IPR Strategies for Startups - presented at BangaloreIT.biz


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This presentation outlines IPR strategies which IT startups should consider.

This was presented by the Founder of Inolyst at BangaloreIT.biz YESSS forum 2009

Published in: Technology

IPR Strategies for Startups - presented at BangaloreIT.biz

  1. 1. IPR Strategies for Startups Dilip Kumar- Founder & Director
  2. 2. Lets Discuss ! <ul><li>Types of IPR </li></ul><ul><li>Why IPR for Startups ? </li></ul><ul><li>IPR Strategies : Some Pointers </li></ul><ul><li>Success Stories </li></ul>
  3. 3. Have answers to these Question <ul><li>What is the concrete purpose of having the IPR ? </li></ul><ul><li>What are the limits of your invention ? </li></ul><ul><li>What are the opportunities in international market ? </li></ul><ul><li>What is the value of your invention ? </li></ul>
  4. 4. Types of IPR Semiconductor Chipset Design Trade Secret Plant Breeders Rights Geographic Indications Industrial Design Copyright Trademark Patents
  5. 5. Why IPR for Start-ups? Deter Competitors from copying your ideas Protection Ease of due diligence and an asset Investor Generation via licensing and sales Revenue
  6. 6. Protection <ul><li>Identify new and novel features </li></ul><ul><li>Never presume something is not patentable – sometimes </li></ul><ul><li>the least technological feature is the most valuable </li></ul><ul><li>What to protect- Technology, Process, Business model </li></ul><ul><li>Make sure you have the right type of IP protection </li></ul><ul><li>Sequential innovations – new product generations </li></ul><ul><li>displacing old </li></ul><ul><li>Old generations provide competitive discipline </li></ul><ul><li>Time to take it international </li></ul><ul><li>Benefits </li></ul><ul><li>You get exclusivity in the market </li></ul><ul><li>You enjoy monopoly </li></ul><ul><li>Expresses the innovation potential to customers </li></ul><ul><li>If you don’t care about it and protect it, it may come back and haunt you </li></ul>Deter Competitors from copying your ideas Protection
  7. 7. Investor <ul><li>A potential investor will examine: </li></ul><ul><li>The Company’s IP ( patents, filed patent applications, other registered or unregistered IP assets) </li></ul><ul><li>No. of IP assets not important but the extent of the </li></ul><ul><li>Protection </li></ul><ul><li>The value of the Company’s IP assets </li></ul><ul><li>The exist strategy via IP </li></ul><ul><li>Benefits </li></ul><ul><li>Increases chances of funding </li></ul><ul><li>Greater valuation </li></ul><ul><li>Raise money without much liquidation by licensing or monetization </li></ul>Ease of due diligence and an asset Investor
  8. 8. Revenue <ul><ul><li>Merely owning an IP does not generate any </li></ul></ul><ul><ul><li>monetary benefits </li></ul></ul><ul><ul><li>They can raise additional cash </li></ul></ul><ul><ul><li>Monetize your non core IP assets that no longer </li></ul></ul><ul><ul><li>supports the business </li></ul></ul><ul><ul><li>Revenues can be generated by </li></ul></ul><ul><ul><li>Licensing patents and patent portfolios </li></ul></ul><ul><ul><li>Licenses can be exclusive or non exclusive </li></ul></ul><ul><ul><li>Direct sales of patent fetches one time revenue </li></ul></ul>Generation via licensing and patent sales Revenue
  9. 9. IPR Strategies <ul><ul><li>Harvesting inventions, tapping their full potentials as to the IP strategic goals </li></ul></ul>Innovation management <ul><ul><li>Provisional applications to buy time. Assignment, Protecting the best markets (market segment, countries, …) </li></ul></ul>IPR Filing Strategy <ul><ul><li>Management of IP assets as an investment portfolio, Selling your Patent, Patent licensing </li></ul></ul>IP Monetization
  10. 10. Success Stories - Case Studies A telecommunication R&D firm with 800+ patents Israeli based NASDAQ listed company in VOIP domain wanted to raise money from the market. Holds 22 patents. IP on Low power semiconductor with focus on reducing power consumption on electronic devices(140+ patents) Transmeta Got Acquired by Novafora for $255.6 million A California based company engaged in creating products in the electro-optical cameras, image processors, and stacked chip assemblies Irvine Sensors IP licensing to Aprolase Development Co. for $9.5 million Telcorida Got funding from an Invention and private equity investor firm for a &quot;long term commitment”, the new investor will license 500 of their inventions worldwide VocalTech Communications 11 patents were sold for $12.5 Karo Millennium JP LLC, shares jumped 11 percent on NASDAQ after this transaction
  11. 11. Conclusion <ul><li>Different types of IP : Different types of rights </li></ul><ul><li>IPR : Protection and exclusivity to your ideas </li></ul><ul><li>IPR : Deter competition from copying your ideas </li></ul><ul><li>Strategic IP gives competitive edge </li></ul><ul><li>IP asset are a means to generate revenue </li></ul>
  12. 12. Thank you & Questions Email : [email_address] www.inolyst.com