Commercialization Of Inventions2
description
Transcript of Commercialization Of Inventions2
3rd Technology Commercialization Program
by
Hams A. Madanat Talal Abu-Ghazaleh Organization
©2007
How to build a Successful How to build a Successful Commercialization Strategy Commercialization Strategy
presented inpresented in
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Introduction
“Innovation is 1% inspiration and 99% perspiration”
Tomas Edison
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Definition
• What is commercialization of Inventions?
Commercialization of inventions is a technical term describing the process of extracting financial value from a new invention or innovative idea through turning it into a commercial tradable and profit-generating product.
Commercialization can be made through the inventor himself or though selling or licensing the right to an investor who will, in turn, do the commercialization.
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Methods of Commercialization
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Weighing up your commercialization models should be made in light of:
• Your overall objective• Your financial position• Available skills and resources• Nature of technology• Strength of competition • Range of possible use of the technology
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What can be Commercialized?
• Conceptual ideas
• Under developed inventions
• Developed inventions – Innovations
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Commercialization Pre-requisites
• Industrial applicability• Technical Validity• Market Viability• Patentability• Feasibility
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Commercialization Process
1. Convince and develop an idea
2. Build a prototype
3. Carry out an initial assessment
4. Patent the invention
5. Check “Freedom to Operate”
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Commercialization Process (Cont’d)
6. Evaluate (cont.):
A. Market Potential
B. Technical Evaluation
C. Financial Valuation( IP Valuation)• Cost Approach• Income Approach• Market Value Approach• Other Criteria
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Commercialization Process /Financial Valuation (Cont’d)
Financial Valuation
1. Cost Approach• How much did or will developing the invention
will cost?
2. Income Approach• The 25% rule
3. Market Value Approach• Based on supply and demand• Valued by reference to similar transactions
4. Other Criteria
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Commercialization Process (Cont’d)
7. Determine your objectives and goals
8. Decide on the form of commercialization:– Sale – License– Joint Venture– start up ventures (spin offs)
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Commercialization Process (Cont’d)
9. Approach Investors– Marketing Avenues– Invention Exhibitions– Virtual Markets– Online Databases
10. Consider legal aspects of the transaction
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Challenges faced by Inventors
1. Lack of Financial Resources: lack o money to cover: (e.g.)
– Development cost of inventions– Patent fees– Consultant fees
2. Lack of Marketing Channels and skills
3. Lack of Business Knowledge
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Who Can Contribute to the Process?
• Funding Agencies• Invention Incubators • Non-profit Organizations
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Who Can Contribute to the Process? (cont.)
• Venture Capital Companies• Technology Transfer Offices• Technology Brokers and Consultants
– Commission fee based– Retainer fee based
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Maintaining Secrecy
• How much should you disclose? • Sign NDA’s/Confidentiality agreements
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Anatomy of an NDA
• What does an NDA include?
– Identification of parties– Purpose of agreement– Bilateral/ unilateral obligation to maintain secrecy– Duration– Exceptions
• Information in the public domain• Third party acquisition
• Self development- reverse engineering
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Maintaining Secrecy (Cont’d)
• Patented inventions are less vulnerable to infringement– Patent vs. Trade Secrets Protection
• Before an invention is patented its considered a trade secret.
• Consider whether you want to patent your invention or keep it a secret.
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Conclusion
Words of advise:• Be convinced with your invention in order to convince
others• Always do your home work first• Consult experts • Build your relationship on trust
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End of Presentation