arunabha pradhan ipr

5/25/2018 Arunabha Pradhan IPR

1/76

1

runabha PradhanSr. Manager & Head, Business Development (AS&ES)

National Research Development Corporation

New Delhi, India

Commercialization of

Agricultural Technologies- Important Issues

Capacity building for intellectual property protection and technologylicensing in agriculture under Indo-US Agricultural Knowledge initiative

Training for trainers

February 11 to 20 2008


2/76

4


3/76

5

What is Technology ?

It is a complex of patented and/or unpatented

know-how, of general engineering, science and

operating experience. It is all of the knowledge that

makes a production and a manufacturer successful

What is Know-How ?

It means some knowledge and experience that can be

used in practice, which the one offers it, has in his

possession, whilst the one who needs it and wants to

acquire it does not.


4/76

6

National Technology Transfer Scenario in India Antrix of ISRO

C-Tech of DRDO

Centre for Scientific and Industrial Consultancy (CSIC) of IISc

Industrial Research & Consultancy Centre (IRCC) of IITB

Foundation for Innovation and Technology Transfer (FITT) of IITD

Sponsored Research and Industrial Consultancy (SRIC)of IITKGP

Technology Licensing Cell (TLC) of Research Institutes

TLC of BARC

Biotech Consortium of India Ltd.

National Research Development Corporation


5/76

7

NRDC

A section 25 Company


6/76

8

Section 25 Company established in 1953

under the Ministry of Science andTechnology with a mandate :

to promote

to develop

to commercialize

indigenously developed technologies fromuniversities, individual inventors, nationalR & D Institutions, etc.

NRDC


7/769

Over 2500 technologies transferred to

the Industry in India and abroad typically

suitable for SMEs

More than 4500 entreprenures obtained

licences from NRDC for various

technologies

NRDC


8/7610

NRDC TECHNOLOGY RESOURCE BASE

NATIONAL R & D ORGANISATIONS

Defence R & D Organization

Council of Scientific & Industrial Research

Indian Council of Agricultural Research

Indian Council of Medical Research

Bhabha Atomic Research Centre

INDUSTRY ASSOCIATION RESEARCH INSTITUTIONS

Ahmedabad Textile Industrys Research Association (ATIRA),

Ahmedabad

Bombay Textile Research Association (BTRA), Mumbai

South India Textile Research Association (SITRA),

Coimbatore

Indian Plywood Industrys Research Institute (IPIRI),

Bangalore


9/7611


R &D INSTITUTIONS & LABORATORIES UNDER VARIOUS

MINISTRIES & DEPARTMENTS OF THE GOI

Electronics R&D Centre, Thiruvananthpuram

Akashvani & Doordarshan R & D Department

Research Designs & Standards Organization

Central Power Research Institute

Indian Plasma Research Institute

Central Manufacturing Technology Institute

Electronic Research & Development Centre

Department of Science & Technology Department of Biotechnology

Ministry of Food Processing Industries

National Institute of Immunology

MP Council for Science & Technology, Bhopal


10/7612

NRDC TECHNOLOGY RESOURCE BASEACADEMIC INSTITUTIONS

Indian Institute of Technology (IIT)

Indian Institute of Science (IISc)

All India Institute of Medical Sciences (AIIMS)

All India Council of Technical Education

Tamil Nadu University for Veterinary and Animal Sciences, Chennai

CCS Haryana Agricultural University, Hissar

CSK Himachal Pradesh Krishi Viswavidyalaya, Palampur

G. B. Pant University of Agriculture & Technology, Pantnagar

Barkatullah University, Bhopal

Dr. Y S Parmer, University of Horticulture and Forestry, Nauni, Solan

PUBLIC SECTOR ORGANISATIONS

Indian Telephone Industries Ltd.

Hindustan Aeronautics Ltd.

Bharat Heavy Electricals Ltd.

Videsh Sanchar Nigam Ltd.


11/7613


PRIVATELY OWNED RESEARCH INSTITUTIONS / ORGANISATIONS

Shriram Institute for Industrial Research

DCM Limited

Varanasi Glucose Company

Madhu Chemicals Limited, Bhavnagar

Individual Inventors

INTERNATIONAL INSTITUTIONS

International Development Research Centre, Canada

Shanghai Technology Transfer Exchange, China

Jureprom Consulting, Moscow, Russia Belarussian State Research & Production Powder Metallurgy

Concern (BPMC), Belarus

Kyiv State Center of Scientific, Technical and Economical

Information, Ukraine


12/7614

NRDC Entrepreneurs

BusinessDevelopment

TechnologyEvaluation

IPRAssistance

MarketSurvey

MarketIntelligence

Know-howDocument

ManagementServices

Knowledge Transfer Business

Universities

Corporates

Individuals

Labs :

