lists more than 100 golf-related patents held by the company. Nearly three years ago, two-time U.S. Open champion Retief Goosen put a new Taylor Made driver in play which incorporated an innovation called Movable Weight Technology (MWT™). Taylor Made’s “Golf Club Having Movable Weights”, covered by U.S. Patent No. 7,186,190, allows players to change the center of gravity in the clubhead. With the technology, golfers can manipulate the launch angle and direction of the golf ball. Retief’s driver, the Taylor Made r7, would become the top-selling driver in the United States during the 15-month period spanning from its introduction in June of 2004. Another popular golf club, Callaway’s Odyssey 2-Ball putter, is covered by U.S. Patent Nos. 6,506,125 and 6,471,600. The chief innovation of the 2-ball putter is its alignment system, which features two, white-colored, golf-ball-sized discs, that help the golfer visualize a straight hit on the ball itself. With various spinoff models, more than a million 2-ball putters have been sold. The dominant White Hot and DFX models, both versions of the 2-Ball, accounted for more than 25% of all putters sold in 2003, beating all competitors. Because of its immense popularity, some golf club makers resorted to illegally copying the 2-ball putter. In 2004, Callaway sued E. L. Golf, Inc., which was doing business under the name Chicago Golf, for selling “White Shot Twin Ball" putters. Callaway claimed that the sale of Chicago Golf’s putters infringed Callaway’s trademarks and patents for the Odyssey White Hot 2-Ball Putter, and Callaway was able to secure a permanent injunction prohibiting the sale of the knockoff putters. Interestingly, one golf club maker discovered that an old patent collection could be a rich goldmine for developing new products. Golf ball maker Top-Flite, a company which Callaway bought from Spalding in 2003, discovered several patents in its portfolio they hadn’t fully exploited. Realizing the potential, Top-Flite made use of “dimple-in-dimple” technology covered by U.S. Patent No. 7,134,974 for its new D2 ball. As the name implies, “dimple-in-dimple” technology features a smaller dimple embedded inside a larger one, with the result being an aerodynamic flight, distance, and enough softness for spin and control. With the release of the D2 ball, Top-Flite saw its market share increase from 5.4% to 6.8%, the longest sustained growth it has seen in years. With golf giants like Callaway, Taylor Made and Nike churning out shiny new toys almost every month that manage to find their way into golf bags everywhere, golfers can hopefully look forward to lengthening their drives, sinking their putts, and pretending they’re Tiger Woods. SOURCES: 1. Opportunities in the Global Golf Club Market 2004-2010, at http://www.researchandmarkets.com/ reportinfo.aspreport_id=227053 2. Alice Park, Top-Flite Gets Macho, at http://www.time.com/time/magazine/article/0,9171,1657803,00.html. 3. Robert Walker, Odyssey 2-Ball Putter, at http://query.nytimes.com/gst/fullpage.html?res=9C03E2D6173EF937A25750C0A9629C8B63. 4. TaylorMade's Movable Weight Technology Ranks High with Tour Pros and Amateurs Alike, at http://www.tmag.com/media/pressreleases/2006/040306_mwt.htm. 5. Court Order Bans Sale of Odyssey 2-Ball Putter Knockoffs, at http://findarticles.com/p/articles/mi_m0EIN/is_2004_June_25/ai_n6087602. 6. Erik J. Barzeski, Bridgestone Sues Titleist, at http://thesandtrap.com/equipment/balls/bridgestone_sues_titleist. 7. United States Patent and Trademark Office, at http://www.uspto.gov.
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