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Transcript of UMIP ® UMIP - Reputation and value through intellectual property ® The assessment of commercial...
UMIP®
UMIP - Reputation and value through intellectual property®
The assessment of commercial viability
UMIP®
The University of Manchester Intellectual Property Ltd
UMIP®
UMIP - Reputation and value through intellectual property®
Overview
•The process we use
•Assessment criteria
•Trends at Manchester
•Benefits for researchers
•Case studies
UMIP®
UMIP - Reputation and value through intellectual property®
A judgemental process
•Its not an exact science
•Seek quantitative and qualitative data
•Relies on experience UMIP people all have technology background
Many industry background
•The process asks key questions
UMIP®
UMIP - Reputation and value through intellectual property®
Activities
Phase One
Meet Academic(s)
Information Gathering on:
- Technology or Idea
- Possible Applications
- Stage of Development
- Industry Links
- IP Position
- Research Funding
- Academic Background
- Publications
Phase Two
Search for Prior Art
Assess Strength of IP
[Arrange Independent Technical Assessment]
Identify Products or Services
Identify Customer(s)
Validate Market Applications
Conduct Market Analysis
Define Benefit/Added Value
Research Competitors
Test Academic Commitment
Phase Three
Review
Outcomes:
EITHER: Reject, then
Inform Academic(s)
Signpost Elsewhere
OR: Accept, then
Allocate resource
Phase Four
Protect IP
Define Commercial Plan
Seek Funding (if required)
Confirm IP Assignment
Formalise Arrangements with Academic(s)
Determine Milestones
Timing: Start Screening Decision If ‘Yes’ Shaping
(0 to 4 weeks) (+ 4 to 8 weeks) (within 12 weeks) ( + 1 to 3 months from decision)
Commercialisation ExecutiveBusiness Manager
UMIP®
UMIP - Reputation and value through intellectual property®
Stages of assessment
Invention disclosure meeting
Market
People
Technology
Overall market size
IPOwnership
Unique selling proposition
Route tomarket
Technology confidence
Liabilityissues
Barriers to competition
People
Marketinertia
Nature of competitors
Financialreturn
Dependence on 3rd party IP
Market dynamics
Further deeper
assessment
Initial assessment
UMIP®
UMIP - Reputation and value through intellectual property®
General rule
•It generally takes much more effort to commercialise a technology that only has a modest set of ingredients than it does for one that has a strong set of ingredients
Risks higher
Fund raising more difficult
Time to market longer
Returns smaller
UMIP®
UMIP - Reputation and value through intellectual property®
The balance
Potential “World” value
Perceivedrisk
Likely effort/timescale
UMIP®
UMIP - Reputation and value through intellectual property®
Value and Risk: the balance
Potential value
Cost Perceived Risk
HIGH
HIGH
HIGH
UMIP®
UMIP - Reputation and value through intellectual property®
Some bad calls
UMIP®
UMIP - Reputation and value through intellectual property®
‘We don’t like their sound - groups of guitars are on their
way out.’
Decca Records rejecting The Beatles, 1962
UMIP®
UMIP - Reputation and value through intellectual property®
‘I think there is a world market for maybe five computers.’
Often attributed to Thomas Watson Sr,
in 1943 (later Head of IBM),
UMIP®
UMIP - Reputation and value through intellectual property®
‘Who the hell wants to hear actors talk?’
Harry Warner, Warner Bros, 1927
UMIP®
UMIP - Reputation and value through intellectual property®
Other noteworthy mistakes
UMIP®
UMIP - Reputation and value through intellectual property®
One from Microsoft…
UMIP®
UMIP - Reputation and value through intellectual property®
This might be one…
Palm Centro - a $99 entry-
level smartphone
UMIP®
UMIP - Reputation and value through intellectual property®
1 Overall market size
•Spin-outs - big markets excite investors If the overall market is £1Bn then even a niche part of it
could have significant commercial potential
•Licensing – potentially higher royalty rates to be negotiated
UMIP®
UMIP - Reputation and value through intellectual property®
1 Overall market size
•Information gathering What is the full range of applications that the
technology could be used for?
Market reports
Data on existing companies e.g. turnover
Market validation
Contact end users, distributors, industry insiders
UMIP®
UMIP - Reputation and value through intellectual property®
2 Unique selling proposition (USP)
•What are the features of the technology that would make it the technology of choice
Function
Cost
Quality
•How novel/attractive would it appear to a user/customer?
•Is there a clear unmet need?
•Information gathering A thorough knowledge of the existing and emerging
technologies
Dialogue with end users/distributors/industry insiders
UMIP®
UMIP - Reputation and value through intellectual property®
Unique selling propositions
UMIP®
UMIP - Reputation and value through intellectual property®
3 Route to market viability
•Is there a credible route to market? Existing distributor chains/outlets?
If no, does setting up an appropriate route to market seem
Sensible/affordable
•Information gathering Typical margins and overheads in existing distribution
systems
Identify key players – assess what would motivate them to work with us
make contact if appropriate
UMIP®
UMIP - Reputation and value through intellectual property®
What would be the route to market?
•A low cost cancer imaging technology that has great value ……but all the existing players want to keep it out of the market
•A technology that enables electronic components and control switches to be woven into fabrics
UMIP®
UMIP - Reputation and value through intellectual property®
4 Confidence in the technology
•Do we have clear proof of concept? Function
Scale up potential
•Clear understanding of the technical risks/downsides/limitations
•Information gathering Potential external technical critique, testing or
evaluation
A good understanding of the investment required to bring to the technology production.
