Spin outs are usually done by corporations where the new business is not directly part of their strategic intent or plan. The reason for spending it out however is that the new idea is usually powerful enough that the Corporation might consider a change in strategy if the venture succeeds. The corporation wants [...]
The strategic alliance is a business arrangement usually done in order to gain access to markets to which company would otherwise be denied. IP is often viewed as a sweetener for the deal. The process of selecting and valuing IP for such deals is again similar to that of licensing out in the [...]
Sale of intellectual property vis-a-vis licensing-out, provides a Corporation with essentially no ongoing liability or expenses. The transfer of ownership is usually for a monetary consideration often paid upfront versus being extended over a long period of time (as is sometimes the case for licensed art). The maintenance and potential litigation expenses are [...]
Contributing IP rights to a research or business venture with another party again follows the process outlined above in the licensing-out section. Since the other party will be contributing one or more complementary business assets in lieu of only monetary payments, these deals are more complicated to construct. The variation from the licensing [...]
Royalty Payment Audit Process The execution of a license agreement is not the conclusion of the licensing strategy. The "Royalty Payment Audit Process" figure shows the activities that should follow. After lengthy and difficult commercial negotiation many licensors and licensees don’t pay enough attention to the royalty clauses. The following 30 business terms [...]
Licensing Negotiation Process Flowchart Once a proposal binder has been assembled that includes the aforementioned elements, the target company should be contacted. The “Licensing Negotiation Process Flowchart” figure shows the negotiation process. As one of the last steps in the negotiation process the value of the licensing deal is determined. As mentioned previously [...]
The proposal binders may include the following sections: a brief description of the company and its licensing activity; high-level description of the intellectual assets to be licensed; summary of the applicable market segment; information regarding the products and services of the target licensee; marketing materials and press releases regarding the intellectual assets to [...]
All the above background work and analysis prepares a company for licensing out its portfolio. However a question remains as to the negotiation value of any individual patent. Is the portfolio worth more separately or all together? To gain insight at the individual patent level, several software companies have engaged in creating patent [...]
Citation Relationship Maps Show Optimum Portfolio Cross-Licensing Options Citation Relationship Maps show optimum portfolio Cross-Licensing Options. Potential licensor and licensee IP sets are mapped to show inter-relationships that help negotiation teams identify the best strategy for their business.
Citation Maps Also Assist in Locating Licensing Opportunities Citation maps also assist in locating licensing opportunities. In addition to portfolio measures, visualization techniques based on individual patents also help identify potential licensees and illustrate their needs. An example of a citation tree is shown to illustrate how a client’s patent is being cited [...]
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