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1 IP Monetization for a Global Auto Systems Supplier Delphi Technologies Overview June 24, 2015
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IP Monetization for a Global Auto Systems Supplier
Delphi Technologies Overview
June 24, 2015
Agenda
• Delphi Automotive Systems, LLC - Overview
• Commercialization and Licensing
• Why We License
• Creating Value through IP – Proven Models
• Summary
Delphi’s global team – at the center of technology innovation – Automotive Systems & Components
126manufacturing
sites
15major global
technical centers
20,000engineers
and scientists
$17.0B2014 revenue
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164,000people in
33 countries
$1.7 Bin
Research &
Development
Delphi has market-driven, strategic product lines that deliver safe, green and connected solutions
Electronics & Safety
• Electronic Controls
• Infotainment & Driver Interface
• Software & Services
Thermal Systems
• Powertrain Cooling
• Climate Control
Powertrain Systems
• Gasoline Engine Management Systems
• Diesel Engine Management Systems
Product & Service Solutions
• Diesel
• Independent Aftermarket
• Original Equipment Service
Electrical/Electronic Architecture
• Electrical/Electronic Distribution Systems
• Connection Systems
Strength in a diversified customer base
No single customer accounts for more than 19% of global sales
• Renault
• Harley Davidson
• Mack
• PEUGEOT
• BUGATTI
• DAIMLER
• Kia Motors
• SHANGHAI GM
• Volkswagen
• AGCO
• TATA
• IVECO
• SKODA
• Sea Ray
• Bentley
• Ford
• SAIC
• Honda
• Paccar
• ABTOBA3
• Lockheed Martin
• Nissan
• FCA
• Toyota
• Calsonic Kansei
• AUDI
• Freightliner
• Maserati
• Suzuki
• Opel
• Car Quest Auto
• GM
• Alfa Romeo
• Ferrari
• Kia Seat
• Johnson Controls
• NAPA
• Benteler
• Caterpillar
• Pioneer
• Air National
• SsangYong
• John Deer
• Hyundai
• Isuzu
• Inteva
• Navistar
• Scania
• Porsche
• CNH
Global scale with regional capabilities
Delphi’s global footprint aligns with the growth plans of leading vehicle makers
Major technical center locations
Supplying 20 of the top 20
vehicle makers in Europe
Supplying 17 of the
top 20 vehicle
makers in China
Supplying 17 of the
top 20 vehicle makers
in the United States
Supplying 10 of the top 10
vehicle makers in South
America
IP Monetization at Delphi
Delphi – Commercialization & Licensing
• Centralized function with staffing in the US and Asia
• Functionally part of the legal staff
• Operate with the regional legal teams for local requirements
Language, country law, etc.
• Responsible for all regions and business units
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DELPHI
GLOBAL COMMERCIALIZATION & LICENSING
January 1, 2015
Project Support &
Administrative
Assistant
Finance Mgr. (Matrix)
John P. Carney
Director
Commercialization &
Licensing
Licensing Executive Licensing Executive Licensing Executive
Senior Business AnalystSenior Business Analyst
Licensing Executive
Delphi – IP CommercializationStaffing and Required Skills
Two basic positions in the group
– Licensing Executive / Manager
– IP Analyst
Licensing Executive – responsible to identify, develop and negotiate
and close deals
– Candidates with commercial backgrounds have been most successful
» “close the deal mentality” vs. R&D
IP Analysts
– Technical experience is very valuable
– Can be a grooming assignment for Licensing Executive position
Licensing as a Business Strategy
• Why License?
Generates Operating Income and cash
Customers sometimes require a second source
It is a relatively fast path to revenue generation
Delphi may elect not to directly invest in our own facilities in some markets
• Licensing – Advantages to Delphi :
Limits competitor’s expansion in key markets
Provides Operating Income without direct investment
Provides for transition path where Delphi elects to exit a product line.
Creates a entry strategy for countries where Delphi has no presence and customers are
active or have plans to establish locations
• Combined IP/Asset Sales
Product technology has a value and a useful life “after Delphi”
Manufacturing assets combined with “know how” is very interesting to certain buyers and
markets
Leveraging IP – Business Models
Licensing Core Products in Regional/Niche Markets: License Delphi’s automotive products in markets Delphi does not elect to pursue directly. Working closely with the business units to co-developing strategy; C&L leads the negotiations.
Asset & IP Sales – Wind Down Products: Sell equipment and the related IP/Know-how for discontinued product lines where no customer contracts exist. Engagement with business units; C&L Leads the activity.
Licensing in Adjacent Markets: License Delphi technology outside automotive markets. C&L Leads the analysis and the pursuit.
Sales of Non-core Patents
IP Monetization – Sharing the Credits Internally @ Delphi
• All proceeds – Cash and P&L benefits go to the business unit
responsible for the technology
• C&L – Leads IP Monetization activities, records the sale for reporting
purposes and collects cash for the operating unit
• Technical Support proceeds are recorded as credits engineering
organizations for all onboarding and tech transfer activities
We work best as an adjunct to the global business teams
– Serve as a resource center for best practices and market economics.
– Single point of contact for drafting and negotiating agreements, obtaining all
internal approvals, signing deals
We are located in several key regions, co-located in key business
centers
We secure legal, business unit, tax and other corporate approvals for all
agreements
We collect the funds owed for all IP monetization and credit the
operating units on a monthly basis
Role within Delphi Organization
• C&L is generating strong cash and income growth with lean budget and staff
• Strong team in place – continue to grow skillsets, capabilities, tools & external networks
• Established strong engagement with the Delphi operating units to identify opportunities and to support business strategies
• Expanded licensing activities significantly into “know-how” and asset deals, in addition to patent licensing and sales
• Expanding Delphi’s position as a recognized active player in the technology transfer market
Summary
Contact information
John P. Carney
Director – Commercialization & Licensing
Delphi Automotive Systems, LLC.
248-813-8065