UMIP®
UMIP - Reputation and value through intellectual property®
4 Confidence in technology•How easily will the technology scale up
•Reproducibility? – works every time in volume
•Cost of manufacture in volume environment
•Ability to manufacture with a commercially acceptable level of skill
•How confident are we that it can deliver the performance desired by the market
UMIP®
UMIP - Reputation and value through intellectual property®
5 Potential return on investment
•What is the ratio of gain to effort? Is it favourable?
•If so, is this likely to be achieved within an acceptable timescale (e.g. 5-7 years?)
Time Effort
Money
Society benefit
£ returnEnvironmental benefit
Economic benefit
UMIP®
UMIP - Reputation and value through intellectual property®
5 Potential return on investment
•Information gathering Potential business value
Other potential benefits – quantitative/qualitative
Resources/effort required to commercialise
UMIP®
UMIP - Reputation and value through intellectual property®
6 People
•Commercialisation can be very time consuming and is not for everyone
•Key attributes of successful entrepreneurship
Open minded
Flexible style
Focussed
Tenacity
Teamwork
UMIP®
UMIP - Reputation and value through intellectual property®
7 Barriers to competition
•Does a strong intellectual property position exist currently? Patents Know how Software
•If “no”, is there a good likelihood that strong IP will be developed from the work ahead?
•If “no” to both of the above Are there any other measures that could be taken to help the
technology/product stay ahead of the competition Customer benefits Cost
• Information gathering Prior art searches of existing and potential future IP Identify Specific skills and expertise that are not replicated elsewhere Technology road map Can it be kept secret?
UMIP®
UMIP - Reputation and value through intellectual property®
8 Market inertia
•Is there either significant… Customer entrenchment in this market sector?
Significant new infrastructure investment/required to get the technology/product to market
•Has this sector already invested heavily in current technology, and will therefore be unlikely to orphan that investment?
•Are there obvious opinion leaders or early adopters that could help overcome these barriers?
•Information gathering Canvassing of existing customers/distributors etc
Technology roadmap of industry
UMIP®
UMIP - Reputation and value through intellectual property®
8 Market inertia
The widescreen format took 10 years to take overChanging money format has significant barriers both practically and in terms of user habits and attitudes
UMIP®
UMIP - Reputation and value through intellectual property®
9 Nature of competitors
•Do we fully understand the strengths/weaknesses of the competitor technologies?
•Are we confident that we could take a significant market share?
•Would competitors be able to take measures to undermine our project? E.g.
Undercut on price Offer additional feature/benefit
•Information gathering Competitor analysis Contacting existing customers/distributors Specialist opinions/consultants
UMIP®
UMIP - Reputation and value through intellectual property®
9 Nature of competitors
vs
vs
An ambitious competitor may end up winning, even if their product is inferior
UMIP®
UMIP - Reputation and value through intellectual property®
10 Market dynamics
•Do the dynamics for this market match the timing of the product/technology?
A new mobile phone technology may be very risky if it has a 5 year development plan
•What are the market trends/pace/volatilities?
•Information gathering Project timing plan
Legal or regulatory requirements/constraints
UMIP®
UMIP - Reputation and value through intellectual property®
11 Dependence on 3rd party IP
•Is ownership of the technology clear People who have been involved
3rd parties organisations who have been involved
“Freedom to operate”
•Information gathering Thorough questioning
Prior art searches
Search for umbrella patents
UMIP®
UMIP - Reputation and value through intellectual property®
12 People skills
•Are we sure that the skills available to deliver the technology to market are available?
Management team?
Industry/sector experience?
Technical sales?
Technical/support skills?
Admin/accounting/finance?
UMIP®
UMIP - Reputation and value through intellectual property®
13 Liability issues
•Product liability
•Reputation
•Ethical
UMIP®
UMIP - Reputation and value through intellectual property®
14 Scale of project
•Is the scale of the project within our experience i.e. a £500M project is too big!
If so, the project is almost certainly limited to the licensing route
•Investment criteria comfort zone
UMIP®
UMIP - Reputation and value through intellectual property®
15 Other risks?
•Health of key individuals?
•Possible legislation changes?
•Dependence on failure of a competitor technology?
UMIP®
UMIP - Reputation and value through intellectual property®
Experience at Manchester – EPS data
200 invention disclosures in 2 years
170 - not currently commercially viable30 active projects
110 – no intellectual property
or no market
50 – too early stage10 – people commitment issues
UMIP®
UMIP - Reputation and value through intellectual property®
Benefits of commercial activity
•Harnesses the commercial world in getting your work out there!
•Reputation Organisation
Personal
•Additional income Department
Personal
•The experience!
UMIP®
UMIP - Reputation and value through intellectual property®
Case studies
UMIP®
UMIP - Reputation and value through intellectual property®
Case study 1 Biomedica: antimicrobial peptides
Strengths
•Broad range of applications in “world scale” markets
•Market applications of high potential value low risk with near term low barrier
•Longer term, high barrier, high risk applications
•Good proof of concept
•Patent protected
Weaknesses Collaboration with US University complicated ownership – assignment
obtained Technology needed UMIP Proof of Principal investment to gain licensee
traction
UMIP®
UMIP - Reputation and value through intellectual property®
Case study 2EPS example – toxic contaminant removal
Strengths
•Worldwide market
•Significant running cost advantages compared to existing technologies
•Higher performance/more effective than existing technologies
•Good proof of concept
•Very broad range of applications
•Simple technology
•Patent protected
Weaknesses Water industry generally very conservative on new technology High investment cost for customers
UMIP®
UMIP - Reputation and value through intellectual property®
For further advice or if you have any questions please get in touch with your
relevant UMIP Commercialisation Executive
www.umip.com