Open innovation is one of those “feel good” initiatives that makes a lot of sense. Leverage technology to build new capabilities, create openness that results in breakthrough growth, speed up the innovation process…why is everyone in the room smiling except the lawyers?
In most organizations, the legal team is given the responsibility of being the “protector” of the company’s intellectual assets. There is no greater threat to protecting a company’s intellectual assets than opening the floodgates to a free flow of information, both in and out of the company. Whereas the dreamy idealists envision an environment of sharing, lawyers envision lawsuits and liabilities. Clearly, companies that successfully balance these two competing tendencies are the ones that can be most successful leveraging the power of open innovation.
Here is my mantra for successfully managing IP risk in open innovation: Put yourself in your partner’s shoes. I don’t care if you are having a first conversation with a collaborator or trying to define the legal agreement. If you take your partner’s perspective first, you will always create a better collaboration. An open innovation collaboration is a long term relationship, not a real estate deal. If there is water in the basement, you will both be knee-deep in water. If the terms of the collaboration respect both parties’ vital interests, and share both the risk and the reward, you have the fundamentals of a real partnership.
In my next entry, I will discuss a key IP event that can either block or smooth the path to a successful open innovation collaboration.
Contact us today to launch your open innovation program with NineSigma.