Presentation on IP Agreements for Start Ups by Dr Kalyan C Kankanala, Brain League IP Services now BananaIP 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. Copyright, Brain League IP Services, 2009 Now BananaIP.
Non-commercial use is permitted.
Important Agreements
and Negotiation Strategies
For Start Ups
Dr. Kalyan C. Kankanala
kalyan@bananaip.com
91-80-26860414
www.bananaip.com
Blog: www.sinapseblog.com

2. • Non-Disclosure Agreement

3. Clauses
• Confidential Information
• Permitted Purpose
• Scope of Disclosure
• Purpose
• Parties
• Legal Instruments
• Term
• Survival
• Remedies
• Other clauses

4. • Employment Agreement

5. Clauses
• Intellectual Property
• Ownership
• General
• Specific
• Transfer
• Documentation and Support
• Third Party IP
• Confidentiality
• Non-competition
• Non-solicitation
• Moon-lighting

6. • Patent Agreements

7. Transfer of Patents
• Assignment
• License

8. Assignment
• Transfer of Ownership
• Partial or Complete
• Writing and Signature
• Register

9. License
• Authorization or Permission
• Exclusive Rights
• Territory
• Writing
• Signature
• Register

10. Types of Licenses
• Exclusive
• Non-exclusive
• Sole

11. Important clauses
• Recitals
• Definitions
• Grant
• Royalties
• Term and Termination

12. Recitals
• Parties
– Licensor/Licensee
• Addresses
• Dates
• Background of the transaction

13. Definitions
• Interpretation clause
• Consistently used words
– Specific/certain/lucid
• Attribute specific meaning
• Apply to entire agreement

14. Examples
• Licensor shall mean ABC company having a place of
business in Bangalore and shall include its subsidiaries,
assignees and legal representatives.
• Licensee shall mean Kalyan, resident of xyz, Bangalore
and shall include his successors, assignees,
administrators, executors and other legal
representatives.
• Licensed Patent shall mean patents granted in USA
under patent numbers xxx, yyy and patent applications
pending before Indian Patent Office having filing
numbers xxx, and YYY.

15. Grant Clause
• Most important
• Defines scope of agreement
• States
– Parties
– Type
– Subject
– Rights
– Territory
– Term

16. Example
• Licensor grants to Licensee a nonexclusive license
to use the Licensed Software within the territory of
India from 1st January, 2005 to 1st January, 2006.
• This clause specifies
– Who grants to whom -Licensor to Licensee.
– Type of license - Nonexclusive License
– Rights – Use Licensed Software
– Territory - India
– Dates - January, 2005 to 1st January, 2006

17. Term and Termination
• Term
• Events
– Material Breach
- Nonpayment of royalty, etc.
– Bankruptcy
– Insolvency
– Act of god
• Rights after termination
• Confidentiality

18. Example
• Unless earlier terminated as hereinafter provided,
this Agreement shall extend to each country in the
Territory for a term of ten (10) years from the
Effective Date. The term of the agreement is
renewable at the option of the parties and such
term and conditions shall be finalized after
negotiations based on terms agreeable to both the
parties.

19. Royalty Clause
• Type of Royalty
– Lump sum royalty
– Fixed Royalty
– Running royalty
• Combination.
• Mode and Date of payment
• Accounting and Record keeping
• Non payment consequences.

20. Example
• XYZ agrees to pay ABC, a fixed royalty of
Twenty-Thousand-Dollars ($ 20,000) per every
Calendar Year after the first year. For the first
Calendar Year, XYZ shall pay ABC a fixed
royalty of Ten-Thousand Dollars ($ 10,000). Such
sum shall be paid on or before December 11th of
every Calendar Year.

21. Other Clauses
• Indemnity
• Warranty
• Liability

22. NRDC V. ABS
• Patent License
• Not registered
• Expiry of patent term
• License invalid

23. • Other Agreements

24. Clauses
• Intellectual Property
– Pre-existing IP
– Ownership
– Transfer and Documentation
– Inventorship
– Third Party IP
– Warranty and Indemnity
• Confidentiality
• Exclusivity and Non-Competition

25. Copyright, Brain League IP Services, 2009.
Non-commercial use is permitted.
Any
Questions, Comments or
Observations?