Commercialising IP by Research Institutions Contact Us for Intellectual Property Services BananaIP Counsels Regd Office No.40,3rd Main Road,JC Industrial Estate, Kanakapura Road,Bangalore – 560 062. Email: contact@bananaip.com Telephone: +91-80-26860414 /24/34

1. IP Commercialisation by
Research Institutions
Sandeep Hegde M.
BananaIP

2. Objectives of Commercialization
• Reaching Public Funded R&D to People
• Meeting Expectations of the Public
• Fund Raising for further research
• Working of Patents

3. Achievement Means
Licensing
Assignment/Sale
Public Private Partnerships
Start up Collaboration
Publications

4. Statistics from USA (Source: Current Science)
Year Investment
(in million
USD)
Inventions
Disclosed
Patents Filed Licenses Issued
2009 53560 20184 11961 4347
2008 51205 20020 12153 4125
2007 48603 19740 11749 4323
2006 45062 18792 11583 4176
2005 42052 17315 10236 4140

5. Top Research Institutes in India
• Center for Scientific and Industrial Research
(CSIR)
• Central Food Technology Research Institute
(CFTRI), Mysore
• Indian Institute of Technology (IIT), Bombay
• Indian Council for Medical Redearch, ICMR

6. Necessary Infrastructure
• IP Policy and Process
• Structured Approach to Protecting IP
• Dedicated Technology Transfer Offices (TTOs)
• Other Supporting Systems

7. What is a license?
Termination
Performance
& other
obligations
Terms of
exploitation
Grant of
exploitation
right

8. Licensing Transactions
• In Licensing-
– Taking exploitation rights from another
person/entity
– You are the ‘Licensee’
• Out Licensing-
– Giving exploitation rights to another person
– You are the ‘Licensor’

9. Licensing Opportunities
Patent Portfolio > Single Patent
Quality of
Patent
Strength of the
Invention
• Relevance
• Shelf life
• Competing technology
Strength of the
Patent
• Strength of the Claims
• Quality of Prosecution
Assessment
of Quality
Patent Validation
and strength
analysis
Valuation
Negotiation

10. Types of Licenses
Exclusive Sole Non-Exclusive
Only the Licensee
has the right to
exploit
Both the Licensee
and the Licensor
have the right to
exploit
Multiple Licensees may
exist at the same time

11. Nature of License
• Perpetual/Limited in term
• Revocable/Irrevocable
• Royalty/Royalty free
• Entire World/Limited in Territory

12. Grant clause
– Enlists the exploitation rights provided
– Enumerates the restrictions on the exploitation
– Usually provides specific exclusions on what rights are not given
– Nature and type of license can be deciphered from this clause
E.g.
X Grants Y a non-exclusive, irrevocable, royalty free license to use
the tools developed during the R&D conducted by X for Y during
the term of this agreement.

13. Performance Obligations
• Per Market Entry Milestones- to reach market entry
point
E.g.: Production of prototype;
Undertaking a trial
Meeting regulatory requirements
• Sales Targets- post market entry
E.g.: Minimum Guarantee
Quantum
• Quality Control

14. Term & Termination
• Term should be clearly mentioned
• Types of termination-
– Convenience
– Mutual
– Breach
– Conditional
– Operation of Law
• Post termination obligations
– Residual obligations
– Destruction/return of IP
– Certificate of destruction
– Maintain confidentiality

15. Royalty
Lump sum Continuing royalty Mixed Royalty
Upfront
Minimum Guarantee
Share of Gross/Net Revenue
Fixed periodic royalty

16. INDEMNITY
• One of the most negotiated clauses
• Compensation for damages or loss
• Inherent IP violation risk vis a vis IP risk due to
usage by Licensee
• Attorney Costs!

17. Governing Law & Jurisdiction
• Governing Law
– Choice of law
– May be mutually agreed
– Laws of which jurisdiction will govern the interpretation
• Jurisdiction
– Choice of forum
– Courts of a specific country
• Arbitration & other ADR clauses

18. THANK YOU.
Web: www.bananaip.com
Blog: http://www.bananaip.com/sinapse-blog
A Property of BananaIP