LEGAL CONTEXT FOR OPEN INNOVATIONS – CURRENT UNDERSTANDING

Businesses are increasingly shifting to open innovation business models to suit to adjust their intellectual property rights management strategy. Meticulously they require determining how to edge the traditional “closed innovation” model which is legally required to acquire IP rights with decentralized, open innovation processes. This paper focuses on several challenges in reconciling IP law with the need for open innovation. The requirement in open innovation requires openness in the exchange of IP related information. Open Innovation Projects involve multiple claim holders—as contributors, collaborators investors,, co-inventors. A proper governance structure is desirable to help the parties involved to prioritize their claims. Co-inventor, co-owner and co-creator are regulated by Intellectual property law, but does not regulate as to how these rights are managed and in what hierarchy.