Dr. Tom Corr

CEO Accelerator Centre

Waterloo Research and Technology Park

Associate Vice President of Commercialization – University of Waterloo

April 28, 2008

IP Protection: A Catalyst for Innovation

Presentation Overview

• What’s in the water in Waterloo?

• UW’s “Creator Owns” IP Policy

• The importance of protected IP

• Conclusion: IP as a Catalyst for Innovation

What’s in the water in Waterloo?

• Waterloo Region is one of North America’s leading concentrations of technology players, commercialization expertise, venture and early stage capital, and innovation

• “One of the brightest stars in the Canadian economic skies.”

– Bank of Montreal

What’s in the water in Waterloo?

• Waterloo Region’s ICT Sector:– 327 high tech companies in 2004, 514 in 2008– 284 companies in ICT sector – $13 billion in revenue– 13,000 employees representing 10% of the total workforce– 250 companies are spin-offs of the University of Waterloo– $344 million in private sector R&D (2006)– 150 research institutes

• In 2007 Waterloo saw a record year of deal flow - $300 million infused into local start-ups

What’s in the water in Waterloo?

• Invested Venture Rate (1999-2004):– Waterloo - 7.02– Ontario - 5.13– Canada - 5.43– California - 5.14– Massachusetts - 4.47– New York - 2.81

• 40% of high-tech companies in Waterloo Region hold technology patents, totaling 1,457 current plus 274 pending

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy

• “Inventors own their inventions and are free to profit commercially, without obligation to share benefits with the University, with the exception of industry sponsored research.”

– UW Policy 73

• Inventor ownership is an incentive that attracts high quality entrepreneurial researchers

• Ownership is the best motivator to facilitate the transfer of University-developed knowledge and technology for societal use and benefit

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy

• Notable UW Spin-offs and Waterloo Start-ups:

– Dalsa (1980)– Northern Digital Inc. (1981)– Virtek Vision Corp. (1986)– Waterloo Maple (1988)– Open Text (1989)

- Descartes Systems Inc. (1981)– Research in Motion Ltd. (1987)

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy

• Accelerator Centre - 2 years old

– Provides facilities for UW spin-offs and other start-ups from the Waterloo region

– Currently house 20 companies

– A second building is being built to house 15 more companies who will move in in September

The importance of protected IP

• The Definition of Success:

– capturing “disruptive” IP and productizing it– Creating new ventures and starting companies– Supporting R&D, entrepreneurs, risk-takers

• What are the VCs looking for? We asked them, and they said:

– Patents!– IP ownership, not IP licensing, is key!– University IP policies must be clear

Conclusion: IP as Catalyst for Innovation

• Without IP Protection, entrepreneurs cannot attract venture capital

• IP Protection is the first link in the productivity chain:– Protection of IP– Attraction of investment– Creation of Spin-offs and start-ups– Creation of jobs and economic activity for Waterloo Region

• IP creates the activity that moves inventions from the lab to the marketplace

• The bottom line: IP creates jobs and economic development