The Art of the Deal- Webinar


Published on Slides for the webinar, "The Art of the Deal," presented by SecureDocs and Peter Weinstein of One3IP Management. Covers first steps and strategies for negotiating licensing deals, research and collaboration agreements, and other types of partnerships.

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The Art of the Deal- Webinar

  1. 1. The  Art  Of  The  Deal  
  2. 2. About  SecureDocs   •  SecureDocs  is  a  virtual  data  room  for  sharing  and  storing  sensi8ve   documents  both  internally  and  with  outside  par8es.     Company  Basics:     •  Founded  by  the  team  that  created  and  launched  GoToMyPC  and   GoToMee>ng     •  Backed  by  leading  technology  companies  and  investors     •  Web-­‐based  business  soDware  for  financial  and  legal  professionals    
  3. 3. About  Peter  Weinstein,  Ph.D,  J.D.     Ø  Nearly  a  decade  as  a  scien>st  post  Ph.D.,  including  >me  at  NIH,   USAMRIID  and  as  a  Sr.  Scien>st  at  ImmuCell     Ø  Former  Patent  Examiner  at  the  USPTO     Ø  Over  a  decade  in  private  prac>ce  as  a  patent  and  general  civil   li>gator,  patent  prosecutor  and  licensing  aSorney     Ø  Six  years  at  Baxter  Healthcare  (Sr.  Counsel,  IP)     Ø  Founder  and  current  CEO  of  One3  IP  Management  
  4. 4. About  One3  IP  Management   Ø  One3  IP  Management  is  an  intellectual  property  management  company   that  acts  as  your  in-­‐house  IP  counsel  handling  all  of  your  company’s  IP,   licensing  and  other  legal  needs.     Ø  One3  IP  views  its  clients  as  partners  and  does  not  nickel  and  dime  them  for   every  task,  but  works  with  its  clients  in  a  cost  effec>ve  manner  that  allows   One3  IP  to  learn  and  stay  abreast  of  its  clients  current  and  future  business   needs  and  goals.     Ø  One3  IP  does  not  follow  the  status  quo  in  building  its  clients  value  through   the  obtainment  of  a  broad  patent  porZolio  and  the  protec>on  of  its   clients  trade  secrets,  but  has  developed  novel  methods  that  are  cost   effec>ve  and  result  in  an  IP  porZolio  that  provides  broad  protec>on  
  5. 5.   Form  of  the  Deal     Ø Types  of  Deals  that  will  be  discussed  today   Ø License  Agreement   Ø Sales  Agreement   Ø Collabora>on  Agreement   Ø Research  and  Development  Agreement    
  6. 6. Today’s  Goals   Ø Provide  the  steps  you  may  want  to  consider  when   preparing  to  nego>ate  and  draD  a  license   agreement   Ø Not  terms  as  these  are  deal  specific   Ø Provide  from  my  experience  some  of  the  do’s  and   don’t’s  of  license  nego>a>on  I  have  learned  over   the  years     Ø Provide  examples  of  issues  created  by  poor   licensing  prac>ces   Ø Provide  examples  of  success  stories    
  7. 7. Deal  Prepara>on   Ø Prepara>on  is  the  key  to  success   Ø Iden>fy  best  partners  to  accomplish  your   goal   Ø Iden>fy  individuals  to  contact   Ø How  to  find:   Ø Referral   Ø LinkedIn   Ø Internet  search    
  8. 8. Deal  Prepara>on   Ø Determine  what  you  are  willing  to  give  up   Ø Make  sure  it  meets  your  business  needs   Ø Make  sure  you  can  live  with  the  term   Ø What  are  you  looking  to  receive?   Ø If  you  are  providing  something,  what  do  you  want  in   return?   Ø Form  of  compensa>on   Ø Cash,  Royalty,  Shares,  Other   Ø What  is  a  reasonable  amount?   Ø What  will  the  market  bear?   Ø Comparables  
