42 Years Experience ofTechnology Licensing Katharine Ku Stanford University November 15, 2012
Philosophy• Do what’s “best for the technology”• Foster good industrial relations• Be a business-driven office, not legally driven• Plant as many seeds as possible
History• Started in 1970• Approx. 8,300 cumulative disclosures• Approx. 3,000 active cases• Executed over 3600 licenses• Approx. 1200 active licenses
Notable Stanford Inventions 1970 – OTL Established 1971 - FM Sound Synthesis ($22.9M) 1974 – Recombinant DNA ($255M) 1981 – Phycobiliproteins ($46.4M), Fiber Optic Amplifier ($48.4M), MINOS ($4.1M) 1984 – Functional Antibodies ($318.9M) 1987 – Selective Amplification of Polynucleotides ($20.3M) 1990-1992 – DSL ($29.6M) 1993 – Microarrays ($2M), MIMO for Wireless Broadcast ($0.12M) 1994 – In vivo bioluminescent imaging ($7.2M) 1996 – Improved Hypertext Searching (GoogleTM)($337M) 2004 – Refocus Photography ($0.15M) 2013 – the next big thing ???
The upside...• OTL has generated ~$1.47B in cumulative gross royalties• $920M were three big inventions• Over $1.2 billion stayed at Stanford/inventors• OTL has given $46.2M to the Research Incentive Fund
Sobering Statistics• 3/9300 is a BIG WINNER (these three inventions generated 67% of the cumulative income)• 20 cases generated $5M or more• 68 cases generated $1M or more in cumulative royalties• $17.6M in unlicensed inventory• The University cannot count on royalties for university operating expenses
1970’s• First year $55,000• 50-70 disclosures a year• Inventions of note: • Music chip • FACS • Hybridomas• Staff of 3
1980’s• Dramatic increase in revenue – DNA cloning invention – Software – HIV, the “web”• Broke even after 15 years• Biotech emerging• equity discussions: conflicts of interest• 622 licenses/staff of 18/$14M
1990’s• Change in patent policy• New view of equity• Google, DSL technologies disclosed• Wireless inventions appearing• DNA patent expired• Income ~$25M-$61M-$40M• Staff of 24, $3M patent expenses
2000’s• Google IPO• Lots of start-ups at the beginning; the crash• Functional antibody royalties start• Interest in online education begins• Income growing ~$65M, 33 staff• $4M in patent expenses
Present• Innovation is key – StartX, Biodesign, SPARK, Entrepreneurial classes• Acceleration to industry• Rise of China• Income: $76.7M, staff of 40, $8M patent expenses
Future• More pressure to patent/more expenses• Pressure to do deals faster/streamline• More interest by entrepreneurs to start companies• Income cliff
Stanford “Best Practices”• Stay centered – Education and research come first• Do what’s best for the technology – Don’t chase the $$$ • The dollars will come if you do a good job• Plant as many seeds as possible – Some will bear fruit
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