UMIP®
The assessment of commercial viability
UMIP®
The University of Manchester Intellectual Property Ltd
UMIP - Reputation and value through intellectual property®
UMIP®
Overview
•The process we use
•Assessment criteria
•Trends at Manchester
•Benefits for researchers
•Case studies
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 - Reputation and value through intellectual property®
UMIP®
UMIP®
Timing:
Start
Screening
(0 to 4 weeks)
Activities
(+ 4 to 8 weeks)
Decision
If ‘Yes’
(within 12 weeks)
Shaping
( + 1 to 3 months from decision)
Phase One
Phase Two
Phase Three
Phase Four
Meet Academic(s)
Search for Prior Art
Review
Protect IP
Information Gathering on:
Assess Strength of IP
- Technology or Idea
[Arrange Independent
Technical Assessment]
- Possible Applications
- Stage of Development
- Industry Links
Identify Customer(s)
Validate Market Applications
- IP Position
Conduct Market Analysis
- Research Funding
- Academic Background
- Publications
Identify Products or Services
Define Benefit/Added Value
Research Competitors
Define Commercial Plan
Outcomes:
Seek Funding (if required)
EITHER: Reject, then
Confirm IP Assignment
Inform Academic(s)
Formalise Arrangements with
Academic(s)
Signpost Elsewhere
OR: Accept, then
Allocate resource
Test Academic Commitment
UMIP - Reputation and value through intellectual property®
Determine Milestones
Overall
market size
Stages of assessment
Unique selling
proposition
Route to
market
Technology
confidence
Market
Invention
disclosure
meeting
Initial
assessment
People
Liability
issues
Further
deeper
assessment
Barriers to
competition
Technology
People
IP
Ownership
Market
inertia
Nature of
competitors
Financial
return
Dependence on
3rd party IP
Market dynamics
UMIP - Reputation and value through intellectual property®
UMIP®
General rule
UMIP®
•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 - Reputation and value through intellectual property®
UMIP®
The balance
Potential
“World”
value
Perceived
risk
Likely
effort/
timescale
UMIP - Reputation and value through intellectual property®
UMIP®
Value and Risk: the balance
HIGH
Potential
value
Cost
Perceived Risk
HIGH
UMIP - Reputation and value through intellectual property®
HIGH
UMIP®
Some bad calls
UMIP - Reputation and value through intellectual property®
UMIP®
‘We don’t like their sound - groups of
guitars are on their way out.’
Decca Records rejecting The Beatles, 1962
UMIP - Reputation and value through intellectual property®
UMIP®
‘I think there is a world market for
maybe five computers.’
Often attributed to Thomas Watson Sr,
in 1943 (later Head of IBM),
UMIP - Reputation and value through intellectual property®
UMIP®
‘Who the hell wants to hear actors talk?’
Harry Warner, Warner Bros, 1927
UMIP - Reputation and value through intellectual property®
Other noteworthy mistakes
UMIP - Reputation and value through intellectual property®
UMIP®
One from Microsoft…
UMIP - Reputation and value through intellectual property®
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This might be one…
Palm Centro a $99 entrylevel
smartphone
UMIP - Reputation and value through intellectual property®
UMIP®
1 Overall market size
UMIP®
• 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 - Reputation and value through intellectual property®
1 Overall market size
UMIP®
• 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 - Reputation and value through intellectual property®
2 Unique selling proposition (USP)
UMIP®
• 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 - Reputation and value through intellectual property®
Unique selling propositions
UMIP - Reputation and value through intellectual property®
UMIP®
3 Route to market viability
UMIP®
• 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 - Reputation and value through intellectual property®
What would be the route to market?
• A technology that enables electronic
components and control switches to be
woven into fabrics
• A low cost cancer imaging
technology that has great value
……but all the existing players
want to keep it out of the market
UMIP - Reputation and value through intellectual property®
UMIP®
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 - Reputation and value through intellectual property®
UMIP®
4 Confidence in technology
UMIP®
• 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 - Reputation and value through intellectual property®
5 Potential return on investment
UMIP®
•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?)
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 - Reputation and value through intellectual property®
UMIP®
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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 - Reputation and value through intellectual property®
7 Barriers to competition
UMIP®
• 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 - Reputation and value through intellectual property®
8 Market inertia
UMIP®
• 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 - Reputation and value through intellectual property®
UMIP®
8 Market inertia
The widescreen format took 10 years to take over
Changing money format has significant barriers both
practically and in terms of user habits and attitudes
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 - Reputation and value through intellectual property®
UMIP®
9 Nature of competitors
vs
An ambitious competitor may end up winning, even if their product is inferior
vs
UMIP - Reputation and value through intellectual property®
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10 Market dynamics
UMIP®
• 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 - 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 - Reputation and value through intellectual property®
UMIP®
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 - Reputation and value through intellectual property®
UMIP®
13 Liability issues
•Product liability
•Reputation
•Ethical
UMIP - Reputation and value through intellectual property®
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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 - Reputation and value through intellectual property®
UMIP®
15 Other risks?
•Health of key individuals?
•Possible legislation changes?
•Dependence on failure of a competitor
technology?
UMIP - Reputation and value through intellectual property®
UMIP®
Experience at Manchester – EPS data
UMIP®
200 invention disclosures in 2 years
30 active projects
170 - not currently commercially viable
110 – no intellectual property
or no market
10 – people commitment issues
UMIP - Reputation and value through intellectual property®
50 – too early stage
Benefits of commercial activity
UMIP®
• Harnesses the commercial world in getting your work out there!
• Reputation
 Organisation
 Personal
• Additional income
 Department
 Personal
• The experience!
UMIP - Reputation and value through intellectual property®
UMIP®
Case studies
UMIP - Reputation and value through intellectual property®
Case study 1
Biomedica: antimicrobial peptides
UMIP®
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 - Reputation and value through intellectual property®
Case study 2
EPS 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 - Reputation and value through intellectual property®
UMIP®
UMIP®
For further advice or if you have any questions
please get in touch with your relevant UMIP
Commercialisation Executive
www.umip.com
UMIP - Reputation and value through intellectual property®