NGOs

: TLC

: TLC

IncubationConsultancy

Services

BEDP

AngelFunding

ExportLinkages

Source ofTechnology

Knowledge TransferOrganisation (KTO)

Users ofTechnology


13/7615

Databases

Products,

Technologies,

Patents, R & D thrust

areas, projects

ongoing / completed,

experts ,international

agencies having

technologies

Assessment by Expert Panel

Identify value additions

International Patent Search Protecting IPR

Market survey

Feasibility/ techno-commercial reports

Publicity

Up-scaling/pilot plant development

Basic Engineering Package

Field Trial report/Bio-efficacy

Toxicity data

Tech Demo in Rural Development

Prioritising projects for Tech Dev

Promoting export

PatentFacilitation

Cell

Patent SearchFiling PatentsIPR Policy

Policy framework Assess Patentability Nominate Countries

Prize Arwards

Patenting

Marketing and

promotionPublicity

Licensing, etc

Export of technology

IPR Workshops

IPR Lectures

IPR Inter active CD


14/7616

Idea/feedback

Development/Improvement

Evaluation

Protection

Licensing and Technology

Transfer

Commercial Production

Commercialization of Technologies ?


15/7617

Problems in Technology Development

Lab-scaleDevelopment

Pilot-plantDevelopment

Semi-commercialPlant

Commercial

Plant

Expert Interactions

Associations

Funding

Patents Search?

Usefulness

Venture Capital

Conceptualization

Timely IPR Protection/Funds

Authentication

Statutory Obligations

Documentation

Commercial Applicability

Corporate Games


16/7618

Activity Present Practices Desirable Changes

Identification 1. Inadequate background information

2. Adhoc

3. Duplication & gaps

4. Unchecked competitiveness

1. Compulsory Patent search

2. Market information Analysis

3. Co-ordination amongst the R & D organizations4. Monitoring of competition

5. Integration of research / improvements

Implementation 1. Inadequate infrastructure

2. Bureaucratic approach in procurementof raw material & equipment

3. Very slow progress

4. Lack of motivation

5. No monitoringsolo efforts

6. No quality control

1. Planned infrastructure

2. Simplification of procurement

3. Define goal & setting of targets

4. Periodical monitoring & assessment of progresssolving the bottlenecks

5. Study of standards

Development 1. Only lab-scale

2. No documentationfurther work

3. No link with industry for development,

feedback4. Large gap in converting a lab scale to

commercial scale

1. Planning for stepwise upscaling beforecommercialization

2. Systematic approach for preparation & recordingof results

3. Close association of Industry

4. Engineering input for designing for preparing acomplete know-how package

Information handling 1. Large information scattered

2. No inter-communicationnetwork

3. Impossible access to the information

pockets

1. Collection of information in a centralised location

2. Sorting & compilation of information

3. Building up / designing of database

4. Networking of R & D organisations

Research ProjectsPresent Practices & Desirables

A i th D l t P f


17/7619

Assessing the Development Process fromIdea to Final Success

Idea Philosophy Art

No LicenseeExpensive Dev.

PatentableInvention

No MarketPrice Too High

ValuableInvention

Negative MarketCompeting Products

NewProduct

Success

InventionNot NewNot for Industry


18/7620

Assessment Activities

IPR related Technology related Market related

Ask have you seen thisbefore

Ask is it likely to work Ask who needs it

Simple noveltysearch

Extensive noveltysearch

Prepare patentapplication

Filing of application

Litigation and legalaction

Expert evaluation

Test model

Prototype

Pilot production

Full scale

production

Expert evaluation

Desk research

Market screening

Market scenarioreport

Market trendanalysis

Market plan

Market analysis


19/7621

TECHNOLOGY DEVELOPMENT FUNDING MECHANISM

Sl.No.

Funding Agencies/Schemes

TechnologyDevelopment Stage

Recipient category Quantum ofFunding forprojects

1. Scientific Ministries/Departments (SERCScheme)

-Basic Research

-ExploratoryResearch

-Capacity Research

-Government FundedInstitutes

-Institutes of HigherLearning

-Major Universities

US $ 500 to1,00,000 except forcapacity building

2. -Technology PromotionProgramme

-NRDCs PatentProtection Scheme

-Technology Missions

-Idea Stage

-Patenting Stage

-Prototyping

-Field Demonstration

-Individuals

-Start up SSIs

-NGOs

Upto $ 12,000

3. -Scientific/Societal

PromotionMinistries/Departments

-Technology Missions

Application oriented

R & D for societalneeds (e.j. Leather,Glass,Fly AshUtilization)

-State Science &

Technology Councils-Extension Centers

-NGOs

Upto $ 10,000

4. Home GrownTechnologyDevelopment

Programme (HGT ofDept. of Science &

After lab scale forPilot Plant/ SemiCommercial

Plant.(Science DrivenProjects)

R&D Institute/ Universitybut jointly with anindustry Partner

$ 5000 to $3,50,000


20/7622

Sl.No.

