Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack...
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Transcript of Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack...
![Page 1: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/1.jpg)
Commercialization of University Technology
Innovation, Technology Transfer and Licensing
Jack Turner, Associate Director
M.I.T. Technology Licensing Office
![Page 2: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/2.jpg)
M.I.T. Licensing Office Mission
Foster commercial investment in development of inventions and discoveries
Through these investments – and the economic development and products that follow – provide direct benefit to public
Generate goodwill: faculty, sponsors, licensees Financial benefit to M.I.T. and inventors
![Page 3: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/3.jpg)
Myths
Royalties are a significant source of revenue for the University
Expect a quick return of technology transfer investment
Companies are eager to accept new technology from universities
You should broadcast availability of technology for licensing
The technology transfer office finds the licensee
![Page 4: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/4.jpg)
Reality
With the exception of the occasional "blockbuster", licensing revenue is small.
Don't expect product royalties for 8 -10 years Most companies want quick time-to-market Publishing lists of available technology is not
effective The inventor is the best source for leads
![Page 5: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/5.jpg)
M.I.T. Approach
Primary objective is technology transfer, not to maximize income
Leverage intellectual property License exclusively Don’t let greed obstruct license agreement Modest royalties geared to product success
![Page 6: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/6.jpg)
Success Factors
Quality technology Enthusiastic and cooperative inventors Experienced, technically trained, business-oriented
staff with industrial experience Clear policy, straightforward procedures – rapid
and efficient Flexible terms Willingness to adapt to changing circumstances
![Page 7: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/7.jpg)
Environmental Factors
Financial – seed, angel, venture capital Contract services – design, prototype,
manufacture Supportive culture – entrepreneur network,
venture capital network, start-up clinics Legal services – low cost, mentoring
![Page 8: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/8.jpg)
Marketing Factors
Targeted marketing Focus on very few companies Build relationships with inventors, licensees,
entrepreneurs, venture capitalists Follow-up inquiries Answer the telephone
![Page 9: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/9.jpg)
License Agreement Factors
Given a potential licensee, tailor terms to fit Shared risk Low initial fees Equity in partial-lieu of royalty Modest royalty rates Diligence provisions
Investment, personnel, milestones (development and sales), sublicensing requirements
![Page 10: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/10.jpg)
University Factors
Strong support for technology transfer office Ability to hire experienced staff Financial support for office infrastructure Long-term investment in patents Willingness to stand behind aggressive
enforcement of patent rights
![Page 11: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/11.jpg)
Incentives for University
Follow-on technology development Institutional recognition Additional sponsored research Royalty income
Recover patent costs License issue fees Royalty income Equity
Employment for graduates Local economic development Political support: local, regional, national
![Page 12: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/12.jpg)
Incentives for Inventors
Invention becomes product Opportunity to consult Equity position in start-up
Inventor wants company to succeed
Royalty income Inventor wants product to succeed
![Page 13: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/13.jpg)
Incentives for Companies
Source of new technology Lower cost product development Patent position – exclusivity Easier to raise investment capital Shorter time-to-market Low-cost access to technical expert
![Page 14: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/14.jpg)
MIT Policy
MIT owns the patent or copyright Federally funded research – Bayh-Dole Act Industrially sponsored research
Industrial sponsor license rights Non-exclusive, royalty-free for $3K/year Royalty-bearing, limited term exclusive
Royalty Distribution (after expenses) 1/3 inventors 1/3 inventor’s department 1/3 University General Fund
![Page 15: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/15.jpg)
Bayh-Dole Act
Basic “Technology Transfer” Legislation University takes title to inventions made through federally funded
research May issue exclusive licenses
University is obligated to commercialize Small business preference Job creation & economic development focus Revenue received
Share portion with inventors Remainder goes into research
![Page 16: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/16.jpg)
Typical Terms
Exclusive Field of Use: Limited License Issue Fee: $25 - $100K Royalty: 3-5% Minimum annual royalty: escalates over time Equity: 5% after significant funding Patent expense reimbursement
![Page 17: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/17.jpg)
Sample Companies
OmniGuide – optical waveguide Luminous Devices – high power LEDs Elesys – smart sensor for airbag deployment Alnylum Pharma - SiRNA Sony, Moto, Panasonic, Samsung, LG, etc. - DTV Carl Zeiss Meditec – Optical Coherence Tomography Zimmer - protheses Neurometrix – neural monitors Cytec – water purification polymers Momenta Pharma – heparin products
![Page 18: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/18.jpg)
MIT Licensing Office 2007
Staff 32 Licensing Professionals 17 Finance & Support 15
Invention Disclosures 487 Patents filed 314 Patent issued 1149 Licenses and Options
Licenses (start-ups) 85 (24) Options 32
Active agreements 650
![Page 19: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/19.jpg)
MIT Licensing Office 2007
Royalty income $68.2 million(Equity cash-in = $0.7 in 2006)
Operating expense $ 4.2 million Patent expense $12.8 million Inventors $16.5 million Other institutions $10.6 million MIT departments $25.6 million
![Page 20: Commercialization of University Technology Innovation, Technology Transfer and Licensing Jack Turner, Associate Director M.I.T. Technology Licensing Office.](https://reader036.fdocuments.us/reader036/viewer/2022083004/56649d995503460f94a837c2/html5/thumbnails/20.jpg)
Conclusions
Technology transfer is a service Targeted marketing of inventions Favorable license terms to induce investment Powerful engine for economic development