1. Darryl Mitchell
Innovative Partnerships Program Office
Goddard Space Flight Center
Greenbelt, MD
Project Management Challenge
2010 Annual Conference
Galveston, TX
Used with Permission

2.  The Importance of Innovation
 Innovative Partnerships Program Overview
 The NASA Patent Licensing Model
 Ocean Tomo
 The Live Intellectual Property Auction License
Model
 Results of the First Live Auction of a
Government Patent License
 Next Steps
February 19, 2010 http://ipp.gsfc.nasa.gov 2

3. Source: NEWSWEEK-
Intel Global Innovation
Survey 2009
Source: NEWSWEEK-
Intel Global Innovation
Survey 2009
February 19, 2010 http://ipp.gsfc.nasa.gov 3

4. February 19, 2010 http://ipp.gsfc.nasa.gov 4

5. Legal & Policy Benefits to
Obligations Agency
February 19, 2010 http://ipp.gsfc.nasa.gov 5

6. February 19, 2010 http://ipp.gsfc.nasa.gov 6

7. GSFC
ESMD
JPL GRC
SMD
SOMD
ARC LaRC
ARMD
DFRC KSC
SSC JSC
MSFC
February 19, 2010 http://ipp.gsfc.nasa.gov 7

8. Technology Innovation Partnership
Infusion Incubator Development
 Small Business  Centennial  Intellectual
Innovation Challenges Property
Research (SBIR)  FAST Management
 Small Business  Innovation  Technology
Technology Transfusion Transfer
Transfer  New Business  New Innovative
Research (STTR) Models Partnerships
 IPP Seed Fund
February 19, 2010 http://ipp.gsfc.nasa.gov 8

9. Cooperative Software
Space Act Patent/Copyrig Enhanced
Contract Agreement Usage CRADA
Agreement ht License Use Lease
Grant Agreement
Purpose Acquire NASA funding Collaborations Transfer Access to Permits NASA Rarely used by
goods, provided to with the public specific rights NASA to lease under- NASA for
services, or facilitate and private associated with developed utilized real cooperative
both. activities that sector software property assets research and
NASA-owned
accomplish a development.
Intellectual
public purpose
Property
Competition Generally, Generally, Yes In some No No In some No
Required? Yes circumstances circumstances
Notable - Goods or - Public Purpose -Subject to -Intellectual -Export Control - Real Property - Federal Lab
Requirements Services - NASA may be statutory and Property Compliance - R&D
- Mission involved NASA - Royalty- - Depends on
Need requirements type of release
Based
-Commercializ
ation
NASA Yes Yes Rarely No No No No
Funding to
the Non-
NASA Party?
Authority Space Act; 31 Space Act; 31 Space Act 35 USC 207 NPD 2210.1A Space Act; 42 15 USC 3710a
USC 6303; 10 USC 6304; 31 USC 2459j
USC 2302 USC 6305
February 19, 2010 http://ipp.gsfc.nasa.gov 9

10.  Negotiated & executed at Field Centers
 Governed by 37C.F.R. §404
 License application required
 Exclusive or non-exclusive
 Non-Exclusive preference
 Exclusivity requires 15-day comment period
 Preference to U.S. businesses
 Up-Front Fee, Running Royalties, Annual Minimums, and Practical
Application deadline
 Standardized language
 Government retains “March-in” Rights
 No Government warranty or indemnification
 No rights to NASA Logos granted
 Sublicensing rights granted to exclusive Licensees
 Annual Reports required of Licensee
 “Know-how” transferred under separate agreement (SAA)
February 19, 2010 http://ipp.gsfc.nasa.gov 10

11. 2 - 4 Inventors
• $5k ea.
• 25% ea. To Single
$25K Inventor
• Split 30% of • $5K + 25%
remainder
5+ Inventors
• Equal shares
of $25K
• Split 30% of
remainder
Field Center Director
•NPR 2092.1A, Distribution of Royalties Received by NASA
from the Licensing or Assignment of Inventions
February 19, 2010 http://ipp.gsfc.nasa.gov 11

12.  Slow …. But improving!
 Constrained resources
 Cultural disconnects
 Limited flexibility
 Limited, or no, market validation of
technology
February 19, 2010 http://ipp.gsfc.nasa.gov 12

13.  Founded: 2003
 Headquarters: Chicago, IL
 Business Type: Intellectual Capital Merchant
Banc
 Mission: Efficient Monetization of
Intellectual Property
 Best Known For: Live Auctions of Intellectual
Property
 Total Live Auction Transactions to Date:
$120M
February 19, 2010 http://ipp.gsfc.nasa.gov 13