Funding Agencies/Schemes

TechnologyDevelopment Stage

Recipient Category Quantum offunding forProject

5. Programme Aimed at

Technological SelfReliance (PATSER ofDept. of Scientific &Industrial Research

For Pilot stage only Industry having

In-house R&D Industry jointly

with R & DInstitute/University

$ 10,000 to $ 1.5

million

6. Industry SponsoredResearch Programme

Any Stage prior tocommercialization

R & D Institute/Universities

No Limit (Generally $

2,00,000)

7. TechnologyDevelopment Board

For setting up firstcommercial plant

Any Industry No Limit (Generally $1,00,000 to $ 10million)

8. NRDC Equity/ LoanScheme

For demonstration/commercial plant

NRDCs Licensee

Company only$ 20,000 to $1,20,000

9. Venture Capital funds ofPublic Sector, Banks,IDBI, ICICI, IFCI

Commercial Plant Any industry No Limit ( Gen $ 1million to $ 5million)

10. Private Sector VCFsJointly by TDB, VCFs

Banks, NRDC etc.

Commercial Plant Any Industry No Limit ( Gen $ 1million to $ 5

million)

Partners and Their Role in Technology


21/7623

Partners and Their Role in TechnologyCommercialisation

Sr. No. Type of Partner Role of partner

1. The Innovator The Innovator can become the enterpreneur or at least a

Director of the Industry commercialise the technology2 Shop Floor Worker Incremental Innovation

3 Other R&D Institute Bringing in complementry expertise Independent testing of product Technology evaluation

4. Patent Law firm/patent attorney IPR management Patent Auction

Handling legal issues in finalising Non Disclosure Agreement Licensing Agreement Handling Patent Infringement Suits

5 Marketing consultant Conducting market Survey Report Preparation of Feasibility Report

6 Engineering consultant

Design and engineering Preparation of Project Report Project Management

7 Equipment Fabricator Fabrication of customised equipment

8 Technology Recipient(customer)

Financing, setting up and operating commercial plantPilot Testing of raw materials of future licensees

Training of future licensees key operating personnel


22/7624

9 Raw Materialsupplier

-Supply of adequate quantity of raw material(roleparticularly crucial l in agro/food sectortechnologies)

10 Government - Identifying technology gaps at the national level- Purchaser of products- Certification (Drugs, pesticides, fertilizers)- Eco mark- Legislation (Zero Pollution norms, safety

standards)

11 Non-govt

organisation

-Demonstration of societal R&D Projects

-Technology information Dissemination to ruralareas

-Coordination Technology Mission

12 SSI clusterAssociation

-Facilitation of Technology Transfer to SSIs ofthe cluster

13 Industrialpark/STEP/TI

Managers

Facilitators for successful technology transfer,de-bottle necking and providing support services

14 FundingOrganisation

Providing/arranging equity, grants/loans for theproject at various stages

15 Technology TransferOrganisations

Comprehensive support from idea to market stage

16 Final customer/

dealer

Feedback crucial for continuing incremental

innovation


23/7625

Knowledge BaseLab Scale Proof

of Concept Pilot Plant

Semi

Commercial Commercial

A B C D E

DST

UGC

DBT

MFPI

CSIR

ICAR

ICMR

CA&SR

Public

&

Private

Banks

Science Dev.Stage Joint Technology Development Stage

Friend

STAC

HGT

PATSER

NRDC

PublicVentureCapitalists

VCF-IDBI

VCF-SIDBI

RCTCTDICI

0%

TDB

SPREAD

Wh t i li ?


24/7626

What is a licence ?

Therefore, licence should be understood to mean two goods or

commodity namely:

certain expert knowledge or know-how and

a permission or grant to use such knowledge under certain

conditions.

Note: In certain rare cases, no know-how, only permission is required

Initially, a licence meant nothing more than permission to dosomething that would otherwise be forbidden and most probably atort, such as infringing someone elses patent or trade mark.

Presently it is generally understood to refer to a wide range ofagreements principally concerning the sale or leasing of industrialand commercial expert knowledge under certain conditions andagainst valuable consideration.

Such expert Knowledge is generally named know-how andcould be independent from the fact whether or not it is patented.


25/7627

Already going on

Not really Tech Transfer

Unpackaged

Not exploited

widely

Mostly on Lab Scale

Unpackaged

Very High Potential

Mostly Unpackaged

Excellent Prospects

Needs Structured Systems

Good Potential

Already Going On

Reverse Engineered

Locally Innovated

Presently Ignored Activity

Needs Structured Approach


26/7628

Lab Scale

Innovation

Tech.Deficiencies ?

