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Ian P. Hartwell PhD EPA CEng Honorary Research Fellow Engineering Intellectual Property Research Unit School of Engineering Cranfield University United.

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Presentation on theme: "Ian P. Hartwell PhD EPA CEng Honorary Research Fellow Engineering Intellectual Property Research Unit School of Engineering Cranfield University United."— Presentation transcript:

1 Ian P. Hartwell PhD EPA CEng Honorary Research Fellow Engineering Intellectual Property Research Unit School of Engineering Cranfield University United Kingdom Strategic Use of Intellectual Property for Business Growth and Financing the strategic role IP can play in acquiring finance for SMEs © IP Hartwell 2010

2 What is strategic use of IP ? Managers of IP-related innovative businesses may view their business as … focused on one self-sufficient business model which, if successful, results in exceptional profits, but otherwise is worth little or nothing Report Intellectual Property Enforcement in Smaller UK Firms UK Strategic Advisory Board for Intellectual Property Policy, October 2010 Strategic Use of Intellectual Property for Business Growth © IP Hartwell 2010

3 What is strategic use of IP ? Venture capitalists may therefore be readier to see that extraction of value from innovation is … … one which may have a variety of outcomes or solutions, some of which may be obvious, readily accessible and successful but others of which may not be so obvious, or accessible and may even be less profitable than initially hoped. Strategic Use of Intellectual Property for Business Growth © IP Hartwell 2010

4 Strategic Use of Intellectual Property for Business Growth SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate A spectrum of IP business models

5 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth More than one IP business model SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate

6 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP business models can evolve SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate

7 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate Most obvious not necessarily the most successful … and structure the IP portfolio accordingly

8 Illustration: Xaar plc Analysed by Credit Suisse First Boston in 1999: Report Technology Licensing: Intellectual property rights and wrongs Credit Suisse First Boston (Europe) Ltd, October 1999 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth The company is both an IP licensing and a product sales company, active in the ink-jet printing device market. We believe there are significant growth opportunities for Xaar in the office equipment market and … the fragmented industrial printing sector

9 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate IP Business Model Xaar plc, 1999

10 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP Business Model Cambridge Consultants, 1987 SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate

11 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP Business Model Xaar Ltd, 1990 SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate

12 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP Business Model Xaar plc (incl. XaarJet AB), 2000 SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate £15m £6m

13 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP Business Model Xaar plc, 2007 SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate £45m £2m

14 © IP Hartwell 2010 Strategic Use of Intellectual Property for Business Growth IP Business Model Xaar plc, 2009 SUPPRESS IP MONOPOLISE IP LICENSE IP SELL IP Manufacture Contract Manufacture Joint Venture Cross Licence Exclusive Licence Non-Exclusive Licence Sole Licence Mutually-Assured Destruction Securitize Sale PoolingDonate £37m £5m

15 Ian P. Hartwell PhD EPA CEng Honorary Research Fellow Engineering Intellectual Property Research Unit School of Engineering Cranfield University United Kingdom Strategic Use of Intellectual Property for Business Growth and Financing © IP Hartwell 2010 Understand the different ways in which IP can be used Understand that multiple IP business models may be necessary (and that these may change) Structure the IP portfolio accordingly


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