UNIT 2: STEP 2 - ANALYZE MAIN ACTORS AND CONCEPTS TO CONSIDER

IN A TECHNOLOGY NEGOTIATION - INDIVIDUAL PART

VALUATION AND DEALMAKING OF TECHNOLOGY

212032_22

JORGE ANDRES GRANADOS CAMPOS CODE: 1118121014

TUTOR

KARLA NATHALIA TRIANA

OPEN AND DISTANCE NATIONAL UNIVERSITY (UNAD)

INDUSTRIAL ENGINEERING PROGRAM
OCTUBRE 2017
 ABSTRACT

The time has come to say, after reading and interpreting the different bibliographic
sources that the protection of intellectual property has a high level of importance, because
thanks to this we have the right to own our own invention and the right to the operational
benefits that can they generate us

Intellectual assets have their own characteristics, and these characteristics must be
safeguarded and protected, so that if someone takes and steals this asset, we have the right to
appeal to legal justice.
2. Summarize the contents of the following references in a few words.

(Pages 133 to 135) Chen, Y., Bharadwaj, A., & Goh, K. Y. (2017). An Empirical Analysis
of Intellectual Property Rights Sharing in Software Development Outsourcing. MIS
Quarterly, 41(1). Retrieved from:
http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true
&db=edselc&AN=edselc.2-52.0- 85016330247&lang=es&site=eds-live

If we already know about property, copyright and its use, we must now identify the
different types and methods of acquisition and contracting, aimed at achieving the correct
contracting of property rights and vulnerabilities that may arise; the type of asset to be
managed (materials, software, databases, derivatives, among others) must be taken into
account and the characteristics that these assets have to be able to give them a value and
generate the respective contract that facilitates the negotiation of this.

It specifies the contracts that apply to software development, since these have unique
characteristics, such as the type of investment, the type of market, the type of buyer, type of
customer, etc. It can be said that software outsourcing is a risk, so you must have strategies
that shield the contract and clauses that have these types of contracts. We have already said
that Software development and development assets have unique characteristics, software
development consists of several phases, which are study, data analysis, design, construction,
testing, code debugging, launch and deployment; it should be noted that each phase or stage
can generate intellectual assets.

From the beginning of the development of the software is evident the work that is
developed, since at the beginning of development must specify the functions of the program,
the investment and compilation of data necessary for its operation; all use of subroutines,
organizational charts and organization of the structure; then creates the source code for the
machine language, which is in the backbone of the software. Once coding is complete, the
software is tested and corrected for possible errors, a flame debugging detection and a large
amount of data for the development of additional software. As a result, all the processes that
participate in the creation of software have their own value and their sum to the value of the
main asset, since all these required effort, research, creation and use of algorithms, among
others.

Owners of intellectual property, in this case software, have full control over the use
of their creation, may reserve the right of certain persons to use their property, such as
excluding persons who use their property without consent. In this type of assets there is a so-
called single property and co-ownership, which specifies the restrictions and rights of
exploitation of intellectual property, that is, where the shares of assets are ceded or sold and
the rules of participation to third parties.

We also have the rights to use intellectual property, which specifies economic rights
over property, such as reproduction, distribution, as already stated above, the owner of the
intellectual property may authorize others to use, reproduce or distribute some or all of the
intellectual assets for a limited period of time, as well as provide tools for restricting the use
of your intellectual property if it so decides; it is important to clarify that the value of these
assets depends on the business support, the innovation of the asset, and the value of the
intellectual waste generated by it.

(Pages 67 to 69) Lichtenthaler, U. (2007). The drivers of technology licensing: An industry

comparison. California management review,49(4), 67-89.Retrieved from:
http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true
&db=buh&AN=25995890&lang=es&site=eds-live

The companies have to compete in a market that is constantly changing and evolving,
but for this they must become companies that are at the forefront of technology, as this is an
advantage against competition, that is why in innovating and creating technologies
companies must safeguard these technological properties, since this assures them a tactical
advantage in the event that someone wants to use these technologies without a previous
license or license, we now have the licensing, which is to grant permits for the use of an
intellectual property or of reproduction of a product with which that company is benefiting,
but that upon licensing, the purchasing company may use the intellectual property for its
benefit, which may generate negative effects on the company selling the license, such reason
is of vital importance the detailed studies of the damages that this can generate us.
 We can say that by generating an idea or a revolutionary product, we can own this
intellectual property and then authorize or give permission for another person to use this idea;
the licensing of technologies or intellectual property is a big bet of industrial companies,
since they can see the development of their processes and products with the acquisition of
such licenses, but as already mentioned above, a very detailed on the possible development
of activities and their benefits in the future, that is why companies decide to create their own
ideas and register them as intellectual property and have their own patents, avoiding setbacks
when accessing other licenses and incidentally have their own assets intellectuals that would
be for sale and would be a greater benefit.

