Lo studio astratto di scienze e tecnologie non è
necessariamente portatore di innovazione.
….. Solo uno stretto contatto tra creatività, tecnologia,
pianificazione, mercato, finanza e politica di sviluppo,
possono assicurare al singolo, alla società e all’economia
in generale, un effettivo ritorno, in termini di benefici e
valore, a fronte delle ingenti risorse dedicate……©
Eli Guastalla
– Guastalla Consulting
International marketing, Innovation & I.P. management
Seminario Federchimica 23-09-15
1
FEDERCHIMICA Milano 23 -09 - 2015
10° Workshop di R&S
"La Proprietà Intellettuale –
la chiave per entrare nel complesso
mondo dell'Innovazione"
La valorizzazione economica della
Proprietà Intellettuale ©
Eli Guastalla
– Guastalla Consulting
International marketing, Innovation & I.P. management
Seminario Federchimica 23-09-15
2
By the end of this session
you are expected to know more about I.P.
1. Understanding I.P. - basics
2. Strategic vision of I.P.
3. I.P. assets in Technology Transactions
4. Valorization & Value of I.P.
5. Value Definition and Calculation methods Applied
6. About Licensing and contractual issues
7. Who can do the job?
Disclaimer!
This training material concerns intellectual property
and business strategies only in general terms.
This training material should not be relied upon when
taking specific business or legal decisions. Rather,
professional advice should be obtained which suits
the circumstances in question.
Seminario Federchimica 23-09-15
3
Some definitions of Patent:
An agreement between the inventor and society
Alternative definition (legal):
A patent is an exclusive right to commercially exploit the
invention in a given country. Protection up to 20 years.
BUT ALSO .........
Prohibitive right
A patent forbids others commercially to: produce, sell,
work, use, import and possess the invention
4
Seminario Federchimica 23-09-15
5
Seminario Federchimica 23-09-15
ci sono in questa citta’, e vi vengono per brevi periodi a causa della sua grandezza e
benevolenza, uomini di grande ingegno capaci di inventare e scoprire vari e ingegnosi
artifici.
e si dovrebbe provvedere a che i lavori e gli artifici essi inventati non possano essere
contraffatti da altri che li hhanno visti senza cge si renda loro onore; uomini di tal fatta
eserciterebbero il loro ingegno, inventerebbero e farebbero cose di non poca utilita’ e
beneficio per il nostro stato. per questo, il consiglio deliberera’ che chiunque faccia in
questa citta’ non importa quale utensile nuovo ed ingegnoso mai fabbricato nella nostra
citta’, nel momento in cui sara’ perfezionato, in modo tale da poter essere utilizzato lo
dovra’ registrare all’ussicio del provveditore del comune. si fa proibizione a chiunque
altro, in qualunque luogo sotto la nostra giurisdizione, di fare alcun artificio simile a
quello senza aver ricevuto il consenso dell’autore, questo nell’arco di dieci anni.
e pertanto, se qualcuno lo fara’ l’autore lo potra’ citare davanti a qualsiasi tribunale di
questa citta’ e detto ufficio lo condannera’ al pagamento di 100 ducati e alla distruzione
dell’artificio.
si da la liberta’ al nostro governo di prendere ed usare l’artificio a suo piacimento con la
condizione che nessun altro che non l’autore lo possa usare
favorevoli 116 - contrari 10 - astenuti 3
Venezia 1474
6
Seminario Federchimica 23-09-15
Registered intellectual property
IP rights with a certificate
Patents
Duration: up to 20 Y
exep- pharma
Trademarks
Duration:10 years or life
Utility
models
Duration: until 10 years
Designs
Duration:
until 5 x 5
years
Eli Guastalla
– Guastalla Consulting
International marketing, Innovation & I.P. management
Seminario Federchimica 23-09-15
7
Unregistered I.P.
