Presentation Margaret Briffa

548 views

Published on

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
548
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Presentation Margaret Briffa

    1. 1. Building Your Business Using Your IP Margaret Briffa 2nd July 2008
    2. 2. Scaling up <ul><li>Manufacturing </li></ul><ul><li>Licensing </li></ul><ul><li>Joint ventures </li></ul><ul><li>International IP rights and enforcement issues </li></ul>
    3. 3. Briffa Experience - trends <ul><li>An increase in the Dyson effect (Making Money while You Sleep) </li></ul><ul><li>The problems of securing good money making licences </li></ul><ul><li>The ease of access to foreign manufacturing countries and the need to compete on price </li></ul><ul><li>Briffa’s Associated offices </li></ul>
    4. 4. Where to now? <ul><li>How do you want to expand your business? </li></ul><ul><li>What do you want to spend your day doing? </li></ul><ul><li>How much are you willing to invest? ( more investment required for manufacturing route) </li></ul><ul><li>What level of risk can you live with? </li></ul>
    5. 5. Preparation <ul><li>You know about intellectual property assets </li></ul><ul><li>You have taken into account the need to audit and possibly expand your registered intellectual property rights </li></ul><ul><li>You know about the essential terms in the various commercial agreements you are about to make </li></ul>
    6. 6. Licensing <ul><li>Common way of expanding and extracting value from your intellectual property </li></ul><ul><li>Can be a simple licence of a product you have designed already and are now hiving off for lciensing </li></ul><ul><li>Can be a mixed design and royalty licence </li></ul>
    7. 7. A mixed design and royalty licence <ul><li>Accepting discounted hourly and daily rates and restriction of working for competitors </li></ul><ul><li>In return for guaranteed man days and royalty payments </li></ul>
    8. 8. Is it still just you? <ul><li>Sole trader </li></ul><ul><li>Partnership </li></ul><ul><li>Company </li></ul><ul><li>New company for new venture </li></ul><ul><ul><li>Checking ownership of assets </li></ul></ul><ul><ul><ul><li>Where are they currently? </li></ul></ul></ul><ul><ul><ul><li>Where do they need to be? </li></ul></ul></ul>
    9. 9. Confidentiality <ul><li>NDA </li></ul><ul><li>Formal agreement </li></ul><ul><li>Letter Agreement </li></ul><ul><li>Avoiding barriers to good relations </li></ul>
    10. 10. Agreeing commercial terms <ul><li>Finding out about your Licence </li></ul><ul><li>Essential terms </li></ul><ul><ul><li>Heads of Agreement </li></ul></ul><ul><ul><li>Full contract </li></ul></ul><ul><ul><li>Negotiations </li></ul></ul><ul><ul><li>Concluding contract </li></ul></ul>
    11. 11. Licensing Considerations <ul><li>Commercial: </li></ul><ul><ul><ul><li>What are you licensing? </li></ul></ul></ul><ul><ul><ul><li>Exclusive, non exclusive, sole? </li></ul></ul></ul><ul><ul><ul><li>In which countries? </li></ul></ul></ul><ul><ul><ul><li>Royalties? </li></ul></ul></ul><ul><ul><ul><li>Minimums? </li></ul></ul></ul><ul><ul><ul><li>Quality and brand association? </li></ul></ul></ul>
    12. 12. Licensing Considerations <ul><li>Legal: </li></ul><ul><ul><ul><li>all terms which make the contract work, protect you against liability and ensure you get paid. </li></ul></ul></ul>
    13. 13. What are you licensing? <ul><li>Defining designs - attach or describe in detail </li></ul><ul><li>Checking rights. Registering? </li></ul><ul><li>Trade marks? </li></ul><ul><li>Copyright </li></ul><ul><li>Other elements - is there any consultancy or design element </li></ul>
    14. 14. On what basis? <ul><li>Exclusive - licensee, only the licensee and no one else </li></ul><ul><li>Non-exclusive - licensee and anyone else you choose to license </li></ul><ul><li>Sole - can plug the cash gap while Licensee gets sales to level </li></ul>
    15. 15. Geographical Scope <ul><li>New Market </li></ul><ul><li>Limit </li></ul><ul><li>Intellectual Property Rights in that Country </li></ul>
    16. 16. How much will you earn? <ul><li>How to approach royalty negotiation </li></ul><ul><li>You are a 50/50 partner sharing profit </li></ul><ul><li>Factors which change the weighting, investment in tooling (down), use brand name (up) </li></ul><ul><li>Scaling royalties </li></ul>
    17. 17. Minimums? <ul><li>Minimums must be clear at time of signing for exclusive licence. </li></ul><ul><li>two type of minimum, minimum payments and minimum sales. </li></ul>
    18. 18. Quality Control/Reputation <ul><li>What’s your involvement? </li></ul><ul><li>Must have some control </li></ul><ul><ul><li>What third parties do (or do not do) with or under your brand is crucial to maintaining its quality and integrity so: </li></ul></ul><ul><li>Goodwill - accrues to you </li></ul><ul><li>Rules on the use and application </li></ul><ul><ul><ul><li>style guide </li></ul></ul></ul><ul><ul><ul><li>approvals </li></ul></ul></ul><ul><ul><ul><li>inspection and audit </li></ul></ul></ul>
