1

Arunabha Pradhan
Sr. Manager & Head, Business Development (AS&ES)
National Research Development Corporation
New Delhi, India
Commercialization of
Agricultural Technologies
- Important Issues
Capacity building for intellectual property protection and technology
licensing in agriculture under Indo-US Agricultural Knowledge initiative
Training for trainers
February 11 to 20 2008
4
5
What is Technology ?
It is a complex of patented and/or unpatented
know-how, of general engineering, science and
operating experience. It is all of the knowledge that
makes a production and a manufacturer successful
What is Know-How ?
It means some knowledge and experience that can be
used in practice, which the one offers it, has in his
possession, whilst the one who needs it and wants to
acquire it does not.
6
National Technology Transfer Scenario in India
Antrix of ISRO
C-Tech of DRDO
Centre for Scientific and Industrial Consultancy (CSIC) of IISc
Industrial Research & Consultancy Centre (IRCC) of IITB
Foundation for Innovation and Technology Transfer (FITT) of IITD
Sponsored Research and Industrial Consultancy (SRIC) of IITKGP
Technology Licensing Cell (TLC) of Research Institutes
TLC of BARC
Biotech Consortium of India Ltd.
National Research Development Corporation
7
NRDC
A section 25 Company
8

Section 25 Company established in 1953
under the Ministry of Science and
Technology with a mandate :
to promote
to develop
to commercialize
indigenously developed technologies from
universities, individual inventors, national
R & D Institutions, etc.
NRDC
9
Over 2500 technologies transferred to
the Industry in India and abroad typically
suitable for SMEs
More than 4500 entreprenures obtained
licences from NRDC for various
technologies

NRDC
10
NRDC TECHNOLOGY RESOURCE BASE
NATIONAL R & D ORGANISATIONS
Defence R & D Organization
Council of Scientific & Industrial Research
Indian Council of Agricultural Research
Indian Council of Medical Research
Bhabha Atomic Research Centre

INDUSTRY ASSOCIATION RESEARCH INSTITUTIONS
Ahmedabad Textile Industrys Research Association (ATIRA),
Ahmedabad
Bombay Textile Research Association (BTRA), Mumbai
South India Textile Research Association (SITRA),
Coimbatore
Indian Plywood Industrys Research Institute (IPIRI),
Bangalore
11
NRDC TECHNOLOGY RESOURCE BASE
R &D INSTITUTIONS & LABORATORIES UNDER VARIOUS
MINISTRIES & DEPARTMENTS OF THE GOI
Electronics R&D Centre, Thiruvananthpuram
Akashvani & Doordarshan R & D Department
Research Designs & Standards Organization
Central Power Research Institute
Indian Plasma Research Institute
Central Manufacturing Technology Institute
Electronic Research & Development Centre
Department of Science & Technology
Department of Biotechnology
Ministry of Food Processing Industries
National Institute of Immunology
MP Council for Science & Technology, Bhopal
12
NRDC TECHNOLOGY RESOURCE BASE
ACADEMIC INSTITUTIONS
Indian Institute of Technology (IIT)
Indian Institute of Science (IISc)
All India Institute of Medical Sciences (AIIMS)
All India Council of Technical Education
Tamil Nadu University for Veterinary and Animal Sciences, Chennai
CCS Haryana Agricultural University, Hissar
CSK Himachal Pradesh Krishi Viswavidyalaya, Palampur
G. B. Pant University of Agriculture & Technology, Pantnagar
Barkatullah University, Bhopal
Dr. Y S Parmer, University of Horticulture and Forestry, Nauni, Solan