14.  Can NASA actually sell its patents?
RESOLUTION: No, but Ocean Tomo can auction the right to assume its
exclusive license with NASA
 What about the Federal Register Notice?
RESOLUTION: Handled pre-auction with Ocean Tomo
 What about export control issues?
RESOLUTION: Screen with pre-qualification application
 Should we go with a running royalty, or a one time payment?
RESOLUTION: Technology and market sector dependent
 What if it doesn’t sell at auction?
RESOLUTION: Other transaction platforms available, and Ocean Tomo
license expires within 3 years
 What about Non-Practicing Entities (i.e. Patent Trolls)?
RESOLUTION: NASA retains standard march-in rights
February 19, 2010 http://ipp.gsfc.nasa.gov 14

15. Fall 2007: Goddard and January 2008: Goddard
Fall 2006: Contact with
Marshall authorized to posts a Federal Register
Ocean Tomo established
proceed with pilot Notice for 44 patents &
by Goddard IPP
programs patent applications
July 22, 2008: License Spring 2008: Detractors February 2008: Objection
executed with Ocean start gathering torches & to Federal Register Notice
Tomo pitchforks received and resolved
October 30, 2008:
September 2008: Joint Goddard successfully
October 14, 2008: Three
press release issued auctions an exclusive
Congressional inquiries
regarding upcoming license to its Hilbert-
received
auction Huang Transform (HHT)
patent portfolio
February 19, 2010 http://ipp.gsfc.nasa.gov 15

16.  Ocean Tomo & NASA jointly identify
candidate cases
 Ocean Tomo submits license application
 NASA posts notice in Federal Register (15 day
comment period)
 Ocean Tomo & NASA jointly establish
license terms
 License executed with Ocean Tomo
 Ocean Tomo begins marketing campaign
February 19, 2010 http://ipp.gsfc.nasa.gov 16

17.  Interested bidders must submit a pre-
qualification document (37 C.F.R. §404)
 NASA provides expedited feedback on pre-
qualification applications
 Winning bid held in escrow by Ocean
Tomo
 Winning bidder submits remaining data
required for license application to NASA
 NASA executes a novation of the license
with Ocean Tomo to transfer ownership to
bidder
 Ocean Tomo forwards funds to NASA less
a standard fee (called out under terms of
license) and collects separate fee from
bidder
February 19, 2010 http://ipp.gsfc.nasa.gov 17

18.  HHT portfolio licensed after 8
years to DynaDx Corp.
 $50K Up-front
 Running & annual minimum royalties
 Product launched September 2009
 Multiple organizations interested
in 6 GPS patents post-auction
 Tremendous publicity for NASA &
Ocean Tomo
 WSJ
 Physics Today
 BBC News
 Many Others
February 19, 2010 http://ipp.gsfc.nasa.gov 18

19.  Founded: 2005
 Location: Mountain View, CA
 Product: Multimodal Pressure-
Flow (MMPF) technique for
analysis of dynamic cerebral
auto-regulation
 Applications: Stroke, Dementia,
Traumatic Brain Injury
 NASA Technology: Hilbert-
Huang Transform (HHT)
 Product Launch: September
2009
February 19, 2010 http://ipp.gsfc.nasa.gov 19

20. NASA Ocean Licensees Taxpayers
•More efficient Tomo •Simplified portal •Potential life-
utilization of IPP to access federally improving
resources •Increased deal owned patents advancements
flow entering the
• Creation of new •Ocean Tomo
technology •Leverage NASA vetting process marketplace more
brand recognition quickly
resources
•Economic impact
February 19, 2010 http://ipp.gsfc.nasa.gov 20

21.  Ocean Tomo Transactions acquired by
ICAP
 Improved capitalization
 New ventures/platforms enabled (e.g. IPXI)
 Other Federal Labs coming onboard
 DOE, NSA, APL, NIH, …
 NASA released RFI on September 25, 2009
regarding licensing intermediary models
 Portfolio bundling across labs and/or
agencies?
 In FY 2007, 4,500 new invention disclosures, &
over 1,400 patents issued to federal labs
February 19, 2010 http://ipp.gsfc.nasa.gov 21

22. Darryl Mitchell
Technology Manager
Innovative Partnerships Program Office
NASA Goddard Space Flight Center
Greenbelt, Maryland
(301) 286-5169
Darryl.R.Mitchell@nasa.gov
http://ipp.gsfc.nasa.gov
February 19, 2010 http://ipp.gsfc.nasa.gov 22