Tuesday, December 13, 2005

IBM TAKES ANOTHER HUGE STEP IN PATENT LICENSING: In addition to its participation in the OSDL project (where IBM donated 500 patents "free of charge"), IBM has announced a new licensing program called "Ventures in Collaboration," that will allow startups and other companies to work with IBM investors for access to the technology behind the patents. Unlike the OSDL project, IBM now claims to be offering over 40,000 patents for licensing.

While the program is affiliated with IBM, it will be administered by various venture capital groups. The program offers two types of cross licensing agreements:

  • Start-ups with annual revenues under $10 million will receive a standard, three-year cross-licensing contract for $25,000
  • Companies with more than $10 million in annual revenues that are in the process of bringing their products to market receive a custom, five-year cross-licensing contract and pay 1 percent in royalties. There is no revenue cap on a company's eligibility.
IBM is trailblazing new paths in partner-focused business models for patent licenses and is certainly finding creative new uses for IBM patents. In the past 18 months, the company has increased the number of its partnership programs from 20 to more than 950.

This is part of ongoing efforts by IBM to strengthen its relationship with young companies in the hope that its software and hardware will be used in a start-up's emerging products. The relationship also provides IBM with a glimpse of emerging technology trends.

Also, by using VC middlemen, IBM spends less time making direct investments in start-ups as a strategic partner and instead invests in funds run by VC's.

2 Comentários:

Anonymous said...

"Start-ups with annual revenues under $10 million will receive a standard, three-year cross-licensing contract for $25,000"

How generous of IBM !

Thank you, thank you, thank you, great IBM !

If I read it right, they want to appropriate start-up patented technology, and, in addtion, to charge start-ups 25,000 bucks for doing this to them...
Corporate hypocricy and greed have no limits these days...

zeevveez said...

IBM's proposal sounds tempting for those who need it desperately but for all the otheres it sounds unfriendly.

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