Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Patent Licensing

4,693 views

Published on

NEWS FLASH: //Check our latest course offering on Patent-Business-Strategy over at Udemy here: http://www.udemy.com/patent-business-strategy/ with a 50 per cent launch discount //
An overview of IP/patent licensing field. Various strategies and practical aspects of patent licensing are discussed here. Please do NOT consider this legal advice.
[Some material has not been updated for recent changes, so use it at your own risk]
Disclaimer: This is not legal advice.

Published in: Business, Technology

Patent Licensing

  1. 1. Patent Licensing Hasit Seth Pune, India hasits a-t gmail.com
  2. 2. Outline <ul><li>Patent License </li></ul><ul><li>Kinds of Patent Licenses </li></ul><ul><li>License Contents </li></ul><ul><li>Licensing Strategies </li></ul><ul><li>Anti-trust and Licenses </li></ul><ul><li>Compulsory Licensees </li></ul><ul><li>License Negotiations </li></ul>
  3. 3. Patent License <ul><li>A permission to exercise patent rights – a permission to make, use, offer for sale, sell or import a patented invention </li></ul>
  4. 4. Patent Rights Mechanism <ul><li>Assignment – Total transfer of rights. Assignor retains no interest or right after the assignment is complete. </li></ul><ul><li>PTO keeps track of assignments, not necessary to register it, but recording has benefits </li></ul><ul><li>License – partial transfer of right </li></ul>
  5. 5. Kinds of Patent License <ul><li>Exclusive patent license </li></ul><ul><li>Non-exclusive patent license </li></ul><ul><li>Royalty-free license </li></ul><ul><li>RAND license (Reasonable and Non-discriminatory license) </li></ul>
  6. 6. Law Regulating Licenses <ul><li>Contract Act </li></ul><ul><li>Anti-Trust Laws (US); MRTP/Competition commission </li></ul>
  7. 7. License Contents <ul><li>Background and Recitals – parties, intentions </li></ul><ul><li>Definitions </li></ul><ul><li>License Grants – exclusive/non-exclusive, limits </li></ul><ul><li>Best efforts, Issue fees, Milestone Payments, and Royalties </li></ul><ul><li>Technical Assistance and Know-How </li></ul>
  8. 8. License Contents <ul><li>Warranties and Representations – unencumbered title and right to grant license </li></ul><ul><li>Term and Termination </li></ul><ul><li>Most Favored Nations Clause – non-exclusive licensees, not good for licensors </li></ul><ul><li>Third-Party Infringements </li></ul><ul><li>Indemnification </li></ul><ul><li>Arbitration and Bankruptcy Clauses </li></ul>
  9. 9. License Contents <ul><li>Transferability – on M&As, succession, etc. </li></ul><ul><li>Right to sub-license </li></ul><ul><li>Recording and Reporting </li></ul><ul><li>Rights and Obligations of parties </li></ul><ul><li>Scoping </li></ul>
  10. 10. Non-Exclusive License <ul><li>Grant Clause </li></ul><ul><ul><li>Subject to terms and conditions of this Agreement, LICENSOR hereby grants to LICENSEE a nonexclusive, nontransferable, (except under this agreement) license under LICENSOR’s Patent Rights to make, use and sell Licensed Products in the territory of India and its possessions. </li></ul></ul>
  11. 11. Non-Exclusive License <ul><li>Non-refundable License Fees </li></ul>
  12. 12. Licensing Strategy <ul><li>Why license to competition? </li></ul><ul><li>License terms too controlling? </li></ul><ul><li>Opportunity Cost, Can we re-enter the market? </li></ul><ul><li>In-licensing and out-licensing (Big Pharma, Semiconductors and Automotive) </li></ul><ul><li>Patent Pools </li></ul><ul><li>Non-exclusive licencees interse </li></ul>
  13. 13. Anti-Trust and Licensing <ul><li>Licensing can reduce anti-trust risk, particularly non-exclusive licensing </li></ul>
  14. 14. Royalties <ul><li>Damages are never less than reasonable royalties </li></ul><ul><li>What is a reasonable royalty? </li></ul><ul><li>Industry estimates of royalties – data very hard to trust and very less availability </li></ul>
  15. 15. Compulsory Licenses <ul><li>Not in US! </li></ul><ul><li>Indian Law </li></ul>
  16. 16. License Negotiations <ul><li>Negotiation strategies </li></ul><ul><li>Focus on interests, not personalities </li></ul><ul><li>Start with easy to agree issues first, then the tough ones </li></ul><ul><li>Negotiation styles </li></ul>

×