Technology scouting refers to the identification and acquisition
of newer technologies, acquisition of whom, can be a potential
value add to an entity. The objective of acquiring new technologies
is to gain a competitive advantage by identification of
opportunities and threats that may arise from such technological
developments, at a very early stage. For the acquisition of the
newer technology there are three basic questions that must be
Is the technology feasible and easy to obtain?
Is it having the potential (or some visible evidences) to
fulfill the demands of the consumer?
Is it viable for the entity's business?
The impetus for acquiring the technology lies in the answer of
the these questions. The entity may accordingly decide whether to
use the technology as it is or as a new concept altogether.
Technology scouting is a labor intensive activity and includes
the involvement of the technical expertise at the disposal of the
entity. The important part of transference of the technology
involves the evaluation, valuation and acquisition of the concerned
technology patents. Large corporate entities are frequently
contacted by or they themselves conduct a thorough market analysis
to identify technology and patents that can be acquired. The
preferred channels to inquire, used by these entities include Open
Innovation networks (OI), intermediaries / brokers and their
existing networks of professionals, such as Linkedin.
There is no denying that technology is a necessary part of an
entity's corporate decision making. Considering advantages of
technology acquisition through scouting, we cannot undermine the
risks therein. It is an expensive 'bet'. A large chunk of
funds are required for this, acquisition is a tough task that
involves complicated legal procedures and ownership issues, etc.
Even then, there is always a risk of failure involved. There are
questions on the hind sight such as 'What if the entire
exercise backfires?' or 'What will be the impact of such a
decision on my firm's growth?' and the like. Needless to
mention that the stakes are really high.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This article enunciates the recent, much awaited, and landmark judgment delivered on September 16, 2016 by Hon'ble Delhi High Court throwing light on the important provisions of the Copyright Act, 1962.
The Patents Act 1970, along with the Patents Rules 1972, came into force on 20th April 1972, replacing the Indian Patents and Designs Act 1911. The Patents Act was largely based on the recommendations of the Ayyangar Committee Report headed by Justice N. Rajagopala Ayyangar. One of the recommendations was the allowance of only process patents with regard to inventions relating to drugs, medicines, food and chemicals.
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