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Making Sense of Nanotech IP Strategy

                                                    Donald J. Featherstone
                                                    Director
                                                    Sterne, Kessler, Goldstein & Fox
                                                    donf@skgf.com

                                                    Michael D. Specht
                                                    Attorney
                                                    Sterne, Kessler, Goldstein & Fox
                                                    mspecht@skgf.com



                                                    Presented at:
                                                    International Engineering Consortium
                                                    NanoEngineering World Forum
                                                    June 23, 2003 - Marlborough, MA

© 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.
“Innovative companies have been thrust
    into an intellectual property arms race.”
                                           - from Ideas to Assets




1             © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.     1
No. . . Just a Horse Race . . .

    With Winners, Losers and Some No Shows.




2             © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   2
Business strategy drives IP strategy,
         not the other way around.

      Nanotechnology is no different.




3           © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   3
Technology Enabler
    l
          primarily provides nanotechnology to others (e.g.,
        l
        Nanosys, Quantum Dot, Nanotek)


        Application Provider
    l
          primarily produces a product or service based on
        l
        nanotechnology (e.g., Nanoink)


        Technology Adopter
    l
          primarily adopts nanotechnology from others to
        l
        enhance products (e.g., Levi’s)

4                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   4
Intellectual (and Revenue) Capital Builder (e.g.,
    l
    MIT, Northwestern, Harvard)
           primarily develops fundamental nanotechnology for
        l
        intellectual and revenue stimulation


        The Government
    l




5                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   5
Intellectual Asset Management Strategy


          IP Value Generation Foundation
      l


          IP Value Generation Process
      l




6                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   6
Leverage

                                          Protect
    IP Value Generation
          Process
                                           Value

                                          Identify
                           Preparation             Education
    IP Value Generation
        Foundation



7                     © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   7
Engage experienced IP advisors
    l
            Shortage of experienced IP advisors in Nano
        –

        Maintain an IP Strategy and Plan
    l
            Recognized importance in Nano
        –

        Maintain an Employee IP Incentive System
    l
          Not much in early stage nano, still driven by emerging
        –
        nature of technology
        Know what you own, own what you know
    l




8                    © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   8
Communicate your IP Strategy & Plan
    l
          Internal
        –
        – External – Give notice that you are a player
        (when you are a player)


      Educate Team Members and
    l
    Stakeholders on IP Basics
            Patent barring events
        –
            Timetables for patents to issue
        –
            Don’t pretend to be patent attorneys
        –

9                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   9
Internal
     l
             Invention Disclosure Forms
         –                                                       Really Good Stuff
             Engineering Brainstorming
         –
             Marketing Brainstorming
         –

                                                Engineering
         External                                                       Marketing
     l
             VC Bumblebees
         –
             External IP Identification Tools
         –



10                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.                10
Assess value to your business strategy
     l


       Assess value to others (if not within your
     l
     business strategy)
             Cross Licensing Potential
         –
             Revenue Potential
         –
             Defensive Value
         –




11                  © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   11
What is the right form of IP Protection?
     l


         Pursue IP Protection
     l


       License In – Level of Exclusivity, Future
     l
     Development, Term, Field of Use



12               © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   12
Enhance the value of your product
     l
         License out
     l
         Cross License
     l
         Basis for Funding
     l
         Company Credibility
     l




13               © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.   13

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SKGF_Presentation_Left Turns Only - Making Sense of Nanotech IP Strategy_2004

  • 1. Making Sense of Nanotech IP Strategy Donald J. Featherstone Director Sterne, Kessler, Goldstein & Fox donf@skgf.com Michael D. Specht Attorney Sterne, Kessler, Goldstein & Fox mspecht@skgf.com Presented at: International Engineering Consortium NanoEngineering World Forum June 23, 2003 - Marlborough, MA © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C.
  • 2. “Innovative companies have been thrust into an intellectual property arms race.” - from Ideas to Assets 1 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 1
  • 3. No. . . Just a Horse Race . . . With Winners, Losers and Some No Shows. 2 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 2
  • 4. Business strategy drives IP strategy, not the other way around. Nanotechnology is no different. 3 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 3
  • 5. Technology Enabler l primarily provides nanotechnology to others (e.g., l Nanosys, Quantum Dot, Nanotek) Application Provider l primarily produces a product or service based on l nanotechnology (e.g., Nanoink) Technology Adopter l primarily adopts nanotechnology from others to l enhance products (e.g., Levi’s) 4 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 4
  • 6. Intellectual (and Revenue) Capital Builder (e.g., l MIT, Northwestern, Harvard) primarily develops fundamental nanotechnology for l intellectual and revenue stimulation The Government l 5 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 5
  • 7. Intellectual Asset Management Strategy IP Value Generation Foundation l IP Value Generation Process l 6 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 6
  • 8. Leverage Protect IP Value Generation Process Value Identify Preparation Education IP Value Generation Foundation 7 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 7
  • 9. Engage experienced IP advisors l Shortage of experienced IP advisors in Nano – Maintain an IP Strategy and Plan l Recognized importance in Nano – Maintain an Employee IP Incentive System l Not much in early stage nano, still driven by emerging – nature of technology Know what you own, own what you know l 8 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 8
  • 10. Communicate your IP Strategy & Plan l Internal – – External – Give notice that you are a player (when you are a player) Educate Team Members and l Stakeholders on IP Basics Patent barring events – Timetables for patents to issue – Don’t pretend to be patent attorneys – 9 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 9
  • 11. Internal l Invention Disclosure Forms – Really Good Stuff Engineering Brainstorming – Marketing Brainstorming – Engineering External Marketing l VC Bumblebees – External IP Identification Tools – 10 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 10
  • 12. Assess value to your business strategy l Assess value to others (if not within your l business strategy) Cross Licensing Potential – Revenue Potential – Defensive Value – 11 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 11
  • 13. What is the right form of IP Protection? l Pursue IP Protection l License In – Level of Exclusivity, Future l Development, Term, Field of Use 12 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 12
  • 14. Enhance the value of your product l License out l Cross License l Basis for Funding l Company Credibility l 13 © 2003, Sterne, Kessler, Goldstein & Fox P.L.L.C. 13