PUBLIC SECTOR ORGANISATIONS
Indian Telephone Industries Ltd.
Hindustan Aeronautics Ltd.
Bharat Heavy Electricals Ltd.
Videsh Sanchar Nigam Ltd.
13
NRDC TECHNOLOGY RESOURCE BASE
PRIVATELY OWNED RESEARCH INSTITUTIONS / ORGANISATIONS
Shriram Institute for Industrial Research
DCM Limited
Varanasi Glucose Company
Madhu Chemicals Limited, Bhavnagar
Individual Inventors
INTERNATIONAL INSTITUTIONS
International Development Research Centre, Canada
Shanghai Technology Transfer Exchange, China
Jureprom Consulting, Moscow, Russia
Belarussian State Research & Production Powder Metallurgy
Concern (BPMC), Belarus
Kyiv State Center of Scientific, Technical and Economical
Information, Ukraine
14
NRDC Entrepreneurs
Business
Development
Technology
Evaluation
IPR
Assistance
Market
Survey
Market
Intelligence
Know-how
Document
Management
Services
Knowledge Transfer Business
Universities
Corporates
Individuals
Labs :
NGOs
: TLC
: TLC
Incubation
Consultancy
Services
BEDP
Angel
Funding
Export
Linkages
Source of
Technology
Knowledge Transfer
Organisation (KTO)
Users of
Technology
15
Databases
Products,
Technologies,
Patents, R & D thrust
areas, projects
ongoing / completed,
experts ,
international
agencies having
technologies
Assessment by Expert Panel
Identify value additions
International Patent Search
Protecting IPR
Market survey
Feasibility/ techno-commercial reports
Publicity
Up-scaling/pilot plant development
Basic Engineering Package
Field Trial report/Bio-efficacy
Toxicity data
Tech Demo in Rural Development
Prioritising projects for Tech Dev
Promoting export
Patent
Facilitation
Cell
Patent Search
Filing Patents
IPR Policy
Policy framework
Assess Patentability
Nominate Countries
Prize Arwards
Patenting
Marketing and
promotion
Publicity
Licensing, etc
Export of technology


IPR Workshops
IPR Lectures
IPR Inter active CD
16
Idea/feedback
Development/Improvement
Evaluation
Protection
Licensing and Technology
Transfer
Commercial Production
Commercialization of Technologies ?
17
Problems in Technology Development
Lab-scale
Development
Pilot-plant
Development
Semi-commercial
Plant
Commercial
Plant
Expert Interactions
Associations
Funding

Patents Search?
Usefulness
Venture Capital
Conceptualization
Timely IPR Protection/Funds
Authentication
Statutory Obligations
Documentation
Commercial Applicability
Corporate Games
18
Activity Present Practices Desirable Changes
Identification
1. Inadequate background information
2. Adhoc
3. Duplication & gaps
4. Unchecked competitiveness
1. Compulsory Patent search
2. Market information Analysis
3. Co-ordination amongst the R & D organizations
4. Monitoring of competition
5. Integration of research / improvements
Implementation 1. Inadequate infrastructure
2. Bureaucratic approach in procurement
of raw material & equipment
3. Very slow progress
4. Lack of motivation
5. No monitoring solo efforts
6. No quality control
1. Planned infrastructure
2. Simplification of procurement
3. Define goal & setting of targets
4. Periodical monitoring & assessment of progress
solving the bottlenecks
5. Study of standards
Development 1. Only lab-scale
2. No documentation further work
3. No link with industry for development,
feedback
4. Large gap in converting a lab scale to
commercial scale
1. Planning for stepwise upscaling before
commercialization
2. Systematic approach for preparation & recording
of results
3. Close association of Industry
4. Engineering input for designing for preparing a
complete know-how package
Information handling 1. Large information scattered
2. No inter-communication network
3. Impossible access to the information
pockets
1. Collection of information in a centralised location
2. Sorting & compilation of information
3. Building up / designing of database
4. Networking of R & D organisations
Research Projects Present Practices & Desirables
19
Assessing the Development Process from
Idea to Final Success







Idea
Philosophy Art
No Licensee
Expensive Dev.
Patentable
Invention
No Market
Price Too High
Valuable
Invention
Negative Market
Competing Products
New
Product
Success
Invention
Not New
Not for Industry
20
Assessment Activities
IPR related Technology related Market related
Ask: have you seen this
before
Ask: is it likely to work Ask: who needs it
Simple novelty
search
Extensive novelty
search
Prepare patent
application
Filing of application
Litigation and legal
action
Expert evaluation
Test model
Prototype
Pilot production
Full scale
production
Expert evaluation
Desk research
Market screening
Market scenario
report
Market trend
analysis
Market plan
Market analysis
21
TECHNOLOGY DEVELOPMENT FUNDING MECHANISM
Sl.
No.
Funding Agencies/
Schemes
Technology
Development Stage
Recipient category Quantum of
Funding for
projects
1. Scientific Ministries/
Departments (SERC
Scheme)
-Basic Research
-Exploratory
Research
-Capacity Research
-Government Funded
Institutes
-Institutes of Higher
Learning
-Major Universities
US $ 500 to
1,00,000 except for
capacity building
2. -Technology Promotion
Programme
-NRDCs Patent
Protection Scheme
-Technology Missions
-Idea Stage
-Patenting Stage
-Prototyping
-Field Demonstration

