(C) 2003 Sandeep K. Rathod1 IPR Licensing & Organisational Strategy A Presentation at the CSIR- IPMD Seminar January 18, 2003 by Sandeep K. Rathod (LL.B., Patent Agent) IPR Cell - Legal Dept, Cadila Healthcare Limited.
(C) 2003 Sandeep K. Rathod2 Intellectual Property & Types The property or product of one’s mind or intellect that can be traded/ protected/ enforced using legal means. Patents Trademarks Copyrights Content/ multimedia/Undisclosed information
(C) 2003 Sandeep K. Rathod3 IPR Licensing and the Organisation Emergence of IPR as the new currency. 93% of the value for Time-Warner is on account its intangibles. & the figure is 89% for GE.
(C) 2003 Sandeep K. Rathod4 Change in the IP outlook Aggressive IPR licensing. (Eg. IBM) IP as assets, not just as defenses. (Eg. Texas Instruments, Alcatel) IP to add to revenue generation and share holder value maximisation. (Eg. Walt Disney)
(C) 2003 Sandeep K. Rathod5 Licensing Revenue Figures IBM collects +1bnUSD. Lucas Films has collected +500mn USD In-licensed products account for 54% of J&J’s pharmaceutical revenue.
(C) 2003 Sandeep K. Rathod6 Reasons to Give IP License Direct Revenue Generation Lateral Revenue Generation Increased Organisational Efficiency Product Risk Reduction Reduced Litigation Risk Market Control & Increased Market Penetration Technology Barter Goodwill / Reputation
(C) 2003 Sandeep K. Rathod7 Reasons to Take IP License Access to Technology To Avoid Litigation Risk To Leverage Complementary assets To Enhance Product Lines As Competitive Hedging
(C) 2003 Sandeep K. Rathod8 Licensing Disadvantages Loss of Control Loss of Incentive for Expansion Loss of New Business Opportunities Loss of Public Recognition Dependence on Others for Revenue / Products Piracy Risk
(C) 2003 Sandeep K. Rathod9 Alternatives to Licensing Direct investment Sell a Turnkey package Full Fledged Joint Venture Sell on your own
(C) 2003 Sandeep K. Rathod10 The Future More Indian companies shall opt in for Licensing; We shall see more complex Licensing Transactions. Requirement of Professionals who understand Licensing
(C) 2003 Sandeep K. Rathod11 Conclusion IPR Licensing today has become a fact of modern business More Companies today are open to license their IPR Licensing has significant advantages from an Organisational view-point The Disadvantages that are associated with IPR licensing can be effectively manages, though NOT completely avoided