Patent

Search ?

Marketabilit

y ?

Financial

Analysis

?

Authentication

Efficacies

Clinical Trials

Toxicities

Environmental

Issues

Rural or

Industrual

?

Analysis

?

Commercial /

Social

Potentials

Publicity

Entrepreneur

Licenced

Scale-up

Design &

Engg.

Fabrication

Data

Market

Financial

DPR

Opp.

Cost

Analysis

Abandon if

not the best

OperationsSuccessfulSales

Feedback

Tech. Pack.

Replication

Flow of Commercialisation of Lab-scale investigation

Steps req ired for setting p a commercial plant


27/7629

Steps required for setting up a commercial plant

Aquiring process Basic engineering

Design Package Detailed engineering Fabricationof theequipments

Electrical and

mechanical

completion

Erection of

equipmentsTrial and

guarantee runs

Pre-commissioning

and testing of

equipments

Consumer acceptanceTest product launch

Feedback

Commercial runs

Steps in setting up a commercial plant from


28/76

30

Steps in setting up a commercial plant fromlaboratory scale process

Lab-scale process Basic engineering

Design Package Detailed engineeringFabrication

of the

equipments

Electrical and

mechanical

completion

Erection of

equipments

Trial and

guarantee runs

Pre-commissioning

and testing of

equipments

Commercial runs

Statutory Clearences

Inspection certificate has to be obtained for

steam line, boiler as per boiler regulation

act

Certificate from the Controller General of

Explosives for Explosive Equipment.

Clearance from Factory Inspector Clearance from Pollution Control Board

Identification / finalisation of unit

operations required in the processas investigatede at the lab.

Process simulation to be done by the

consultant for desired capacity

Development of the Plant

Operations and Control Philosophy

Process flow diagram

Material and Energy Balance Definition of Operating parameters

of all major streams.

Process and instrument design

equipment, pipe line size/

rating/material of construction,

instruments for local and panelmounted, control logic, etc.

List of equipment and package

plantsizing of equipments

List of electrical motor drives

List of Instruments

Process data sheet of equipments

including machineries Specification of package items like

boiler, DG Set, etc.

Process data sheet of Instruments

Raw Material and Utility

consumptions

Preliminary Plot Plan

Electrical single line diagram (SLD)

Schedule no. of piping,

thickness of vessels,detailed designs of nozzles,

heating and cooling

arrangementjacket

thickness etc., specification

of valves, insulation.

Fabrication drawing

welding, etc.,

Checking by detail

engineering consultant

Carried out exactly as per the drawings

based on the detailed engineering,

fabrication drawing like welding, etc.

carried out by the engineering consultant.


29/76

31

Value Estimation and Pricing of Technology

Factors Affecting the Value of a License or Technology

To what purpose can it be used and how valuable

will it be

What did it cost the owner to obtain possession of

or develop it

How many suppliers can offer it

V l E ti ti f th T h l


30/76

32

1. Rules of Thumb

50% of one years profit made by licensee ( if technology is not leading)

25% of the estimated total profits

10% of the capitalised cost or, combination of the two

5-10% of the total sales price

2. Factors Considered by Each Party

Costs

of developing the technology with patent costs of maintaining the technology (further development)

of assistance in the transfer in respect of the actual expenses involved

with sending experts, preparation of documents, drawings, etc.

of such assistance as a loss by having his staff involved in the transfer

and absorbed in such activity which could otherwise have been invested

in alternative possibilities with potential profits

or losses involved in potential penalties for not meeting guaranties

Income

From licence fees and

From other potential advantages

Value Estimation of the Technology

3 ROOT and CONTRACTOR Method American License Fee


31/76

33

3.ROOT and CONTRACTORMethod - American License FeeDetermining Practices

Analysis of 39 companies :109 licence agreements concluded in 41countries were examined

Upper LimitLower value of following two factors

The value of the technology to the licensee (in the evaluation of thelicensor)

At what price could the licensee obtain the same technology from

another supplier (according to the evaluation of the licensor)Lower Limit

Sum of the expenses involved with the transfer of technology and incomesfrom an alternative investment of such efforts at their present valuediscounted at a given interest rate

4. Koran Value Estimation

Can be approached by following relationship:

L = (z)*(i)*(Q)

where z = rating factor, appears in percentage, i = time factor, (serve mainly

for assessing qualitative relationships, Q= actual value added value of profitor production value


32/76

34

Koran Value Estimation contd.

