The Business of Healthcare: The importance of IP

INTELLECTUAL property specialists have expressed concern that increased collaboration in the life sciences field is complicating ownership issues.

New technologies and developments in the healthcare sector mean companies in the biotech and medtech space are working together more closely.

But increased collaboration makes IP ownership more complex.

Richard Taylor, IP and technology partner at law firm DLA Piper, said: “A pattern we are increasingly seeing is a willingness to collaborate without the same protectionism around IP.”

He said businesses should ideally hammer out who will get what and how their collaboration will work, but  admits that collaboration in this sector can often be quite ‘blue sky’ and that those involved don’t necessarily know where things will end up.

Taylor points to two models of technology development – the IBM model, where firms generate their own IP and exploit it, or the Apple model, where firms “work out where you need to get to and if needed buy in that technology or license it”.

He added: “The Apple model is being seen by the rest of the world, and indeed those in life sciences, as the most effective model.”

Taylor suggests collaborators put terms for a mechanism in place so that further down the line, if something exciting happens, they can then work out who will get what.

IP is valuable and can be easy to lose with the stroke of a pen, if you don’t fully understand what you are agreeing to, he warns.

“That makes people nervous and sometimes more defensive or aggressive than they need to be when collaborating and licensing. With a bit of careful discussion and drafting that can all be sorted.”

This story is part of a 20 page supplement on the Midlands healthcare sector, produced in association with DLA Piper and Catalyst Corporate Finance. To read more click here