Transcript OrbisIP - ISACA Mumbai Chapter

Accessing Global
Innovation in Security
Peter Jaco
Chief Executive Officer
ISACA Mumbai Chapter
18th March 2009
March 2009
www.orbisip.com
Agenda
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Security Innovation Technology Consortium
(SITC)
OrbisIP – Business Model and Technology
Market trends
Why is it difficult to Monetise your IP?
Patent Commercialisation Strategies
www.orbisip.com
Security Innovation and
Technology Consortium
(SITC)
Vision/Mission:
Knowledge and capability for the
global security and resilience
markets
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SITC Objectives
1. Provide businesses with access to actionable global market
intelligence
2. Facilitate collaborations between innovative Security Technology
SME businesses and the global innovation supply chain.
3. Get individual businesses and collaborations in front of major
customers
4. Join up the region’s business support services so they’re giving
businesses and their collaborations, the back-up they need at every
stage of this journey
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SITC Board
• Rt Hon The Lord Roger Freeman, Chair
• Peter Jaco, Deputy Chair (OrbisIP)
• Richard Chisnall (QinetiQ)
• Duncan Fisken (Computer Associates)
• David Mullin (BAE Systems)
• Ross Parsell (Thales e-Security)
• Mike Anderson (Radiation Watch)
• James Brennan (Sollerta)
• David McIntosh (Omniperception)
• Colin Atkins (Transport for London)
• Bob Rose (APPSS/RISC)
• John Williams (HSBC)
• Paul Osborne, Company Secretary (Cranfield University)
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SITC Scope
1. Central Government and National Risk Register
2. Private Critical National Infrastructure
3. Law Enforcement
4. Border Security
5. Security Services
6. International Partnerships
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SITC Special Interest Groups
1. Transport
2. Governance, Risk and Compliance
3. Sensors and Detectors
4. Surveillance and Tracking
5. Information Systems Protection
6. Information Assurance
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OrbisIP Overview
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OrbisIP is bringing new technologies to the international market
for Information Security and Homeland Security
Working with over 120 international IP producers
Building a customer network of leading Software / Hardware
OEMs and Prime Contractors
To become a one-stop shop for security IP for technology
companies
To be the exploitation partner of choice for IP producers
To drive innovation in the global security R&D supply chain
www.orbisip.com
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OrbisIP Business Model
Consumers of IP
Sources of IP
University
Research
Labs
National
Research
Labs
SMEs
IP Requirements
Tech Transfer
Advisory
Board
Technology
Advisers
IP Requirements
Security
Companies
OEMs
IP Licensing
Operations
Revenue Share
OrbisIP
Payment/Royalties
Governments
www.orbisip.com
OrbisIP Technology Clusters
Homeland Security
- Sensors, video analytics,
Biometrics
intelligence analysis
- Multifactor biometrics:
face, palm, finger, gait etc.
Network and Web
security
Digital forensics
- cryptography, system and
software security, Web 2.0
- analysis and investigation
support tools
www.orbisip.com
OrbisIP Security Technology Market Segmentation
Digital
Forensics
Biometrics
Image
Processing
Cryptography
Data &
Database
Security
Network
Security
Secure Software
Development
Security
management
and architecture
Hardware,
Embedded and
Device security
Web Security
Data mining and
pattern
recognition
Homeland
Security
applications
www.orbisip.com
OrbisIP – Facilitating the Global R&D Supply chain
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Scout for IP
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Assess IP
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Perform IP audits
Implement OrbisIP evaluation model
Undertake technical market assessment
Commercialise Information & Homeland Security IP
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Identify security research worldwide
Build OrbisIP knowledge and future requirements
Monitor research outputs and market trends
Take to market through a set of technology clusters
Work with Universities to exploit IP
Combine and integrate IP
www.orbisip.com
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OrbisIP Customer Requirements
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Biometrics, crowd analysis, sensors
VOIP security and forensics
Mobile biometrics, border controls, sensors, voice analysis
Text and transcribed voice analysis
Image processing and video analysis
Image processing and biometrics
Cryptographic key management
Out-sourced data protection
End-point protection and virus clean-up
Forensics technology
Device and Embedded security
Security in mobile applications and digital media protection
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Market trends
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The industry has a growing need for innovation and is willing to licence
in or acquire new technology
IP consumers are open to new technology from IP creators and global
R&D partners
Recognised depth and quality of R&D from emerging nations
Universities and SMEs have relevant technology that meets the
requirements of industry
IP creators want a better return and wider distribution of their
technology to industry
Universities and their Technology Transfer Offices (TTO) welcome
industry expertise
IP creators need to understand industry Security requirements and
market trends
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Why is it difficult to Monetise your IP?
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Cost of establishing path to markets and channel
distribution model
Cost of sales and support of traditional software license
model
Complexity and cost of managing IP portfolio – what do
you protect? Where? and Why? PCT or not?
Difficulty of enforcing patents and prosecuting infringers
Cost of marketing / distribution / engagement with
industry
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Considerations for Patent Valuation
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Patent Commercialisation Strategies
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Sale of product build based on Patent
Outright Sale of Patent
License of Patent to 3rd party / OEM
Patent sale with revenue earn out
Selling Enforcement rights
Friendly or hostile licensing – (RIM etc.) e.g. (RIM
etc.)
Capitalisation on Patent assets
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Patent Commercialisation Strategies
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Sale of product build based on Patent:
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Advantages – product differentiation, build
potential exit value in company with IP pool,
create long term revenue and value stream
Disadvantages – costs of building a commercial
organisation, bandwidth and distribution
restrictions versus a partnership with established
global player
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Patent Commercialisation Strategies
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Outright Sale of Patent:
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Advantages – early and potentially high revenue
returns, no need to build commercial enterprise
so can stay R&D focused
Disadvantages – lack of future larger upside and
long term revenue return, loss of control of ideas
and innovation
www.orbisip.com
Patent Commercialisation Strategies
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License of Patent to 3rd party / OEM
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Advantages – larger distribution channel for your
technology with established industry partners,
earlier revenue streams, input from partner into
further R&D partnerships, commissioned to build
& enhance technology
Disadvantages – low percentage revenue split on
OEM deals, lack of control or innovation agenda,
firm can get ‘tied’ to one corporate technology
roadmap, cost of legal fees
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Patent Commercialisation Strategies
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Selling Enforcement rights
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Advantages – Revenue without selling your IP
assets, 3rd party pays IP maintenance costs
Disadvantages – lock normally long term, difficult
to obtain revenue guarantees, may be dragged
into infringement legal battles
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Patent Commercialisation Strategies
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Friendly or hostile licensing – (RIM etc.)
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Advantages – Hostile - can earn significant cash
through legal campaigns
Disadvantages – lawyer led and expensive with
no guaranteed returns, aggressive reputation
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Patent Commercialisation Strategies
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Capitalisation on Patent assets
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Advantages – can use patent portfolio as
collateral for finance, retain ownership over IP
and control (subject to meeting finance
obligations), can provide working capital
Disadvantages – difficult to value, doesn’t work
well for SMEs more a balance sheet exercise for
large corporates, requires strong financial position
and can entail personal guarantees
www.orbisip.com
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OrbisIP – Contact Information
For further information on OrbisIP please contact:
OrbisIP Limited
Peter Jaco
9 – 10 St.Andrew Square
Chief Executive Officer
Edinburgh, Scotland
[email protected]
United Kingdom
Tel: +44 (0) 20 7929 4467
Fax: +44 (0) 20 7929 4500
www.orbisip.com