Patent Assignment And Licenses

Patent Assignments and Licenses

By Dr. Kalyan C. Kankanala Brain League IP Services

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Transfer of Patents

• Assignment • License

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Assignment

• • • •

Transfer of Ownership Partial or Complete Writing and Signature Register

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License • • • • • •

Authorization or Permission Exclusive Rights Territory Writing Signature Register Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Types of Licenses

• • •

Exclusive Non-exclusive Sole

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Important clauses • • • • •

Recitals Definitions Grant Royalties Term and Termination Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Recitals • • • •

Parties – Licensor/Licensee Addresses Dates Background of the transaction

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Definitions • Interpretation clause • Consistently used words –

Specific/certain/lucid

• Attribute specific meaning • Apply to entire agreement

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Examples • Licensor shall mean ABC company having a place of business in Bangalore and shall include its subsidiaries, assignees and legal representatives. • Licensee shall mean Kalyan, resident of xyz, Bangalore and shall include his successors, assignees, administrators, executors and other legal representatives. • Licensed Patent shall mean patents granted in USA under patent numbers xxx, yyy and patent applications pending before Indian Patent Office having filing numbers xxx, and YYY.

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Grant Clause • Most important • Defines scope of agreement • States – – – – – –

Parties Type Subject Rights Territory Term

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Example • Licensor grants to Licensee a nonexclusive license to use the Licensed Software within the territory of India from 1st January, 2005 to 1st January, 2006.

• • • • • •

This clause specifies Who grants to whom -Licensor to Licensee. Type of license - Nonexclusive License Rights – Use Licensed Software Territory - India Dates - January, 2005 to 1st January, 2006

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Term and Termination • Term • Events –

Material Breach - Nonpayment of royalty, etc. – Bankruptcy – Insolvency – Act of god

• Rights after termination • Confidentiality

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Example • Unless earlier terminated as hereinafter provided, this Agreement shall extend to each country in the Territory for a term of ten (10) years from the Effective Date. The term of the agreement is renewable at the option of the parties and such term and conditions shall be finalized after negotiations based on terms agreeable to both the parties.

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Royalty Clause • Type of Royalty

– Lump sum royalty – Fixed Royalty – Running royalty

• • • •

Combination. Mode and Date of payment Accounting and Record keeping Non payment consequences.

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Example • XYZ agrees to pay ABC, a fixed royalty of TwentyThousand-Dollars ($ 20,000) per every Calendar Year after the first year. For the first Calendar Year, XYZ shall pay ABC a fixed royalty of Ten-Thousand Dollars ($ 10,000). Such sum shall be paid on or before December 11th of every Calendar Year.

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Other Clauses • Indemnity • Warranty • Liability

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NRDC V. ABS • • • •

Patent License Not registered Expiry of patent term License invalid

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• Compulsory Licenses

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Working of a Patent

• • • • •

Reasonable prices Public Health Public Interest Technology Transfer Industrial Progress Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Conditions

• Reasonable requirements of public • Reasonably affordable prices • Working in India

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Procedure • • • • • •

Any person Three years – Patent Grant Prima Facie Case Publication Opposition Grant Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Compulsory Licenses

• Related Patents • Emergency • Expoert

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Example 1 • There is a SWINEFLU outbreak in India and more than hundred lives are lost in a period of one month. X, a pharma company, holds a patent over a drug to prevent SWINEFLU. On recognizing the need for the drug X starts manufacture of the drug on a large scale by tying up with companies A, B and C. D, a generic company approaches X for a manufacturing contract and on being refused applies for a compulsory license. • Will a compulsory license be granted to D?

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Example 2 • A acquires a patent over a tyre and B holds a patent over the rim used in such tyres. A approaches B for a license of the patented rim to manufacture and sell his patented tyre. On B's refusal, A files for a compulsory license. • Will the license be granted? Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Example 3 • Rove, a bike manufacturing company holds twenty patents over electic bike technology. It makes five electric bikes every year and sells each bike at a cost of 5 lakhs. A, another bike manufacturing company applies for a compulsory license over all the patents. • Will a compulsory license be granted? Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.

Thank You

Copyight, Brain League IP Services, 2009. Non-commercial use is permitted.