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University Tech Transfer Process: Invention Commercialization The 4th Annual Conference on Technology Commercialization “ Technology Transfer (R&D and IP Commercialization, Policies, and Investment)” Amman, Jordan (12 Nov 2008) Michael J. Martin President, TechTransfer Associates
Industry/University :  Bridging   Two Cultures UNIVERSITY INDUSTRY “ To Create and  Disseminate Knowledge” To Maximize the Investment of Shareholders O R G A N I Z A T I O N RESEARCH DISCOVERY DISCLOSURE FEASILBITY PATENT APPLICATIONS APPLIED r&D MARKET TEST LICENSES COMMERCIAL OPERATTION. SOLUTIONS PROBLEMS
Why IP:   Bridging   Two Cultures ,[object Object],[object Object],University Industry “ To Create and  Disseminate Knowledge” To Maximize the Investment of Shareholders O R G A N I Z A T I O N SOLUTION PROBLEM
Why Manage IP in Universities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
University IP Policy/Practice COI/ COC Patent Copyright  Law Bayh-Dole Law Internal Revenue Code State Code SCHE Guidelines University Tech Transfer Policy/Practice Research Contract Negotiations Ownership of  Intellectual Property Commercialization  of Intellectual Property University  Culture
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research  Investment
Evaluation then Valuation of Intellectual Property ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Assessment of Early Stage Discovery  Technical Merit ,[object Object],[object Object],[object Object],[object Object]
Assessment of Early Stage Discovery  Commercial Opportunity ,[object Object],[object Object],[object Object],[object Object],[object Object]
Assessment of Early Stage Discovery  Protectability ,[object Object],[object Object],[object Object],[object Object],[object Object]
Evaluation:   Inventor -  Degree of Interest, Attitude and Motivation ,[object Object],[object Object],[object Object]
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research  Investment Inventor/ Additional Develop
Invention Disclosures: Solicitation and Information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research  Investment Inventor/ Additional Develop
Intellectual Property Protection ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research  Investment Inventor/ Additional Develop
Marketing ,[object Object],[object Object],[object Object],[object Object]
Develop Contacts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Start-ups:  Culture and Support ,[object Object],[object Object],[object Object]
$ needed at the stage of Business Development Pre-Seed ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Seed Early Stage Mid-Stage Exit Description Team $ Needed Keys to Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Access to Capital: Technology Policy Framework Source:  Richard Palmer, Business Specialist   Advanced Technology Program   National Institute of Standards and Technology . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Valley Of Death Availability of Capital Basic Research Development & Scale-up Commercial Operation
Friends and Family ,[object Object],[object Object],[object Object],[object Object]
Is SBIR the Way to Go? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Corporate Opportunities in the Valley of Death ,[object Object],[object Object],[object Object],[object Object],[object Object]
Bootstrapping ,[object Object],[object Object],[object Object],[object Object],[object Object]
Angel Investor Basics ,[object Object],[object Object],[object Object]
Investment Profile for Angel Investors ,[object Object],[object Object],[object Object],[object Object],[object Object]
THINK LIKE A VC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example:  New Nanotechnology Material ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ideas & Funding LUNA nanoMaterials Acquisition & IPO Universities Industry Government Private & Industrial $
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research  Investment
Negotiation - Style ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Negotiation - Valuation ,[object Object],[object Object],[object Object],[object Object]
Valuation – Cost Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation – Market Approach  ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
Valuation – Income Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation – Income Approach ,[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation - Relief from Royalty ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Royalty Rates for In-Licensing by Industry Rose Ann Dabek Procter & Gamble Industry 0-2% 2-5% 5-10% 10 -15% 15-20% 20-25% >25% Aerospace 50% 50%           Automotive 52.5% 45% 2.5%         Chemical 16.5% 58.1% 24.3% 0.8% 0.4%     Computer 62.5% 31.3% 6.3%         Electronics   50% 25% 25%       Energy   66.7%       33.3%   Food/Consumer   100%           General MFG. 45% 28.6% 12.1% 14.3%       Gov't/University 25% 25% 50%         Health Care 3.3% 51.7% 45%         Pharmaceuticals 23.6% 32.1% 29.3% 12.5v 1.1v 0.7% 0.7% Telecommunications 40% 37.3% 23.6%        
License Agreements ,[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent Questions ????? Products Business Spin offs Research  Investment

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Martin Invention Commercialization Ver 2

  • 1. University Tech Transfer Process: Invention Commercialization The 4th Annual Conference on Technology Commercialization “ Technology Transfer (R&D and IP Commercialization, Policies, and Investment)” Amman, Jordan (12 Nov 2008) Michael J. Martin President, TechTransfer Associates
  • 2. Industry/University : Bridging Two Cultures UNIVERSITY INDUSTRY “ To Create and Disseminate Knowledge” To Maximize the Investment of Shareholders O R G A N I Z A T I O N RESEARCH DISCOVERY DISCLOSURE FEASILBITY PATENT APPLICATIONS APPLIED r&D MARKET TEST LICENSES COMMERCIAL OPERATTION. SOLUTIONS PROBLEMS
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  • 5. University IP Policy/Practice COI/ COC Patent Copyright Law Bayh-Dole Law Internal Revenue Code State Code SCHE Guidelines University Tech Transfer Policy/Practice Research Contract Negotiations Ownership of Intellectual Property Commercialization of Intellectual Property University Culture
  • 6. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research Investment
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  • 12. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research Investment Inventor/ Additional Develop
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  • 14. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research Investment Inventor/ Additional Develop
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  • 16. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research Investment Inventor/ Additional Develop
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  • 30. Ideas & Funding LUNA nanoMaterials Acquisition & IPO Universities Industry Government Private & Industrial $
  • 31. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent TECH TRANSFER: COMPLEX SYSTEM Products Business Spin offs Research Investment
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  • 40. Royalty Rates for In-Licensing by Industry Rose Ann Dabek Procter & Gamble Industry 0-2% 2-5% 5-10% 10 -15% 15-20% 20-25% >25% Aerospace 50% 50%           Automotive 52.5% 45% 2.5%         Chemical 16.5% 58.1% 24.3% 0.8% 0.4%     Computer 62.5% 31.3% 6.3%         Electronics   50% 25% 25%       Energy   66.7%       33.3%   Food/Consumer   100%           General MFG. 45% 28.6% 12.1% 14.3%       Gov't/University 25% 25% 50%         Health Care 3.3% 51.7% 45%         Pharmaceuticals 23.6% 32.1% 29.3% 12.5v 1.1v 0.7% 0.7% Telecommunications 40% 37.3% 23.6%        
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  • 43. Invention Patenting Patent Atty Disclosure Evaluation Marketing Licensing Protect if Publication is Imminent Questions ????? Products Business Spin offs Research Investment