An Overview of
University Technology Transfer
Marjorie Hunter, JD
Associate Vice President
OTT, URMC
Title Slide
Class of '62 Auditorium
December 8, 2011
1
Technology Transfer in Academia
Translation of Research into New Products and
Services to Benefit the Public in fulfillment of the
Academic Mission:
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Education
Research
Public Benefit/ Patient Care
Economic Development/ Community
Paradigms
Academia
• Academic
Freedom
• Broad Access to
Information
Business
• Control of
Dissemination
• Control of Access
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Why do Technology Transfer?
• Bayh-Dole Act of 1980
• Potential for significant long term
revenue streams
• Faculty recruitment and
retention
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Bayh-Dole Act of 1980
• Allows universities to retain rights in inventions
resulting from federally-funded research
– Requires sharing of these revenues with
inventors
• Encourages licensing to industry
– Requires licensing of inventions in a manner
to bring them to practical application
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University Technology Transfer Activity
(AUTM 2005 Annual Report)
• 228 Universities and Academic Institutions
reporting
• $42.3 billion in research expenditures
• 17,382 invention disclosures
• 15,115 US patent applications
• 4,932 new licenses and options
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What is Technology Transfer?
• Mission:
– To facilitate the transfer of technology arising
from URMC research to industry for the
benefit of the public good by creating new and
useful products and promoting economic
development. Successful transfers generate
unrestricted funds to support future research,
motivate inventors, attract and retain high
quality faculty and industrial support for
research.
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Goals
• Increase technologies transferred to industry
• Increase effective participation of faculty
• Promote and facilitate URMC start-ups
• Optimize intellectual property portfolio
• Expand and advance external relationships
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Function of OTT
• Manage the University’s intellectual property
• Advise on intellectual property issues in
research contracts
• Negotiate, execute, monitor and enforce
University licenses, confidentiality agreements
and material transfer agreements
• Assist in formation of start-up companies
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Invention Disclosure Process
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Evaluation
Patenting Decision
Marketing Strategy
License or Start-up Company
Evaluation
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Discussions with Inventors
Prior Art Searches
Market Research
Industry and Legal Experts
Patenting Decision
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Is it patentable?
Is it enforceable?
License as Biological Material?
Potential for Generating Future
Revenues?
Marketing Strategy
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When to start
Widespread vs. focused
Bundling
Passive vs. Active
Inventor contacts
Licensing Strategy
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Exclusive vs. Nonexclusive
Fields of Use
Geographic
Large company vs. Small/Start-up
Company
Parameters of a License
• Revenues
– License Issue Fee
– Annual Minimum Royalties/ License
Maintenance Fee
– Earned Royalty
– Milestone Payments
– Equity
• Reimbursement of Patent Costs
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Parameters of a License (cont’d)
• Due Diligence Provisions
– Development Milestones
– Commercial Milestones
• Intellectual Property
– Patent Prosecution
– Infringement and Litigation
• Reports and Records
– Audit
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Parameters of a License (cont’d)
• Dispute Resolution
– Arbitration
• Indemnification, Warranties and Product Liability
• Regulatory Filing
• Confidentiality
• Termination
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Why do a University Start-Up?
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Public Benefit and Academic Mission
Economic Development
Faculty Recruitment and Retention
Financial Incentives
When to do a University Start-Up
There is no easy or best answer
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Factors arguing for a start-up
• Investable CEO
– successful start-up track record
– understand, accept and manage risk
– comprehend science and developmental
process
– capable in academic and business
environments
– realistic expectations
– entrepreneurial attitude
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Factors arguing for a start-up
• Intellectual Property Assessment:
– Are there blocking patents or technologies?
– Can the university’s technologies dominate and
prevent others from entering the market?
• Market Opportunity Analysis:
– Market applications
– Needs assessment
– Potential customers
– Competition
– Obstacles
• Financial Projections
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Invention Disclosures Received
160
140
120
100
80
60
139
141
FY
'04
136
142
150
148
148
FY
'05
FY
'06
FY
'07
FY
'08
FY
'09
123
117
89
40
20
0
FY
'01
FY
'02
FY
'03
FY
'10
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All Patent Applications Filed by
Fiscal Year
90
80
70
60
50
84
84
40
30
87
82
73
60
56
59
52
54
20
62
53
41
42
24
10
0
FY '06
FY '07
U.S. Provisional
23
23
FY '08
FY '09
U.S. Non-provisional
PCT
FY '10
Issued Patents
7
3
17
17
8
17
3
2
5
20
20
FY '01
FY '02
24
26
25
FY '07
FY '08
28
22
16
FY '03
FY '04
FY '05
US Patents
24
24
23
25
FY '06
Foreign Patents
FY '09
FY '10
Active License and Option
Agreements
140
120
21
100
19
80
17
18
60
40
20
16
18
7
18
11
11
28
108
38
38
44
FY
'02
FY
'03
FY
'04
48
FY
'05
58
84
87
FY
'08
FY
'09
70
0
FY
'01
Existing Agreements
25
FY
'06
FY
'07
New Agreements
FY
'10
Royalty Revenue (in millions)
72.25
53.34
46.02
42.1
29.59
FY '01
26
26
26.73
FY '02
FY '03
33.76
FY '04
38.06
40.55
29.98
FY '05
FY '06
FY '07
FY '08 FY ' 09 FY '10
URMCLicensed Products
• Over 150 products and services including:
6 vaccines: HIBTiter, Meningtec, Prevnar,
Tetraimune, Gardasil, Cervarix
Periopertive Checklist
COMPAS Analytics
100+ reagents, antibodies and research tools
Copyrights
Software
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URMC Licensees
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Abbott
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Acambis, Inc.
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Alios BioPharma
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AndroScience
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AstraZeneca
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Auckland
UniServices
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Bayer
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Becton, Dickinson
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BloodCenter of
Wisconsin
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Boehringer
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Ingelheim
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Boston Scientific
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Bridgekey Corp
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Cardinal Health
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Davis International
DiaCarta
Eli Lilly
Enzo Life Sciences
ESA
Fate Therapeutics
Genaissance
Pharma
Genentech, Inc.
GlaxoSmithKline
Green Mountain
Antibodies
Harvard University
HomMed
ImmuQuest Ltd
IntegraGen SA
ISIS Pharma
Johnson &
Johnson
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Laxdale, Ltd.
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Medimmune
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MEDSYS
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Technologies
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Merck
Millipore
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Molecular Express•
Novadaq
Technologies, Inc •
Novartis
Oxford
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BioTherapeutics •
Ltd
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Pfizer Inc
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Pharmanova
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Polysciences, Inc.
Proctor and
Gamble
Roche Diagnositcs
Sanofi-Aventis
Sanofi Pasteur
Shanghai EnPei
Biotech
Siena Biotech
StemCell
Technologies
Technolas Perfect
Vision
Teva
Unither
UMDNJ
Warner- Lambert
Xcellerex, Inc.
URMC Start-Ups
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AAIT
CAS
Envision
iCardiac
Koning
Lumetrics
My Health
Oyagen
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Oyagen
PharmAdva
PhysioComm
RT&I
Socratech
Science Take-Out
Vaccinex
ZZ Alztech
Start-Up Formation
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6
4
3
2
1
1
3
2
1
FY '99 FY '00 FY '01 FY '02 FY '03 FY '04 FY '05 FY '06 FY '07 FY '08 FY '09
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