The contents of z and i can be interpreted by means of symbolicfunctions

z= f(u,b,o,t)

i = f(v,h,e)

z in practical way can be told as potential factor depending ontechnical level and complexity

and

I being potential factor depending on rate, frequency of use

Where

u = function depending on novelty

b = degree of complexity of task & solution

o = level of solutiont = mass factor applicability

v = development rate

h = share of the new technology

e = class of value volume


33/76

35

Methods of License Fee Payments

Payment Form Payment Terms Objective

Down Payment By signature of theagreement

To cover licensors up-front costs and securecommitment from thelicensee company

Royalty Fee Percentage of

turnover created byinvention, payable 2-4 times a year

To share the risk

between inventor andlicensee company

Minimum Royalty Payable even ifturnover is below a

certain level

To maintain licensees

commitment and prevent

him from shelving theinvention

Period of Royalty Payable for certainperiod of time,extended up to the

life of Patent

To ensure the earningsfrom the licence

STRATEGIES FOR EXCLUSIVE vs NON EXCLUSIVE


34/76

36

STRATEGIES FOR EXCLUSIVE vs. NON EXCLUSIVEIPR LICENSING RIGHTS

Types of Exclusivity

Territory

For Manufacture

For Sales

Period

Limited (say 3 years)

Life of Patent(s)

Usage: e.g. DrugHumans

Animals

Fermentation

DetergentEnzyme

Hair Removal

Textile and PaperEffluent Treatment


35/76

37

Minimise royalty clause even if patent is not commercially

exploited.

Enhancement of manufacturing capacity to meet market

demand.

Rights for Sub-licensing.

SPECIAL TERMS FOR EXCLUSIVE LICENSING

Project Cycle


36/76

38

Project Phase

Operational Phase

Maturity

Renewal (Expansion / Diversification)

Project Cycle

Time

Growth

P j t S C id ti


37/76

39

Project Parameters

Plant parameters Manpower

Raw Material

Utilities

Plant & Machinery

Localised Parameterslocal cost of raw

material, utility, land & labour, etc

Work out financial viability

Ascertain Market demands

Create Package & publicize

Project Success - Considerations

P j t E l ti


38/76

40

Total Project CostBetween 150 to 500 % of Plant & Machinery Cost

Other Investment Costs

Annual Production Cost

Investment related Costs25 % of total investment cost

Raw Material Costsbased on specific consumption

Manpower Costs - ?

Other Overhead Costs - ?

Thumb Rules

Project Evaluation

Project Evaluation St d ing Project


39/76

41

Profitability Analysis

Ratios (%)

Gross profit / sales

Net profit after tax / sales

Net profit / equity capital

Net profit + interest / investment

Feasibility Report- DPR

Technical feasibility

Market feasibility

Financial viability

Project Evaluation - Studying Project

TECHNOLOGY PRICING


40/76

42

(A) Lumpsum PremiumOptions

- Total amount

- Installment payments

(B) Royalty Options

- Percentage of ex-factory sales value

- Percentage of profits- Varying royalties

- Conversion of royalties to equity

(C) Period Of Licensing (5 To 20 Years)

(D) Nature Of Licensing

- Exclusive vis--vis Non Exclusive

- Territory Exclusivity

- Period Exclusivity

- Exclusivity For Sales Only

(E) Equity In Lieu of Technology Fees

CASE STUDY : RICE HUSK BOARD

INDONESIA


41/76

43

(D) PERIOD OF LICENSING : 10 YEARS

(E) Nature Of License

Exclusive subject to 3 plants being set up in a specifictime

Exclusive for manufacture and sale in Indonesia

Non Exclusive for sale to other countries (Except inIndia And Malaysia where no sales are permitted

without approval of Licensor)


42/76

44

Know-how No. ofLicensees

RevenueEarned

20 HP Tractor 2 284

Blood Bag 5 421

Liposomal Amphotericine B 2 56.5

Technology Transfer: Experience of NRDC

(Rs in Lakhs)


43/76

45

20 H.P. Tractor

- NRDCs Role in Commercialization

S li t F t


44/76

46

Salient Features- 20 HP Tractors

Easier utilization of implements

High Field Efficiency

Ideal for Deep Ploughing

Trouble Free Performance

Lesser Consumption of Diesel

Pulls heavy loads over steep

gradients

Developed by: Central Mechanical Engineering Institute (CMERI),

Durgapur


45/76

47

20 H.P., Two Cylinder Tractor, 2000 RPM

Single lever automatic depth-cum-draft control hydraulicsystem

Universal three point linkage

Front & Rear Wheel tracts- variable to cater crop pattern

Power Take Off (PTO) design patented in India andabroad (7 countries)