-Individuals
-Start up SSIs
-NGOs

Upto $ 12,000
3. -Scientific/Societal
Promotion
Ministries/Departments
-Technology Missions
Application oriented
R & D for societal
needs (e.j. Leather,
Glass,Fly Ash
Utilization)
-State Science &
Technology Councils
-Extension Centers
-NGOs
Upto $ 10,000
4. Home Grown
Technology
Development
Programme (HGT of
Dept. of Science &
Technology
After lab scale for
Pilot Plant/ Semi
Commercial
Plant.(Science Driven
Projects)
R&D Institute/ University
but jointly with an
industry Partner
$ 5000 to $
3,50,000
22
Sl.
No
.
Funding Agencies/
Schemes
Technology
Development Stage
Recipient Category Quantum of
funding for
Project
5. Programme Aimed at
Technological Self
Reliance (PATSER of
Dept. of Scientific &
Industrial Research
For Pilot stage only Industry having
In-house R&D
Industry jointly
with R & D
Institute/
University
$ 10,000 to $ 1.5
million
6. Industry Sponsored
Research Programme
Any Stage prior to
commercialization
R & D Institute/
Universities
No Limit (
Generally $
2,00,000)
7. Technology
Development Board
For setting up first
commercial plant
Any Industry No Limit (
Generally $
1,00,000 to $ 10
million)
8. NRDC Equity/ Loan
Scheme
For demonstration/
commercial plant
NRDCs Licensee
Company only
$ 20,000 to $
1,20,000
9. Venture Capital funds of
Public Sector, Banks,
IDBI, ICICI, IFCI
Commercial Plant Any industry No Limit ( Gen $ 1
million to $ 5
million)
10. Private Sector VCFs
Jointly by TDB, VCFs
Banks, NRDC etc.
Commercial Plant Any Industry No Limit ( Gen $ 1
million to $ 5
million)
23
Partners and Their Role in Technology
Commercialisation

Sr. No. Type of Partner Role of partner
1. The Innovator The Innovator can become the enterpreneur or at least a
Director of the Industry commercialise the technology
2 Shop Floor Worker Incremental Innovation
3 Other R&D Institute Bringing in complementry expertise
Independent testing of product
Technology evaluation
4. Patent Law firm/patent attorney IPR management
Patent Auction
Handling legal issues in finalising
Non Disclosure Agreement
Licensing Agreement
Handling Patent Infringement Suits
5 Marketing consultant Conducting market Survey Report
Preparation of Feasibility Report
6 Engineering consultant Design and engineering
Preparation of Project Report
Project Management
7 Equipment Fabricator Fabrication of customised equipment
8 Technology Recipient
(customer)
Financing, setting up and operating commercial plant
Pilot Testing of raw materials of future licensees
Training of future licensees key operating personnel
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9 Raw Material
supplier
-Supply of adequate quantity of raw material(role
particularly crucial l in agro/food sector
technologies)
10 Government - Identifying technology gaps at the national level
- Purchaser of products
- Certification (Drugs, pesticides, fertilizers)
- Eco mark
- Legislation (Zero Pollution norms, safety
standards)
11 Non-govt
organisation
-Demonstration of societal R&D Projects
-Technology information Dissemination to rural
areas
-Coordination Technology Mission
12 SSI cluster
Association
- Facilitation of Technology Transfer to SSIs of
the cluster
13 Industrial
park/STEP/TI
Managers
Facilitators for successful technology transfer,
de-bottle necking and providing support services
14 Funding
Organisation
Providing/arranging equity, grants/loans for the
project at various stages
15 Technology Transfer
Organisations
Comprehensive support from idea to market stage

16 Final customer/
dealer
Feedback crucial for continuing incremental
innovation

25
Knowledge Base
Lab Scale Proof
of Concept
Pilot Plant
Semi
Commercial
Commercial
A B C D
E

DST
UGC
DBT
MFPI

CSIR
ICAR
ICMR
CA&SR
Public
&
Private
Banks
Science Dev.Stage Joint Technology Development Stage
Friend
STAC
HGT
PATSER
NRDC
Public
Venture
Capitalists
VCF-IDBI
VCF-SIDBI
RCTC
TDICI

