Recent Post Headlines

Sunday, November 2, 2008

Licensing of knowledgebase

Licensing of knowledgebase: -

Kb: - Includes readily available and commercial knowhow, process and/or process improvements, technology, technique and a new product. May or may not embody IP.

- unencumbered or encumbered

Licensing of Kb: - granting licensee the right to use the Kb for making or selling the resulting product(s) either for commercial/ captive purpose or as otherwise agreed to.

Financial aspects: - varies on case to case basis on the following factors:

(a) Cost of Development:-

(1) Direct input:-

(i) cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

(ii) Cost of consumable raw materials/consumable/ physical inputs/services/utilities with 25% OH (toward

expenses for purchase, storage, handling etc.

(iii) equipment usage cost/ cost of equipment procured specially for the projects :-

(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.

(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.

(iv) Contingencies including external payment for facilities/services

(v) Cost of Securing of IP right for Kb; and

(vi) Cost of publicity

(2) Indirect inputs:-

(a) Notional amortization of investment on the staff, equipment, facilities deployed for the projects; and

(b) Intellectual inputs.

(b) Cost associated with Kb demonstration

© estimate of net benefit to be derived by the licensee:- money to be saved by the licensee by productivity improvement such as saving in raw materials, energy, time, labour, capital etc. or the additional profit to be realized due to better quality of products or reduction in pollution etc. or the net profit from the exploitation of Kb.

(d) Size & number of potential clients: - based on exclusiveness of license and alternative competing sources.

(e) Comparative cost of competing Kb in the market (if applicable)

(f) Potential for unauthorized use of the specific Kb subjected to; (by piracy or otherwise)

(g) Opportunity value: - estimated amount that can be realized by cashing upon the circumstantial/ contingent aspect prompting the utilization of Kb by the licensee. (Expressed in terms of absolute money value or as a % of profits anticipated or of value addition envisaged.)

Differential costing:-

- Cottage/tiny industry

On token lumpsum charges even below the cost incurred on development of Kb (as decided by MC)

No royalty

Non-exclusive license

-SSI on direct cost, when non-exclusive to more then one client the cost could be divided by such no of clients to arrive at the cost/client.

-medium/large industry as per normal cost

Price decided for specific Kb should be reviewed periodically, atleast every three years for revision, if any required.