IPR Strategies for Startups

Dilip Kumar- Founder & Director

Lets Discuss !

• Types of IPR• Why IPR for Startups ?• IPR Strategies : Some Pointers• Success Stories

Have answers to these Question

• What is the concrete purpose of having the IPR?

• What are the limits of your invention ?• What are the opportunities in

international market ?• What is the value of your invention ?

Types of IPR

Semiconductor

Chipset Design

Trade Secret

Plant Breeders

Rights

Geographic

Indications

Industrial Design

Copyright

Trademark

Patents

Why IPR for Start-ups?

Deter Competitors from copying your

ideas

Protection

Ease of due diligence and an asset

Investor

Generation via licensing and sales

Revenue

Protection

Deter Competitors from copying your ideas

Protection

• Identify new and novel features

• Never presume something is not patentable – sometimes the least technological feature is the most valuable

• What to protect- Technology, Process, Business model

• Make sure you have the right type of IP protection

• Sequential innovations – new product generations displacing old

• Old generations provide competitive discipline

• Time to take it international

Benefits

•You get exclusivity in the market

•You enjoy monopoly

•Expresses the innovation potential to customers

If you don’t care about it and protect it, it may come back and haunt you

• Identify new and novel features

• Never presume something is not patentable – sometimes the least technological feature is the most valuable

• What to protect- Technology, Process, Business model

• Make sure you have the right type of IP protection

• Sequential innovations – new product generations displacing old

• Old generations provide competitive discipline

• Time to take it international

Benefits

•You get exclusivity in the market

•You enjoy monopoly

•Expresses the innovation potential to customers

If you don’t care about it and protect it, it may come back and haunt you

Investor

Ease of due diligence and an asset

Investor

A potential investor will examine:

• The Company’s IP ( patents, filed patent applications, other registered or unregistered IP assets)

• No. of IP assets not important but the extent of the

• Protection

• The value of the Company’s IP assets

• The exist strategy via IP

Benefits • Increases chances of funding

• Greater valuation

• Raise money without much liquidation by licensing or monetization

A potential investor will examine:

• The Company’s IP ( patents, filed patent applications, other registered or unregistered IP assets)

• No. of IP assets not important but the extent of the

• Protection

• The value of the Company’s IP assets

• The exist strategy via IP

Benefits • Increases chances of funding

• Greater valuation

• Raise money without much liquidation by licensing or monetization

Generation via licensing and patent

sales

Revenue

• Merely owning an IP does not generate any monetary benefits

• They can raise additional cash

• Monetize your non core IP assets that no longer supports the business

Revenues can be generated by

•Licensing patents and patent portfolios

•Licenses can be exclusive or non exclusive

•Direct sales of patent fetches one time revenue

• Merely owning an IP does not generate any monetary benefits

• They can raise additional cash

• Monetize your non core IP assets that no longer supports the business

Revenues can be generated by

•Licensing patents and patent portfolios

•Licenses can be exclusive or non exclusive

•Direct sales of patent fetches one time revenue

Revenue

IPR Strategies

Harvesting inventions, tapping their full potentials as to the IP strategic goals

Innovation manageme

nt

Provisional applications to buy time. Assignment, Protecting the best markets (market segment, countries, …)

IPR Filing Strategy

Management of IP assets as an investment portfolio, Selling your Patent, Patent licensing

IP Monetizatio

n

Success Stories -Case Studies

A telecommunication R&D firm with 800+ patents

Israeli based NASDAQ listed company in VOIP domain wanted to raise money from the market. Holds 22 patents.

IP on Low power semiconductor with focus on reducing power consumption on electronic devices(140+ patents)

Transmeta

Got Acquired by Novafora for $255.6 million

A California based company engaged in creating products in the electro-optical cameras, image processors, and stacked chip assemblies

Irvine Sensors

IP licensing to Aprolase Development Co.for $9.5 million

Telcorida

Got funding from an Invention and private equity investor firm for a "long term commitment”, the new investor will license 500 of their inventions worldwide

VocalTech Communications

11 patents were sold for $12.5 Karo Millennium JP LLC, shares jumped 11 percent on NASDAQ after this transaction

Conclusion

Different types of IP : Different types of rights

IPR : Protection and exclusivity to your ideas

IPR : Deter competition from copying your ideas

Strategic IP gives competitive edge

IP asset are a means to generate revenue

Thank you & Questions

Email : Dilip.Kumar@inolyst.com

www.inolyst.com