Legal/Financial Considerations
(1) IP protection has neither been applied for nor granted. Protection is not believed to be possible.
(5)Adequate IP protection has been applied for but has not been granted.
(10) IP protection has been granted and is believed to be defendable in court.
2. How well has the IP protection withstood infringement?
(1) There is no IP protection.
(5) The IP protection has not been challenged in court but we believe the outcome would be positive.
(10) The IP protection has been challenged and has been successfully defended in court.
3. To what extent is IP protection possible on derivative inventions?
(1) No IP protection is believed to be possible on derivative inventions.
(5) In the opinion of counsel, IP protection is possible on derivative inventions.
(10) Patent examination has been performed on derivatives and the results are positive.
4. Is there any IP litigation now in progress or believed to be coming in the next 12 months?
(1) There is litigation now in progress or upcoming and the results are not expected to be positive.
(5) There is no current litigation and none is expected in the next 12 months. There are, however, possibilities that exist but are difficult to predict.
(10) The IP protection has been tested in court and we have no expectation of further litigation in the next 12 months.
5. Are there any non-IP legal issues that would have a bearing on the commercialization of this invention?
(1) There is significant legal involvement, the outcome is uncertain and the result could cause substantial damage.
(5) There is a moderate amount of legal involvement but the outcome and result are viewed as moderate and manageable.
(10) There is no legal involvement. Legal issues have been thoroughly considered and appropriate actions have been taken or identified.
6. (MOA) What is the non-discounted cumulative net cash outflow before tax prior to net cash flow being positive on a quarterly basis?
(1) The cumulative net cash outflow is more than $1 million and the amount is substantially at risk to increase. The point at which cash flow becomes positive on a quarterly basis is more than two years from start of development.
(5) The amount is less than $1 million and the risk of increase is believed to be manageable. The point at which cash flow becomes positive on a quarterly basis is between 1 and 2 years from start of development.
(10) The amount is less than $1 million and we are confident that the risk of increase is manageable. The point at which cash flow becomes positive on a quarterly basis less than one year from start of development.
7. (MOA) What is the payback period on a before tax cash flow basis and what is the confidence level of the cash flows?
(1) The payback period is three years or more from the first capital infusion. The cash flows are highly uncertain.
(5) The payback period is 2-3 years and the cash flows are considered manageable.
(10) The payback period is 2 years or less and there is high confidence in the cash flows.
8. (MOA) What is the cumulative revenue projection for this product for the first three years of sales and what is the confidence level in the projections?
(1) The cumulative revenue is less than $5 million and the confidence level is low.
(5) The cumulative revenue is $5-$10 million and the revenue flow is considered manageable.
(10) The cumulative revenue is over $10 million and there is high confidence in the revenue.
9. (MOA) What is the cumulative net cash flow before tax for the first three years of sales and what is the confidence level in the projections?
(1) The cumulative net cash flow is less than 0 and the confidence level is low.
(5) The cumulative net cash flow is between $0 and $1 million and the confidence level is moderate.
(10) The cumulative net cash flow is over $1 million and the confidence level is high.