Negotiation in technology

Transfer & Patent licensing

【行銷管理－談判策略及技巧】

林鴻六總經理
亞太智財科技服務 ( 股 ) 公司
How do we measure our success
in negotiation?

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Key Points in negotiation
 Understand the scope of discussion
 Be sure that there is definitely a need to license
 Clearly define the final goal of negotiation
 Obtain management’s support for your strategy
 Know all channels available to you
 Set the direction of negotiation
 Orchestrate the environment for negotiation
 Lead negotiation into the avenue which is favorable
to you

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 Field of technology applications in
technology transfer
COMPUTER
INTEGREATED
MANUFACTUREING
AEROSPACE
CONSUMER
TELECOMMUNICATIONS
ELECTRONICS
CAR AND TRANSPORT
SERVICE INDUSTRY MICROELECTRONICS
INDUSTRY
OFFICE AUTOMATION
METATL/STEEL INDUSTRY
SEMICONDUCTOR INDUSTRY
FOOD PROCESSING
INDUSTRY
PHARMACEUTICAL Nanotechnology
INDUSTRY
AGROCHEMICAL INDUSTRY
BIOTECHNOLOGY
FINE CHEMICALS NEW MATERIALS
PETROCHEMICAL
INDUSTRY
WASTE PROCESSING
INDUSTRY
BIOMEDICAL MATERIALS
AEROSPACE INDUSTRY]
TEXTILES INDUSTRY
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Do you want to rely on crystal
ball fortune teller for your
success?

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 Worldwide market Coverage

Geographic Area Patents

North America 12,656
Europe 6,970
Asia & Pacific Rim 2,306
Africa & Middle East 63
Caribbean, South &
Central America 4

21,999 Patents Total Worldwide (EOY 1994)

Darkened areas designate countries/jurisdictions
in which AT&T has active patents.

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 Jurisdiction Number of Active Patents

8/17/02
United States 8719

Canada 3899

Great Britain 1454

Germany 1389

France 1291

Netherlands 708

Japan 691

Italy 687
(EOY 1994)

Taiwan, ROC 602

Sweden 513

Belgium 360

Dr. Leo H. Lin, ATIPS propriatory

Australia 342

Korea 314

Spain 270

Switzerland 171
Active AT&T Patents by Jurisdiction

Singapore 147

Hong Kong 140

AT&T has between 1 and 51 active patents
* - “All other” consists of 35 jurisdictions in which

10

302
*

All Other
Valuation of technology!!!

Market potential Product value

Financial strength

Tech. impact Market share

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Technology Transfer negotiation
Terms
A. The content of technology
B. Detail Training requirements
C. Location of manufacturing
D. Sales territories
E. Payment terms
F. Technology update
G. Third party infringements
H. Grant backs
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Positioning in negotiation

Make offers
Extreme
acceptable
Hard Position
to both sides

Concede generously
No resistance

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Negotiation Tactics
 Develop options
 Working relationship
 Clarify interests
 Decision making
 Apply external
standards
 Legitimacy
 Communication
8/17/02 Dr. Leo H. Lin, ATIPS propriatory
 Evaluating everyone
 Credibility
 Look behind position
 Consider impacts
 looking for fairness
 To prevent bluffing
 Listen actively
14
Keys factors in a successful
negotiation

Develop options Evaluating everyone

Working Credibility
relationship Look behind position
Clarify interests Consider impacts
Decision making looking for fairness
Apply external
standards
To prevent bluffing
Legitimacy
Listen actively
Communication
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Key factors in a Successful
Negotiation
 Authorization and delegation
 Timing for decision making
 Understanding of the situation
 Clear picture of relevant factors
 Identifying key interests for both parties
 Appropriate influences
 Understand differences

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Relationship Vs Interests
 Which is more important -- Relationship or
Substantive Interests? Can be both!
 Should we trade off Relationship for
Substantive Interests? No!!
 Build a working relationship
 Pursue Substantive Interests on their own
merits

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Negotiator’s personality and
attitude make the difference
 Competitive,  Goal oriented
aggressive  Detail understanding
 Egocentric, self- of both sides’ needs
interest  Willing to listen to the
 Winning is the only other side
goal  Not self centered
 No trade off  Always consider
 Ignorance, simplicity impact to both side
 Non-commitment  Win-Win attitude

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 How to conduct a Negotiation
with patent owner?

Balance
Negotiation
the situation
with factwith
litigation
Negotiation Face
by cost
from the strength
factors
your fact
Consider
Prove toroyalty
them that
as part
you of
product
understand
cost the
andsituation
balance it
with potential litigation cost

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Patent Licensing Negotiation
 Number of patents granted in the licensing
 What is the real impact of patents to be
granted in licensing?
 Are future new patents to be included?
 How to calculate royalties?
 What is the effective period of the
licensing?
 Is there grant back requirement?

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 Royalty rate
item subject to fees Sales territory
deductions Manufacture
payment period territory
Patent licensing
Scope of patents
grant right

Exchange rate
tax, interest rate Application law
penalty for litigation country
late payment arbitration
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 What terms & conditions
should be attended to?

Upfront fee
Annual royalty rate?

Late payment interest?

Learn the terms Payment period?
and How many patents are
conditions first licensed to you?

Any future patent involved?

Bookkeeping process
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Technology and market concept match in
today’s environment
• Dynamic business environment in 21st century:
• New technology, new market and new business concept
• Internet business concept dominate market approach
• Worldwide reach is key to new business concept
• Artificial intelligent information development create
virtual business world
• 5. New business is always associated with new
technologies
Winning is not everything, it is the only
thing! Get a Win-Win position
 Separate the people from the
problem
 Work from interests, not positions
 Looking for options which will
benefit both parties
 Minimize antagonizing events
 Search for Common ground
 Establish trust and credibility
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Product failure—New Cock Cola
 Cock Cola has been a great marketing
success, however, in earlier 1980s, they
introduce a new flavored Cock Cola with
the expectation to create new customer
interest; Unfortunately, it was completely
failed due to customer rebelling, it forced
the company to reintroduce the classic
cock cola.

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