0%
TDB
SPREAD
26
What is a licence ?
Therefore, licence should be understood to mean two goods or
commodity namely:
certain expert knowledge or know-how and
a permission or grant to use such knowledge under certain
conditions.
Note: In certain rare cases, no know-how, only permission is required
Initially, a licence meant nothing more than permission to do
something that would otherwise be forbidden and most probably a
tort, such as infringing someone elses patent or trade mark.
Presently it is generally understood to refer to a wide range of
agreements principally concerning the sale or leasing of industrial
and commercial expert knowledge under certain conditions and
against valuable consideration.
Such expert Knowledge is generally named know-how and
could be independent from the fact whether or not it is patented.
27
Already going on
Not really Tech Transfer
Unpackaged
Not exploited
widely
Mostly on Lab Scale
Unpackaged
Very High Potential
Mostly Unpackaged
Excellent Prospects
Needs Structured Systems
Good Potential
Already Going On
Reverse Engineered
Locally Innovated
Presently Ignored Activity
Needs Structured Approach
28
Lab Scale
Innovation
Tech.
Deficiencies ?
Patent
Search ?
Marketabilit
y ?
Financial
Analysis
?
Authentication
Efficacies
Clinical Trials
Toxicities
Environmental
Issues
Rural or
Industrual
?
Analysis
?
Commercial /
Social
Potentials
Publicity
Entrepreneur
Licenced
Scale-up
Design &
Engg.
Fabrication
Data
Market
Financial
DPR
Opp.
Cost
Analysis
Abandon if
not the best
Operations
Successful
Sales

Feedback
Tech. Pack.
Replication
Flow of Commercialisation of Lab-scale investigation
29
Steps required for setting up a commercial plant
Aquiring process
Basic engineering
Design Package
Detailed engineering
Fabrication
of the
equipments
Electrical and
mechanical
completion
Erection of
equipments
Trial and
guarantee runs
Pre-commissioning
and testing of
equipments
Consumer acceptance
Test product launch
Feedback
Commercial runs
30
Steps in setting up a commercial plant from
laboratory scale process
Lab-scale process
Basic engineering
Design Package
Detailed engineering
Fabrication
of the
equipments
Electrical and
mechanical
completion
Erection of
equipments
Trial and
guarantee runs
Pre-commissioning
and testing of
equipments
Commercial runs
Statutory Clearences
Inspection certificate has to be obtained for
steam line, boiler as per boiler regulation
act
Certificate from the Controller General of
Explosives for Explosive Equipment.
Clearance from Factory Inspector
Clearance from Pollution Control Board
Identification / finalisation of unit
operations required in the process
as investigatede at the lab.
Process simulation to be done by the
consultant for desired capacity
Development of the Plant
Operations and Control Philosophy
Process flow diagram
Material and Energy Balance
Definition of Operating parameters
of all major streams.
Process and instrument design
equipment, pipe line size/
rating/material of construction,
instruments for local and panel
mounted, control logic, etc.
List of equipment and package
plant sizing of equipments
List of electrical motor drives
List of Instruments
Process data sheet of equipments
including machineries
Specification of package items like
boiler, DG Set, etc.
Process data sheet of Instruments
Raw Material and Utility
consumptions
Preliminary Plot Plan
Electrical single line diagram (SLD)
Schedule no. of piping,
thickness of vessels,
detailed designs of nozzles,
heating and cooling
arrangement jacket
thickness etc., specification
of valves, insulation.
Fabrication drawing
welding, etc.,
Checking by detail
engineering consultant

Carried out exactly as per the drawings
based on the detailed engineering,
fabrication drawing like welding, etc.
carried out by the engineering consultant.
31
Value Estimation and Pricing of Technology
Factors Affecting the Value of a License or Technology
To what purpose can it be used and how valuable
will it be
What did it cost the owner to obtain possession of
or develop it
How many suppliers can offer it
32
1. Rules of Thumb
50% of one years profit made by licensee ( if technology is not leading)
25% of the estimated total profits
10% of the capitalised cost or, combination of the two
5-10% of the total sales price
2. Factors Considered by Each Party
Costs
of developing the technology with patent costs
of maintaining the technology (further development)
of assistance in the transfer in respect of the actual expenses involved
with sending experts, preparation of documents, drawings, etc.
of such assistance as a loss by having his staff involved in the transfer
and absorbed in such activity which could otherwise have been invested
in alternative possibilities with potential profits
or losses involved in potential penalties for not meeting guaranties
Income
From licence fees and
From other potential advantages
Value Estimation of the Technology
33
3.ROOT and CONTRACTOR Method - American License Fee
Determining Practices
Analysis of 39 companies :109 licence agreements concluded in 41
countries were examined
Upper Limit
Lower value of following two factors
The value of the technology to the licensee (in the evaluation of the
licensor)
At what price could the licensee obtain the same technology from
another supplier (according to the evaluation of the licensor)
Lower Limit
Sum of the expenses involved with the transfer of technology and incomes
from an alternative investment of such efforts at their present value
discounted at a given interest rate
4. Koran Value Estimation
Can be approached by following relationship:
L = (z)*(i)*(Q)
where z = rating factor, appears in percentage, i = time factor, (serve mainly
for assessing qualitative relationships, Q= actual value added value of profit
or production value
34
Koran Value Estimation contd.
The contents of z and i can be interpreted by means of symbolic
functions
z= f(u,b,o,t)
i = f(v,h,e)
z in practical way can be told as potential factor depending on
technical level and complexity
and
I being potential factor depending on rate, frequency of use
Where
u = function depending on novelty
b = degree of complexity of task & solution
o = level of solution
t = mass factor applicability
v = development rate
h = share of the new technology
e = class of value volume
35
Methods of License Fee Payments
Payment Form Payment Terms Objective
Down Payment By signature of the
agreement
To cover licensors up-
front costs and secure
commitment from the
licensee company
Royalty Fee Percentage of
turnover created by
invention, payable 2-
4 times a year
To share the risk
between inventor and
licensee company
Minimum Royalty Payable even if
turnover is below a
certain level
To maintain licensees
commitment and prevent
him from shelving the
invention
Period of Royalty Payable for certain
period of time,
extended up to the
life of Patent
To ensure the earnings
from the licence
36
STRATEGIES FOR EXCLUSIVE vs. NON EXCLUSIVE
IPR LICENSING RIGHTS
Types of Exclusivity
Territory
For Manufacture
For Sales
Period
Limited (say 3 years)
Life of Patent(s)
Usage: e.g. Drug
Humans
Animals
Fermentation
Detergent
Enzyme
Hair Removal
Textile and Paper
Effluent Treatment
37
Minimise royalty clause even if patent is not commercially
exploited.