  9. 9. Deal  Prepara>on   Ø Timing  of  nego>a>on-­‐  When  do  you  need  a  deal   completed?     Ø Strength  of  partner   Ø Catch  them  when  they  are  weakest     Ø Complex  deals  can  take  6  months  to  a  year   from  start  to  finish   Ø Factor  in  a  real  >meline  to  complete    
  10. 10. A  Deal  is  Like  a  Marriage…   It  can  be  great  or  it  can  be…      
  11. 11. First  Contact   Ø How  do  you  start?   Ø Who  is  the  decision  maker?     Ø Who  makes  contact?   Ø You   Ø Unaffiliated  third  party    
  12. 12. First  Contact   Ø What  do  you  say?   Ø Only  as  much  as  need  to  disclose   Ø Too  many  words  can  cost  you     Ø How  to  present  yourself   Ø First  impressions   Ø Always  act  professionally     Ø Your  presenta>on  can  affect  how  you  are  treated  and   what  you  will  receive    
  13. 13. The  Game  Begins     Ø How  do  you  start?   Ø Term  sheet   Ø DraD  agreement     Ø Who  provides  the  first  offer  of  terms?   Ø First  shot   Ø Cost   Ø Experience  
  14. 14. Game  On   Ø Always  nego>ate  based  on  a  posi>on  of  strength   Ø Never  show  weakness   Ø But  don’t  be  obnoxious   Ø Don’t  be  afraid  to  ask  for  “too  much”   Ø You  can  always  give  up  territory   Ø If  possible,  let  the  other  side  provide  the  first  offer  on  key   terms    
  15. 15. Game  On   Ø Strategy  for  nego>a>on  and  draDing:   Ø Never  lose  your  cool   Ø Need  to  stay  in  control   Ø This  is  a  business  deal,  emo>on  should  not  enter  the   equa>on   Ø You  are  about  to  enter  a  “marriage”   Ø Respect   Ø Think  from  the  point  of  view  of  the  other  side   Ø Listen  to  what  they  ask  for   Ø Listen  to  what  they  say   Ø This  evalua>on  should  be  con>nual    
  16. 16. Game  On   Ø Strategy  for  nego>a>on  and  draDing:   Ø Pa>ence   Ø Don’t  rush  to  get  a  deal  completed   Ø Communica>on  between  the  par>es   Ø Telephone  v.  Skype  v.  Face-­‐to-­‐Face   Ø F2F  at  start  and  finish   Ø Transfer  of  informa>on   Ø CDA   Ø Documents     Ø Email  v.  Dropbox  v.  SecureDocs    
  17. 17. Game  On   Ø Strategy  for  nego>a>on  and  draDing:   Ø Don’t  blink   Ø The  biggest  issue  is  always  when  to  give  in  on  a  term   Ø You  can  always  concede  territory  later   Ø The  95  out  of  a  100  rule   Ø Never  let  on  what  really  maSers  to  you   Ø Lose  a  baSle  but  win  the  war   Ø At  the  same  >me  making  the  other  side  feel  like  they   won    
  18. 18. Example  #  1   Ø Wanted  to  outlicense  IP  rights  and  Product  Line   Ø Licensee   Ø Lacked  consensus   Ø Unreasonable  expecta>ons   Ø Distrust   Ø Licensor   Ø Uncommunica>ve   Ø Former  Employee  trying  to  blow  up  deal   Ø Reached  out  to  Licensor  and  agreed  to  work  together   Ø Convinced  Licensee  one  decision  maker  and  term  floor   Ø Deal  exceeded  floor  and  both  par>es  received  what  they   wanted    
  19. 19. Example  #  2   Ø Wanted  to  retain  IP  rights  if  collabora>on  failed   Ø Tough  partner  to  deal  with  who  always  asked  for  too   much   Ø Waited  un>l  partner  suffered  financial  issues   Ø Approached  partner  with  license  offer  for  IP   Ø Partner  agreed   Ø Partner  wanted  to  limit  scope  of  IP   Ø Provided  partner  guarantee  of  money  for  a  defined   period  of  >me   Ø Obtained  all  IP  rights    
  20. 20. Q&A   SecureDocs  Virtual  Data  Room   50  Cas>lian  Drive   Goleta,  CA  93117   Phone:  (866)  700-­‐7975   @SecureDocsVDR     One3IP  Management   1560-­‐1  Newbury  Road,  #327   Newbury  Park,  CA  91320   Phone:  (800)  478-­‐2152   @one3ip