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Implementation of the National Intellectual Property Strategy and Intellectual Property Rights Protection for Small and Medium Enterprises (SMEs); Bishkek, November 2013. Managing Intellectual Property Assets in International Business, particularly in relation to Technology Transfer
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Implementation of the National Intellectual Property Strategy and Intellectual Property Rights Protection for Small and Medium Enterprises (SMEs); Bishkek, November 2013 Managing Intellectual Property Assets in International Business, particularly in relation to Technology Transfer Ron Marchant CB FRSA
Outline • Entering the International Market • Looking to Export • Looking to Import Technology • Licenses • Negotiating Licenses • Precautionary Steps • Important Points to Remember • References
Entering the International Market • Domestic Market presence? • Knowledge of international target market(s) • Knowledge of international potential partners • Intellectual Property aspects • Scope of effective protection • IP portfolio • Regulatory and Enforcement Regimes
Looking to Export – 1 • Making an informed decision • Identify markets and demand • Identify partners for distribution and retail • Understand target market • Regulatory regime • Consumer tastes • Develop Export Plan • Clear contracts and agreements with partners • Transport and shipping arrangements • Modification of product and presentation if necessary • IP protection
Looking to Export – 2; IP Issues • IP will affect the potential market price • Trademarks valued by consumers • Effective protection reduces competition • Any modifications should be protected specifically to the market • IP will give investors confidence • IP will clarify ownership issues • The IP of others limits freedom of action • IP provides firm base for marketing campaigns
Looking to Import Technology • Two aspects • From domestic sources • From international sources • Either can form basis of both domestic market supply and exporting • Find relevant technology to business objectives • Determine and define ownership issues • Build ongoing relationships and partnerships
Licenses • What is a license? • Permission to something that is otherwise an infringement • Coverage of licence • All the IP related to a product/process • The product itself • The technology incorporated in a product • Types of Licence • Exclusive; only the licensee, not the licensor, can use the IP • Sole; only the IP owner and the licensee can use the IP • Non-exclusive; the IP owner and more than one licensee can use the IP
Negotiating Licenses - 1 • Whether licensing-in or licensing-out establish fallback position • Seek confidentiality agreement • Be clear about what is being licensed • Patented technology • Know how • IP in future developments • Back-IP • What is licensee entitled to do • Type of licence • Financial terms • Net sales • Profits • Payment of royalties schedule • Duration of licence
Negotiating Licenses – 2 • Prepare yourself • Realise other side is at least as prepared as you • Try and envisage and understand the other side’s objectives • Bear your interests in mind rather than taking positions • Be prepared to compromise • Understand the IP position and strength • Aim for a “win-win” • Establish best and worst position • Be credible • Remember that you may not reach agreement
Precautionary Steps • “due diligence” • Check your IP • Check partner’s IP • Check ability of partner to fulfil agreement • Establish security of negotiations – confidentiality • Understand regulatory regimes where markets are being sought • Keep agreement clear and simple – no ambiguity • Both parties must have same interpretation/understanding of agreement
Important Points to Remember • Do your homework about markets • Be sure about what you want • Undertake due diligence • Negotiation is a skill • It is easy to do badly • Consequences can be longlasting
References • Successful Technology Licensing http://www.wipo.int/export/sites/www/freepublications/en/licensing/903/wipo_pub_903.pdf • Exchanging value http://www.wipo.int/export/sites/www/freepublications/en/licensing/906/wipo_pub_906.pdf • Secrets of IP: A Guide for SME Exportershttp://www.wipo.int/export/sites/www/freepublications/en/intproperty/itc_p163/wipo_pub_itc_p163.pdf