ALANO, JULIUS N.

TM 298 – Knowledge Management

2018 – 20700 Prof. Serafin Talisayon

Summarization 1: Introduction – Why License?

Intellectual Property (IP) according to the World Intellectual Property

Organization, refers to creation of mind, such as inventions; literary and artistic works;
designs; and symbols, names and images used in commerce. IP is protected in law by,
for example such as patents, trademarks, and copyright, which enable people to earn
recognition or financial benefit from what they invent or create. By system, the
intellectual property rights convert creation and innovation into a property consequently
into valuable tradeable asset.
By law, owners and creators of intellectual property asset can be commercially
used by their owner or with a permission of the owner by another user. This is through
licensing from the owner. The term license means permission given by the owner to
utilize the asset on agreed terms and conditions for definite purpose, period, and
territory. Licensing of intellectual property is usually deemed into three broad categories,
such as technology licenses, publishing and entertainment licenses, and trademark and
merchandising licenses.
This book chapter focuses on the intellectual property licensing and technology
transfer which is critical factor in joint venture, strategic alliances, and so-called turnkey
contracts. Technology licenses as one of the types of intellectual property license,
tackles technology transfer which is the transfer of existing technology for application by
the same or a new user. For an example of technology licensing is with a manufacturing
firm acquiring new technology for process or product improvement. Through the license,
it gives the right for the new user to use the technology for their manufacturing firm.
Many technologies may obtain either through research and development carried
out by the firm itself, through a partnership, or by acquiring such technology developed
by others that has been already in the market. To save time and resources, a lot of firms
acquire technology from other firms that is suitable for its own use. This is done if the
firms cannot develop the desired technology with their in-house facility and resources.
There are two types of licensing a technology. The first type is the “licensing-in”
of technology which is the acquisition of rights to a specific technology developed by
another for a certain use. The other type is the “licensing-out” of technology which to
permit to another the right to use the specific technology to which one has commercial
rights, through an agreement. Having an intellectual property right to technology must
have human capital, a product, a developed market and/or established business or
revenue stream for it be successful. The intellectual property right owner has options to
selling or licensing his intellectual property. The option to sell his intellectual property in
technology also called an assignment, the ownership rights to the technology will be
transferred to the buyer in a one-time activity. The IP rights and technology are sold for
an agreed price. The option to license are broad which usually in a form of a licensing
agreement which transfers from the licensor to the licensee the right to use the
intellectual property in the technology and to make, use, and sell product representing
the technology, in specified territory, period, and manner. In this way, the intellectual
property owner still has the commercial rights over the technology and has only
permitted a definite right to the use of that technology. Licensing requires a different
legal approach as opposed to sale or assignment with strong difference in terms of
business purposes. One must be reviewing the strategy to decide on which approach to
adopt.
There are numerous reasons to license. It could be used to unblock interlocking
IP rights, settle IP litigation, grow and diversify business, deal with outside idea
submissions, and even make dormant IP portfolios profitable. Licensors can make
profit, increase market share, gain rights for future technology, increase marketing
strength, and even secure the market. Licensees can obtain rights to technology,
minimize cost, alleviate risk, even benefit from the licensor’s technical capability and
good reputation. These are but a few advantages of licensing. On the other hand, there
are certain disadvantages as well for licensing. Depending on the license agreement
scope, the licensee can be a potential competitor to the licensor. The licensor can
become dependent on the licensee for profit generation. For licensees, they can have
technical dependence with the licensor. They may also encounter problems such as
additional costs to the product licensed.

Reference:
Exchanging Value: Negotiating Technology Licensing Agreements (2010). Introduction
– Why License? Page 13 – 20. Switzerland. World Intellectual Property
Organization (WIPO)
Summarization 2: Using KM to Safeguard Your Intellectual Property

Knowledge Management (KM) and Intellectual Property Management (IPM) are

two disciplines that are crucial to companies in protecting their critical data. KM Systems
are great contributions to companies, from software firms to traditional manufacturing
firms, manage their intellectual property which is essential to the core business and
strategies. KM also plays a significant role in managing the process of new product
development and patent applications for additional intellectual property asset.
Intellectual property management improved as knowledge management systems
takes place in managing the internal process of innovation in most firm giving fruitful
results for new product. Firms now tends to focus on how to gather knowledge or idea
from inventors or creators through workflows and utilize such to review in different
aspects such as business, technical, and legal aspects.
As knowledge or idea is assessed the value, the three aspects mentioned must
decide if they will pursue to convert such into an intellectual property asset. This
workflow must also be implemented and managed carefully as to protect the potential
IP. Sharing knowledge within the firm is essential but must also be vigilant in gathering
and sharing as may possible valuable intellectual property is at risk.
Safeguarding intellectual property through knowledge management is great
solution for companies as its not only protecting the IP but also improve workflows
within the firm. KM systems also give ways to harmonize the organization and enhances
results for the firm.

Reference:

Zimmerman, K. (2001, June 01). Using KM to safeguard your intellectual property.

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