#2 NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 2 Breakout Session #1205 Jason Rushin, Product Marketing Nextance Tuesday, April 11 1:30pm - 2:30pm Maximizing Your IP Value
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#2
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 2 Breakout Session #1205 Jason Rushin, Product Marketing Nextance Tuesday, April 11 1:30pm - 2:30pm Maximizing Your IP Value
When We Talk About Intellectual Property, What Do We Mean?
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 3 Inbound and Outbound Licensing of: Patents Trademarks Copyrights Trade secrets Know-how
Evolution of IP
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 4 Cost Center "Think Tank" Revenue Targets Performance Standards Then Now R&D Competition Time & Resources Marketplace Static & Predictable Confined to Industry Instant, Dynamic & Intense New Entrants Long Dev & Large Windows of Oppty Available Resources Short Dev Cycles & Small Windows of Oppty Constrained Resources Regional Sequential Launches Global Simultaneous Launches Philosophy Indigenous Development – We will build everything we need (total ownership) Co-opetition – We will source from anywhere and monetize market opportunities any way we can.
Today’s CRM systems focus on call routing and incident tracking, not solving customer problems First call resolution rates too low (only 54%, down 15% since 2000*) Disparate systems for voice, email, and web: Inconsistent service experience Support nightmare Enterprise knowledge is scattered and inaccessible Multiple repositories, formats, etc. Poor retrieval technologies Self-service solutions have not lived up to expectations Customer: not resolving problems - Irrelevant search (not contextual, not guided, no feedback etc) Company: not deflecting calls/costs SSPA = Service & Support Professionals Organization
Strategic Issues With IP
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 5 Revenue: Make your number ‘Idea to Cash’ cycle is too long Revenue leakage and inability to manage royalty receipts Payments made on un-used IP Assets Lawsuits: Stay out of Court Growing compliance and IP infringement violations Rising Legal costs and lawsuits ($92 Million) Rising demands of regulatory compliance reporting Assets: Know your IP Inventory IP is not captured and protected Cannot tell productive IP from un-used IP (Stale Inventory) Cost of carrying "Dead" IP
Operational Challenges Exist, Too
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 6 Basic Productivity Issues Negotiation Issues Sales not clear on latest negotiation policies and limits Slow and painful negotiation process, wrought with errors Royalty Management Issues Translating commitments and date based obligations to royalties Validation of terms for financial transactions (billing/invoicing) Cannot find contracts when questions are asked or amendments required Audit process slow and painful
Three Main Issues and Their Impact
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 7 $ $ License In Visibility Standardization Control License Out $ $ Leaking money Unwanted risk Compliance Violations
Is Visibility a Problem For You? License Out IP
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 8 What assets have you licensed? Where are you using them? What is the business risk? Which IP assets are under leveraged? Are your partners in compliance with their licensing agreements? Do you know if you are maximizing your revenue opportunities? Can you forecast royalties owed to you accurately? Have you ever licensed the same IP rights to 2 different parties?
Is Visibility a Problem For You? License In IP
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 9 Are you paying for and licensing IP you already own? Can your existing IP assets fill your product requirements? Are you in compliance with all terms of your licensing agreement? Do you have long term rights to the IP that is critical to your key products? Can you track, manage & validate your royalty obligations? Are you making your payments on time? Are your payments for the right amount?
Is Standardization a Problem For You?
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 10 Do you have standard templates that help drive consistent terms across agreements? Do you have a standard method for tracking licensing contracts and their critical business information?
Is Control A Problem For You?
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 11 Do you have internal controls around your agreement processes? What goes in contracts Who approves and how they are approved Do You have an audit trail of your process? Do you know where your agreements are in the process? Do you know what your agreement cycle times are? Do you know where your bottlenecks are?
