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Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
Introduction to Patents and IP Commercialization
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Introduction to Patents and IP Commercialization

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Introduction to Patents and IP Commercialization. These are slides from a talk I gave at Venture Center NCL (National Chemical Laboratory) in Pune, India to a audience of scientists involved in nanotechnology.

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  • 1. Patents IP Commercialization Hasit Seth National Chemical Laboratory British Council Pune
  • 2. Introductions
    • Name: Hasit Seth
    • .edu = BSc (Computer Sci.), LL.B., LL.M (Mumbai Uni., Gold Medal), LL.M (Franklin Pierce, USA)
    • US Patent Office Exam
    • Bar – New York, Maharashtra & Goa
  • 3. Work
    • Current – Asia Patent Manager at US Fortune 200 Industrial Sector Corp.
    • Past – Harness Dickey (Detroit), F Chau (New York), IPVALUE (Bangalore/Silicon Valley/UK), Bombay High Court
    • Email: hasits at gmail dot com
    • Hobby site: www.indyvation.com
  • 4. Disclaimers
    • I am here in my personal capacity.
    • Views expressed are solely personal and may not be those of my present or past employers.
    • This is not legal advice and am not soliciting any legal work.
  • 5. Contributing Author
  • 6. PATENTS An Introduction
  • 7. Property
    • A bundle of rights
    • Two Kinds:
      • Real Property – e.g., Land, Buildings, etc.
      • Intellectual Property – Trademarks, Patents, Copyrights
    • IP – Another Term is Industrial Property
  • 8. Species of IP
    • Patents
    • Trademark
    • Copyright
    • Trade Secret
    • Designs
  • 9. Criteria for Patentability
    • Useful
    • Novelty
      • Must not be published or known anywhere in the world
    • Non-obvious
      • Obvious combination or variation of a known thing or process
  • 10. Subject-Matter
    • Machines / Systems
    • Processes
    • Articles of Manufacture
    • Chemicals/Substances
    • Biotechnology
  • 11. Term
    • 20 Years from date of filing
    • Nobody other than patent owner can
      • Make
      • Use
      • Sell
      • Offer for Sale, the invention…
  • 12. US PATENT 223,898 (1880)
    • About what invention could this patent be about?
    • Who is the inventor?
    • Thomas Edison - 1,093 patents
  • 13. US PATENT 1,647 (1840)
    • About what invention could this patent be about?
    • Who is the inventor?
    • Morse Coding
    • S.F.B. Morse
  • 14. US PATENT 13,661 (1855)
    • About what invention could this patent be about?
    • Who is the inventor?
    • Sewing Machine
    • I.M.Singer
  • 15. US PATENT 382,280 (1888)
    • About what invention could this patent be about?
    • Who is the inventor?
    • AC Motor
    • Nikola Tesla
  • 16. US PATENT 755,840 (1904)
    • Who is the inventor?
    • J.C.Bose!
  • 17. Patent - A Govt.-Inventor Barter INVENTOR GOVERNMENT Discloses Invention Details to Public 20 Years of Exclusivity Term of a Patent – 20 years from the date of filing
  • 18. World-Wide Patent Filings
  • 19. India – Patent Filings
  • 20. Criteria for Patentability
    • Useful
    • Novelty
      • Must not be published or known anywhere in the world
    • Non-obvious
      • Obvious combination or variation of a known thing or process
  • 21. National Scope
    • No world patent; need to get patent in each country
    • Patent Cooperation Treaty (PCT) a “postal system” – 18 months window
    • Paris Convention – 1 year window
  • 22. First Indian Patent – 150 years
    • Issued to Alfred De Penning in 1856
    • “ An efficient Punkah Pulling Machine”
  • 23. First US Patent to An Indian
    • Jagdish Chandra Bose!
    • “ Detector For Electrical Disturbances”
  • 24. US Patent Classification
    • Class 977
      • 700 – Nanostructures
      • 839 – Mathematical Algorithms
      • 840 – Manufacture, Treatment, Detection of Nanostructures
      • 902 – Specified Use of Nanostructures