Require no formal application procedure, but come into
existence automatically when certain types of intellectual
property are created , most common are:
• Copyright (music, painting, literature, film) valid 70 Y after author’s death
• DATABASE Right
• Confidential information and trade secrets
• Industrial secrets
• Unregistered Design Right
• Unregistered Trade Marks
Seminario Federchimica 23-09-15
8
What is patentable
Patentability applies to, inventions (technical
teaching with technical effect including products,
product’s use, processes & equipment ) that:
- Are capable of industrial application
(not necessarily
with economic advantage)
- Are New/Novelty
- Essentially differ from current state of the art=
inventive step
Not Patentable: discoveries, methods, SW, non
moral inventions or objects
Seminario Federchimica 23-09-15
9
Ski Brake
Dog Bumper
10
Seminario Federchimica 23-09-15
Snake Walker
Doggie Umbrella
11
Seminario Federchimica 23-09-15
Eli Guastalla
– Guastalla Consulting
International marketing, Innovation & I.P. management
Seminario Federchimica 23-09-15
12
Utility Model
(Some countries, typically UK, DK, S , N,
don’t recognise it, wheras it turned to be useful in China !)
The ”Patent-system” for smaller inventions (exclusivity 6-10 Y)
Conditions:
• Solve a technical problem
• New
• Inventive step
Often used for ”small” inventions for limited time , has
simpler procedure and fees cheaper
Seminario Federchimica 23-09-15
13
Trade Marks - short definition:
• A distinctive sign which identifies the goods and
services of one company from those of another
• A trade mark helps consumers to identify and choose
between products/services based on their reputation
and quality
• A trade mark is a word (alphanumeric) or sign/logo or
both, which can be represented graphically and which
is capable of distinguishing the trade origin of certain
goods and services
Seminario Federchimica 23-09-15
14
Invention Vs. Innovation
15
Seminario Federchimica 23-09-15
Exploitation of results, products services & Market
• From invention to innovation …..to produce tangible benefits …
• Focus on business opportunities (segmentation, trends)
• Include the concept for commercialisation Ensure good level of
innovation (develop something new)
• Compare current solutions and reason why for your success vs.
other
• Description of product / service provided by the novelty
• Benefits of results (research, demonstration…) produced
• Innovativeness introduced compared to already existing
products/services
• Product positioning (define markets’ target & size)
• IPR management
• Legal or normative or ethical requirements (need for authorizations,
compliance to standards, norms, etc.)
16
Seminario Federchimica 23-09-15
IPR Exploitation possibilities:
Who can be interested in
purchasing/licensing the IPR?
license based model
It is necessary to:
(sell/licensing out)
Vs
•
Build the potential Licensor profile
•
Evaluate economically the IPR
We must identify:
•
Necessary competenze level to
industrialise the product
•
Necessary level and typology of
financial and human resources
equity based model
(start a new firm)
• Sales/Business model
Seminario Federchimica 23-09-15
17
IP - an effective Entrepreneurial tool
In case I.P. do not fall in firm’s strategy they can be:
•
•
•
•
•
•
•
Licensed under semi or non exclusive terms in order to:
License to generate € in different market
Licensed for co-distribution if we are weak in sales
Licensed in territories where we are not operating (yet)
Licensed for “doors opening” scope (market scouting)
Licensed in a market we want to softly penetrate
Licensed for excess production capacity
Seminario Federchimica 23-09-15
18
….Back to I.P. management … for all this you need ….
Strategic Vision of
Intellectual Capital
Vision
Strategy
Management
of IP
Value
Generation
Value
Extraction
Seminario Federchimica 23-09-15
19
Strategic Innovation
€
New Assets
Operations
(Ind. & Comm.)
Market
Analysis
Acquisition
Of I.P.
Need for
Innovation
In House
R&D
New Ideas &
Inventions
Company’s
Strategy
New Assets
Patenting
Strategy
Seminario Federchimica 23-09-15
20
Approach role and scope of I.P.R. protection
STATIC APPROACH to I.P. Often, I.P. System is
used to oppose counterfeiters and / or competitors
DYNAMIC APPROACH (more creative): Convert I.P
to an entrepreneurial tool for the benefit of all parties
An entrepreneurial approach improves income & image
supports NewCo formation, attracts investors, provides
premium price, increases company’s value, constitute a
negotiation tool, (should be in the mission of PRO’s)
MAPPING: Territorial Extension of I.P. for their present
and future use Both directly and indirectly
Seminario Federchimica 23-09-15
21
Licensing, What for??
• General profit (extraordinary revenues & protection)
• Accessing Technology
• Enter into R&D cooperation
• Settle infringement cases
• Occupy (temporarily or not) non strategic markets
• Study and prepare new market penetration
(new territories/new areas of business)
• To stand in the way of a competitor (stop him to attack my
market position or get down to agreement).
