yet2.com - A New Kind of Financing for IP

yet2.com - A New Kind of Financing for IP

IP market

IP licensing has grown 70% from 15B to 100B etween 1990 - 1998/ and licensing resources is predicted to top $1 trillion by 2005

S&P 500 $35 trillion in IP

PricewaterhouseCoopers: Taiwan: Services: Legal & IP Services: IP Services

PricewaterhouseCoopers: Taiwan: Services: Legal & IP Services: IP Services

try to do five forces analysis to show business + patent = success

SWAT analysis.

Patent Analysis

Analyzing based on large portfolio of technolgies through attribute clusterting of like technologies based on user defined groups and graphically comparing the overlap with target or competitor portfolios.
- PWC has tool for this IP due delligence

Patent Baristas » Due Diligence Monday: Patents

Patent Baristas » Due Diligence Monday: Patents: "Assets acquired in today’s private equity and venture deals, mergers and acquisitions, strategic alliances and joint ventures are increasingly intellectual property assets such as patents, copyrights and Internet domain names. Because of the value of these assets, intellectual property due diligence has become an important part of the legal work required for these transactions. Such intellectual property assets consist of (1) “content,” which includes text, visual images (both moving and still), sounds, database information, logos, characters and the like, (2) “technology,” which includes biological chemical compositions and methods, electrical and mechanical devices and software and business methods, and (3) combination hardware and software devices."


- Product Portfolio - how the targtet and acquier's IP match and where are the holes.

- IP valuation based on portfolio - what can be sold off to reduce costs
- IP ecosystem - IP held by competitors; prospective lwwsuites from competitors, IP related govt regulations; influence of industry consortium's and std settings
third party involvement - may block patents etc.

govt regulations - anti trust implications
- long range strategic planning - retaiing key employees - success factors - integration with key products, uncovering IP jewels
- state of the art techniques.

The New Marketing Mission :: EMM GROUP

The New Marketing Mission :: EMM GROUP Brand building is the heart of value creation for the 21st century corporation. The EMM Group authors have taken the mystery out of brand building and replaced it with process, metrics, and tools that any company can master. The book is designed to improve organizational and professional marketing management practices for brand value creation and enhancement.

CoreBrand - Top Corporate Brands Announced

CoreBrand - Top Corporate Brands Announced Guage various IP branding

MEdiums - annual reports
analyst conf calls
websites
advertisements
product labels

check charts by industries on uspto.

Branding/valuation tough in some industries:
Pharma - few home runs
semi-conductors - lots of cross licensing


Ang R&D cost per Patent for the top patenting firm = 3.8 M

patent branding

for consumer brand companies,
B2B companies

How GM/GE are positioning itself as innovators

companies like coca-cola, mc donalds, kfc don't go for patent sna dmaintains key processes/products as trade secrets (protected under state law).

Marketing ->
Brand product and IP -> Sales/Licensing/Sell/donate/IP holding -> shareholder value
IP Management ->



A coherant IP marketing communication program tied to brands supported by PAtents may increase the value of IP. Customers see the brand and know what to expect from the product that they are purchasing. Non-consumer product firms have just one brand and then association with firm name and logo.

Established brands

Established brands In Chinese, “Crisis” is expressed in two words: “Danger” and “Opportunity”, meaning hope lies beneath difficulties and there is great potential of beneficial revolution instead of slow evolution if the situation is handled properly. In a way, many pharmaceutical companies are currently in a certain state of “Crisis” in the face of various internal and external forces. Internal forces include soaring R&D costs, sluggish sales growth, shorter product lifecycle as well as patent expiry, product withdrawal, poor product pipeline, and etc. External forces include competition, uncontrollabe sociopolitical environment, and pressure from government, healthcare insurer, and patient to contain price. Together, these difficulties have seriously dented Pharma’s recent financial performance. It was predicted that Pharma industry would only deliver no more than 5.3% growth rate between now and the year 2010. In contrast, the FT Pharmaceuticals index rose by over 350% between mid-1993 and mid-2000.

