MSMEs and IPR

MSMEs and IPR:

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Internet-based Intellectual Property Exchange: a review

Internet-based Intellectual Property Exchange: a review

Introduction:

There is no denying the appeal of an Internet-based matchmaking apparatus for IP — a place where technology transfer organisations (TTOs) can post their technologies and where interested corporations can find the inventions they need, resulting ultimately in a licensing agreement and royalty therefore. In fact, the idea is so compelling that it has fuelled the creation of dozens of Web-based IP exchanges in recent years. However, most of these efforts have generated mixed results thus far. Nonetheless, potential buyers are doing some shopping on these IP portals, and while challenges remain for the service providers, many exchanges are working diligently to make the process easier for TTOs — and more effective.

Background:

Many universities, companies and entrepreneurs have IP that they are interested in selling and/or licensing to others. Conversely, many companies and entrepreneurs are seeking new technologies or processes, in the form of IP, to purchase or license. Thus there is a requirement for those that generate new technology and are looking for firms that are interested in licensing that technology, or are looking for potential investment partners to take their technology to the next stage.

Objective:

To connect those currently holding intellectual property (IP) rights such as patents with those who are looking to purchase or license IP.

Issues:

Developing and Implementing an Effective IP Strategy: Intangible assets often make up over 50% of a company's overall assets, but few companies have developed a defined IP strategy to allow them to manage and utilise these intangible assets. IP departments are becoming more involved in business development so they must put in place an effective IP strategy to avoid the risk of wasting valuable assets.

Which factors need to be assessed in order to draw up your IP strategy?

What tools are available to assist with strategy design and implementing it into an operational strategy?

How can and should you communicate this strategy to the wider business?

Are you maximizing the Value of Your Patents (IP Monetization)?

Presently there are several IP Exchange existing round the globe and some of them are as hereinbelow:

Name of IP Exchange	Information
iBridge Network	www.iBridgeNetwork.org  800-573-5136      info@iBridgeNetwork.org
SparkIP	www.SparkIP.com  404-477-2525      contact@SparkIP.com
TechTransferOnline	www.TechTransferOnline.com  248-593-5926      info@TechTransferOnline.com
TechEx	www.TechEx.com  800-529-5337      info@knowledgeexpress.com
Yet2.com	www.Yet2.com  866-938-2266      info@Yet2.com
The Dean’s List	www.thedeanslist.com  312-327-4400      deanslist@oceantomo.com
Flintbox	www.Flintbox.com   604-678-9981      support@Flintbox.com
Intellectual Property Exchange (IPEx)
	www.IPEXL.com
	http://www.am-fe.ift.org
Intellectual Property Exchange International (IPXI)	www.ipxi.com
Global IP Exchange (IQPC)	www.iqpc.com http://www.globalipexchange.co.uk
	http://www.ssipex.com

All of the IP exchanges offer a marketplace where potential licensees can shop for innovations, but each one has unique characteristics that may make it a more suitable choice for a given TTO or technology. While pricing is always important, it also pays to look at ease of use, name recognition, client base, and the primary mission of the portal.

IP market major problems and the role of IP Exchange:

IP Market Problem	IP Exchange	Result
Incomplete or insufficient market information	Detailed prospectus, published pricing, consumption data reporting, bid/ask	TRANSPARENCY - enabling more efficient IP asset management and R&D decisions
Arbitrary or unilaterally determined IP value	Market-based pricing reflecting the value of a technology and increasing buy-side confidence	PRICE DISCOVERY – ensuring fair and reasonable pricing
Lack of standards, including course of dealing, contract terms, and pricing	Standardized tradable license rights accessible to all market participants	LEVEL PLAYING FIELD – accelerating technology transfer and innovation
Time and transaction cost inefficiencies associated with bilateral licensing	Central marketplace with market enhancing solutions, such as standard contracts, outsourced auditing, and alternative dispute resolution processes	EFFICIENCY - providing easy access, liquidity, and increasing transaction volume

IP Asset Management: some alerts-

IP Asset Management: some alerts-

This article discusses some basic, often cost-effective steps that businesses may consider to minimize costs when securing protection of their intellectual property in domestic and foreign markets.

Once patents are procured, a major cost concern relates to dispute resolution and enforcement of the patent rights that topic will not be addressed in this article.

Many businesses rely on the development of new and innovative products for driving their competitive strategies and have become savvy users of the intellectual property systems in their domestic market and in foreign markets. However, as the costs of procuring and maintaining patent protection progressively increase, businesses should take adequate steps to manage and extract maximum value from their intellectual property assets while also controlling their budgets. These steps include developing an intellectual property protection strategy that aligns with business objectives, conducting due diligence with respect to their inventions, making an effort toward having a basic understanding of the different patenting stages and associated costs, and identifying major foreign markets for sales, manufacture, and distribution of their products.

