ipr strategies for startups - presented at bangaloreit.biz
TRANSCRIPT
IPR Strategies for Startups
Dilip Kumar- Founder & Director
Lets Discuss !
• Types of IPR• Why IPR for Startups ?• IPR Strategies : Some Pointers• Success Stories
Have answers to these Question
• What is the concrete purpose of having the IPR?
• What are the limits of your invention ?• What are the opportunities in
international market ?• What is the value of your invention ?
Types of IPR
Semiconductor
Chipset Design
Trade Secret
Plant Breeders
Rights
Geographic
Indications
Industrial Design
Copyright
Trademark
Patents
Why IPR for Start-ups?
Deter Competitors from copying your
ideas
Protection
Ease of due diligence and an asset
Investor
Generation via licensing and sales
Revenue
Protection
Deter Competitors from copying your ideas
Protection
• Identify new and novel features
• Never presume something is not patentable – sometimes the least technological feature is the most valuable
• What to protect- Technology, Process, Business model
• Make sure you have the right type of IP protection
• Sequential innovations – new product generations displacing old
• Old generations provide competitive discipline
• Time to take it international
Benefits
•You get exclusivity in the market
•You enjoy monopoly
•Expresses the innovation potential to customers
If you don’t care about it and protect it, it may come back and haunt you
• Identify new and novel features
• Never presume something is not patentable – sometimes the least technological feature is the most valuable
• What to protect- Technology, Process, Business model
• Make sure you have the right type of IP protection
• Sequential innovations – new product generations displacing old
• Old generations provide competitive discipline
• Time to take it international
Benefits
•You get exclusivity in the market
•You enjoy monopoly
•Expresses the innovation potential to customers
If you don’t care about it and protect it, it may come back and haunt you
Investor
Ease of due diligence and an asset
Investor
A potential investor will examine:
• The Company’s IP ( patents, filed patent applications, other registered or unregistered IP assets)
• No. of IP assets not important but the extent of the
• Protection
• The value of the Company’s IP assets
• The exist strategy via IP
Benefits • Increases chances of funding
• Greater valuation
• Raise money without much liquidation by licensing or monetization
A potential investor will examine:
• The Company’s IP ( patents, filed patent applications, other registered or unregistered IP assets)
• No. of IP assets not important but the extent of the
• Protection
• The value of the Company’s IP assets
• The exist strategy via IP
Benefits • Increases chances of funding
• Greater valuation
• Raise money without much liquidation by licensing or monetization
Generation via licensing and patent
sales
Revenue
• Merely owning an IP does not generate any monetary benefits
• They can raise additional cash
• Monetize your non core IP assets that no longer supports the business
Revenues can be generated by
•Licensing patents and patent portfolios
•Licenses can be exclusive or non exclusive
•Direct sales of patent fetches one time revenue
• Merely owning an IP does not generate any monetary benefits
• They can raise additional cash
• Monetize your non core IP assets that no longer supports the business
Revenues can be generated by
•Licensing patents and patent portfolios
•Licenses can be exclusive or non exclusive
•Direct sales of patent fetches one time revenue
Revenue
IPR Strategies
Harvesting inventions, tapping their full potentials as to the IP strategic goals
Innovation manageme
nt
Provisional applications to buy time. Assignment, Protecting the best markets (market segment, countries, …)
IPR Filing Strategy
Management of IP assets as an investment portfolio, Selling your Patent, Patent licensing
IP Monetizatio
n
Success Stories -Case Studies
A telecommunication R&D firm with 800+ patents
Israeli based NASDAQ listed company in VOIP domain wanted to raise money from the market. Holds 22 patents.
IP on Low power semiconductor with focus on reducing power consumption on electronic devices(140+ patents)
Transmeta
Got Acquired by Novafora for $255.6 million
A California based company engaged in creating products in the electro-optical cameras, image processors, and stacked chip assemblies
Irvine Sensors
IP licensing to Aprolase Development Co.for $9.5 million
Telcorida
Got funding from an Invention and private equity investor firm for a "long term commitment”, the new investor will license 500 of their inventions worldwide
VocalTech Communications
11 patents were sold for $12.5 Karo Millennium JP LLC, shares jumped 11 percent on NASDAQ after this transaction
Conclusion
Different types of IP : Different types of rights
IPR : Protection and exclusivity to your ideas
IPR : Deter competition from copying your ideas
Strategic IP gives competitive edge
IP asset are a means to generate revenue