Seminario Federchimica 23-09-15
22
I.P. Value & Evaluation Why & What is evaluated
Value =The monetary worth of something, also
A Numerical quantity assigned or determined by calculation or
measurement (calculated)
Value = A fair return or equivalent in goods, services or money
for something exchanged (negotiated)
Why:
Because IP are significant elements of
competition and superiority
market
What :
• Patents and utility models
• Trade Marks and design
• Copyright
• Know How & other unregistered IP
When …..
Seminario Federchimica 23-09-15
23
When Valuing
Intangible Assets?
Sale or license of patents (and related Know-How)
Bank loan or financing secured by intangible assets
Mergers and acquisitions
Joint-venture creation and company’s valuation
Increase Share Capital in capital contribution
Reward researchers
Manage IP portfolio
Bankruptcy and Court cases (reward creditors)
Seminario Federchimica 23-09-15
24
The Technology Characteristics :
• To what degree is the technology developed?
• Is Buyers infrastructure & equipment related to the new technical needs?
• Is this a break through technology or not? Is Know How (KH) needed?
• Is the Personnel ready to accept Not Invented Here (NIH) technology?
• Is the patent innovative or an improvement?
• Product process or service ?
• Does the product require service ?Are we equipped for it ? The personnel?
• What KH is needed to implement the patent?
• To what extent is the KH innovative? And cooperation between parties?
• Costs involved :R&D costs involved (past) and future? Production costs ?
• Benefit of new product/technologies /services Vs competitors?
• Target market?
Seminario Federchimica 23-09-15
25
The Product
• Does the product fits to our offering ?
• Are our personnel able to support it ?
• Do we have a reputation for it ?
• To what extend the new products affect our firm?
The Market
• Is the company familiar with the new market ?
• Does the firm knows the market (competitors, rules, etc)?
• Does the firm have to build up a new image/brand?
• Is the company able to face effectively the new situation?
• Does the Personnel fit to the job or we need to hire new people?
Can licensor and licensee cooperate adequately on all matters ?
Seminario Federchimica 23-09-15
26
SWOT & RISK ASSESMENT
External analysis
Internal analysis
Threats
Strength
Opportunities
Weaknesses
Key success factors
Resources and capabilities
Future actions
Opportunities
Strengths
Threats
Weaknesses
TAKE ADVANTAGE OF
AVOID
IMPROVE
CORRECT
Seminario Federchimica 23-09-15
27
Evaluation Methods
Fair Value – What is It?
• The price of a “property” changing hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or to sell, and both having reasonable
knowledge of relevant facts, changes…
Willing
Buyer
(Licensee)
€€€€
Property
Willing
Seller
(Licensor)
Seminario Federchimica 23-09-15
28
Overview of different methods
Cost-based
Income-based
Market-based
Seminario Federchimica 23-09-15
29
Cost-Based Methods
a) Definition
• The pricing of an asset is based on the cost of its
development by first owner
• Cost considerations usually include:
• R&D: salaries, materials & equipments
• IP protection , obsolescence and residual life
• Trials, testing and prototyping
• Marketing & advertising
• Cost of capital and overheads
Seminario Federchimica 23-09-15
30
Cost-Based Methods
b) Being the costs Historical you have to capitalize them (financial discount)
• How much was spent to develop the technology
• Problems:
• R&D costs are difficult to count (Which Personnel costs? Over
which period of time? Including failures?)
• How to take into account inflation
• Cost ≠ patent value
When is it reasonable to USE the Cost Approach
• When the asset is at very early stage of development
• When IP is easy to “design-around” Make or buy (license)
• Bookkeeping
Seminario Federchimica 23-09-15
31
Cost-Based Methods
c) Replication / Replacement Costs
Practical considerations for the buyer
 Can you re-develop a unique, protected asset?
 Have development costs changed?
 Does a license secure freedom to operate?
 What is the cost of delayed time-to-market?
 Can ALL IP costs be avoided by licensee?
(cost s aimed to industrialize the production: equipment, personnel training etc.)
Seminario Federchimica 23-09-15
32
Market-Based Methods
a) Definition
• Value is based on the transactions of other
purchasers &
sellers in the marketplace
• Licensee/buyer is not willing to over-pay for similar IP
• Fair value of a patent = Price paid in comparable, “arm’s
length” transactions
b) When to Use Market Approach
•
•
When you can find sufficient transaction information (web, papers, etc)
Similar transactions: IPR type, industry sector, market patent life, RR
Comparison considerations:
Technology,
Background,
Company type.
