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From Knowledge to Market - IP Challenges in the Commercialisation of R&D Results

Seminaire Valorisation de la Recherche, brevet et propriété intellectuelleParis 2010

Dr. Lorenz Kaiser

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The Profile of the Fraunhofer-Gesellschaft

7 Groups:

Information and Communication Technology

Life Sciences

Microelectronics

Light & Surfaces

Production

Materials and Components - MATERIALS

Defense and Security

60 Institutes

17 000 employees

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Quelle est cette plante?

Changing its enzymes it can by used for producing latex easily in big dimensions

The rest of the plants esp. the roots can be used as rabbit food because of its high inuline concentration

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Functions of IP in a Research Organization depending on the form of Cooperation

IP as asset for securing a position in technology

IP as patent manifesting market power

IP as aquisition instrument for business

IP as defending instrument against competitors

IP as basis for licence revenues

IP as incentive and motivation of staff

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The Foreground of former projects is often (partly) the the Background in new Projects

Preparation and Acquisition Phase

Foreground IP(former project)

Background IP

Foreground (new project)

Contract andTransfer Phase

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IP in the Preparation Phase of R&D-ProjectsIP in the Preparation

Phase of R&D-Projects

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Know-how Protection in thePreparation Phase - risks

Naive trust in the confidentiality obligation of the partner

Missing factual control mechanisms of own Know-how

Unprotected exchange of Know- how in the preparation phase

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The Use of Non Disclosure Agreements for Damage Compensation in Case of Breach of confidentiality??

Most European Legal Systems cannot compensate the real loss in case of breach of confidentiality.

Disadvantage in competition cannot be figured out

No legislation about this question available (at least not in Germany)

Consequence

Find additional effective technical protection of your IPEsp. protect electronic data against espionage

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Essential Measures for Know-how Protection

Legal:

Confidentiality Agreements with satisfactory rulessatisfactory rules

Check rules of labour contractslabour contracts about confidentiality clauses, also "for the time after""for the time after"

IP - Professionals for Contract-Negotiations

Check, observe and completeCheck, observe and complete patent portefolio

Technical:

Control electronic dataelectronic data,, seperate internal server recommended with reduced access to sensitive datareduced access to sensitive data

Remove MobilesRemove Mobiles and Memory SticksMemory Sticks out of the meetings

Install a person responsible for Know-how protectionperson responsible for Know-how protection

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JOSEPH VON FRAUNHOFER-AWARD 2009

Coining by blast with explosive agents to create holographic structures in steel as protection against counterfeiting expensive metal spare parts of machines and automobile parts

Günter Helferich

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Impact of IP in Different Forms of Cooperation

Impact of IP in Different Forms of Cooperation

Internal IP Managament and Licensing

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The 3 threats from strong competitors with IP power

Make helplessMake helpless

Hollow outHollow out

Amalgamate and scrap

Amalgamate and scrap

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A specific Portfolio-Technique tries to help to identifiy patent utilization Opportunities of Fraunhofer institutes

Patent Portfolio

4

3

Patent Quality

Pote

nti

al

mediumsmall large

med

ium

small

larg

e

2

1

Potential = market opportunities: Cannot be influenced by the institute

Patent Quality: Can be influenced by the institute

Patent-Cluster

Cluster-Patents protect inventions

@̶ targeting a common product spectrum

@̶ based on the same technology / approach

Number of patent families

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Licensing Problem: The Development Gap

In most sectors, companies will only license fullydeveloped technologies this especially true in:

Life Science is an exception. Projects start later;Less time for exploitation caused by longer developmentand clinical test series

> patent protection phase can be prolonged to 25 years

engineering

electronics

physical sciences

> patent protection phase is 20 years

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Impact of IP in Different Forms of Cooperation

Impact of IP in Different Forms of Cooperation

Contracting (vertical and horizontal cooperation)

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Forms of Cooperation in a RTO as Knowledge Hub

Portefolio building

internal research

cooperation

alliance/cluster

licencing

spin off

Joint Venture

contract research

foundation

RTO

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Research/Market

Push Pull

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Success and Failure close togetherThe Different Applications of Service-Robots

WindowcleaningEntertainment / Info / Guidance

Inspection of chemical facilities

Maintenance and Inspection

Floorcleaning

Healthcare Guarding Manufacturing

Housekeeping

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The "Rights-to-the-Results-Problem of of Contract Research

field of application exklusive

option for another fields of application

other fields of applicaton to be negotiated

field of application for third paty (comeptitor!)

other field of application non exclusive

field of application exclusive for a limited time period

Property

Patents a.o.

