1. Software Technology Showcase
Featuring technologies from the School of Medicine, College of
Computer Science and Engineering, Center for Education and Human
Development, the Center for Transportation Studies, among others.
11.10.2010

2. Office for Technology Commercialization 2
OTC’s Mission
• To translate University of Minnesota
research into new products and services that
provide growth opportunities for our licensees,
benefit the public good, improve the quality of
life, and generate revenue to support the
University's research and education goals.

3. Office for Technology Commercialization 3
Office for Technology Commercialization
Business Units
Life Sciences
Engineering and
Physical Sciences
Digital Technologies
Agricultural and
Horticultural Sciences
Venture Center
Today’s Showcase: Software

4. Office for Technology Commercialization 4Note: Size of funnel qualitatively represents number of technologies in each stage.
Stage 1
•New Idea/
Possible
Invention
Received
Stage 2
•Develop
Business
Case
Stage 3
• Perform
Financial
Analysis,
Create
Marketing
Strategy
including
detailed
‘voice of the
customer’
Stage 4
•Contact
Prospective
Licensees
•Or initiate
start-up
formation
Stage 5
•Negotiate
business &
legal terms
Stage 6
•Close Deal
Stage Gate Process: ‘Moving technologies from lab to license’
An example of OTC incorporating successful industry-based processes
File Provisional
Patents
Close
File Worldwide
Patents
Close
Strategy Managers
Marketing Managers
and/or Venture Center
Both Strategy &
Marketing Managers
Decision to License to Spin
Out Company:
OTC Venture Center
Decision to
License to
Established
Company

5. Office for Technology Commercialization 5
License Fee – After the license is signed, the amount depends on the market value of the technology.
Patent Reimbursement Costs – Costs incurred to patent the technology.
Development Period – For a technology requiring further development, the UMN agreement can
provide for a development period during which time the annual license fees are reduced.
Royalties – Paid when products are sold. Royalty rates depend on the market value of the technology.
Minimum Royalty – The UMN expects a minimum royalty each year.
Additional licensing term flexibility can be inserted on a case by case basis….
Equity – With mutual consent, the University and the Licensee may agree to grant the University
equity holdings in the company as a partial offset against other expenses.
Fast Track Opportunity License – An approach to lock-in royalty rates before development is
complete and eliminate patent costs during the development period in exchange for a
single annual fee.
Typical Elements of a License Agreement

6. Office for Technology Commercialization 6
Economic Ecosystem Must All Work in Concert-
University is One of Several Elements
Entrepreneurially Focused
Policies and Supportive
Infrastructure
Availability of
Seed Capital
Experienced Management with Proven Success
Providing
Innovation

7. Office for Technology Commercialization 55
license.umn.edu

8. Office for Technology Commercialization 56
For more information on these
technologies…
Contact
Andrew Morrow
Technology Marketing Manager
amorrow@umn.edu
612.626.7283