© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Prototype Productions,...

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved

Prototype Productions, Inc.

JHU/APL Patents & Pizza

Prototyping for Commercialization

September 6, 2007


Commercialization

•Commercialization for APL means selecting and working with a commercial partner, often through licensing.

•A successful prototyping effort will improve the value of the license and speed time to market.


Risk Reduction

•Licensing implies reduction in risk for the licensee and allows them to allocate their in-house resources to other projects or technologies.

•In order to commercialize and bring technology out of the lab, it must be made readily accessible to the licensee.


Best License Value

•Best license value:– Most risk reduction– Most direct fit for

commercial partner

•License value can be negotiated based on maturity of technology and risks that have been addressed prior to licensing.


Experimentation

•Risk reduction requires experimentation in the most challenging areas of the design.

•Effective prototyping is critical to effective experimentation.

•Successful experimental results strengthen the license.


Cost of Prototyping

•Prototyping can be costly:– low volume– no ability to amortize NRE – High setup costs with

traditional methods

•Prioritize prototyping efforts:– Does it further the core

technology?– Does it improve value of

license?– Functional or Cosmetic?– Valuable experimentation?


So, In Summary…

•Prototype experimentally on the riskiest aspects of design first, to make best use of funds.

•Keep the commercial partner in mind when deciding what needs to be prototyped.

• Carefully consider the manufacturing methods used in their existing products


Mechanical Prototyping Methods in Detail

•Traditional metalworking methods are well developed and understood.

•Rapid prototyping has recently become mature and widely accepted. The methods are well understood.

•Both methods have their place and are often used in combination.


Sheet Metal Machining

Traditional Metalworking Methods

Pros•Accuracy•Widespread Use•Well Understood•Durable

Cons•Cost Related to Complexity•Lead Time in Weeks/Months•Resource Constraints•Limited Part Geometries

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Recommendation

•Alternative: Design for manufacture from plastic where possible, and utilize one of three primary Rapid Prototyping methods shown on the following pages.

•Plastic is widely used for manufacture of fully commercialized (cost- reduced) product, and demonstrates sophistication, evolution of a design, and shows that cost was considered during initial development.


•Liquid Resin•Photocured with Laser

RP with Stereolithography (SLA)

Pros•Lead time days, not weeks•Most widely used•Highly developed•Lowest cost

Cons•Limited material properties•Brittle, non-functional parts•Poor chemical compatibility•Requires support structures

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•Continuous melting, extruded plastic filament

RP with Fused Deposition Modeling (FDM)

Pros•Lead time days, not weeks•ABS, PC, PPS Materials•Office-friendly equipment•Lowest equipment cost

Cons•Rough surface finish•Speed related to complexity•Poor chemical compatibility•Requires support structures

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•Powdered material, fused together with a laser…This is what we use…

RP with Selective Laser Sintering (SLS)

Pros•Lead time days, not weeks•Rugged, functional parts•Very good accuracy •Nylon, Titanium, Stainless Steel

Cons•Needs paint for best finish•Most expensive equipment•Needs coating for watertight•Industrial equipment install

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• In the last 10 years, PPI has completed 66 products in various industries including:

• 13 Commercial and Medical – Immersion’s robotic surgical simulation training systems, including I.V. Catheterization, Pacemaker Implantation, and Endoscopy. PPI and Immersion Medical were the first commercially viable manufacturer of surgical simulators.

• 11 Industrial and Consumer - Airak’s fiber-optic sensing systems for utility and shipboard applications, Privaris’ handheld biometric identification device, PowerGrid Fitness’ virtual reality exercise equipment, Wireless Ventures’ Set-top-box, and Keynetik’s ruggedized PDA.

• 12 Biotech - Edge Biosystems’ automated preparation systems for PCR, JHU/APL’s intelligent sample processing systems for biological agent detection, Frito-Lay’s visual inspection systems for FDA food processing environments, and Bausch & Lomb’s contact lens manufacturing center.

• 30 Aerospace and Defense - SureScan solid-state CT-based baggage inspection system, ruggedized machine vision system for United Defense mobile Howitzer artillery platform, US Army ARL autonomous package delivery system, Special Forces remote monitoring and sensing platform.

Who is PPI?


A Diverse Product Development Company


Prototype Productions Ventures, LLC Prototype Productions Ventures, LLC (PPIV)(PPIV)

Investment and CommercializationInvestment and Commercialization


PPIV views PPI as IP/startup filtration enginePPIV views PPI as IP/startup filtration engine

PPIV commercializes filtered projectsPPIV commercializes filtered projects

PPIV primary screening criteria:PPIV primary screening criteria:Potential for VC-like return on investmentPotential for VC-like return on investment

PPIV owns a PPIV owns a minimumminimum of 50% upon investment of 50% upon investment

Device-base companies, web-based software Device-base companies, web-based software butbut PPIV will be opportunistic (e.g. food tech)PPIV will be opportunistic (e.g. food tech)

PPI + PPIVPPI + PPIV


PPI/PPIV ModelPPI/PPIV Model

I. Internal (PPI )IPI. Internal (PPI )IP

• SBIRsSBIRs

• Spot OpportunitiesSpot Opportunities

II. Third-Party IPII. Third-Party IP•Universities, Gov’t labs Universities, Gov’t labs

•Joint Ventures (Food Tech)Joint Ventures (Food Tech)

•M&A (NPI)M&A (NPI) PPIVPPIV

PPIPPI• DesignDesign

• PrototypingPrototyping

• ManufacturingManufacturing

CONCEPT TO CONCEPT TO COMMERCIALIZATIONCOMMERCIALIZATION

• Seed FinancingSeed Financing• Business PlansBusiness Plans• ValuationValuation• Business DevelopmentBusiness Development• Capital raisingCapital raising• M&AM&A

•Liquidity Liquidity eventsevents

•Licensing Licensing RevenueRevenue

•DividendsDividends


Contact Information

Ben FeldmanVice President, Product Development703.858.0011 [email protected]

Prototype Productions, Inc.21641 Beaumeade CircleSuite 301Ashburn, VA 20147703.858.0011www.protoprod.com

© Copyright 2007, Prototype Productions, Incorporated. All rights reserved Prototype Productions,...

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