A previous post discussed the process individual patent owners could take when looking to sell or license their patents. Legal issues are also a big concern for companies endeavoring for increased openness. Here are some words of wisdom from the experts.
Don’t Ignore Licensing
Patent lawyer Patrick Anderson writes that in order to embrace open innovation, businesses need to “embrace technology licensing as a legitimate business in and of itself, and dropping the ridiculous notion that owners of IP shouldn’t receive credit for innovations they don’t personally commercialize.” Particularly for small businesses, licensing has the advantage of requiring less up front cash and putting some of the risk on the patent owner.
Be Open to Creative Searches
IP Strategist Jackie Hutter writes about the advantages of pursuing other company’s cast-off products or technology. They are not necessarily “junk,” rather, patented products or technology could have been discarded for a number of reasons like the patentee’s strategy changed. If a patentee developed a product or technology and later decided not to introduce it into the market, then that subject matter could be essentially market ready (or nearly market ready) for a significantly less cost than to develop a similar technology from scratch within one’s own organization.
Use Lawyers Wisely
Hutter also cautions companies from putting up complicated restrictions about the use and ownership of IP even before knowing a deal is likely to happen, which is the natural inclination of most IP attorneys. This can often end up in the other party walking away before a deal is even underway. Rather, Hutter has found the best lawyers to negotiate deals in the Open Innovation context are business-focused attorneys, who tend to be people who have served a stint in the corporate world and who might even have little experience with high-end IP issues.