Copyright, BananaIP, 2010.
Non-commercial use is permitted.
Patent Licensing Basics
Dr. Kalyan C. Kankanala
BananaIP
kalya...
Transfer of Patents
• Assignment
• License
Licensing Opportunities?
• Patent Portfolio Analysis
• Grouping
• Validation and Strength Analysis
• Valuation
• Potential...
License
• Authorization or Permission
• Exclusive Rights
• Territory
• Writing
• Signature
• Register
Types of Licenses
• Exclusive
• Non-exclusive
• Sole
Important clauses
• Recitals
• Definitions
• Grant
• Royalties
• Term and Termination
Recitals
• Parties – Licensor/Licensee
• Addresses
• Dates
• Background of the transaction
Definitions
• Interpretation clause
• Consistently used words
– Specific/certain/lucid
• Attribute specific meaning
• Appl...
Examples
• Licensor shall mean ABC company having a place of
business in Bangalore and shall include its
subsidiaries, ass...
Grant Clause
• Most important
• Defines scope of agreement
• States
– Parties
– Type
– Subject
– Rights
– Territory
– Term
Example
• Licensor grants to Licensee a nonexclusive
license to use the Licensed Patent within the
territory of India from...
Other Grant Provisions
• Field of Use
• Sub-license
• Grant back
Term and Termination
• Term
• Events
– Material Breach - Nonpayment of royalty, etc.
– Bankruptcy
– Insolvency
– Act of go...
Royalty Clause
• Type of Royalty
– Lump sum royalty
– Fixed Royalty
– Running royalty
• Combination.
• Patent prosecution
...
Milestones
• Identification of a lead candidate for
development
• Filing of IND or equivalent
• Completion of Phase I clin...
Example – Pfizer-AVANT
• Exclusive worldwide licence
• to a therapeutic cancer vaccine candidate
• Lumpsum - 40 million do...
Other Clauses
• Indemnity
• Warranty
• Liability
NRDC V. ABS
• Patent License
• Not registered
• Expiry of patent term
• License invalid
Kinds
• License
• Cross License
• DuPont and Bayer - Herbicide and Multi-
insect control products
• Patent Pool
• Essentia...
Negotiation
• Background research
• Awareness of Patent Law
• Technology understanding
• Context and Culture
• Bottom line...
Examples
• CSIR Lab and Research Based Company
• Diabetes research - License Terms
• Indian Company and Foreign Pharma
Maj...
Wednesday, April 30, 2014
IP Resources
•
• www.sinapseblog.com
•
• www.patentpill.com
Indian Patent law and Practice
Patents play a very vital role in providing business and
competitive advantage to knowledge...
Any
Questions, Comments or
Observations?
For further information, please
visit –www.bananaip.com/sinapse-blog
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Patent Licensing Basics

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Patent Licensing Basics

  1. 1. Copyright, BananaIP, 2010. Non-commercial use is permitted. Patent Licensing Basics Dr. Kalyan C. Kankanala BananaIP kalyan@bananaip.com 91-80-26860424/34 www.bananaip.com Blog: www.bananaip.com/sinapse-blog
  2. 2. Transfer of Patents • Assignment • License
  3. 3. Licensing Opportunities? • Patent Portfolio Analysis • Grouping • Validation and Strength Analysis • Valuation • Potential Licensees • Negotiation • Execution
  4. 4. License • Authorization or Permission • Exclusive Rights • Territory • Writing • Signature • Register
  5. 5. Types of Licenses • Exclusive • Non-exclusive • Sole
  6. 6. Important clauses • Recitals • Definitions • Grant • Royalties • Term and Termination
  7. 7. Recitals • Parties – Licensor/Licensee • Addresses • Dates • Background of the transaction
  8. 8. Definitions • Interpretation clause • Consistently used words – Specific/certain/lucid • Attribute specific meaning • Apply to entire agreement
  9. 9. Examples • Licensor shall mean ABC company having a place of business in Bangalore and shall include its subsidiaries, assignees and legal representatives. • Licensee shall mean Kalyan, resident of xyz, Bangalore and shall include his successors, assignees, administrators, executors and other legal representatives. • Licensed Patent shall mean patents granted in USA under patent numbers xxx, yyy and patent applications pending before Indian Patent Office having filing numbers xxx, and YYY.
  10. 10. Grant Clause • Most important • Defines scope of agreement • States – Parties – Type – Subject – Rights – Territory – Term
  11. 11. Example • Licensor grants to Licensee a nonexclusive license to use the Licensed Patent within the territory of India from 1st January, 2005 to 1st January, 2006. • This clause specifies • Who grants to whom -Licensor to Licensee. • Type of license - Nonexclusive License • Rights – Use Licensed Patent • Territory - India • Dates - January, 2005 to 1st January, 2006
  12. 12. Other Grant Provisions • Field of Use • Sub-license • Grant back
  13. 13. Term and Termination • Term • Events – Material Breach - Nonpayment of royalty, etc. – Bankruptcy – Insolvency – Act of god • Rights after termination • Confidentiality
  14. 14. Royalty Clause • Type of Royalty – Lump sum royalty – Fixed Royalty – Running royalty • Combination. • Patent prosecution • Mode and Date of payment • Accounting and Record keeping • Non payment consequences.
  15. 15. Milestones • Identification of a lead candidate for development • Filing of IND or equivalent • Completion of Phase I clinical trials • Completion of Phase II clinical trials • Completion of Phase III clinical trials • Filing of NDA or equivalent • Approval of NDA or equivalent
  16. 16. Example – Pfizer-AVANT • Exclusive worldwide licence • to a therapeutic cancer vaccine candidate • Lumpsum - 40 million dollars • Investment - 10 million dollars in equity • Milestone payments - Upto 390 million dollars • Running royalty - double digits • Fund Research and Development
  17. 17. Other Clauses • Indemnity • Warranty • Liability
  18. 18. NRDC V. ABS • Patent License • Not registered • Expiry of patent term • License invalid
  19. 19. Kinds • License • Cross License • DuPont and Bayer - Herbicide and Multi- insect control products • Patent Pool • Essential Patent Pool for AIDS • Open Source Projects • Human genome project
  20. 20. Negotiation • Background research • Awareness of Patent Law • Technology understanding • Context and Culture • Bottom lines and Flexibilities
  21. 21. Examples • CSIR Lab and Research Based Company • Diabetes research - License Terms • Indian Company and Foreign Pharma Major • Stem Cell patents - License Terms
  22. 22. Wednesday, April 30, 2014 IP Resources • • www.sinapseblog.com • • www.patentpill.com
  23. 23. Indian Patent law and Practice Patents play a very vital role in providing business and competitive advantage to knowledge driven companies. In order to maximize business benefits from inventive activities, companies must be aware of the dynamics of patent law and activities of competitors. Swift response to changes in law and patent behavior of other companies is necessary to deal with cut throat competition. The rapid progress of patent activity in India requires every organization to be alert and watchful in order to survive and succeed in the market place. For more information on the book please visit: www.indianpatentlaw.com Wednesday, April 30, 2014
  24. 24. Any Questions, Comments or Observations? For further information, please visit –www.bananaip.com/sinapse-blog

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