Conference Overview
The management of intellectual property lies at the epicenter of power. This is because Fortune 1000 companies spend about 10% of their revenues on research and development and 10% of such expenditures are allocated to intellectual property management. Thus, 1% of a company’s revenues can drive as much as 50% of the profit structure of the company.
Also, according to some experts, over 85% of the market valuation of the S&P 500 is represented by intangible assets. Other evidence of the power of intellectual property includes:
- Ernst & Young reports that patent licensing alone should soar from the $110 billion it generated in revenue in 2000 to $500 billion by 2015.
- Qualcomm has generated as much as $430 million in licensing revenue in recent quarters while IBM earns more than $1 billion annually licensing its IP.
However, failing to manage intellectual property can be fatal. The Harvard Business Review concluded that more than $1 trillion annually is wasted in patent assets. Patents can be invalidated, injunctions on revenue-generating products can be granted, and patent litigation can endure for years and cost tens of millions of dollars. Recent examples of patent litigation include:- Microsoft vs. Alcatel-Lucent - $1.5 billion
- Verizon vs. Vonage - $58 million
- Michelson vs. Medtronic - $1.35 billion
- Medinol vs. Boston Scientific - $750 million
- NTP vs. RIM - $612.5 million
- EOLAS vs. Microsoft - $520 million
- Paragon vs. Weyerhaeuser - $480 million
- @Home vs. AT&T - $340 million
The effective use of IP requires you to know how to inventory your IP. After taking effective inventory, you must be able to determine which IP assets should be licensed, sold, retained, spun-off, borrowed against, pooled and securitized.
Don’t miss this unique opportunity to listen to world-renowned authorities discuss a multitude of methods for deriving value from intellectual assets. Be sure to hear the best strategies for managing and monetizing your patent portfolio. Learn how to transform your company’s IP portfolio from a dormant asset into a dynamic asset.
Intellectual Property is a Primary Driver of Corporate Value and is Corporate America’s Achilles Heel
Dear Colleague,
The Federal Reserve recently reported that American businesses now spend as much on developing and purchasing intangibles as they do on their equipment, plants, real estate and other physical assets. By another recent and rigorous calculation, America's total stock of intellectual property today is worth about $5.5 trillion, equivalent to about 45 percent of our gross domestic product and greater than the GDP of any other nation. The ability to introduce innovative products, to secure better production methods, to become the sole provider of particular merchandise all emanates from securing intellectual property rights.
Most institutional investors and corporate managers respect intellectual property as a legal construct. However, both Wall Street and Corporate America have failed to appreciate the value generating ability of IP. Thus, Corporate America has neglected to actively manage its IP portfolio and professional investors have been remiss in trying to assess the value of IP resident in the companies in which they invest.
Savvy business and portfolio managers are beginning to appreciate the fact that IP is more than a legal claim on ingenuity. IP is becoming a revenue producing asset, a crucial ingredient in enhancing corporate brand equity and a weapon to attack competitors. However, IP portfolios may be devalued by reverse engineering and patent expirations. Also, asserting rights to IP is often a necessary, albeit dangerous, proposition as such assertions can boomerang in viscous countersuits.
Don’t miss this unique opportunity to listen to leading IP professionals discuss best practices for managing intellectual property in terms of deriving shareholder value and in terms of using IP as a strategic weapon.
I look forward to meeting you in New York City on November 12.
David Wanetick
Managing Director
IncreMental Advantage & The Business Development Academy
Agenda
November 12, 2008
Brown Rudnick
Seven Times Square
(entrance on Broadway between 41st and 42nd Streets)
47th Floor
New York, NY 10036
Registration & Networking
Best Practices for Strategic Licensing
- Aligning licensing strategy with corporate goals
- Freedom to operate
- Patent expiration and license terms
- Exclusive vs. non-exclusive rights
- Assignability and the authority to sub-license
- Risk allocation
- Representations and warranties
- Indemnification and limitations on liability
- Direct vs. contributory infringement
- Attacks on the licensed patent
- Cross-licensing and joint development
Moderator: - David Wanetick, Managing Director, IncreMental Advantage
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Panelists: - Thomas Redder, Director, IP Licensing and Business Development, Life Sciences and Chemical Analysis Group, Agilent Technologies, Inc.
- Christopher Danowski, Director of Technology Commercialization, Ford Motor Company
- Brad Kullberg, VP Corporate Business Development - GM Intellectual Property, Polaroid Corporation
- Liz Bui, J.D. Ph.D., Director of Intellectual Property, Novocell, Inc.
- Louis Gerrue, Senior Manager, Business Development, Invitrogen Corporation
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Networking Break
Maximizing Returns on Technology & Intellectual Property
This session is designed to help you formulate a plan to commercialize technology and boost related revenues. You will learn how to:
- Calibrate your IP initiatives to market conditions by taking IP inventory and examining IP transactions in the marketplace.
- Evaluate your technology’s market potential and actual worth by employing valuation methodologies such as value proposition analysis and IP value chaining.
- Generate higher transaction returns on your IP by pursuing new commercialization options.
- Develop a business case for technology transfer and licensing.
- Realize commercial success by building consensus with your partner, drafting term-sheets, arriving at documentation close, and efficiently managing contracts. There will be case studies on Chinese technology transfers and reforming a traditional service model to incorporate innovation.
Speaker: - Joseph M. O’Shea, Director Corporate Development – Open Innovation, The Danaher Corporation
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Assertive Licensing
- Patent is nothing but a license to sue
- Licenses come in two varieties: carrot and stick
- Every carrot license is a stick license in disguise
- Corporate officers and directors may be held responsible for not enforcing infringed patents
- Exclusive vs. non-exclusive
- Licensing matrix
- What is a patent license worth?
- The world after eBay
- Putting an infringer on notice… not so fast
- Patent litigation as licensing strategy
- Choice of venue
- Contingency vs. hourly representation
- Royalty base and royalty rates
- Litigation risk analysis
- Industry-wide patent assertion from the game-theory perspective
Lunch
An Interactive Session on Developing Licensing Strategies Appropriate for Your Business
This session will provide you with actionable knowledge that you can take away and use at your company to build and sustain a licensing business. This session is intended to help enterprises where selling products protected by intellectual property is the primary source of revenue, and where a substantial portfolio of patents and know-how, created from investments in innovation, has not been fully levered to extract value.
If Business Week is correct in its estimation that US intellectual property is worth $5 trillion (March 27, 2007), are you extracting the most value you could for your company from its intellectual asset base? Are your licensing deals and agreements helping to establish the value of your company’s innovation? If these kinds of questions are being asked in your company, then this course can provide you with answers.
The course will address:
- What are the critical success factors that would make licensing ‘another arm’ of your business?
- How do you achieve the support from your enterprise necessary to start and sustain a licensing business?
- How do you identify the most valuable intellectual properties to license?
- How do you develop and market license offerings that get the attention of prospective licensees?
- How do you identify the high value licensees?
- How do you put a fair value on the license offering?
- How do you structure license deals and agreements that maximize licensing revenues and protect your business’ product sales and interests?
- How can an intellectual asset management process help to sustain your licensing business?
- What skills should your licensing staff have?
Speaker: - Gus Orphanides, President of gNOSSIS LLC
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Adjournment
agenda subject to change
