9. 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.
10. Grant Clause
• Most important
• Defines scope of agreement
• States
– Parties
– Type
– Subject
– Rights
– Territory
– Term
11. Example
• Licensor grants to Licensee a nonexclusive
license to use the Licensed Patent 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 Patent
• Territory - India
• Dates - January, 2005 to 1st January, 2006
13. Term and Termination
• Term
• Events
– Material Breach - Nonpayment of royalty, etc.
– Bankruptcy
– Insolvency
– Act of god
• Rights after termination
• Confidentiality
14. Royalty Clause
• Type of Royalty
– Lump sum royalty
– Fixed Royalty
– Running royalty
• Combination.
• Patent prosecution
• Mode and Date of payment
• Accounting and Record keeping
• Non payment consequences.
15. Milestones
• Identification of a lead candidate for
development
• Filing of IND or equivalent
• Completion of Phase I clinical trials
• Completion of Phase II clinical trials
• Completion of Phase III clinical trials
• Filing of NDA or equivalent
• Approval of NDA or equivalent
16. Example – Pfizer-AVANT
• Exclusive worldwide licence
• to a therapeutic cancer vaccine candidate
• Lumpsum - 40 million dollars
• Investment - 10 million dollars in equity
• Milestone payments - Upto 390 million dollars
• Running royalty - double digits
• Fund Research and Development
18. NRDC V. ABS
• Patent License
• Not registered
• Expiry of patent term
• License invalid
19. Kinds
• License
• Cross License
• DuPont and Bayer - Herbicide and Multi-
insect control products
• Patent Pool
• Essential Patent Pool for AIDS
• Open Source Projects
• Human genome project
20. Negotiation
• Background research
• Awareness of Patent Law
• Technology understanding
• Context and Culture
• Bottom lines and Flexibilities
21. Examples
• CSIR Lab and Research Based Company
• Diabetes research - License Terms
• Indian Company and Foreign Pharma
Major
• Stem Cell patents - License Terms
22. Wednesday, April 30, 2014
IP Resources
•
• www.sinapseblog.com
•
• www.patentpill.com
23. Indian Patent law and Practice
Patents play a very vital role in providing business and
competitive advantage to knowledge driven companies.
In order to maximize business benefits from inventive
activities, companies must be aware of the dynamics of
patent law and activities of competitors. Swift response
to changes in law and patent behavior of other
companies is necessary to deal with cut throat
competition. The rapid progress of patent activity in
India requires every organization to be alert and
watchful in order to survive and succeed in the market
place.
For more information on the book please visit:
www.indianpatentlaw.com
Wednesday, April 30, 2014