From IP to Profit: Tips for Successful Commercialization MICHELLE KORMAN, SENIOR IP ANALYST METIS PARTNERS LIMITED X INTERNATIONAL SYMPOSIUM: IP IN INNOVATIVE

From IP to Profit:

Tips for Successful

CommercializationMICHELLE KORMAN, SENIOR IP ANALYST

METIS PARTNERS LIMITED

X INTERNATIONAL SYMPOSIUM:

IP IN INNOVATIVE ECONOMY

Metis Partners © 2014

WHAT WE ARE GOING TO COVER

Innovation and Market Pain

Understanding Monetizable IP Assets

Routes to Commercialisation

IP-Backed Finance

Case Studies


INNOVATION AND MARKET PAIN

To paraphrase English poet John Dunne,

“No IP is an island, entire of itself”

Ideas/innovations only have worth if they solve a

market pain

Ask yourself:

“What problem/pain does my idea/IP solve?”


MARKET OPPORTUNITY

Need to identify the relevant market(s) your

innovation would benefit

Think laterally!

Understand the commercial advantages

associated with your idea/IP


CASE STUDY: BAGTRAKKA

ID Tag - keeping you in touch with your

luggage


PROBLEM

More than 34% of passengers experienced problems related to baggage on their most recent flight

Airlines lose 71,000 units of passenger baggage every day

The cost the airline industry is US$2.58 billion annually


MARKET

TOTAL MARKET

MARKET SEGMENTS

2.4 m11%

MIDDLE EAST - EUROPE

3.5 m5%

EUROPE – ASIA PACIFIC

3m13%

ASIA PACIFIC – MIDDLE EAST

CAGR Passengers per month

170mFrequent Flyers pa 50%

ExperiencedLost Luggage

550mTotal Flyers pa


ADDITIONAL MARKET POTENTIAL

THINKING LATERALLY


Airlines looking to use geolocation for:

Reducing passenger congestion (50%)

Monitoring of aircraft movements (32%)

Movement of passengers at airports (31%)

Geolocation for freight carriers

In 2011 there were 77,000 shipping containers tracked using tracking devices

In 2016 analysis expect there will be 1M containers tracked.

An increase from 0.4% to 3.6%

SOLUTION

A real time baggage tracking tag

Partner with airlines to market to their

frequent flyer customers

Partner with global no.1 technology

partner for airlines

Sell online through own online shop

Partner with golf, ski and surf retailers


WHICH IP ASSETS ARE CAPABLE OF MONETIZATION?

Traditionally, people focus only on registered IP as assets capable

of monetization

Patents, trade marks and designs are all significant assets

capable of monetization, but…

These may not be the only – or most significant – IP assets

you/your company has

Technical specifications, test data, databases, software, and even

know-how is capable of monetisationMetis Partners © 2014

METISOLOGY

We look beyond “traditional” IP…

… to ID, assess & unlock potential of all IP assets which

underpin competitive advantage


CASE STUDY: A HIGH TECH COMPANY PRE-FINANCING

Waterproof technology manufacturer saw their patent portfolio as primary IP

asset

But, core/relevant patents were close to expiry and additional patents had been

pending for over 5 years

Our due diligence identified that the Company’s trade secrets & know-how

underpinned competitive advantage

Company was able to secure significant financing on the back of this


ROUTES TO COMMERCIALIZATION

Licensing

Spin-Out

Sale to 3rd Party

Direct-to-market


ROUTES TO COMMERCIALIZATION

Things to consider:-

What is your future involvement in the

commercialization of the invention?

Is the innovation a one-off or part of a

portfolio of inventions?

What is the potential market for the

idea?Metis Partners © 2014

LICENSING

Effectively giving the right to do

something that would otherwise

constitute IP infringement

License-out to: A third-party company which incorporates the IP into

end product

A potentially infringing third-party

Via university tech transfer offices

Directly (i.e. software)


Sharing risk

Revenue generation

Increasing market penetration

Reducing costs

Saving time

WHY LICENSING?


CASE STUDY: PLASTIC ELECTRONICS SHIFTS BUSINESS STRATEGY

University spin-out

Operated under a direct-to-market strategy

Products never released

Went back to its IP-focused roots via licensing technology

Now have LoI from number of impressive blue-chip

companies


SPIN-OUTS

University/research institution spin-out

No existing business to approach re:

licensing

“Platform opportunity” / “disruptive

technology”

Technology needs further development to

obtain “full” value


SPIN-OUTS

Creation of a new “IPCo”

De-risks IP assets from the risks/liabilities of

“OpCo”

Creates new revenue stream for the business

IP is recognised on the balance sheet


SALE TO 3RD PARTY

Sale to 3rd party might be

ideal if:

Ancillary part of the IP

portfolio

Not currently monetising the

IP/no future plans to monetise

the IP

Need influx of capital


CASE STUDY: FASHION BRANDS


DIRECT-TO-MARKET

IP makes up the core offering of

your business model

You have the skills/expertise to

commercialize the IP

You have identified a direct route

to market


IP-BACKED FINANCE

IP securitization

IP-backed pension-led funding

IP valuations to support

investmentMetis Partners © 2014

Michelle Korman

[email protected]

k

Tel: (+44) (0)141 353 3011


mailto:[email protected]

mailto:[email protected]

Documents

From IP to Profit: Tips for Successful Commercialization MICHELLE KORMAN, SENIOR IP ANALYST METIS PARTNERS LIMITED X INTERNATIONAL SYMPOSIUM: IP IN INNOVATIVE