"The LESI Guide to Licensing Best Practices, to which I was proud to contribute, has found solid acceptance in the international licensing community. The new volume of Licensing Best Practices maintains this high standard. It was designed to be complementary to its predecessor and broadens the scope of the scholarship. Standing alone, Licensing Best Practices is a valuable source of contemporary information. In combination with The LESI Guide to Licensing Best Practices, we have a very valuable source of insights and practical knowledge." —Heinz Goddar Partner Boehmert & Boehmert "Few if any other intellectual property references lay the required geographic foundation for the scientific, business, and legal issues presented. Goldscheider and Gordon demonstrate that tech transfer occurs in a global arena. The book lives up to its title: Licensing Best Practices." —James E. Malackowski President & CEO, Ocean Tomo, LLC past president, LES-USA & Canada An invaluable complement to the field's acclaimed book on licensing best practices Spanning the globe, from Scandinavia to Japan and Mexico to Korea, Licensing Best Practices provides a comprehensive and user-friendly resource for professionals in licensing and technology management. Featuring contributions from some of the most highly regarded LESI professionals, this definitive guide includes detailed discussions on some of the hottest topics in licensing, including: Licensing and Technology Transfer to China Software Licensing as a Driver of the Indian Economy Secrets of Successful Dealmaking in Asia Licensing in Scandinavia-Home of Entrepreneurial Inventors, Industrialists, and Philanthropists Global Innovation and Licensing Opportunities on the Internet Energy and Environment Driving Technology and Licensing Licensing Nanotechnology Assuring Royalty Compliance in High Technology Licensing Intellectual Property Allocation Strategies in Joint Ventures Applications of Game Theory to IP Royalty Negotiations

Table of Contents:
Preface xv About the Editors xxi About LESI xxiii Part 1 TERRITORIAL COMMENTARIES 1 Licensing and Technology Transfer to China: A Roadmap 3  by Henry Beck and Xichun (Catherine)  Pan Introduction 3 “Free Riding” Past and Present 3 China Joins the World Economy 4 Intellectual Property Protection and Enforcement 5 Intellectual Property Rights Have Little Extraterritorial Force 5 International Treaties and Conventions; Trade Remedies 5 China’s Intellectual Property Protection Regimes 7 Enforcement of Intellectual Property Rights and the Threat of Trade Sanctions 9 U.S. and Chinese Export and Import Control Regulations: “Outbound” and “Inbound” 17 U.S. Export Control Regulations 17 China’s Regulations for Technology Imports and Exports 22 Concluding Thoughts 24 2 Software Licensing as a Driver of the Indian Economy 27  by Rani Boazz and Subramaniam Vutha Introduction 27 Background 27 The Scope of the Chapter 29 The Economic Impact of Software Licensing in India and Current Business Trends 29 The Legal Framework for Software Licensing in India 32 Copyright Law 32 Contracts 32 Trade Secrets Law 32 Patent Law 33 Taxes and Duties 33 Reproduction of Software in India 34 Insights into the Special Needs and Legal Requirements of the Indian Software Market 34 Outlook for the Indian IT Industry 35 3 The Industrialization of Korea (1962 to 2002) from the Patenting and Licensing Perspective 37  by Yoon Bae Kim Introduction 37 Overview of the Korean Economy and Trends in Technological Development According to Historical Dates 38 Before 1962 (Japanese Colonial Rule and the Korean War) 38 From 1962 to 1991 (National Economic Development Plans) 39 From 1992 to the First Half of 1997 (between the Post-Economic Development Plan and the Foreign Currency Crisis) 42 From the Second Half of 1997 to 2002 (Foreign Currency Crisis and Innovation-Led Economic Growth) 43 Key Indicators of the Korean Economy 44 Key Indicators of Korea’s Macrotechnological Capability 45 The Impact of the Korean Patent System and Licensing Regulation on Korea’s Technological Development 47 The Patent System 48 Formulation of Law on Protection of Computer Program