Develop an intellectual property protection strategy that is appropriate for your business

Businesses are routinely faced with the tough decision of whether an innovation should be protected through patents, kept as a trade secret, or abandoned in domestic and foreign markets. Therefore, it is important for a business to develop a focused intellectual property protection strategy that is in alignment with the business’ strategic needs.

Unless a business has unlimited resources, it cannot afford to apply for and maintain patent protection of every new development. Some developments may not be patentable because of prior art or other issues, or may not be worth the expense of applying for patent protection. In such instances, these developments are better kept as a trade secret or published defensively to prevent third parties from patenting the development. While these two non-patenting options have little or no associated costs relative to the patenting process, there are certain risks and limitations associated with their use, such as difficulties with maintaining the development “secret” and risks associated with publishing too much information or creating prior art against the business’ own future developments.

Conduct searches and draft the patent application with all the countries of interest and with costs in mind

Just because a product or service is not yet commercially available, it does not follow that it is patentable.

The due diligence should be performed before the patent application is drafted and filed, during the development stages, and just before product launch.

To keep search costs down, a preliminary search of free patent and non-patent databases can be performed. If that searching is not sufficient, a business should consider using commercial information service providers to perform a more comprehensive review of materials. Many of these service providers offer volume discounts depending on the number and size of the searches.

Post-grant patent issues-

Keeping in mind the risks and costs of marketing new products, it is worthwhile for a business to conduct due diligence, e.g., prior art and freedom-to-operate searches, to determine whether there are any issues with respect to patentability of the inventions and the existence of competitor or other third party patents.

The due diligence should be performed just before product launch. 

Need of an IP Culture in MSMEs and the role of Intermediaries such as non-profit organisation and NGOs for MSMEs

MSMEs:

Micro, Small and Medium enterprises are independently owned businesses set up with the objective of making reasonable profit on the investment made. Generally, MSMEs are defined on the basis of one or more quantitative parameters such as number of persons employed, the annual turn over, or the level of their investment.

Need of an IP Culture in MSMEs:

MSMEs could help promote innovative new technologies, managerial growth and competitiveness as also, equally, the absorption of technological innovations and exploitation of indigenous research findings.

Most studies undertaken, be they in developed or in developing countries, show that MSMEs in general are not well informed about the potential benefits of using Intellectual Property assets in their business strategy.

All Governments have placed MSMEs high on their list of priorities, and generally provide numerous MSMEs support services. Governments are encouraging and facilitating the MSMEs to make specific use of the Intellectual Property (IP) system to improve their competitiveness in the domestic and global market place.

IP system benefits: provides the-

• mechanism to prevent those who do not have the right over protected new or original knowledge and technology, from using it without prior authorization of its owner(s) thereby preventing ‘free riding’; 
• basis for greater security in developing trust worthy business and customer relationship; 
• documentary evidence needed for resolution of disputes in a fair and transparent manner; 
• IPRs which can play a major role in the areas for increasing the competitiveness of MSMEs. 

Major role of IPRs in the areas for increasing the competitiveness of MSMEs:-

• Acquisition and exploitation of technological innovation;
• Preventing competitors from copying or closely imitating a company’s products;
• Obtaining access to new markets ;
• Acquiring venture capital and enhancing access to finance;
• Enhancing the market value of a company;
• Avoiding wasteful investment in R&D and Marketing;
• Creating a corporate identity 

MSMEs and the IP Strategy:

• Creating an IP culture: creating and implementing an action plan for protecting its business secrets and other innovations that provide it an edge over its competitors; 
• Identification of IP assets (IP audit): to capitalise on the potential benefits of MSMEs IP assets; 
• costs and benefits analysis: making technocrats and staff of MSMEs aware and informed of the costs and benefits of the use of IP system; to decide on foreign filing, one need to consider the likely demand, licensing possibilities, and enforcement difficulties but this decision should be made as early as possible. 
• IP Protection: making policies on acquisition, exploitation, monitoring and enforcement of Intellectual Property; 
• IP commercialisation: assignment or licenses of IPRs to get the best result out of their IP assets in line with their business objectives; may require suitable network partners and joint ventures 
• IP asset management: maintaining the granted IPRs by paying regular annuities; 

Role of Intermediaries such as non-profit organisation and NGOs for MSMEs:

In order to bridge the innovation and technology gap, better access to financing, information and services that facilitates the innovation process has to be provided to MSMEs through intermediaries. An intermediary can do a practically good job of disseminating innovation and technology to its MSMEs clients.

These may intensively involved in MSMEs issues such as capacity building including protection of Intellectual Property Rights and its effective enforcement. It has taken a lead role in raising awareness on IP at the country. These may provides a platform for continuous interactions between industry and the Govt. authorities with a view to provide an interface for the businesses to resolve their procedural issues. It also provides feedback to Government on policy related matters.

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