      • 963 - Miscellaneous
  • 25. A Patent Example A Nanostructure (Class 977/700) Patent Issued by USPTO
  • 26. Patent Parts
    • Coversheet – Bibliographic Data
    • Drawings
    • Specification (Technical Description)
    • Claims
  • 27. US Patent – 6,464,806 Inventors Assignee
  • 28. Abstract
  • 29. Drawings
  • 30. Technical Description
  • 31. Claims
  • 32. Questions?
  • 33. IP Commericialization
  • 34. IP Royalty
    • IP Royalties are a big business
      • IBM > $1 billion
      • Thompson (Fr.) > $ 400 million
    • Per Year !!
  • 35. Terms
    • IP Commercialization
      • Achieved through “licensing” patents and/or technical know-how
    • Patent Assignment -> Complete transfer of ownership of patent rights
    • Patent License -> permission regarding patent rights
  • 36. Kinds of Patent Licenses
    • Exclusive patent license -> Only one licensee
    • Non-exclusive patent licenses -> multiple license
    • Royalty Free license -> license required but no royalties
    • Field-of-use license
  • 37. Kinds of Patent Licenses
    • Cross-licenses; portfolio cross licenses
  • 38. Where to Begin?
    • Do you own a portfolio of patents? Or just one/two patents?
    • Portfolio of patents:
      • Mine (filter) the portfolio for licensable patents
      • Mining criteria can be immediate target markets; size of market; royalty rates; industry practices
  • 39. Process Filter the portfolio for patents to license Find target markets where the patent can apply Prepare a financial forecasting model regarding licensing revenues Revenue maximizing strategy planning: Exclusive license? Non-exlusive license? Multi-year license? Royalty Sharing license? Royalty rate? Prepare a financial forecasting model regarding licensing revenues Initiate negotiations for licensing Sign licensing agreements
  • 40. Licensing Strategies
    • Exclusive or Non-exclusive license?
    • Multi-year license? Full patent term?
    • Royalty sharing license?
  • 41. Licensing Strategies
    • Royalty rate?
    • License upstream companies or end-users?
    • Growing markets (MEMS sensors) or shrinking markets (cordless home phones) or almost dead markets (pagers)?
  • 42. Why Should I Take A License?
    • Licensing has no “muscle” unless there is a credible possibility of successful patent litigation – an expensive process
    • Best done by corporations with “deep pockets”
  • 43. University Licensing
    • Designed to be not litigation oriented
    • Preference to non-exclusive licenses to maximize revenues
    • Finding a family of patents to license is tough
    • Know-how may be more valuable than patents to license
  • 44. Example – US 6,464,806
    • Hypothetical licensing scenario for US patent ‘806
    • Patent Filed: 5 Apr 2000
    • Patent Issued: 15 Oct 2002
      • License term possible: ~ 18 years
    • Nobody licenses expired patents (unless to “cleanse” past infringement)
  • 45. Markets?
    • Which Markets Can This Product Apply To?
    • What is the market size of those markets?
    • Is licensing common in these industries? Any established rates of royalties?
    • At what CAGR are these markets growing?
  • 46. Markets?
    • Digital Recording Media
      • Memories: $17B market size
      • Profit Margin: - 7.3%
        • Source: http://biz.yahoo.com/ic/831.html
    • How much of $17B market does this patent affect?
      • May be 10 %
  • 47. Applicability
    • If 10% market is covered by this patent, royalty can be expected from this segment
    • Royalty rate in semiconductor industry: 1%
    • Royalty Possible = 1% of $1.7b = $17 million
  • 48. Royalty Strategy
    • $17m is over 18 years of license term !!
    • How much to demand as upfront licensing fee?
    • Will asking less upfront fee help in developing market later on?
    • Discounts are possible in negotiations
  • 49. Licensing Companies
    • E.g. IPVALUE, Intellectual Ventures, BT Exact (UK), etc.
  • 50. Questions
  • 51. Thank you !

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