Suitable for small farm holding

The Development - 20 HP Tractors

C i li i b NRDC


46/76

48

Licenced to

M/s Punjab Tractors Ltd. (PTL) In December, 1972

Royalty received- Rs. 245.48 lakhs

M/s International Tractors Ltd., Hoshiarpur

LP & Royalty received- Rs. 39 lakhs

Commercialization by NRDC - 20 HP Tractors

P t St t


47/76

49

Mahindra & Mahindra (M&M) acquired 43.3% stake in PTL

from Actis group & Burman family at a price of Rs. 360

per share

M&M invested Rs. 900 Crore

Presently PTL is valued at over Rs. 2000 Crore

PTL in 2005-06

Turnover Rs. 102,450 lakhs

Profit after tax Rs. 12,934 Lakhs

Present Status - 20 HP Tractors


48/76

50

Disposable Blood Bag


Di bl Bl d B S t


49/76

51

Disposable bio-medical device

used for collection, storage,transportation & transfusion of

blood & blood components

All manufacturing operations

are in conformity to GMP

Manufactured to meet

international standards

Bags are available as single,

double or triple transfer bags

Product has been accepted

internationally and exported to

Africa, South-East Asia and

Europe.

Disposable Blood Bag System

Case Study 1: Blood Bag Technology


50/76

52

y g gyDisposable Bio-Medical plastic bags for collection, storage,transporation and tranfusionprovides a hygenic

way by eleiminating exhaustive cleaning, rinsing, autoclaving and breakage problems

Developed at Sri Chitra Thirunal Institute for Medical Sciences and Technology, Thiruvanatapuramat an estimated expenditure of Rs. 200,000

1979

Assignment Assigned to NRDC for Commercialisation 19801stLicenceAgreement

Peninsula Polymers Ltd., Thiruvananthapuram

30% Equity participation each by NRDC and KSIDC

Research Institute to provide technical support

Rs. 0.2 m fee

3% Royalty

10 years

Completion Commissioned in 1986 with production established in 1987-88. Product introduced in the market at Rs. 10a bag compared to Rs. 30 a bag of Japanese origin

Bottlenecks Initial snags in technology

Japanese dumped the market with bags at Rs. 8NRDC arranged anti-dumping duty by presenting international data to the Government

The licencee started marketing the product successfully

Performance Excellent, export to other countries including Europe

Second Licence M/s Hindustan Latex Ltd in 1991. The plant completed in 3 years and now exporting Rs. 1 m fee

3 % royalty

Next Licence J Mitra & Company in 1994

Electro- medical and Allied Industries in 1984

Rs. 4.5 fee

3 % royalty

Return to NRDC Rs. 0.2 m as licence fee in 1981

Rs. 10 m Royalty 1987-1996 from 1stlicence

Rs. 1 m licence fee from 2ndlicence, 1991

Rs. 9 m licence fee from 3rd& 4thlicence

Rs. 100 m royalty expected between 1996-2005

More Licence expected in India and abroad


51/76

53

Return toNRDC

Lumpsum premium Rs 13.15 m

Royalty Rs. 35.0 m

Return on disinvestment of equityshare Rs. 8.925 m

(NRDC Equity in PPL Rs. 4.375 m)

Disposable Blood Bag System - Contd.


52/76

54

Liposomal Amphotericin B



53/76

55

The Back Ground

Prof. B.K. Bachhawat, Department of Bio-chemistry, Delhi

University initiated the work.

To develop and to make an affordable substitute of

AmBisome - an US Product.

Liposomal Amphotericin B


54/76

56

After the formulation development by Prof Bachhawats Labwas completed proving the efficacy and substantiated pre-clinical work, the Department of Biotechnology (DBT) hadfunded the clinical evaluation of the process at Seth GSMedical College and KEM hospital, Mumbai.

KEM along with other prominent hospitals of Mumbai carriedout clinical trials for serious and invasive systemic fungalinfection.

The clinical trials for Kala-Azar was carried out by a team ofspecialists consisting of Dr. C.P. Thakur, the former Union

Minister of Health and others.

The Development- Liposomal Amphotericin B


55/76

57

After the clinical trials were successfully completed thetechnology was formally handed over to NRDC by DBT forlicensing and commercialization.

NRDC had licensed the technology initially to M/s ACELaboratories, New Delhi which failed to commercialize theknow-how despite support from NRDC.

The technology was re-licensed to M/s Lifecare InnovationsGurgaon, which has successfully commercialized the know-how

Commercialization by NRDC- Liposomal Amphotericin B


56/76

58

The Liposomal Amphotericin B is marketed by M/s.Lifecare Innovations Pvt. Ltd. as FUNGISOME

FUNGISOME contains cholesterols essential forminimizing toxicity of Amphotericin B to a safe level

FUNGISOMEconverts into several small unicellularliposomes thereby substantially increases thetherapeutic index

FUNGISOME requires sonication for applicationwhich enhances the therapeutic index of the drug.

