rules and regulations of gbpihed - Govind Ballabh Pant Institute of ...

production. Thus, a balance has to be struck between these two components.
The estimates of following factors shall be placed for the consideration of the competent
authority to arrive at the price of intellectual property:
i. Cost of development.
ii.
iii.
iv.
Estimate of net benefit to be derived by the licensee.
Size and number of potential licensees.
Comparative cost of imported intellectual property, wherever applicable/available.
v. Possibility of intellectual property being pirated.
vi.
Opportunity value.
Price decided for a specific intellectual property should be reviewed periodically, at least every
three years for revision, if required.
6.3.8(B) Explanation
i. Cost of Development
Includes estimated cost of:
Direct inputs
a. S&T manpower deployed on the project (as per prescribed rates).
b. Raw materials, consumable components etc. with 25% overheads.
c. Physical Inputs for the project with 25% overheads.
d. Equipment usage.
e. External payments, made if any.
f. Securing of intellectual property rights.
g. Cost of publicity.
Indirect inputs
a) Notional amortisation of investment on the staff, equipment and facilities
deployed for the project.
b) Intellectual inputs.
ii. Net benefit to be derived by the licensee
This can be calculated as the money to be saved by the licensee by productivity improvement
such as saving in raw materials, energy, time, labour, capital etc. or additional profit to be
realised due to better quality of product or reduction in pollution etc. or the net profit from the
exploitation of the intellectual property.
iii. Size and number of potential clients
Some estimates may be made of the potential market for the IP namely product, process,
technique, software etc. and the likely number of licensees for the intellectual property.
Sometimes, there may be alternative competing sources for the intellectual property. This should
be taken into consideration while determining the number of licensees for the Institute's
intellectual property.
47