Introduction to Patents and IP Commercialization

  • 3,177 views
Uploaded on

NEWS FLASH: //Check our latest course offering on Patent-Business-Strategy over at Udemy here: http://www.udemy.com/patent-business-strategy/ with a 50 per cent launch discount // …

NEWS FLASH: //Check our latest course offering on Patent-Business-Strategy over at Udemy here: http://www.udemy.com/patent-business-strategy/ with a 50 per cent launch discount //

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.

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
3,177
On Slideshare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
124
Comments
2
Likes
11

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 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      • Must not be published or known anywhere in the world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 !