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Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Patent Licensing Basics
Dr. Kalyan C. Kankanala
www.brainleague.com
Blog: www.sinapseblog.com
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Patent Rights
• Make
• Use
• Sell
• Offer for sale
• Import
• License - Permission
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
License
• Authorization or Permission
• Exclusive Rights
• Territory
• Writing
• Signature
• Register
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Licensing Opportunities?
• Patent Portfolio Analysis
• Grouping
• Validation and Strength Analysis
• Valuation
• Potential Licensees
• Negotiation
• Execution
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Types of Licenses
• Exclusive
• Non-exclusive
• Sole
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Important clauses
• Recitals
• Definitions
• Grant
• Royalties
• Term and Termination
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Recitals
• Parties – Licensor/Licensee
• Addresses
• Dates
• Background of the transaction
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Definitions
• Interpretation clause• Consistently used words
– Specific/certain/lucid
• Attribute specific meaning• Apply to entire agreement
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Examples• Licensor shall mean ABC company having a place of business in Bangalore
and shall include its subsidiaries, assignees and legal representatives.
• Licensee shall mean Kalyan, resident of xyz, Bangalore and shall include his successors, assignees, administrators, executors and other legal representatives.
• Licensed Patent shall mean patents granted in USA under patent numbers xxx, yyy and patent applications pending before Indian Patent Office having filing numbers xxx, and YYY.
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Grant Clause• Most important• Defines scope of agreement• States
– Parties– Type– Subject– Rights– Territory– Term
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Example• Licensor grants to Licensee a nonexclusive license to use the Licensed Patent
within the territory of India from 1st January, 2005 to 1st January, 2006.
• This clause specifies • Who grants to whom -Licensor to Licensee.• Type of license - Nonexclusive License• Rights – Use Licensed Patent• Territory - India• Dates - January, 2005 to 1st January, 2006
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Other Grant Provisions
• Field of Use
• Sub-license
• Grant back
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Term and Termination
• Term• Events
– Material Breach - Nonpayment of royalty, etc.– Bankruptcy– Insolvency– Act of god
• Rights after termination• Confidentiality
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Royalty Clause• Type of Royalty
– Lump sum royalty– Fixed Royalty– Running royalty
• Combination.• Patent prosecution• Mode and Date of payment• Accounting and Record keeping• Non payment consequences.
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Other Clauses
• Indemnity
• Warranty
• Liability
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Negotiation
• Background research
• Awareness of Patent Law
• Technology understanding
• Context and Culture
• Bottom lines and Flexibilities
Copyright, Brain League IP Services, 2010.
Non-commercial use is permitted.
Any Questions, Comments or
Observations?
For further information, please visit - www.sinapseblog.com
www.ipracademy.comwww.onlineipcourses.com
