Presentation on theme: "Keeping Negotiations on Track Karen Maurey Director, Technology Transfer Center National Cancer Institute National Institutes of Health September 15, 2009."— Presentation transcript:
Keeping Negotiations on Track Karen Maurey Director, Technology Transfer Center National Cancer Institute National Institutes of Health September 15, 2009
Resource: “Dirty Little Tricks People Play in Licensing” Robert MacWright, John Ritter, and Alan Bentley Common negotiation tactics described in lively, tongue-in-cheek style Goal is to increase awareness of common strategies and tactics Suggestions for blunting the emotional impact, and increasing the ability to cope and move forward with the negotiation
Introduction Content of training is often on what we need to do Laws and regulations Agency policies and procedures Negotiations are more than offers and counter-offers with the outside party Internal “negotiation” is frequently important How may be as critical to the final outcome as what we are doing
Format for Today Exercises based on technology transfer experiences at NIH which I hope will also resonate with other federal labs Active participation
Exercise #1: Negotiation You are not permitted to speak. Stand up, find a partner, clasp hands. You will have 30 seconds to attempt to pin your partner’s thumb. Your annual performance rating and the program’s metrics are based on the number of “pins” so be sure to silently keep count of your “pins” Do not break any fingers – remember this is just an exercise!
Discussion: Negotiation Exercise
Exercise #2: The Deal Scenario Recommended actions – what to do Possible approaches – how to do it
The Deal is Off! You are negotiating a CRADA. Proposals and counterproposals are going well. The industry PI tells the NIH scientist that tech transfer is being unreasonable and urges him to straighten them out! Royalties due under the license will mean there’s no money for the CRADA!! Terms in the CRADA are too risky for the company and so they’ll move the study to another institution!! The NIH scientist is very upset and calls you to make sure you concede immediately and finalize the CRADA.
What Should You Do To Get the Deal on Track? Remind the NIH scientist to direct questions regarding financial terms to technology transfer Discuss internally to find out what’s going on and help develop a coordinated strategy to respond Be professional in correspondence, including We may need to share it with Congress, GAO, or the Inspector General
How: Some approaches to remind the scientist that technology transfer handles financial terms might back-fire! I must caution you that your direct involvement in discussing financial terms of the license may be a violation of criminal conflict of interest statutes. You don’t need to worry about this type of thing. Just leave it to me.
How: Some approaches might prevent the development of a coordinated strategy! I know exactly what CRADA terms I can get approved at NIH. You (the scientist) should just tell the company that if they want to work with NIH they are going to have to accept my proposal. I’m sorry this is happening. There are a lot of new people over at the office that handles the licensing. They just don’t appreciate how important the CRADA is to the lab! I’ll straighten them out…
Another approach? Start with Active Listening
First Check Your Intention Be aware of your own intention Avoidance or Irritation? Get off the phone as fast as possible Another interruption in an already busy day Avoid stepping into ten times more work Frustration with scientist who frequently complains, and rarely shows appreciation Curiosity? That’s odd – why are we getting such different signals from the company? Your intention will likely impact what actions you decide to take, and may also come through in your tone and body language
Active Listening Start with questions and really listen What happened? What does it mean to you? Why do you think it happened? How do you feel about it? What do you think should happen next? Summarize what you’ve heard Add your ideas and brainstorm
Exercise #2 Active Listening Get the Deal on Track
Get the Deal on Track! Find a different partner. One of you will volunteer to be the angry scientist. The other person will volunteer to be the CRADA negotiator from the NIH. You will have 3 minutes. It’s OK to refer to the summary slide during the exercise.
Exercise #2: Active Listening The NIH scientist: A company scientist has told you that the CRADA is going to fall through due to the inflexible NIH position with completely unreasonable terms. This CRADA is critically important, and the delay and paperwork are driving you nuts. You call the CRADA negotiator so that you can explain how important the project is and convince him/her to concede and finalize the CRADA. The CRADA negotiator: Take a deep breath and check your intentions Start with questions and really listen What happened? Why do you think it happened? What does it mean to you? How do you feel about it? What do you think should happen next? Summarize what you’ve heard Add your ideas and brainstorm
Exercise #3: Who’s Asking? You are negotiating a license. Term sheets are being exchanged. The company calls an Institute Director to complain about the delays. The Institute Director asks someone on their staff to follow-up with you.
What questions do you have?
Exercise #4: Focus
You are not permitted to speak. You are not permitted to take notes. The next slide has a picture. You will have 15 seconds to look at the picture. Find and remember everything that is yellow. Your recall about this picture is going to be a critical factor in whether you get a promotion.
Focus What was the impact of concentrating on yellow objects?
Exercise #5: Materials An NIH scientist received a Company’s proprietary material under a CRADA. A colleague at a University wants some of the same material, but has had difficulty obtaining the material from the Company. The University colleague asks the NIH scientist for a small amount. The experiments must be done immediately. What can we do? (and what can’t we do)?
What we can’t do Transfer the Company’s material to the University without permission Get involved in the negotiation between the University and the Company for their independent project
What we can do Check CRADA terms for permission to transfer material Determine if projects are related and could be added to CRADA by amendment
What is the focus? University access to Company material
Mentally step back Is there an NIH-owned material that would substitute for the University’s project? Why does the University know about the NIH CRADA? Does this information help with the resolution?
Take-home messages Develop an awareness of common negotiation tactics and ways to cope and move forward Recognize and address internal “negotiation” Develop strategies which address both what to do, and how to approach it When frustration is rising or next step is unclear: Check your intention and use active listening Ask yourself if your current focus is limiting your ability to recognize the full range of options
Karen Maurey Director, Technology Transfer Center National Cancer Institute National Institutes of Health