Drug administration is done in one hour.

The Product- Liposomal Amphotericin B


57/76

59

Application- Liposomal Amphotericin B

The FUNGISOME is used for the treatment of Systemic

Mycosis and Kala Azar.

Serious and invasive Systemic Mycosis frequently occurs

in patients of Organ transplantats, Dialysis and those

undergoing Radio therapy/chemotherapy for Cancer, AIDS

etc.

FUNGISOME is also used for the treatment of the

victims of serious burn injuries.

Case Study 2: Graphite Aluminium Composites (GRAL)


58/76

60

Graphite having inherent lubricating properties, when mixed with Aluminium Alloys to form composites which

has self lubricating and better tribological properties, expected to have excellent material for Automobile

components

Developed at Regional Research Laboratory, Bhopal 1986

Assignment Assigned to NRDC for Commercialisation 1987

Potential Number of international companies including CMALCO, Australia,showed intereston the technology

It was planned that before negotiating with international companies, the technologymay be licenced to Indian Companies and make commercial success

1stLicenceAgreement

One firm in Ghaziabad engaged in the manufacture of Automobile Pistons and thecompany planned to market the product in the replacement market

Bottlenecks The company faced problems in implementing the process in their production plant

NRDC coordinated with the company and scientist of the laboratory to successfullyimplement the process.

The company successfully adopted the technology

Marketing The company launched the product in the replacement market for pistonsThe performance of the pistons was found to be better than normal pistons

The product was not accepted in the market because of dull appearance of the composites compared tothe normal pistons

Result The company tried for some time for pursuing with the product, but could not succeed

The project was ultimately abandoned

The technology could not further pursued because on failure of the 1stlicencee.

Case Study 3 : Zeolite A


59/76

61

An enviro-friendly phosphate builder for detergents to replace the commonly used STPP

Developed at / Central Salt and Marine Chemicals Research Institute (CSMCRI), Bhavnagar

TechnologySuppliers

J.M. Huber Corporation

Henkel Kommand, Germany

Proctor & Gamble, USAUnion Carbide, USA

Colgate Palmolive Co. USA

Market info 1.65 Million TPA Produced World Wide.

40 Major Producers World Wide

15000 Tpa Produced In India By 2manufacturers Viz. Hindustan Levers And SPIC.

Indian Demand During 1995-96 77,000 T Expected To Increase To 1,40,000 T By

Year 2000.Assignment Assigned to NRDC in 1992

Technology Development at Lab scale based on the process utilizing Sodium Aluminate Liquor,which can be produced by reacting with Alumina and Sodium Hydroxide

!st licenceagreement

Licenced to M/s Tee Biem Chemicals P. Ltd., Trichy, T.N. in Trichy in 1993 LP : Rs. 0.2 mRR : 2.5%PL : 10 years

2ns Licencee M/s Padma Chemicals Ltd., Pondicherry LP : Rs. 0.2 mRR : 2.5%PL : 10 years

3RDLicensee M/s National Aluminium P. Ltd., Bhubaneshwar in 1996 at Licence fee of Rs. 13.3 m

Bottlenecks The company could not proceed on the project, because of raw material problem and marketingproblem

2ndLicencee was refunded the Licence fees

NALCO proceeded with the Bayers liquor, available at their Aluminium Plant, as raw material withcapacity of 10,000 TPA

Patent Assistance


60/76

62

NRDC promotes, protects and supports inventions by

Providing assistance for Patenting in India for R & DInstitutes & Universities

Providing assistance for Patenting in foreign Countries onsharable basis

Conducting international patent search on cost plus basis

Commercializing patented inventions

Helping Organizations /R & D institutions in formulatingan IPR Policy

Patent Assistance

Non-exhaustive Checklist for Evaluating Inventions


61/76

63

1. What is the state of development of the invention

2. What is state of legal protection of the invention

- no protection

- patent application filed in home country, (when)

- patent applications filed abroad (where and when )

- patent granted in home country (when)

- patents granted abroad (where, when )

- patents abandoned (where, when and why)

3. Who is handling of the patent applications and other industrialproperty matters

- in-house experts

- outside professionals.

Non exhaustive Checklist for Evaluating Inventions


62/76

64

4. How reliability of the patent protection in the home country land,

in the foreign countries, where applications have been filed or

patents granted.

5. Who are the potential users of the invention

the general public

specialized end users

other

6. What would be the expected economic effect and other benefits

of using the invention for future users or customers. List the

advantages compared to existing products or technologies

7. What availability of financial resources (risk capital, especially

seed and start-up capital) are available for

developing the invention

obtaining patent protection

manufacturing and marketing of the products, etc.


