Cisco Hopefuls Keep Eyes on the iPrize

Multiple entries are welcome. Gossen, the computer science student at Karlsruhe University, is entering iPrize 2 with several ideas, including "a new generation first-aid box" and "a digital pocket."

Unlike the first contest, which gave Cisco exclusive rights to the winner's project, the second iPrize competition is more lenient to attract the ideas of established startups who might want relationships with other companies. In the current contest, the winners grant Cisco a perpetual-use license, meaning Cisco can use the technology forever, but the entrepreneurs can license the same technology to other companies if they wish.

"We see a lot of entrepreneurs, and some of them have a fear of coming to talk to us; they worry that they're giving their idea away simply by opening their mouth," says Jouret, who adds that the fear is unfounded. "We don't want a reputation as a big company that scams little companies and rips off their intellectual property."

Regarding entrepreneurs who want to pitch ideas to Cisco outside of the iPrize, Jouret says one of the biggest mistakes they can make is neglecting to figure out which business units would make the best use of the idea.

"You have to do a bit of research and realize that this isn't a single monolithic organization," he says. "Often people come in and give a long pitch without a frame of reference. The one thing that's important to remember is that large companies are federations -- multiple business units of product families. And a 'no' from one unit doesn't mean a 'no' from the whole company."

-- Reported by Carmen Nobel in Boston.

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