1. LICENSING OF IPRs AND STRATEGIC INTENT Role of Firm, Industry and Technology Characteristics Rakesh Basant

2. Rakesh Basant/IPlicense2 Role of IPRs zIPRs creates market for licensing z Information asymmetry z IP boundary zIncrease in licensing activity zConvergence zComplexity zMunificence zCosts - risk premium

3. Rakesh Basant/IPlicense3 Licensing - Key Decisions zShould one license? z If yes, zTo whom? zWhat should be the terms and conditions of licensing? zShould it be bundled with other arrangements like JV, networking zShould it be bundled with other IP: Trademark-Patent linkages

4. Rakesh Basant/IPlicense4 Context - Firm, Industry & Technological Characteristics zAppropriability: Nature of IPR protection zImportance of complementary assets (CAs): Specialized (critical) v/s Generic zMarket and technological uncertainty zImportance of enabling technologies zStage of the technology/product life cycle (TLC/PLC) zNature of competition (CAs, appropriability) zNetwork externalities: Role of standards zImplications for transaction costs

5. Rakesh Basant/IPlicense5 Firm Context - Strategic Role of Licensing zAccess complementary assets & markets zTime to market, investment costs zAppropriability, advantage licensee/competitor zLicensing by public labs: accessing CAs? zImportance of 3Ps, tacit knowledge for licensee zKnowledge for patents v/s knowledge for manufacturing/marketing zDesign freedom: cross-licensing of patent portfolios zTechnology acquisition (Tacitness, 3Ps)

6. Rakesh Basant/IPlicense6 Strategic Role..... zRisk reduction vis-à-vis price, quality & supply disturbance yCredible commitment, demand creation (Brands, Patents) zLitigation resolution: overlapping IPRs/claims, cross-licensing zLeveraging IPRs for other negotiations: JVs, joint R&D zCreation of standards: Demand creation thru complementary products zStrategic deterrence: Influence competitors R&D portfolio

7. Rakesh Basant/IPlicense7 Strategic Role….. zEarning revenue from strategic misfits: product v/s patent portfolios zExpanding the scope of IP: licensing trademark across products (Dilution?) zExploiting learning opportunities: licensing -- integration (JV?) zSpecialized CAs, complexity, munificence zSector specific learning curves (chemical process?) zLearning from the licensees ( TLC/PLC, contingency clause)

8. Rakesh Basant/IPlicense8 Insights into Terms of Licensing zShort terms v/s long term zTLC, uncertainty zUnilateral v/s cross-licensing zMunificence, complexity, TLC/PLC zFixed fee v/s royalty zUncertainty: slide-up scale, low fixed fee? zRoyalty rates zTLC, uncertainty

9. Rakesh Basant/IPlicense9 Insights into Terms... zSharing of improvements by licensors and licensees zMunificence, complexity, TLC/PLC, grant-back zExclusivity: product/market/time zTLC/PLC, uncertainty, munificence zSublicensing zTLC/PLC, uncertainty, munificence zTechnical assistance zComplexity, tacitness, 3 Ps

10. Rakesh Basant/IPlicense10 Thank You