Copyright 49 Licensing Regulation 50 Patenting and Licensing Trends by Industry 52 Chemicals (Petrochemicals and Fine Chemicals) 53 Shipbuilding 54 Steel and Iron Manufacturing 55 Automobiles 56 Aerospace 56 Semiconductors 57 Electronics and Telecommunications 58 Conclusions 59 4 Japan on Its Way to Revitalization 63  by Jinzo Fujino Introduction 63 Overview of Technology Trade 64 Shifting to a New Knowledge-Based Economy 65 Overhauling Japan’s Intellectual Property Scheme 66 Intellectual Property Promotion Plan 2004 67 Creation of New Inventions 67 Protection of Intellectual Properties 68 Enhancing the Utilization of Intellectual Properties 69 Promotion of the Contents Business 70 Development of Human Resources in the Intellectual Property Arena 70 Protection from Foreign Counterfeits 70 Conclusions 71 Commentary 72 5 Secrets of Successful Dealmaking in Asia 75  by Dennis Unkovic Introduction 75 Factors Influencing Asian Business Deals 76 Thailand 77 Malaysia 78 Singapore 79 Indonesia 81 Asian Diversity 82 6 Modern Mexican Laws Governing Intellectual Property, Licensing, Antitrust, R&D, and Inventors’ Rights 83  by Oscar M. Becerril and Hector E. Chagoya Introduction 83 The Mexican Antitrust Law 84 The North American Free Trade Agreement (NAFTA) 86 The Freedom-to-Research Issue 87 Benefiting from the Mexican Industrial Property and Licensing System: Some Hints 88 Franchise Contracts 89 Licensing in the Pharmaceutical Sector 89 Licensing of Biotechnology 90 Licensing of Copyrights 90 R&D Contracts 91 The Mexican Employees’ Inventions System: Another Reason to Consider Mexico for R&D Activities 92 Remuneration to Employees for Their Inventions under Mexican Law 93 Patenting Controversial Technologies in Mexico 94 Computer-Implemented Technologies 94 Biotechnology 94 Conclusions 95 7 Licensing in Scandinavia: Home of Entrepreneurial Inventors, Industrialists, and Philanthropists 99  by Robert Goldscheider and Jonas Gulliksson Introduction 99 Scandinavian Creativity 99 Finland’s Impact 100 Success Factors 101 “Scandinavian-Bred” Technology 102 Karl V. Palmaer 102 Haldex All Wheel Drive System 103 Ole-Bendt Rasmussen 104 Conclusions 106 Part 2 SCIENTIFIC ISSUES 8 Global Innovation and Licensing Opportunities on the Internet 111  by John G. Palfrey, Jr. Introduction 111 The Digital Media Revolution 112 The First Clash: Digital Music 112 The First Success: Apple’s iTunes 113 Globalization and the Internet 114 Outsourcing of Software Development Services 114 Open Source Software Development 115 Other Global Effects of the Information Technologies Boom 116 Looking Ahead: Web Logs, Syndication, and Aggregation 117 The Phenomenon of Web Logs 118 Really Simple Syndication 119 Conclusions 120 9 Energy and the Environment: Driving Technology and Licensing 123  by Walter G. Copan Energy and Human Progress 123 Energy in the Petroleum Age 124 The Environment and Sustainability 127 Global Climate Change and Emissions Trading Markets 128 A Triple Bottom Line 130 New Technologies Driving Technology Transfer 130 Energy Efficiency and Resource Conservation 130 Green Buildings 131 Energy Efficiency and Emissions Control for Transportation 132 Electric and Hybrid Vehicles 133 Hybrid Vehicle License Strategies 133 Evolution of Fuels 134 Natural Gas Fuel 135 Biofuels 135 Distributed Power 136 Power Plants 137 Renewable Energy 137 The Hydrogen Economy 139 Fuel Cells 140 Venture Capital and Institutional Investment 140 The Role of Licensing in the Energy World 142 New Value Options for Licensing in Energy and the Environment 143 Risk Management Value 145 Emissions Reduction Value 145 Direct Policy Incentives 145 Reduced Resource Use 146 Corporate Social Responsibility 146 Societal Economic Benefits 146 Technology Transfer Value 147 Acknowledgments 147 10 Essentials of Licensing Biotechnology, Nanotechnology, and Other Cutting-Edge Technologies 151  by Manya S. Deehr and Mary Ann Stretch Introduction 151 Definitions 152 Improvements 153 Field of Use 154 License Grant 154 Information, Data, and Results 155 Source of Intellectual Property: Federal Funding and Academic Contributions 156 License or Divestiture 