The creation of patents is a very lucrative market, and the offer of technological
licenses offers strategic and financial opportunities in the industry, so companies are very
dedicated to the creation of patents and obtaining licenses to improve their production
activities.

(Pages 89 to 96) Giordano-Coltart*, J., Calkins, C. (May 1, 2009). Practitioners Section

Patent License Negotiation: Best Practices. Journal of Business Chemistry. Retrieved
from: http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=buh&AN=3987
8183&lang=es&site=eds-live

According to the text, licensing is very much in the areas of biotechnology and
pharmaceuticals, the vast majority of technologies are marketed through licensing, which is
why often small companies go to large companies to be part of their research and scientific
advances.

It is of great importance to understand that the success of these trade agreements

depends on the success of the negotiations and the commercial relationship that is sought;
each party must know what they are looking for, all this with the help of a team of specialists
in the field, people with a broad knowledge of the subject; all these people make it possible
for the negotiation to be a success and lend their abilities to unravel if one arrives at a dead
end.
 The negotiating team must identify and evaluate the interests of the parties, from the
big company or even a small area of technology of a company, they must respect their
interests as a fundamental part of the negotiation and they will be tangible or intangible.

However, not only the interests of one of the parties but also the interests of the
counterpart should be taken into account, the power to protect the patent and the position
offered by the patent holder should be reviewed. case to the counterpart; perform a study of
the rights of use to which our party can access, the rights over the by-products and whether
this patent will also be acquired by third parties; detail the stages of development of the patent
and see if there may be ways of filtering the portfolio, such as third party involvement,
intervention and the use of other patents in the development of the patent itself; the evidence
and the effectiveness of the patent; all of the above is synonymous with abrupt changes in
the negotiation of patents, since these variables can generate discontent among the parties
and the terms and conditions that benefit both parties must be generated. It should be
mentioned that, as already mentioned, a list of terms that are vital for smooth negotiation
should be generated, this list of terms should contain the main problems and actions to
mitigate them and should contain specific terms, all to achieve favorable agreements and
avoid misunderstandings in the negotiation.

Among other documents required in the negotiation of patents, we have agreements

of non-disclosure, which provide security to the information that is being exchanged,
information on finances, expenses, improvements in the patent, guarantees, among others.
We also have privilege agreements in case the parties intend to have legal options and avoid
waiving the privileges of the client attorney; among these privileges we have the free
exchange of information to avoid costly deviations.

When writing a contract you should make sure to include the interests of both parties
and be always available to change and modify the texts if necessary, so creating an initial
draft is a good idea to make corrections if necessary and that parties are involved in its
writing.

The negotiation.
 The implicit terms of a licensing agreement must take into account the fact that the
parties can develop and improve patents, which must be stipulated in the contract, in addition
if the purchaser of the patent has the funds, can negotiate and market the patent and compete
in larger markets, and invest in technological improvements that would benefit.

Terms of agreements

We must consider the Valuation Methods and Methods to be used, we have the cost
method, the market method and the method of income. The costs of technology production.
The interest of the owner should be taken into account, since if the patent is not strong
enough, it will show no interest in this

Also consider the stage in which the patent is found, since if it is a patent without
maturation, it will have to make investments for its full development and that can become a
mature product.

On the other hand we have the exclusivity and the field of application of the patent,
since these define the course to follow.

The terms of payment of these licenses are variable and may change according to the
evolution of the patent and the common agreements between the parties

3. Review all contents, research on different sources and answer the following questions
(one paragraph about 100 200 words long for each one):

3.1. How to register a patent application in Colombia? (Include process, fees and if it is
necessary to hire a lawyer)

A request is sent to the receiving office, who assigns the filing date, must have the
complete documents necessary for the process (application, description, complaints,
drawings of the article, if necessary) must be processed in accordance with the requirements
of the PCT , should contain the title of the invention and the applicant's data, on the other
hand, the description of the invention in the application must be very clear so that it can be
reviewed by an expert; the claims must define "Why". The protection of this invention is
requested, if drawings or graphics are needed, they should be very clear.
 You must also present proof of payment at the rate set by the Superintendency, this
procedure can be done without the need for a lawyer, but expediting this process is advisable
when hiring a lawyer.

