IP Monetization

1. IPs – A perspective
Muthu
21-IV-2016

2. IP Monetization is the End of IP
Lifecycle
Loop closure

3. Value – A mythical curve
commodities
product
service
user
experience
User Exp Exs : iPhone, Avatar, Daabang, Enthiran,..
Service : TCS, Infosys, Wipro, InMobi..
Products : Tally, Onida-Thunder, MicroMax, iPhone
Commodities : Spirulina, Sunflower seed etc..

4. IP Valuation
• Min and Max
• Development Cost * Factor
• Demand-Supply
• Time(Longevity)
– Transient
– Steady
• Free – is not really free
• Unknown
• IP coffins

5. IP Licensing models
• Business model driven
– Usage based
– Outright sale
– Royalty
• ThRu:- 2% of average sale price
• Capping
• What is opposite of Capping ?
• Exclusivity

6. IP value/revenue curves you may see
Value
Time
very likely
possible
eventually

7. IP Licensing – Other options
• Service augmentation
• Product differentiation
• Gambling

8. IP Licensing - Contrasting
• Vis-a-vis sale of goods
• Visible v/s Invisible
• Derive from Products

9. IP Licensing – Examples
• Give and prosper - ARM, Dolby, Philips(I2C,LED)
• Protect and prosper – Adobe
• Free and prosper – MPEG, HDMI
• A SFO based SW co(a few years back)
– Dev centre in Sarjapur Rd
– 5K LOC-Java – 1M$ (sold a few already!)

10. IP assessment – Tools
• Professional Platforms like Relecura, Vajrasoft
– Very powerful tools to look for new domains to
build IP as well as assess/rank existing ones
• Open/Free sites/tools like USPTO, Google

11. Courtesy: Relecura

12. File provisional patent application (optional)
File complete patent application (within 12 months if
provisional is filed)
Patent application will be published after 18 months
from the filing date (if early publication request is not
filed)
File examination request within 48 months from priority
date
Patent application is examined by patent office
Examination report is issued by patent office
Patent applicant responds to the examination report
(multiple iterations with patent office possible)
Patent is granted or rejected within 1 year from the date
of issuance of the first examination report
Actions taken by patent
applicant
Actions taken by patent
office
Indian Patenting Process -
snapshot
Courtesy:
Karthik, InvnTree
Patent
Design
Trademark
Copyright
Trade Secret
Types of IP

13. Try to follow these, it helps
• Ideas are the genesis of everything
• When in doubt, file for an IPR if you can afford
• Do not hire yourself, redundancy doesn’t help, encourage everyone to be
creative.
• Leave paper trails/docs/write-ups on everything you/people do
• Business and Capital are as important as Tech/Engg
• Build as many associates and partnerships as possible
• Do not hesitate to take help
• Think “end ups” when you do start ups
• Never go below (#employees*100K$) valuation
• Never waste time, use the time to think/do IP activities
• A good IP portfolio helps you always and surely during tough times

14. THE END
thank you