ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (E...
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Uk university technology transfer

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Uk university technology transfer

  1. 1. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) UK University and Technology Transfer Michael Blakeney Queen Mary, University of London
  2. 2. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Outline • University technology transfer background – What and why? – Government policies and existing structure • Technology transfer – Protection (laws) + Exploitation (business) • Comparison of UK and US technology transfer • Trend and challenges
  3. 3. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) What is University Transfer Technology • Transfer the rights to use and commercialise intellectual properties resulting from university research to industry. • Vehicles – Sponsored/collaboration research – Consultancy – Intellectual Property protection – Licensing and spin-out companies – Graduate training & professional development
  4. 4. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Why Universities Transfer Technologies • University: – Enhance industrial collaboration and increase university research income – Applied research influence markets/products – Retain entrepreneurial faculty • Industrial communities – Access leading edge scientific research and enhance ability in R&D • Public at large – Benefit from innovation and influence local economy
  5. 5. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) UK University TT Background • Strong government support – Higher Education Innovation Fund (HEIF2: £187m) • Lambeth report • Knowledge & Technology Transfer Association • University Technology Transfer Offices – University subsidiary vs. Independent company – Activities: Royalty/Milestone ManagementPatent Prosecution Establishing spin-out companyEvaluation and Marketing Negotiation and drafting License agreements Invention Disclosure
  6. 6. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Protection of Intellectual Property • IP ownership – Research Councils vest IP in universities – Industrial sponsors require IP ownership – Joint ownership is common – University IP policy • Staff: Employee invention, ownership belongs to university • Students? • IP subject matter – Patent, know-how, copyright, database right, design right
  7. 7. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Patenting • First-to-file vs First-to-invent – Avoid immature disclosure – Impact on academic publication • Patenting strategy: – UK national filing, proceed to PCT application – Costs roar after going to PCT national phase – Seeking exploitation within 30 months after initial filing – Potential problems? • Costs: – UK filing: 3-5K, PCT: 10-15K, PCT nationals: 15-25K
  8. 8. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Copyright • Copyright of software, database arising from research belongs University. • University waives the ownership of the copyright of research report, books, papers etc. in favour of the authors • Impact of E-learning
  9. 9. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Know-how/Trade Secret • Advantage for process invention: – Resultant product is not readily linked to the patented process • Disadvantage: identifiable? • Licensing agreement – Complex negotiation + lower royalty income • Spin-out: mixture of patent and KH is effective • Challenge: what if inventor leaves university?
  10. 10. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Commercial Research and Consultancy • Industrial collaborators pay university to carry out research or consultancy • IP ownership: – Company usually owns foreground IP – University owns background IP – Clear cut? • Value of the contract: direct cost + overhead (over 100%) • Further exploitation: – Unbalanced negotiation power – Licensing background IP to explore foreground IP
  11. 11. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Licensing vs. Spin-out Shareholding of the spin-out company •Inherent risks •Medium-long return •Hard slog with no return •Product development •Involving more people/energy/money •Really add value Spin-out Percentage of the licensing incomes •Could be one-off (exclusive) •Under-performed licensee •Avoid initial high R&D costs •Spread risks (royalty) •High short-term incentive Licensing Inventor Benefit ConsPros
  12. 12. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Licensing (1) • Technology: Sold rather than bought – Patents are not granted – Speculative market value – Need significant product/application development • Grant of license – Patent, know-how, copyright of software etc. – Broad licensing rights with exclusivity, multiple field of use and wide territory to compensate potential high risks • Often combined with development agreement
  13. 13. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Licensing (2) • Considerations: – Upfront payment: cover sunk patent costs – Milestone payment – On-going royalty fee with minimum royalty targets – Equity of licensee company in place of royalty • Royalties: based on net sales – Depends on type of technology, stage of development, size of market, strength of patent and perceived risk • Examples: – university deals: 25:75 rule • Process(<1%), patented compound with significant market (8%), generally (3-6%) – BTG deals • Software (0-10%), Pharmaceuticals and health care (5-10%), telecommunication (10-15%)
  14. 14. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Licensing (3) • Improvements – Joint ownership? • Warranties and liabilities – Condition of patent, the results, compliance – Disclaimer • Performance Management – Best endeavour
  15. 15. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Spin-out • Technology – potential for sustainable high value – Large market – Strong competitive advantage – Protectable Intellectual property • Company - the vehicle to capture the value – Legal format: Limited liability – Professional management – Access to capital through equity investment – Access to market
  16. 16. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Sources for Seed Funds • Money from family and friends • Organic growth – revenue • Bank loan • University Challenge Fund (CLCUCSF) • Angels (rich individuals) • Commercial Fund (BT Brightstar, Gentech) • Venture Capitals (3i, TTP ventures) Increased risk!
  17. 17. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) How • IP assigned/licensed to the spin-out • Equity split between University and inventors (50:50) • Cash investment for equity sets company value • Business planning and professional management • Product development, marketing and sales • High risk, high return – potential to be worth £100m in 5 to 7 yrs, ROI: 30-50% • Exit: trade sale or IPO
  18. 18. ECEC--ASEAN Intellectual Property Rights CoASEAN Intellectual Property Rights Co--operationoperation ProgrammeProgramme (ECAP II)(ECAP II) Comparison of UK and US technology transfer 333%1550Spin-outs created 39%$31.4m$12.1mLicensing income 72%280202Licenses yielding income 172%120206Licenses signed in year 110%399440Invention disclosure UK as % USUS universitiesUK universitiesPer $1bn research • Wright, Binks, Vahora and Lockett, University Commercialisation Survey, 2002, Nottingham Business School, Unico and AURIL

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