The prices of patents vary according to the intellectual property to be patented and
whether this process is done online or physically. The patent application (containing the right
to file the first 10 claims) has a cost of 69,000 in line and 86,000 in physical and there are
prices that reach up to 704,000, it should be clarified that this applies to national applications.

3.2. How to register a copyright application in Colombia? (Include process, fees and if
it is necessary to hire a lawyer)

The process varies according to the type of work, since there are records of literary,
artistic, audiovisual, musical, software acts; this type of registration can be done face-to-face
or online

Face to face

It must be taken into account that the work must be previously delivered on a digital
medium (USB, CD, DVD) all this information must be labeled; if it is a printed work, it must
be in letter or office size; the documents attached to the work as a document, legal
representation document, public deed must be in PDF format; In addition, the form can not
have studs or amendments and all works must be delivered in generic formats and documents
must be foliated.

The form must be completed without any mark or modification, if a registration is

made as a legal entity, you must attach a copy of the camera and the commercial certificate,
the form must be signed.

After submitting the form, 15 days are expected.

For this procedure a lawyer is not necessary, and according to the website, there is no cost in
accordance with article 4 of Law 640 of 2001

Online.
 You must enter the website www.derechodeautor.gov.co, then enter the works
registry and online registration, remember to register with your email. After registering the
user, you must choose the type of work and attach the corresponding one, as is the score in
case it is a musical work, if it is art must send photographic evidence, for each feature of the
work there is a form.

It is necessary to attach the pertinent documentation to each job and user, after this
the steps are followed and the data is accepted and only 15 days are expected.

3.3. What is applied to protect a software development in Colombia, a patent or

copyrights?

Copyright is applied because it is a set of instructions that allow the computer to

perform a variety of operations and functions to obtain a result, which is understood as a
programming language and Colombian law protects it as a literary work.

3.4. What is a license agreement?

It is a contract that grants the right to exploit, use, while the patent holder retains the
parts of their intellectual property right, can be summarized as a bilateral agreement for the
use of intellectual property.

3.5. What is necessary to take into account in order to carry out a successful
negotiation? (Describe negotiation process and actors)

First, you must know clearly what kind of patent is licensed, whether technological,
industrial, etc. We must also take into account that, in case our party wishes to own property
rights, we must know that the assets of this type are owned by the company, what benefits
brings us for the future, costs and costs, stages of development of this intellectual property;
if our party is the one who wants to offer the license, you must verify the information of the
company that you want to hire.

Both parties must verify the clauses and conditions of the contract and the best
agreement must be reached, it must be specified that it must be accompanied by a team of
specialists in the subject, which will contribute to the consolidation of the contract
4. Describe what kind of protection should be applied to the chosen technology
innovation case, explaining why and what is important to take into account.

In my case I chose a recycling machine from the company CICLO, which recharges
the card to travel by subway, must make a national patent registration by utility model,
because it is this machine that recognizes the type of item to be recycled and provides a value
monetary to the access card to the meter, that is why this type of patent should be applied,
since this is a new shape or configuration of an artifact that already existed, only improved
its operation and added things that other models did not have.

5. Read other group members answers to the technology innovation case question and give a
relevant feedback.
 CONCLUSION

As a conclusion, we can say that the protection of intellectual property and inventions
through the use of patents and copyrights is very useful for companies, because thanks to
this, another company will not be able to take advantage of this invention, and if they wish
to use this invention must make a license agreement to be able to use and exploit it, which
would have an economic value that would benefit the inventor, of course, all this in a common
agreement.

This unit gives us many lessons about the possibilities, requirements, movements and
strategies to use, should we ever have the opportunity to create innovations?
 REFERENCES

Giordano-Coltart*, J., Calkins, C. (May 1, 2009). Practitioners Section Patent License

Negotiation: Best Practices. Journal of Business Chemistry. Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=buh&AN=3987
8183&lang=es&site=eds-live

Murray, Ruggiero Jr (April 1, 2015). The laws of trading technology: Patents define the
field. Futures: News, Analysis & Strategies for Futures, Options & Derivatives Traders.
Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=f5h&AN=10902
5893&lang=es&site=eds-live

Chen, Y., Bharadwaj, A., & Goh, K. Y. (2017). An Empirical Analysis of Intellectual
Property Rights Sharing in Software Development Outsourcing. MIS Quarterly, 41(1).
Retrieved
from:http://bibliotecavirtual.unad.edu.co:2051/login.aspx?direct=true&db=edselc&AN=eds
elc.2-52.0-85016330247&lang=es&site=eds-live