Convey IP strengths = # and types of patent assets, strategy, license revenue and transactions, competitive IP position and successful enforcement actions

"Old economy" companies remain old economy companies because they are not able to educate their inventors of the value of IP. Companies in B2B space like Fujitsu, TI may be power houses of IP but valuations suffer because of the lack of communication.

Similarly, consumer brand companies hold huge large amount of IP (including Patent rights)but their public image is that of marketing rich company. e.g. Philip Morris, General Foods, Mc Donalds. P&G spends more on R&D than 3M, Compaq and Merck.

KAM - Key Variables

KAM - Key Variables 14 key variables are selected to create a simplified "basic scorecard" that attempts to capture a country's preparedness for the knowledge-based economy. The data set consists of 12 variables that represent the four pillars of the knowledge economy and are used to calculate countries’ Knowledge (KI) and Knowledge Economy (KEI) indexes. The scorecard also presents two variables related to the overall economic and social performance.

What is Bayh-Dole Act?

What is Bayh-Dole Act?: "In 1980, the Bayh-Dole Act (PL 96-517, Patent and Trademark Act Amendments of 1980) created a uniform patent policy among the many federal agencies funding research. As a result of this law, universities retain ownership to inventions made under federally funded research. In return, universities are expected to file for patent protection and to ensure commercialization upon licensing. The royalties from such ventures are shared with the inventors; a portion is provided to the University and department/college; and the remainder is used to support the technology transfer process. From a historical perspective, there was a need for reliable technology transfer mechanisms and for a uniform set of federal rules to make the process work. It was tough for the federal government to transfer technologies for which it had assumed ownership. In 1980, the federal government had approximately 30,000 patents of which only 5% led to new or improved products. Many patents were not being used as the government did not have the resources to develop and market the inventions. Thus, Bayh-Dole gave universities control of their inventions."

Bayh-Dole Act - Wikipedia, the free encyclopedia

Bayh-Dole Act - Wikipedia US universities, small businesses and non-profits intellectual property control of their inventions that resulted from federal government-funded research.

Academic centers should be able to anticipate future innovations and direction of technology ahead of corporates.

Researchers develop the product in the university, Corporate partners take the product fwd to develop the market and to manufacture stage.

Compare India with other countries about # of Patents filed.

Science and Technology Ventures - STV Home

Science and Technology Ventures - STV Home As Bernard Wysocki Jr. reports, Columbia earned $178.4 million a year on patent royalties in the year ending June 2003, making it the top earner of licensing revenue among American universities. (Nationwide, 195 universities bring in about $1.3 billion in licensing income from patents; a handful of top research universities earn the bulk of this money.)

What universities want:
Advance inventions to the level where corporates get interested & then let commercialization and manufacturing be handled by corporates.

Columbia University since 1983-2000massed more than 400 US Patents and 1000 active licenses with royalties of $143M/yr. in 2000.

Whats the use:
- Corporate funding for R&D
- license income
- more resources for better facilities to attract top talent

Columbia university has mostly done this healthcare patents but they are trying to replicate this model to copyrighted material from faculty lectures, research writings

Business; Patent Donations Are Novel Corporate Gift - New York Times

Business; Patent Donations Are Novel Corporate Gift - New York Times: "At DuPont, researchers found a way to make a valuable chemical that leaves water as the byproduct instead of tons of acid. At Eastman Chemical, they devised a plastic packaging that could more than double the shelf life of beer and soda. At Procter & Gamble, there were discoveries that could help doctors reduce skin discoloration from burns, wounds and grafts. In each case, the research produced a pile of patents the companies decided they could neither use nor license easily to another business. So this year they used a solution that was pioneered in the mid-1990's and has become increasingly common -- they donated the inventions to universities, hospitals or nonprofit institutions and turned what had been wasting away into multimillion-dollar tax write-offs."

Use this investement to bring tac benefits by donating under section 170 deductions.

Intellectual Property Due Diligence: A Must When Assets Are Transferred

Intellectual Property Due Diligence: A Must When Assets Are Transferred Investment due diligence:

- Portfolio fit: true fit for investment. expertise in industries or structures will affect advancement beyond review
- Management: knowledge, contacts, exp. of management team
- business model: model is unique or subject to the rights of others
- Technology