commercialising ip by research institutions
DESCRIPTION
A Presentation by Mr. Sandeep Hegde M.TRANSCRIPT
IP Commercialisation by Research Institutions
Sandeep Hegde M.
BananaIP
Objectives of Commercialization
• Reaching Public Funded R&D to People• Meeting Expectations of the Public• Fund Raising for further research• Working of Patents
Achievement Means
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
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
Necessary Infrastructure
• IP Policy and Process• Structured Approach to Protecting IP• Dedicated Technology Transfer Offices (TTOs)• Other Supporting Systems
What is a license?
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’
Licensing Opportunities
Types of LicensesTypes of Licenses
ExclusiveExclusive SoleSole Non-ExclusiveNon-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
Nature of License
• Perpetual/Limited in term
• Revocable/Irrevocable
• Royalty/Royalty free
• Entire World/Limited in Territory
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.
Performance Obligations• Per Market Entry Milestones- to reach market entry
pointE.g.: Production of prototype;Undertaking a trialMeeting regulatory requirements
• Sales Targets- post market entryE.g.: Minimum GuaranteeQuantum
• Quality Control
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
RoyaltyRoyalty
Lump sumLump sum Continuing royaltyContinuing royalty Mixed RoyaltyMixed Royalty
UpfrontMinimum Guarantee
Share of Gross/Net RevenueFixed periodic royalty
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!
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
THANK YOU.
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