158 Patent Sections 159 Conclusions 160 11 The Big Picture: Nanotechnology Impacts Everyone 163  by Robert C. Shaddox Introduction 163 Licensing Nanotechnology 164 Overview 164 Definitions 165 Ownership/Encumbrances 166 Timing 167 Technology Licensing 168 Overview 168 Definition of Licensed Property/Licensed Products 168 Granting Clause 169 Termination Provisions 169 Consideration 169 Territory or Field of Use 170 Patent Protection 172 Infringement Actions 173 Confidentiality 175 Assignment and Sublicense 175 Conclusions 176 12 Ensuring Royalty Compliance in High-Technology Licensing 179  by Arthur M. Nutter Introduction 179 Intellectual Property versus Real Property 179 High-Technology Licensing Programs 180 Phase One 180 Technical Investigations: Treasure Hunting 182 Courtroom Discovery versus Reverse Engineering 182 Analyzing Semiconductors 183 Microcontroller-Based Product Analysis 184 Black Box Testing 184 Dumb Patents 185 Software 186 New Laws in the United States 186 Open Source Strategies 187 Part 3 BUSINESS, LEGAL, AND PROFESSIONAL ISSUES 13 Licensing Challenges Encountered by a Multinational Law Firm 191  by Michael A. Epstein Introduction 191 Knowledge Management 192 Maintaining Geographical Spread 193 Providing Subject Matter Diversity 194 Utilizing Litigation Expertise 195 Preserving Experience as to Past Deals 197 Leveraging Relationships 198 Conclusions 198 14 Small Companies’ View of Licensing 201  by Norman A. Jacobs Introduction 201 Acquiring Technology (Licensing In) 202 Granting Technology Rights (Licensing Out) 203 Identify Potential Licensees 204 Overcome the Confidential Disclosure Barrier 205 Consider a Joint Development Program 205 Define Fields of Use 206 Consider Novel Royalty Structures 206 Use a “Distress” License to Increase Product Sales 207 Determining the Value of Technology 207 Ensuring Licensee Diligence 208 Conclusions 209 15 Managing Intellectual Property Allocation in Joint Ventures 211  by Ron Laurie Introduction 211 JV Structural Models 211 The Contractual Model 212 The Entity Model 212 The Two-Stage Model 213 Intellectual Property Allocation in General 214 The Default Allocation Paradigm: Joint Ownership 214 Preferred Intellectual Property Allocation Strategies 217 Application of Intellectual Property Allocation Strategies to the JV Structural Models 218 The Contractual Model 218 The Entity Model 220 The Two-Stage Model 222 Exit Strategies 226 Merger or Acquisition of the JV Entity 226 Dissolution of the JV Entity 226 Conclusions 228 16 Experience in Norway with Strategic Alliances as a Work Form When Commercializing Technology 231  by Håkon Haugen and Tor Oppedal Introduction 231 The Particle Business in DYNO—and Beyond 231 From Idea to Market 232 Critical Success Factors for a Company Based on New, Advanced Technology 233 Technology 233 Infrastructure 233 Products 233 Market Apparatus 233 Alternative Strategies 234 DYNO’s Particle Development: A Strategic Evaluation 234 Establishment and Execution of Strategic Alliances: A General Evaluation of Relationships 234 Choice of Partner 235 Establishing the Alliance 235 Administration and Leadership of Joint Activities 236 Experiences of Dyno Particles: Examples 237 Dynal Biotech ASA: Biomagnetic Separation 237 Pharmacia Biotech AB: Chromatographic Purification of Biomaterial 238 General Conclusions Based on Our Experiences 239 17 Application of Game Theory to Intellectual Property Royalty Negotiations 241  by John C. Jarosz and Michael J. Chapman Introduction 241 Usefulness of Game Theory 241 Bargaining Basics 243 A Simple Bargaining Game 244 An Intellectual Property Licensing Game 245 The Nash Bargaining Solution (NBS) 247 Description 247 Extension to Licensing 252 Estimation of NBS 258 Disagreement Profits (di ) 259 Total Profits (∏) 260 Bargaining Power (α) 260 Conclusions 263 18 Administration and Auditing of License Agreements to Promote Control and Harmony 267  by Margaret (Peggy) Moizel Introduction 267 Management Plan for Maintaining Licensee Agreements 267 Negotiation Steps 268 Inventory of Agreements 270 Remuneration Calculation 270 Conclusions 272 Suggested Reading List 273 Index 279