Enhancement of manufacturing capacity to meet market
demand.

Rights for Sub-licensing.
SPECIAL TERMS FOR EXCLUSIVE LICENSING
38
Project Phase
Operational Phase
Maturity
Renewal (Expansion / Diversification)
Project Cycle
Time
G
r
o
w
t
h

39
Project Parameters
Plant parameters
Manpower
Raw Material
Utilities
Plant & Machinery
Localised Parameters local cost of raw
material, utility, land & labour, etc
Work out financial viability
Ascertain Market demands
Create Package & publicize
Project Success - Considerations
40
Total Project Cost
Between 150 to 500 % of Plant & Machinery Cost
Other Investment Costs
Annual Production Cost
Investment related Costs 25 % of total investment cost
Raw Material Costs based on specific consumption
Manpower Costs - ?
Other Overhead Costs - ?
Thumb Rules
Project Evaluation
41
Profitability Analysis
Ratios (%)
Gross profit / sales
Net profit after tax / sales
Net profit / equity capital
Net profit + interest / investment
Feasibility Report- DPR
Technical feasibility
Market feasibility
Financial viability
Project Evaluation - Studying Project
42
(A) Lumpsum Premium Options
- Total amount
- Installment payments
(B) Royalty Options
- Percentage of ex-factory sales value
- Percentage of profits
- Varying royalties
- Conversion of royalties to equity
(C) Period Of Licensing (5 To 20 Years)
(D) Nature Of Licensing
- Exclusive vis--vis Non Exclusive
- Territory Exclusivity
- Period Exclusivity
- Exclusivity For Sales Only
(E) Equity In Lieu of Technology Fees
CASE STUDY : RICE HUSK BOARD
INDONESIA
TECHNOLOGY PRICING
43
(D) PERIOD OF LICENSING : 10 YEARS

(E) Nature Of License

Exclusive subject to 3 plants being set up in a specific
time

Exclusive for manufacture and sale in Indonesia

Non Exclusive for sale to other countries (Except in
India And Malaysia where no sales are permitted
without approval of Licensor)

44
Know-how No. of
Licensees
Revenue
Earned
20 HP Tractor 2 284
Blood Bag 5 421
Liposomal Amphotericine B 2 56.5
Technology Transfer: Experience of NRDC
(Rs in Lakhs)
45
20 H.P. Tractor

- NRDCs Role in Commercialization
46
Salient Features- 20 HP Tractors

Easier utilization of implements
High Field Efficiency
Ideal for Deep Ploughing
Trouble Free Performance
Lesser Consumption of Diesel
Pulls heavy loads over steep
gradients
Developed by: Central Mechanical Engineering Institute (CMERI),
Durgapur
47
20 H.P., Two Cylinder Tractor, 2000 RPM
Single lever automatic depth-cum-draft control hydraulic
system
Universal three point linkage
Front & Rear Wheel tracts- variable to cater crop pattern
Power Take Off (PTO) design patented in India and
abroad (7 countries)
Suitable for small farm holding
The Development - 20 HP Tractors
48
Licenced to
M/s Punjab Tractors Ltd. (PTL) In December, 1972
Royalty received- Rs. 245.48 lakhs
M/s International Tractors Ltd., Hoshiarpur
LP & Royalty received- Rs. 39 lakhs
Commercialization by NRDC - 20 HP Tractors
49
Mahindra & Mahindra (M&M) acquired 43.3% stake in PTL
from Actis group & Burman family at a price of Rs. 360
per share
M&M invested Rs. 900 Crore
Presently PTL is valued at over Rs. 2000 Crore
PTL in 2005-06
Turnover Rs. 102,450 lakhs
Profit after tax Rs. 12,934 Lakhs
Present Status - 20 HP Tractors
50
Disposable Blood Bag

