1. IP Transactions as Facilitators of the Globalized Innovation Economy Sean M. O’Connor Professor and Chair Law, Technology & Arts Group University of Washington School of Law Of Counsel, Seed IP Law Group soconnor@uw.edu | SeanO@SeedIP.com

2. Are complex tech transactions the symptom of a problem... ? Transaction costs Anti-commons effects Patent thickets “Gridlock”

3. Or a badge of success? Creative solutions to non-IP real world supply and value chain problems Mechanisms to allow for a level of trust among far flung parties across the globe Effective ways to package and transfer ideas and innovations

4. Issues common to all IP transactions transfer of information and rights; valuation and compensation; allocation of liability and risks; termination rights and remedies.

5. The value chain Inventors vs. commercializers 3 basic inventive scenarios – Inventor does not want to be involved in commercialization – Inventor lacks some or all of the means to commercialize – Invention is off point for the inventor’s existing business plan

6. The value chain Open vs. closed technology platforms Licensing to multiple points in value chain (vertical) Licensing to competitors (horizontal) who may want to control their own value chains Quanta v. LG and the Qualcomm licensing system

7. Complex world = complex challenges Patents often cover inventions that are not products in and of themselves Products such as computers have thousands of product, system, and method patent claims Products often must be sourced from all over the world Desirable complex value chains require many parties to disclose key information to others

8. The productive role of IP transactions The view of IP as the problem and complex tech transactions as a bad “transactions cost” symptom of that may have things backwards IP allows an inventor to package and transfer some or all of her rights to commercializers Innovative new cross border IP transactions allows parties from around the world to enter into beneficial value chain relationships

9. Conclusion The proliferation of complex tech transactions is in part a badge of success for a globalized innovation economy, not the symptom of a “broken” IP system S. O’Connor, IP Transactions as Facilitators of the Globalized Innovation Economy Forthcoming in ROCHELLE DREYFUSS ET AL., WORKING WITHIN THE BOUNDARIES OF INTELLECTUAL PROPERTY (Oxford University Press 2010) soconnor@uw.edusoconnor@uw.edu | SeanO@SeedIP.comSeanO@SeedIP.com