Know-how

Rights to the Results

Rights to the Results

usual industry position: overall property of IP in contract research

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The Enforcement Problem in R&D Contracts

Client: guarantee for no conflicting rights in the commercialisation phase

R&D Performer: No guarantee, but hold harmless against third party claims

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Example for Coollaborative Research

Resistant prions

(IME) Prions, the pathogens that cause scrapie in sheep, can survive in the ground for several years, as researchers have discovered. Animals can become infected via contaminated pastures.

It is not yet known whether the pathogens that cause BSE and CWD are equally resistant.

© Fraunhofer IME

Researchers bury prions in the ground.

ZV-P2/August 08

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Rights of Use in Collaborative (and funded) Research

Foreground Background

For the duration of the project

• non-exclusive rights

• royalty free

Beyond it, especially for commercial exploitation of the results

PRO‘s Position

•non-exclusive rights

• against royalties

Industry Position

Exclusive right

Royalty free

Where required for the exploitation of the results

• non- exclusive rights

• against royalties

Where required for the execution of the project

• non-exclusive rights

• free or against royalties

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In brief Challenges of Strategic

Alliancesand Joint Ventures in R&D

In brief Challenges of Strategic

Alliancesand Joint Ventures in R&D

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Strategic Alliances

IP Pools - question of costs

joint ownership - how to exploit

industry exploitation -sharingthe revenues

joint development and/orexploitation company

EU - Competition law "cross subzidation"

Non for profit - Status of PRO's

New long binding models : NoE, JTI, with different exploitation schemes

Negotiations about Legal problems

Balancing the interests of stake-holders is often extremely difficult

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University Cooperation Model:"Annex"-Institut (Research Institute associated with a University)

University

Company donating Founds

Conjoint

Appointment

Cooperation ContractAnnex-InstituteAnnex-Institute

Universityinstitute

Universityinstitute

Universityinstitute

Approval

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IP-Scheme "Annex-Insitute"

excellent basis for creating joint IP competeence, Research and industry cooperation under the roof of the university

IP-schemes enable direct transfer

"Annex-Institute" is directly involved in creating and exploiting IPTransfer of IP through staff may be goes to industry

"Neighbour institutes" have chance to increase knowledge base

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Cooperation Model "Spin In"

Subsidiary orBranch lab:

Development or

Production(small series)

Subsidiary orBranch lab:

Development or

Production(small series)

Research Institute

Research Institute

CompanyCompany

Cooperation LicensingJoint Development

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IP-Scheme "Spin In"

rental-models do not influcence the IP-rules directly

Additional cooperations determine the IP-rules

IP-schemes on prefential conditions

discussions about IP-Property

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Cooperation Model: Joint Platform Science / Industry (compare JTI -system of the EU)

Research Alliance 3

IndustryInvestmentof xx Mio €

IndustryInvestmentof xx Mio €

InstituteInvestment

IP and lab capacity value xx Mio €

InstituteInvestment

IP and lab capacity value xx Mio €

Institute Laboratory

Using Proportion

Industry

80 %

Institute

20 %

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IP-Schemes Sharing the Resources

Similar to Spin in model: no exclusive transfer of institute's competence!

Strong impact of competition and state aid law

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La solution du mystère:La plante est "pissenlit" Dandelion

Dandelion latex congeals quickly, making its

rubber difficult to extract:

Fraunhofer IME has discovered the enzymes responsible for coagulation. The enzymes can be suppressed by RNAi

Fraunhofer scientists have created transgenic dandelion plants with free-flowing latex, from which large quantities of rubber can be extracted

the roots and other plant rests of dandelion esp a Russian subspecies is an ideal rabbit food because of high inulin concentration

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Paris, January 2010

Dr. Lorenz Kaiser

From Knowledge to Market - IP Challenges in the Commercialisation of R&D Results