- NRDCs Role in Commercialization
51
Disposable bio-medical device
used for collection, storage,
transportation & transfusion of
blood & blood components
All manufacturing operations
are in conformity to GMP
Manufactured to meet
international standards
Bags are available as single,
double or triple transfer bags
Product has been accepted
internationally and exported to
Africa, South-East Asia and
Europe.
Disposable Blood Bag System
52
Case Study 1: Blood Bag Technology
Disposable Bio-Medical plastic bags for collection, storage,transporation and tranfusion provides a hygenic
way by eleiminating exhaustive cleaning, rinsing, autoclaving and breakage problems
Developed at Sri Chitra Thirunal Institute for Medical Sciences and Technology, Thiruvanatapuram
at an estimated expenditure of Rs. 200,000
1979
Assignment Assigned to NRDC for Commercialisation 1980
1
st
Licence
Agreement
Peninsula Polymers Ltd., Thiruvananthapuram
30% Equity participation each by NRDC and KSIDC
Research Institute to provide technical support
Rs. 0.2 m fee
3% Royalty
10 years
Completion Commissioned in 1986 with production established in 1987-88. Product introduced in the market at Rs. 10
a bag compared to Rs. 30 a bag of Japanese origin
Bottlenecks Initial snags in technology
Japanese dumped the market with bags at Rs. 8
NRDC arranged anti-dumping duty by presenting international data to the Government
The licencee started marketing the product successfully
Performance Excellent, export to other countries including Europe
Second Licence M/s Hindustan Latex Ltd in 1991. The plant completed in 3 years and now exporting Rs. 1 m fee
3 % royalty
Next Licence J Mitra & Company in 1994
Electro- medical and Allied Industries in 1984
Rs. 4.5 fee
3 % royalty
Return to NRDC Rs. 0.2 m as licence fee in 1981
Rs. 10 m Royalty 1987-1996 from 1
st
licence
Rs. 1 m licence fee from 2
nd
licence, 1991
Rs. 9 m licence fee from 3
rd
& 4
th
licence
Rs. 100 m royalty expected between 1996-2005
More Licence expected in India and abroad
53
Return to
NRDC
Lumpsum premium Rs 13.15 m
Royalty Rs. 35.0 m
Return on disinvestment of equity
share Rs. 8.925 m

(NRDC Equity in PPL Rs. 4.375 m)

Disposable Blood Bag System - Contd.
54
Liposomal Amphotericin B

- NRDCs Role in Commercialization
55
The Back Ground

Prof. B.K. Bachhawat, Department of Bio-chemistry, Delhi
University initiated the work.

To develop and to make an affordable substitute of
AmBisome - an US Product.
Liposomal Amphotericin B
56

After the formulation development by Prof Bachhawats Lab
was completed proving the efficacy and substantiated pre-
clinical work, the Department of Biotechnology (DBT) had
funded the clinical evaluation of the process at Seth GS
Medical College and KEM hospital, Mumbai.

KEM along with other prominent hospitals of Mumbai carried
out clinical trials for serious and invasive systemic fungal
infection.

The clinical trials for Kala-Azar was carried out by a team of
specialists consisting of Dr. C.P. Thakur, the former Union
Minister of Health and others.

The Development- Liposomal Amphotericin B
57

After the clinical trials were successfully completed the
technology was formally handed over to NRDC by DBT for
licensing and commercialization.

NRDC had licensed the technology initially to M/s ACE
Laboratories, New Delhi which failed to commercialize the
know-how despite support from NRDC.

