Presentation on IP Management and Start Ups by Prof. A. B. Suraj 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. Prof. A. B. Suraj
Intellecture Seminar Series
Bangalore – November 2009

2. Session Objectives
 To understand the “intangibility” of IPRs
 To appreciate the value of protected IP
in gaining competitive advantage
 To gain an overview of the strategic
elements towards better leverage of IP

3. IPRs – General Bases
 Economic (and technological) rationale
– aids overall development
 Social benefits – enriches the Public
Domain and Basic Research
 Legal monopoly – towards fair regulation
within the territory

4. Forms of IPRs
 Patents – Patents Act, 1970
 Copyrights – Copyright Act, 1957
 Trade Marks – Trade Marks Act, 1999
 Industrial Designs – Designs Act, 2000

5. Forms of IPRs …
 Layout Designs of ICs
Semiconductor Integrated Circuits Layout-
Design Act, 2000
 Geographical Indications
Geographical Indications of Goods
(Registration and Protection) Act, 1999

6. Forms of IPRs …
 Plant varieties – Protection of Plant
Varieties and Farmers’ Rights Act, 2001
 Traditional Knowledge – partly by
Biological Diversity Act, 2002
 Trade Secrets – Contractual – no
legislation in India

7. The “Intangibles”
 Goodwill and reputation
 Consumer perception/identification
 Scientific and literary acclaim
 Advertising reach
 Traditional usage and “prominence” enjoyed
 Media fame
 One form of IPR leads to the other!One form of IPR leads to the other!

8. Pressures of
Enforcement
 IPRs = fiercely competitive usage;
justifies criminal remedies too
 IPRs and Global recognition
IPRs are territorial in nature
No single authority or uniform standards
National systems and interests continue to
preside

9. Principles of
Traditional Management
 Organizing towards:
Perfect replicability & standardization
Ever-increasing scale
Incremental process efficiency
 Efficiency + Productivity = Growth
 Role of IPRs – game-changer?
RoI = Return on Innovations
Maximizes interests; with minimal efforts

10. Intellectual assets
Key Principles:
 Visibility and full exploitation
 Internal and external – aggressive
pursuit of IP protection
 Role of Intellectual assets in business
alliances and joint ventures

11. Intellectual assets …
Key Issues:
 Identifying the key geographical areas –
for marketing and registration of IPRs
 Study the level of innovative behaviour
among the competitors; and suppliers
 Role of building brand equity

12. Offshore Collaboration
 Typically of three types:
Captive entity – wholly owned subsidiary – IP is
fully owned; but has other legal implications
Joint venture – a new combined company – IP is
based on the Shareholding Agreement
○ BOT Model – involves transition risks
Contracting - with a local Supplier – Enforcement
with due diligence – e.g., Confidentiality; Parent-
subsidiary relations
 Determining factors = cost, commitment,
control, flexibility and liability models

13. IP issues in Contracting
 Sharing regime + sustained ownership
 Disparities in applicable laws & IP rights
 Identify, define and document –
processes and products
 Due diligence & IP Valuation

14. IP issues …
 Enforcement – involves local issues too
 Employer-employee relations – framework
of trusteeship
 Data protection and security
 Dispute settlement and arbitral
enforcement

15. Emerging issues
 Licensing in IPRs
 Emerging trends in global supply chain
 Minimum level of “reasonable control” – as evidenced in
Contracts and practices
 Raises anti-trust and RTP claims as well
 Securitization of IPRs
 Methods of valuation and their accuracy
 Procedure of affirming “secured interest”
 Liability of Service Providers in E-Commerce
 Scope and content of “due diligence”
 Increasing burden on the ISPs to be “IP-Police”

16. If we do not use IP …