    19. 19. Retaining Prestige <ul><li>100,000 global licensees </li></ul><ul><li>Cannot maintain quality centrally </li></ul><ul><li>Difficult to police infringements </li></ul><ul><li>Diffusion/sub-brand helps control quality of core brand </li></ul>
    20. 20. Other commercial terms? <ul><li>Consultancy </li></ul><ul><li>Design Fees </li></ul><ul><li>What designs will be provided, over what time, approvals procedure, limiting time invested in activity </li></ul>
    21. 21. Legal Stuff <ul><li>Looking after your ip, registrations and policing </li></ul><ul><li>Your ip, so you retain control </li></ul><ul><li>A policing plan - react appropriately </li></ul><ul><li>Keep alert for infringements </li></ul><ul><li>Regular internet searches for infringing material </li></ul><ul><li>Take action </li></ul><ul><li>Insurance </li></ul>
    22. 22. International Intellectual Property <ul><li>Different intellectual property rights can achieve international protection in a variety of ways using National, European and International Systems: </li></ul><ul><li>Automatically protected internationally </li></ul><ul><li>Applying for global rights at start </li></ul><ul><li>Extending UK rights </li></ul><ul><li>Some rights are only protected in the UK </li></ul>
    23. 23. Patents <ul><li>Territorial Right </li></ul><ul><li>Can be very expensive </li></ul><ul><li>Make first filing in the UK </li></ul><ul><li>Gives you 12 month window to expand protection to other territories through the Patent Cooperation Treaty (can string out to 18 months) </li></ul><ul><li>In this time need to get funding/investment through sponsorship or through finding a partner with deep pockets. </li></ul>
    24. 24. Trade Marks <ul><li>Territorial right </li></ul><ul><li>Register in UK and Europe in one go </li></ul><ul><li>Register in other territories around the world through international Madrid Protocol system. </li></ul><ul><li>Can apply to territories directly </li></ul><ul><li>If have national right have 6 months priority period to extend </li></ul>
    25. 25. Design rights <ul><li>Unregistered Rights protected in UK and Europe automatically through Legislation. </li></ul><ul><li>Registered Designs can be protected in UK and Europe. </li></ul><ul><li>Hague System is an international system for protection of Registered Design Rights but has very few members and UK not a member. </li></ul><ul><li>Generally need to apply to territories outside Europe directly. </li></ul><ul><li>Have 6 month priority period to extend protection of design rights. </li></ul>
    26. 26. Confidential Information <ul><li>This is a national right which has been developed by the English Courts. </li></ul><ul><li>Does not apply outside UK? </li></ul><ul><li>But most territories will have some protection for confidential information. </li></ul><ul><li>Better to protect confidentiality through contract which can be enforced against a party of any state </li></ul>
    27. 27. Expect and budget <ul><li>Most companies expect this and set aside budget to deal with it </li></ul><ul><li>Why needs to be dealt with - retaining value in brand - public perception, safety (non fire retardant child pyjamas) </li></ul><ul><li>Accept ongoing and may never stop entirely but action stops escalation </li></ul>
    28. 28. Termination <ul><li>Breach of essential term </li></ul><ul><li>Failure to meet minimums </li></ul><ul><li>Failure to make payments </li></ul><ul><li>Failure to produce goods of adequate quality </li></ul><ul><li>30 day notice provisions to make good </li></ul>
    29. 29. Audit provisions <ul><li>Make royalty statements details </li></ul><ul><li>Right to audit access information electronically </li></ul><ul><li>Provisions financial information kept separately </li></ul>
    30. 30. Product liability <ul><li>Licensee to prove they have this in place </li></ul>
    31. 31. Sub-licensees <ul><li>Do you grant permission for? </li></ul><ul><li>Where will licensee manufacture? </li></ul><ul><li>Need to also protect in these countries e.g. China. </li></ul>
    32. 32. Manufacturing <ul><li>NDA </li></ul><ul><li>Combined with protype/sample agreement </li></ul><ul><li>Full manufacturing agreement </li></ul>
    33. 33. Prototype Agreement <ul><li>Who owns what varies around the globe </li></ul><ul><li>Agreement sure way of making sure you own rights in any prototype </li></ul><ul><li>paying for samples </li></ul><ul><li>conerns around fee samples or prototyping </li></ul>
    34. 34. Full Agreement <ul><li>Commercial and legal terms </li></ul><ul><li>Commercial </li></ul><ul><ul><li>what price per unit </li></ul></ul><ul><ul><li>scaled against tooling costs or not </li></ul></ul><ul><ul><li>order and delivery system </li></ul></ul><ul><ul><li>quality assurances against prototype </li></ul></ul><ul><ul><li>combined manufacturing agreement with licence to manufacturer for own territory </li></ul></ul>
    35. 35. Calling in help <ul><li>Lawyers will help you make an agreement that is worth something </li></ul><ul><li>Can help you register appropriate rights </li></ul><ul><li>Can deal with infringements </li></ul>
    36. 36. Is it easier said than done? <ul><li>Yes </li></ul><ul><li>More info www.briffa.com </li></ul>

    ×