63/76

65

8.Which way of commercialization will be chosen

own manufacturing and marketing of the products granting an exclusive license to one partner granting several non-exclusive licenses selling the patent rights.

9. How big or how small to begin ? What will be the cost of

introducing a new product in the market ? What is the minimumprofitable volume of production.

10.Are there consumers inclination similar products in the market ?If yes, would consumers rather buy the competitors products

than yours because they are better in quality and more practicalfor the purpose than your invention.

11. Who are the competitors, and what is their market position

12. Do you envisage usage of using a trade mark.


64/76

66

13. Should the commercialization of the inventions be entrusted

to commercial brokers? What are the advantages offered.

14. Will beginning of commercialization of the invention begin in

the home country (local sales) or will it start at a larger scale

in other countries (i.e. exporting the products of the

invention).

15. If participation in specialized exhibitions (including

inventorexhibitions) is envisages, what are the objectives/

Who will be the clients to be met.

16. Will the marketing be done with own resources or will it be

commissioned to by some professional agency

IPR PARTNERSHIPS


65/76

67

Why do you need Partners for IPR?

Bringing in complimentary expertise (e.g. Leather

Zip Tie)

Providing Performance Guarantees

Fabricating new production equipment/machinery

Discovering new applications

Assessing market potential

Sharing IPR/Infringement Suit Costs

Adding on Patents

Increasing Commercial value

Who can be the Partners?


66/76

68

Other R&D Institutions (expertsTechnology

Transfer Organizations such as NRDC/BTG)

Patent Attorneys

Design Consultants

Users

Fabricators / Machinery manufacturers

Venture Capitalists

Licensee/Sub-Licensee

Testing Agencies

Market Survey Agencies

Certification Agencies

Government (TBTs)

DYNAMIC RELATIONSHIP BETWEEN IPR ACTIVITY AND


67/76

69

COMMERCIALISATION

Maintenance

Grant of Patents

Multi-National

Filing

Int. Patent Filing

Patent Filing

(PCT/National)

Months

12 18 24 30 36 42

Globalization

Commercialization

Semi-

Commercialization

Field Testing /

Clinical

Prototype /

Pilot Scale

Idea Stage

Strategy for IPR Exploitation and commercializationt d


68/76

70

to succeed

Formulate and implement IPR Strategy

Integrate IPR strategy with organizational strategy

Identify technology development partners

Identify technology development financing partners

Negotiate and finalize

-Joint Technology Development Contracts

-General Licensing Contracts

-Licensing Agreements with Ancillary Units

-Joint Venture Agreements

-Franchising Agreements

Collect and share royalty payments with partners

Take legal action if necessary.

IPR Strategy


69/76

71

IPR Strategy Formulate an IPR Policy for your organisation.

Step 1: Clearly define the objectives of the IPR Exploitation

Programme.Step2: Formulate Basic IPR strategy to achieve the objectives.

Remember IPR activity is dynamic and not static- It hasto enmesh with the commercial exploitation activity on acontinuing basis

Step 3: Integrate IPR strategy with overall business strategy forthe organization.

Depends on type of owner of IPR (R&D Institute, Industry,University, etc.)

Depends on size of Industry

-Multinational

-Large Industry with In-House R&D setup

-Small & Medium Industry

-Start up High Tech Industry


70/76

72


71/76

73

Every Year

Upto Rs. 2,00,000

NRDC


72/76

74

NRDC

PublicationsInvention Intelligence (Bi-monthly-English)Awishkar (Monthly-Hindi)


73/76

75

This multimedia interactive guide has hours of

rich media video,audio, graphics, animation

and over ten thousand pages of textualinformation containing complete IPR related

FAQs, Acts, Treaties, Statistics, Case studies.

This mmi package has been developed jointly by

NRDC (National Research Development

Corporation) & Aesthetic Technologies with

support from Department for Scientific &Industrial Research (DSIR), under the PATSER

Scheme.

Available for sale for

Rs 20,000/- + ST

Introduction to IPR

How does the IPR system work


74/76

76

Various kinds of IPR

Benefits of IPR

What is not protected by IPR

All about Patents

Kinds of patents

The entire patenting process

Copyright and related rights

Design registrations

Trademark

Geographical Indications

Topography of Integrated Circuits

Trade secrets

IPR Policy and Management

IPR in the following sectors:

Government & Nation

National & Industry R & D Organizations

Information Technology, Electronics & Media

Chemicals, Engineering, Construction & Service

Biotechnology, Drugs & Pharma and Agro processing

Individuals & Small Scale Industry


75/76

77

Thank you

apradhan@nrdc. in

www.nrdcindia.com


76/76

(Anon.)

arunabha pradhan ipr

Documents