Seminario Federchimica 23-09-15
33
Income-Based Methods (most often used if reliable data are there)
IPR Value
=
Ability of Technology to
Generate Future Income
Fair Value of Patent = Present Value of the expected future income
(cash flow) stream
Three key parameters:
1. Amount of the income stream (future income in today’s value NPV)
2. Duration of the income stream
3. Risk associated with the realization of the income
Seminario Federchimica 23-09-15
34
Which Valuation Methods to use ? Depends on :
• The kind of industry
• The degree of maturity of the technology
• The degree of risk (Technological, Financial, Market)
• The IPR
• Available information/price of comparable assets
• Combine several methods to get the envelope of values for
each IP asset
• Valuation should be done on a regular basis
Seminario Federchimica 23-09-15
35
HOW TO LICENSE
- Payments
- Performance Obligations
- Indemnities / infringements
- Permission to use IP
- Warranties
- Technical support?
R & D FIRM P.R.O.
or
LICENSEE
SINGLE INVENTOR
Seminario Federchimica 23-09-15
36
Licence Agreement - Typical Structure
• Parties
• Recitals (preamble)
• Definitions and subject matter
• Operative Provisions
• Grant & restrictions, payments, performance obligations,
warranties, confidentiality, indemnities, improvements,
royalties report, infringements, terms & termination, duration
, minimum results for licensee, etc.
• Signatures
• Schedules
Seminario Federchimica 23-09-15
37
Some types of license & license terms
• Type of license (sole, semi/non exclusive, etc.)
• Territory and/or field of business granted
• Minimum royalties, sublicense right
• Changing royalties in lifetime of IP or Lump Sum for
targets or Milestones achievements
• Is training and literature included?
• What else is licensed – TM, other soft IP ?
Seminario Federchimica 23-09-15
38
Preliminary documents
• Confidentiality agreement, secrecy agreement or Non
Disclosure Agreement (NDA)
• Term sheet - also called Letter Of Intent (LOI) or
Memorandum of Understanding (MOU)
• Schedule to terminate negotiations (go-no-go deadline)
Seminario Federchimica 23-09-15
39
Warranties, Obligations & Indemnities
Contract promises, e.g. typical warranties cover
• That the licensor owns de-jura the IP
• IP do not infringe third party IP and have no pending
issues
Can you make the promise? Take the risk embedded?
• Is it something within your knowledge or control?
• Do you have insurance against the risk?
The Licensor shall indemnify and hold harmless the
Licensee against claims and liability.
Seminario Federchimica 23-09-15
40
I.P. Management, not an easy job,
who can do it ?
In Academia: dedicated TT office
In Companies : depends mainly on size,
type of business (is it a regular activity ?)
is it a technology based firm ?
OR Consultant & outsourced professional
Seminario Federchimica 23-09-15
41
Outline the profile of a person suitable to
be an I.P. Manager
Until now we went through several subjects which deal
with interdisciplinary issues now it is time to put in
practice what we have discussed
Exercise:
Please list main characteristics you think such a person
should have to make this job …….
Seminario Federchimica 23-09-15
42
He / She Should, in my opinion, have
knowledge and / or experience in:
• Marketing
• General scientific and technical understanding
• Regulatory and legal affairs knowledge
• Basic IT knowledge and emerging technologies
• Sufficient knowledge of some 2-3 languages
• Communication skill, think positive
• Understanding basic production processes
• Management, administration, Economy
• Negotiation technique & Ability to mediate
Seminario Federchimica 23-09-15
43
…………………. And also
Some imagination , open and flexible mind …..
Creativity and intuition
VERY PATIENT
Experienced in business
Well, it can’t be a young inexperienced enthusiastic fellow .....................
but not necessarily Leonardo da Vinci or KAI Divinity
…… GOOD LUCK
Seminario Federchimica 23-09-15
44
Eli E. Guastalla
[email protected]
[email protected]
www.eliguastalla.it
Eli Guastalla
– Guastalla Consulting
International marketing, Innovation & I.P. management
Seminario Federchimica 23-09-15
45
46
Seminario Federchimica 23-09-15
47
Seminario Federchimica 23-09-15