![Page 1: Getting Your Intellectual Property Investor Ready A Presentation to TTI2001 – 27 September 2001 Malcolm McBratney, Partner – Technology Group](https://reader036.vdocuments.mx/reader036/viewer/2022062620/551a1f31550346cb358b4a54/html5/thumbnails/1.jpg)
Getting Your Intellectual Property Investor ReadyA Presentation to TTI2001 – 27 September 2001
Malcolm McBratney, Partner – Technology Group
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![Page 3: Getting Your Intellectual Property Investor Ready A Presentation to TTI2001 – 27 September 2001 Malcolm McBratney, Partner – Technology Group](https://reader036.vdocuments.mx/reader036/viewer/2022062620/551a1f31550346cb358b4a54/html5/thumbnails/3.jpg)
Outline
• Investor Readiness
• Introduction to IP
• IP Investor Readiness
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The Business Growth Cycle
• Idea investor ready
• Once investor ready:
• Venture capital
refinement of idea
testing of idea, applications,
certification if necessary
• Public offering (and listing) - realisation
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Are you investor Ready?
What is Investor Ready?
• Innovation secured - intellectual property
• Management competence and integrity
• Sound business plan
• Knowledge of market, good position
• Risk and returns accurately portrayed
• Ease of investor exit
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Risks to Becoming Investor-Ready
Risks to innovation becoming “investor-ready”
• Alternative innovative developments
• Poor licensing arrangements
• Over-estimation of market
• Ineffective management
• Lack of investor confidence
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Summary - The 8Ps
1. People
2. Perseverance
3. Product
4. Patents
5. Projections
6. Prospects (of commercialisation)7. (Risk) Profile
8. Passion
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What is intellectual property?
What is intellectual property?
• Patents
• Designs
• Trade marks
• Copyright
• Trade secrets
• Databases
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Patents
Patents:
• Protect inventions
• Standard – 20 years
• Innovation – 8 years
• Monopoly right
• Country by country
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Designs
Designs:
• Protect features of shape and form
• 16 years
• Difficult to enforce
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Trade marks
• Company names, brand names & logos
• A business name is not enough!
• Trade marks
• Look before you leap
• Domain name registration
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Trade Marks (cont…)
• Two preconditions
• capacity to distinguish
• not deceptively similar
• Perpetual protection
• Renewal each 10 years
• ‘Use as a trade mark’
• Registration not mandatory
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Trade Marks
• Trade Marks Act
• proprietary rights
• any sign:
• letter
• word
• name
• signature
• numeral
• device
• brand
• heading
• label
• ticket
• shape
• any aspect of packaging
• colour
• sound
• scent
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Business Names
• Administrative
• No proprietary right
• Remove for non use
• Offence to not register
• Will look at similar names
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Company Names
• Administrative
• No proprietary right
• No need to use
• Will not register exact company name but otherwise will
• No proprietary right
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Domain Names
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Copyright
Copyright
• Protects literary and artistic works, sound, TV, radio, film, photos etc
• Protects expression, not ideas
• Generally lasts for the life of the author plus 50 years
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Trade Secrets
Trade Secrets:
• Must be kept confidential
• Have unlimited duration
• Are not property
• Can suffer from leakage
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IP Due Diligence
Why do you need to do IP due diligence?
• Investor - venture capitalist
- private
• Float
• Commercialisation
• Trade sale
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Key Issues
What are the key issues?
• ownership
• encumbrances
• validity
• claims
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Process What is the process?
• Establish a chain of title
• Identify and fix gaps
• ongoing management
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Ownership
• Employees
• Consultants & contractors
• Disclosures to outsiders
• Development records
• IP policies
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Identification
• Each individual IP asset must be mapped
• Chain of title
• Creator/inventor
• Employer
• Assignees
• Licensees
• Encumbrances
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Inventor Employer Purchaser
Licence 1 Licence 2
Chain of Title
Assignment
Charge
Inventor Employer Purchaser
Licence 1 Licence 2
Assignment
Charge
Inventor Employer Purchaser
Licence 1 Licence 2
Assignment
Charge
Inventor Employer Purchaser
Licence 1 Licence 2
Assignment
Charge
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Management
• Database:
• Registrations
• Dealings
• Correspondence
• Physical / electronic compilation required
• The database must be easy to use & review
• Renewal reminder system
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Conclusion
• Be prepared
• Identify and fix problems before 3rd party due diligence
• Maximise value
• Leave enough time
• IP is a valuable asset - it should be managed as such