MaRS Discovery District Entrepreneurship 101
Wednesday January 18, 2012
ARSHIA TABRIZI
B.A.Sc. Computer Engineering (Hon) (UofT) Juris Doctor (Law) (UofT)
Member of Ontario & California Bars
www.tabrizilaw.com [email protected]
Copyright 2012 Tabrizi Law Office PC
¡ 1990-‐1995 – UofT software/hardware engineering, IBM ¡ 1995-‐1998 – joined the “dark side” – UofT law school ¡ 1998 – back to “the force” – thesis on “University Spin-‐offs” ¡ 1999-‐2001 – Wilson Sonsini Goodrich & Rosati PC (Palo Alto,
Silicon Valley) – incorporated Google, IPO’d Apple, 800+ lawyers ¡ 2002 – Tabrizi Law Office -‐ full-‐service/exclusive start-‐up practice
§ Incorporation, Financing, IP, Trademark, Patents, Licensing, Web § Strategic Partner with Clients – equity, relationships, 3-‐4/year
¡ Client list § NeXJ Systems (founded by William Tatham, previously founder of
Janna Systems, acquired by Siebel for $1.7 b.) § RedFlagDeals.com (acquired by Yellow Pages Group) § WedSnap Inc. (acquired by The Knot Inc.) § MMB Research (smart-‐energy platform, $1 m. angel round) § CognoVision (acquired by Intel)
Copyright 2012 Tabrizi Law Office PC
¡ NOT to become IP lawyers § Your job is to build companies
¡ NOT to learn how to file a patent § Patent agent
¡ NOT to learn how to file a trademark § Trademark agent
¡ NOT to learn how to file a copyright § Copyright office
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¡ To learn 3 things: 1. What is the big deal with IP? 2. Why should you care about IP? 3. What do you do about IP?
Copyright 2012 Tabrizi Law Office PC
¡ Billions of dollars are at stake: § Google acquisition of Motorola Mobility $12b. § Apple using patents against Android § Auction for Nortel patents § i4i $240 m. against Microsoft § BlackBerry loses BBX -‐ even BBM? § Winkelvoss twins against Facebook
Copyright 2012 Tabrizi Law Office PC
¡ I read about it in Steve Jobs biography § Steve Jobs had dozens of patents § Apple lost copyright case on Windows ▪ Apple got GUI from Xerox PARC
§ Steve Jobs negotiated music rights § Steve Jobs was secretive & controlling ▪ NOT lean start-‐up methodology
Copyright 2012 Tabrizi Law Office PC
¡ 3 reasons why IP is a big deal: 1. IP is a legal fortress ▪ IP protects your valuable assets
2. IP is a sword & shield § IP attacks/defends against competitors
3. IP is a money-‐making tool ▪ IP monetizes your business assets
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¡ IP is a legal fortress § Collect your assets ▪ Employment agreements – patents ▪ Consulting agreements – copyright
§ Protect your assets ▪ Invention – file a patent, trade secret ▪ Brand – file a trademark
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¡ IP is a legal fortress § Kinds of assets ▪ Ideas ▪ Business plans ▪ Inventions ▪ Names, brands ▪ Software ▪ Designs
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¡ IP is a sword & shield ¡ Patents
§ Invention ▪ New, non-‐obvious, utility
§ 20 year monopoly § First-‐to-‐file system ▪ Not who invented first ▪ No good-‐guy defence
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¡ Patents as Swords § Offensive strategy § Sue competitors ▪ You are stepping on my turf -‐ stop or pay up
§ i4i v Microsoft ▪ $4-‐5k to file, $15-‐20k+ to register ▪ $1m+ to enforce a patent ▪ Public, venture $$$, contingency
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¡ Patents as Shields § Defensive strategy § Free to practice invention § Deterrent -‐ counter-‐sue competitors § Google acquisition of Motorola ▪ Globe & Mail -‐ http://bit.ly/q4CpQy
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¡ Patents v Innovation § Patents equal innovation § Patents kill innovation
¡ Question § How much innovation could Google have produced if it had spent $12b on product development instead of Motorola’s patents?
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¡ Trademarks as Shields § Ensure you are free to use ▪ Corporate registration not enough
§ Protect brands before investing ▪ Avoid RIM’s problems with BBX/BBM
§ Filing fees are affordable § Short process ~ 6-‐12 months
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¡ Trade Secrets as Swords § “Secret sauce” § “Confidential” ▪ Source code, algorithm, chemical formulation, business plan, customer or vendor list, pricing list
§ Non-‐disclosure agreements ▪ Limit use – only to evaluate our product ▪ Limit disclosure – only to employees
§ Sue if they exceed limited rights
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¡ IP is a money-‐making tool § Patent licensing ▪ Microsoft patents for Android mobile devices ▪ Hardware IP licensing (IP cores) ▪ Materials, biotech start-‐ups
§ Copyright licensing ▪ Foundation of software industry ▪ Music licensing (e.g. iTunes)
§ Trademark licensing ▪ Merchandise (e.g. Star Wars)
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¡ IP is a Business Tool § IP is not the goal § IP is a means to an end § IP is in service of business objectives § IP works with other business tools § IP is a part of your business strategy ▪ How do make money? ▪ How do maintain competitive advantage?
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¡ Angel investor § Patents – purpose (sword, shield) ▪ How does it fit with business strategy
§ Digital media start-‐up ▪ Trademark – logo, brand ▪ Copyright – content, software ▪ Patents – sometimes
§ Inventive technology ▪ Patents, trade secret
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¡ List core business assets § List intangible assets § What is my business? ▪ Prioritize the assets
§ IP/start-‐up advice § Strategic IP plan ▪ Customize ▪ Prioritize ▪ Timeline ▪ Budget ▪ Review
Copyright 2012 Tabrizi Law Office PC
¡ Tabrizi Law Office P.C. § www.tabrizilaw.com § arshia_tabrizi § [email protected] § 416.510.2600 x.306
Copyright 2012 Tabrizi Law Office PC