Three Main Issues and Their Impact
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 12 $ $ License In Visibility Standardization Control License Out $ $ Leaking money Unwanted risk Compliance Violations
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NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 13 Using Contract Management Solutions to Maximize IP Value
Centralize IP Contracts , Then Increase Standardization and Control
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 14
Visibility Enables Asset Portfolio Management
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 15 ASSET DATABASE Gain complete visibility into IP asset information Identify opportunities for revenue through multi-variable analysis Mitigate risk by tracking and managing encumbrances Reduce expenses by retiring unused assets All Assets ASSET DATABASE All Licensable Assets: NOT Restricted to Internal Use Only ASSET DATABASE All Licensable Assets for Auto Industry ASSET DATABASE All Licensable Auto Industry Assets with protection in the EU Portfolio for offer to Customers
[Self Explanatory]
Visibility Improves Asset Utilization
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 16 OPTIMAL ASSET UTILIZATION (18% of our assets generate 83% of revenue) Improve deal and IP ROI by investing resources into your prized assets Protect your prized assets across all relevant geographies Monitor all agreements that reference your prized assets ASSET DATABASE All Assets ASSET DATABASE Assets Generating 80% of Royalties Marketing & Sales Plan for High Impact Assets Sales Plans Pricing Plans Agreement Terms Multiple Agreements on IP Asset
[Self Explanatory]
Control Over Your Contract Processes
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 17 T Library CFO Pull contract template from library Biz. Terms require CFO approval Negotiation / Collaboration Legal / IP Partner Deal Term Sheet C VP Licensing IP Rel. Approval IP release requires VP, Licensing approval Mitigate Risk; Ensure compliance during contract creation, negotiation Ensure continuous migration to corporate standard contract terms Improve speed to market by decreasing cycle times Document compliance through audit trails
The IP Attorney pulls a contract from the library Prepares a deal term sheet and ensures that the terms are approved by the CFO / Business Unit (in this example it is the CFO) Ensures (s)he has IP release approval from the VP of Licensing Combines (2) and (3) to prepare a contract … and negotiates / collaborates with the suppliers to come to an agreement … [Benefits Self Explanatory
Visibility and Standardization Enable Commitment & Obligation Management
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 18 EXEC Date & Event based ESCALATION ALERTS Legal / IP Partner Account Manager Visibility and Standardization Enable Commitment & Obligation Management C Nextance Intelligent Enterprise Set & Manage obligations, commitments & milestones Customer Mgmt Team Date & Event based person specific alerts Avoid Penalties: Proactive payment and commitment management Improved Partner Satisfaction & Relationships Reduce audit time by maintaining an e-audit trail of actions, events and authors
[Self Explanatory]
Visibility and Standardization Enable Royalty Management (License In)
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 19 C Nextance Intelligent Enterprise Legal / IP Partner Account Manager Set & Manage obligations, commitments & milestones Customer Mgmt Team ERP Finance Team 1 Payment Due Date Trigger Partner ((LICENSE IN) 2 Send Revenue Report 3 Invoice 4 Is invoice correct? 5 Validation Result 6 Payment Avoid Penalties: Proactive payment and commitment management Ensure correct & timely payments: Bi-directional integration to facilitate 4 way invoice matching
The contract triggers an alert to the ERP system on the payment due date The ERP system sends a revenue report to the partner Partner sends an invoice ERP system interfaces with NIE to check if the invoice is correct NIE validates the invoice ERP system releases payment to partner [Benefits self explanatory]
Visibility and Standardization Improve Royalty Management
NCMA World Congress 2006 : Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management 20 C Nextance Intelligent Enterprise Legal / IP Partner Account Manager Manages Asset Lifecycle: Royalties, Commitments, Milestones etc. SALES/CRM SYSTEMS EXEC 1 What is our possible royalty commitment for next 6 mos? 2 What is our sales forecast? 3 Sales Forecast #s 4 Royalty Forecast Integration with Sales & CRM systems Improved Cash Flow Visibility
Exec wants to know sales forecast for predicting future cash flow NIE sends request for sales forecast to SFA SFA responds with sales forecast numbers NIE calculates royalties based on SFA numbers and sends royalty forecast to exec [Benefits self explanatory]
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