# Presentation: 689072

## Intellectual Property: Why, When, What, & How

- Venable LLP
- www.venable.com
- Michael Gollin			Ronald Kasner
- 202-962-4072			202-962-4815
- mgollin@venable.com		rkasner@venable.com
- June 3, 2003

## STRATEGIC MANAGEMENT

- Using IP systematically over time to improve an organization’s competitive position.
- Features:
- Simple, long-term, consistent goals
- Profound understanding of competitive environment
- Objective appraisal of resources
- Effective implementation

## GOALS OF IP MANAGEMENT

- Increase enterprise assets
- Obtain short and long term competitive advantage
- Improve marketing and positioning
- Manage relationships with personnel and partners
- Attract capital and protect investment
- Access to technology, materials, software & data
- Protect yourself, customers, and partners from IP challenges and avoid liability
- Facilitate dissemination of knowledge and products
- Make money

## IP TRIGGERS

- Buying, investing in, starting up, or selling a business
- Selecting a name or logo for a product, service, or company
- Developing a new product or service (biotechnology, software, devices, and instruments)
- Improving an existing product or service
- Applying for a federal grant (SBIR)
- Entering into government, academic, or corporate collaboration
- Bringing on a key employee or contractor for design, research, or development work
- Providing business or technical information to suppliers, customers, partners or investors
- Launching a major sales effort or marketing initiative
- Maintaining or expanding a customer list
- Searching for advantages in a competitive market

## TYPES OF INTELLECTUAL PROPERTY

- Trade Secrets
- Patents
- Trademarks & Service Marks
- Copyrights

## Slide 6

## Slide 7

## Patents

**Subject Matter**
- Novel
- Not published anywhere in the world
- Filed within 1 year of sale or disclosure
- 1st to invent and not abandon or suppress
- Non-obvious
- To person reasonably skilled in the art
- Useful -- specific, substantial, credible
- Enabled
- Biotechnology -- identify specifically

## Patents

**Application**
- Filing with U.S. Patent & Trademark Office
- Disclosure
- Claims
- Allowance

**Infringement**
- Independent creation no defense
- Challenge validity & enforceability

## Slide 10

## Trademarks & Service Marks

**Creation**
- Priority
- Time
- Geography
- Federal registration
- Strength
- Fanciful / arbitrary / suggestive / descriptive (secondary meaning)

**v. Trade Dress**
- Design or packaging
**v. Trade names**
**v. Domain names**
**No infringement if:**
- No likelihood of confusion
- Fair use
- Prior use

## Slide 12

## Copyrights

**Creation**
- Original Works of Authorship
- Computer programs, database architecture, software mining tools, reports, marketing materials, web-sites
**No infringement if:**
- Not Substantially Similar
- Independent Creation
- Fair Use

## IP Management Tips

**Integrated management of all IP**
**Allocate responsibility**
- Inside and outside
**Conduct research**
**Create, maintain, and enforce rights**
**Careful timing of decisions**
- Timely filings
- Budget planning for expensive actions
**Avoid liability and ownership disputes**
- IP owners
- Customers
- Collaborators

## Transfer Agreements

- Confidentiality or Non-Disclosure
- Employment
- Independent Contractor or Consulting
- Outsourcing or Services
- CRADAs or Collaborations
- Marketing, Distribution or Reseller
- Strategic Alliances or JVs
- M&A or IPOs
- Grants & Investment Agreements

## Slide 16

## Transfer

**Subject Matter**
- Biological materials, instruments, reagents, software, documentation, etc.
- Improvements and Updates
- Intellectual Property
- Patent
- Copyright
- Trademark
- Trade Secret
- Know-How
**Bundle of Rights**
- Assignment to License

## Transfer

**Scope**
- Perpetual v. Term
- Exclusive v. Non-Exclusive
- Sublicensable v. Non-Sublicensable
- Transferable v. Non-Transferable
- Worldwide v. Territory
- Field v. No Field
**Consideration**
- Royalty (Fixed, Sliding, Tiers, Caps, Floors, Variable on IP,, Deduction for other Royalties)
- Royalty-Free (e.g., Grantback, Improvements, other IP)
- Up-front Fee & Milestones
- Reach Through

## Transfer Checklist

**Restrictions**
- Reserved Rights
- Modify, Adapt, Improve, or  Create  Derivatives/Analogs
- Reverse Engineer
- Confidentiality
- Privacy
**New IP**
- Ownership
- Control

**Non-Compete**
- Solicit Employees or Customers
- Engage in Business
- Contract w/ Competitors
**Applicable Laws, Rules, & Regulations**
- HIPAA
- Health & Safety
- GMP, GLP, etc.
- Export Controls

## Transfer

**Risk Allocation**
- Representations and Warranties
- Ownership & Liens
- Specifications & Performance
- Software & Source Code
- Indemnity
- Non-Infringement
- Use
- Breach
- Limitation of Liability
- Carve-Outs

**Misc.**
- Equitable Relief
- Notice
- Governing Law & Venue
- Integration
- Force Majeure & Waiver
- Interpretation & Translation

## Transfer Pitfalls

- No assignment of ownership to company
- Licensing rights company does not have
- Focus on ownership v. rights
- Scope creep
- Lack of adequate restrictions
- Statutory or contractual grantbacks
- Unforeseen assignment & transfers
- No business, product or IP strategy
- Unrealistic expectations & valuations

## Intellectual Property: Ownership & TransferQuestions & Answers

- Venable, LLP
- www.venable.com
- Michael Gollin			Ronald Kasner
- 202-962-4072			202-962-4815
- mgollin@venable.com		rkasner@venable.com
- June 3, 2003