The technology was re-licensed to M/s Lifecare Innovations
Gurgaon, which has successfully commercialized the know-
how
Commercialization by NRDC- Liposomal Amphotericin B
58
The Liposomal Amphotericin B is marketed by M/s.
Lifecare Innovations Pvt. Ltd. as FUNGISOME
FUNGISOME contains cholesterols essential for
minimizing toxicity of Amphotericin B to a safe level
FUNGISOME converts into several small unicellular
liposomes thereby substantially increases the
therapeutic index
FUNGISOME requires sonication for application
which enhances the therapeutic index of the drug.
Drug administration is done in one hour.
The Product- Liposomal Amphotericin B
59
Application- Liposomal Amphotericin B
The FUNGISOME is used for the treatment of Systemic
Mycosis and Kala Azar.
Serious and invasive Systemic Mycosis frequently occurs
in patients of Organ transplantats, Dialysis and those
undergoing Radio therapy/chemotherapy for Cancer, AIDS
etc.
FUNGISOME is also used for the treatment of the
victims of serious burn injuries.

60
Case Study 2: Graphite Aluminium Composites (GRAL)
Graphite having inherent lubricating properties, when mixed with Aluminium Alloys to form composites which
has self lubricating and better tribological properties, expected to have excellent material for Automobile
components
Developed at Regional Research Laboratory, Bhopal 1986
Assignment Assigned to NRDC for Commercialisation 1987
Potential Number of international companies including CMALCO, Australia,showed interest
on the technology
It was planned that before negotiating with international companies, the technology
may be licenced to Indian Companies and make commercial success
1
st
Licence
Agreement
One firm in Ghaziabad engaged in the manufacture of Automobile Pistons and the
company planned to market the product in the replacement market
Bottlenecks

The company faced problems in implementing the process in their production plant
NRDC coordinated with the company and scientist of the laboratory to successfully
implement the process.
The company successfully adopted the technology
Marketing The company launched the product in the replacement market for pistons
The performance of the pistons was found to be better than normal pistons
The product was not accepted in the market because of dull appearance of the composites compared to
the normal pistons
Result The company tried for some time for pursuing with the product, but could not succeed
The project was ultimately abandoned
The technology could not further pursued because on failure of the 1
st
licencee.
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Case Study 3 : Zeolite A
An enviro-friendly phosphate builder for detergents to replace the commonly used STPP
Developed at / Central Salt and Marine Chemicals Research Institute (CSMCRI), Bhavnagar
Technology
Suppliers
J.M. Huber Corporation
Henkel Kommand, Germany
Proctor & Gamble, USA
Union Carbide, USA
Colgate Palmolive Co. USA
Market info 1.65 Million TPA Produced World Wide.
40 Major Producers World Wide
15000 Tpa Produced In India By 2manufacturers Viz. Hindustan Levers And SPIC.
Indian Demand During 1995-96 77,000 T Expected To Increase To 1,40,000 T By
Year 2000.
Assignment Assigned to NRDC in 1992
Technology Development at Lab scale based on the process utilizing Sodium Aluminate Liquor,
which can be produced by reacting with Alumina and Sodium Hydroxide
!st licence
agreement
Licenced to M/s Tee Biem Chemicals P. Ltd., Trichy, T.N. in Trichy in 1993
LP : Rs. 0.2 m
RR : 2.5%
PL : 10 years
2ns Licencee

M/s Padma Chemicals Ltd., Pondicherry

LP : Rs. 0.2 m
RR : 2.5%
PL : 10 years
3
RD
Licensee M/s National Aluminium P. Ltd., Bhubaneshwar in 1996 at Licence fee of Rs. 13.3 m
Bottlenecks

The company could not proceed on the project, because of raw material problem and marketing
problem
2
nd
Licencee was refunded the Licence fees
NALCO proceeded with the Bayers liquor, available at their Aluminium Plant, as raw material with
capacity of 10,000 TPA
62
NRDC promotes, protects and supports inventions by
Providing assistance for Patenting in India for R & D
Institutes & Universities

Providing assistance for Patenting in foreign Countries on
sharable basis

Conducting international patent search on cost plus basis

Commercializing patented inventions

Helping Organizations /R & D institutions in formulating
an IPR Policy
Patent Assistance
63
1. What is the state of development of the invention
2. What is state of legal protection of the invention
- no protection
- patent application filed in home country, (when)
- patent applications filed abroad (where and when )
- patent granted in home country (when)
- patents granted abroad (where, when )
- patents abandoned (where, when and why)
3. Who is handling of the patent applications and other industrial
property matters
- in-house experts
- outside professionals.


Non-exhaustive Checklist for Evaluating Inventions
64
4. How reliability of the patent protection in the home country land,
in the foreign countries, where applications have been filed or
patents granted.
5. Who are the potential users of the invention
the general public
specialized end users
other
6. What would be the expected economic effect and other benefits
of using the invention for future users or customers. List the
advantages compared to existing products or technologies
7. What availability of financial resources (risk capital, especially
seed and start-up capital) are available for
developing the invention
obtaining patent protection
manufacturing and marketing of the products, etc.
65
8. Which way of commercialization will be chosen

own manufacturing and marketing of the products
granting an exclusive license to one partner
granting several non-exclusive licenses
selling the patent rights.

