from ip to profit: tips for successful commercialization michelle korman, senior ip analyst metis...
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From IP to Profit:
Tips for Successful
CommercializationMICHELLE KORMAN, SENIOR IP ANALYST
METIS PARTNERS LIMITED
X INTERNATIONAL SYMPOSIUM:
IP IN INNOVATIVE ECONOMY
Metis Partners © 2014
WHAT WE ARE GOING TO COVER
Innovation and Market Pain
Understanding Monetizable IP Assets
Routes to Commercialisation
IP-Backed Finance
Case Studies
Metis Partners © 2014
INNOVATION AND MARKET PAIN
To paraphrase English poet John Dunne,
“No IP is an island, entire of itself”
Ideas/innovations only have worth if they solve a
market pain
Ask yourself:
“What problem/pain does my idea/IP solve?”
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MARKET OPPORTUNITY
Need to identify the relevant market(s) your
innovation would benefit
Think laterally!
Understand the commercial advantages
associated with your idea/IP
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PROBLEM
More than 34% of passengers experienced problems related to baggage on their most recent flight
Airlines lose 71,000 units of passenger baggage every day
The cost the airline industry is US$2.58 billion annually
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MARKET
TOTAL MARKET
MARKET SEGMENTS
2.4 m11%
MIDDLE EAST - EUROPE
3.5 m5%
EUROPE – ASIA PACIFIC
3m13%
ASIA PACIFIC – MIDDLE EAST
CAGR Passengers per month
170mFrequent Flyers pa 50%
ExperiencedLost Luggage
550mTotal Flyers pa
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ADDITIONAL MARKET POTENTIAL
THINKING LATERALLY
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Airlines looking to use geolocation for:
Reducing passenger congestion (50%)
Monitoring of aircraft movements (32%)
Movement of passengers at airports (31%)
Geolocation for freight carriers
In 2011 there were 77,000 shipping containers tracked using tracking devices
In 2016 analysis expect there will be 1M containers tracked.
An increase from 0.4% to 3.6%
SOLUTION
A real time baggage tracking tag
Partner with airlines to market to their
frequent flyer customers
Partner with global no.1 technology
partner for airlines
Sell online through own online shop
Partner with golf, ski and surf retailers
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WHICH IP ASSETS ARE CAPABLE OF MONETIZATION?
Traditionally, people focus only on registered IP as assets capable
of monetization
Patents, trade marks and designs are all significant assets
capable of monetization, but…
These may not be the only – or most significant – IP assets
you/your company has
Technical specifications, test data, databases, software, and even
know-how is capable of monetisationMetis Partners © 2014
METISOLOGY
We look beyond “traditional” IP…
… to ID, assess & unlock potential of all IP assets which
underpin competitive advantage
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CASE STUDY: A HIGH TECH COMPANY PRE-FINANCING
Waterproof technology manufacturer saw their patent portfolio as primary IP
asset
But, core/relevant patents were close to expiry and additional patents had been
pending for over 5 years
Our due diligence identified that the Company’s trade secrets & know-how
underpinned competitive advantage
Company was able to secure significant financing on the back of this
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ROUTES TO COMMERCIALIZATION
Licensing
Spin-Out
Sale to 3rd Party
Direct-to-market
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ROUTES TO COMMERCIALIZATION
Things to consider:-
What is your future involvement in the
commercialization of the invention?
Is the innovation a one-off or part of a
portfolio of inventions?
What is the potential market for the
idea?Metis Partners © 2014
LICENSING
Effectively giving the right to do
something that would otherwise
constitute IP infringement
License-out to: A third-party company which incorporates the IP into
end product
A potentially infringing third-party
Via university tech transfer offices
Directly (i.e. software)
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Sharing risk
Revenue generation
Increasing market penetration
Reducing costs
Saving time
WHY LICENSING?
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CASE STUDY: PLASTIC ELECTRONICS SHIFTS BUSINESS STRATEGY
University spin-out
Operated under a direct-to-market strategy
Products never released
Went back to its IP-focused roots via licensing technology
Now have LoI from number of impressive blue-chip
companies
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SPIN-OUTS
University/research institution spin-out
No existing business to approach re:
licensing
“Platform opportunity” / “disruptive
technology”
Technology needs further development to
obtain “full” value
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SPIN-OUTS
Creation of a new “IPCo”
De-risks IP assets from the risks/liabilities of
“OpCo”
Creates new revenue stream for the business
IP is recognised on the balance sheet
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SALE TO 3RD PARTY
Sale to 3rd party might be
ideal if:
Ancillary part of the IP
portfolio
Not currently monetising the
IP/no future plans to monetise
the IP
Need influx of capital
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DIRECT-TO-MARKET
IP makes up the core offering of
your business model
You have the skills/expertise to
commercialize the IP
You have identified a direct route
to market
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IP-BACKED FINANCE
IP securitization
IP-backed pension-led funding
IP valuations to support
investmentMetis Partners © 2014
Michelle Korman
k
Tel: (+44) (0)141 353 3011
Metis Partners © 2014