GIDEON KOREN & Co. - GKL
GIDEON KOREN & Co. - GKL
GIDEON KOREN & Co. - GKL
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<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
“Cures for<br />
Humanity”<br />
September 13,<br />
2011<br />
Legal Pitfalls in Agreements<br />
for the <strong>Co</strong>mmercialization<br />
of Intellectual Property<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Types of Agreements<br />
Founders’ Agreement<br />
<strong>Co</strong>nfidential Disclosure Agreement<br />
Material Transfer Agreement<br />
MOU<br />
License<br />
Asset Purchase<br />
Joint Venture<br />
Investment Agreement<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Founders’ Agreement<br />
Role of each founder<br />
Inventor/Financier/Engineer<br />
Share allocation<br />
Dilution in case of further financing<br />
Dilution if party does not perform<br />
Board<br />
On-going management<br />
Effect of termination<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Starting Up Agreements (1)<br />
CDA-Important for Discloser and<br />
Recipient<br />
Define exactly what is disclosed<br />
Define purpose of disclosure and limit<br />
disclosure to same.<br />
Mutual or one way?<br />
Injunction<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Starting Up Agreements<br />
(2)<br />
Finder’s Agreement<br />
Exclude prior contacts<br />
Exclusive?<br />
<strong>Co</strong>mmission – cash/options<br />
Termination<br />
“Tail”<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Material Transfer Agreement<br />
(1)<br />
Transfer of biologic materials for research.<br />
Permitted uses, further distribution,<br />
ownership, liability, publication,<br />
compliance with law, term and any<br />
applicable costs.<br />
Progeny” are essentially unaltered copies<br />
of the Original Material.<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Material Transfer Agreement<br />
(2)<br />
Unmodified Derivatives: “Substances<br />
created by the Recipient which constitute<br />
an unmodified, functional subunit or<br />
product expressed by the Original<br />
Material<br />
Modifications: “Substances created by<br />
the Recipient which contain/incorporate<br />
the Material.<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Material Transfer Agreements<br />
(3)<br />
Provider will usually retain ownership to IP,<br />
Progeny and Unmodified Derivatives.<br />
Recipient will own Modifications, but<br />
cannot distribute commercially without a<br />
license.<br />
Provider may seek license to use<br />
Modifications.<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
MOU<br />
<strong>Co</strong>mmon use by commercial arms of<br />
universities, etc.<br />
Serves as a type of term sheet<br />
Lays out what shall be the terms of the<br />
license<br />
Leaves out substantive terms such as<br />
indemnification<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
License Agreements (1)<br />
Worldwide, perpetual, exclusive, royalty free<br />
Royalty bearing (only till end of patent term)<br />
Lump sum/periodic/income or milestone<br />
dependent<br />
“In the event that the Products are not<br />
protected under a valid claim of the Patent in<br />
any country, then the aforesaid royalty in<br />
respect of sales in such country shall be<br />
reduced to 2.4% and 3.2%, respectively.”<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
License Agreements (2)<br />
Sublicenses<br />
Royalties on sub-licenses<br />
Improvements<br />
“Anti Stacking”<br />
Reach Through Royalties<br />
Patent Prosecution<br />
Indemnification<br />
Grant back/cross licenses<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Sale of Intellectual Property<br />
Advantages/disadvantages<br />
Lump Sum<br />
Royalties<br />
Parties<br />
www.gkl.co.il
<strong>GIDEON</strong> <strong>KOREN</strong> & <strong>Co</strong>.<br />
LAW OFFICES & NOTARY<br />
Thank you for your attention and<br />
participation.<br />
www.gkl.co.il
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