9. How big or how small to begin ? What will be the cost of
introducing a new product in the market ? What is the minimum
profitable volume of production.

10. Are there consumers inclination similar products in the market ?
If yes, would consumers rather buy the competitors products
than yours because they are better in quality and more practical
for the purpose than your invention.

11. Who are the competitors, and what is their market position

12. Do you envisage usage of using a trade mark.
66
13. Should the commercialization of the inventions be entrusted
to commercial brokers? What are the advantages offered.

14. Will beginning of commercialization of the invention begin in
the home country (local sales) or will it start at a larger scale
in other countries (i.e. exporting the products of the
invention).

15. If participation in specialized exhibitions (including
inventorexhibitions) is envisages, what are the objectives/
Who will be the clients to be met.

16. Will the marketing be done with own resources or will it be
commissioned to by some professional agency
67
IPR PARTNERSHIPS
Why do you need Partners for IPR?

Bringing in complimentary expertise (e.g. Leather
Zip Tie)
Providing Performance Guarantees
Fabricating new production equipment/machinery
Discovering new applications
Assessing market potential
Sharing IPR/Infringement Suit Costs
Adding on Patents
Increasing Commercial value
68
Who can be the Partners?

Other R&D Institutions (experts Technology
Transfer Organizations such as NRDC/BTG)
Patent Attorneys
Design Consultants
Users
Fabricators / Machinery manufacturers
Venture Capitalists
Licensee/Sub-Licensee
Testing Agencies
Market Survey Agencies
Certification Agencies
Government (TBTs)
69
DYNAMIC RELATIONSHIP BETWEEN IPR ACTIVITY AND
COMMERCIALISATION
Maintenance
Grant of Patents
Multi-National
Filing
Int. Patent Filing
Patent Filing
(PCT/National)
Months
12 18 24 30 36 42
Globalization
Commercialization
Semi-
Commercialization
Field Testing /
Clinical
Prototype /
Pilot Scale
Idea Stage
70
Strategy for IPR Exploitation and commercialization
to succeed
Formulate and implement IPR Strategy
Integrate IPR strategy with organizational strategy
Identify technology development partners
Identify technology development financing partners
Negotiate and finalize
- Joint Technology Development Contracts
- General Licensing Contracts
- Licensing Agreements with Ancillary Units
- Joint Venture Agreements
- Franchising Agreements
Collect and share royalty payments with partners
Take legal action if necessary.
71
IPR Strategy
Formulate an IPR Policy for your organisation.
Step 1: Clearly define the objectives of the IPR Exploitation
Programme.
Step2: Formulate Basic IPR strategy to achieve the objectives.
Remember IPR activity is dynamic and not static- It has
to enmesh with the commercial exploitation activity on a
continuing basis
Step 3: Integrate IPR strategy with overall business strategy for
the organization.
Depends on type of owner of IPR (R&D Institute, Industry,
University, etc.)
Depends on size of Industry
- Multinational
- Large Industry with In-House R&D setup
- Small & Medium Industry
- Start up High Tech Industry
72
73
Every Year
Upto Rs. 2,00,000
74
NRDC
Publications
Invention Intelligence (Bi-monthly-English)
Awishkar (Monthly-Hindi)
75
This multimedia interactive guide has hours of
rich media video,audio, graphics, animation
and over ten thousand pages of textual
information containing complete IPR related
FAQs, Acts, Treaties, Statistics, Case studies.
This mmi package has been developed jointly by
NRDC (National Research Development
Corporation) & Aesthetic Technologies with
support from Department for Scientific &
Industrial Research (DSIR), under the PATSER
Scheme.
Available for sale for
Rs 20,000/- + ST
76
Introduction to IPR
How does the IPR system work
Various kinds of IPR
Benefits of IPR
What is not protected by IPR
All about Patents
Kinds of patents
The entire patenting process
Copyright and related rights
Design registrations
Trademark
Geographical Indications
Topography of Integrated Circuits
Trade secrets
IPR Policy and Management
IPR in the following sectors:


Government & Nation
National & Industry R & D Organizations
Information Technology, Electronics & Media
Chemicals, Engineering, Construction & Service
Biotechnology, Drugs & Pharma and Agro processing
Individuals & Small Scale Industry

77
Thank you


apradhan@nrdc.in
www.nrdcindia.com
78
(Anon.)