Turning Technology
into Business
Turning Technology
into Business
Technology TransferLeading Intellectual Property to Tangible Results
Raphael BarkiVP Marketing, Elandel [email protected]. +972-73-2262614Mob. +972-52-3000519
Day of the EntrepreneurJune 3rd, 2008 - Tel Aviv UniversityMIT Enterprise Forum, Israeli Chapter
Outline
• Intellectual property -protecting your innovative ideas
• Technology transfer - from theoretic ideas to practical products and services
• Monetization - when intangible assets generate tangible results
• Anyone can buy real estate
• Anyone can build manufacturing capacity
• Anyone can borrow money
• Anyone can hire an ad agency
• Anyone can hire skilled labor
but
only IP provides a unique advantage
The Differentiating Value of IP
Why IP Protection?
• IP is unique
• Inventions can lead to better products or processes (R&D)
• IP protection safeguards your competitive advantage (marketing)
• Investors love protected IP
When Is IP More Valuable?
• Broad scope– Trial & error in product development
– Multiple applications
– Wider IP protection
• Pioneering nature– First mover and learning curve advantage
– Less prior art means better IP protection
• Exclusivity
• Age
Definition of Technology Transfer
the process of transformation of the results of R&D into marketable products or services
• Tech. Transferoffice
• Tech. Transferoffice
• Incubator
• Business Angels
• Founders
• Friends / family / fools
• Venture Capital • IPO
• Trade sale
R&D /
patent
Proof-of-
Concept /
Prototype
Seed capital
SeriesA
SeriesB
SeriesC
Start-upGrowth
companySpin-off
Licensing
Technology Transfer Critical Link betweena Bright Invention and a Business
From Ideas to Business
• Technology is a driver of success
• Sometimes unavailable inside the organization
• Buyers don’t care about technology, they care about what’s in it for them and why they should care
• How much units can it sell and with what profit
• How strong is IP protection?
• Is it ready for manufacturing?
Darwinism Applies to IP
• At least 70% of university patents never find a commercial home (Technology Transfer Tactics)
• 80% of inventions licensed by MIT never ship (Academy of Mgt. Journal)
• Only 1% of University technology disclosures ever ship (AUTM & independent data)
• Independent inventors face even more challenging odds
Suitable for the Israeli Market?
personal rain saver
cockroach swatting slippers
solar powered lighter
How to Transfer Your Technology
• Understand the position of your IP within the technology marketplace
• Have clear in mind all technology, legal and business aspects
• Define a compelling business value proposition
• Target large, growing markets with licensable applications
Technology Transfer Deliverables
• Technology assessment
• Market analysis and target applications
• Create and manage the marketing process
• Identify prospective buyers and licensees
• Deal negotiation
• Patent sale, licensing agreement, investment, acquisition
Technology Transfer KSF*
• Access to technical decision makers and IP executives
• Keep it confidential
• Marketing and communication skills
• Negotiation and deal closure capability
* KSF = Key Success Factors
IP Sellers and Buyers - Drivers
NPE = non-practicing entity
patent trolls (a.k.a. NPE)bankrupt
need claims for litigationssell rather than litigate
market controlbuild relation
buying simpler than filingjust research
strengthen IP portfolionot core business
shorten the R&D cycleimmature technology
gain competitive advantagewilling to monetize now
buyerssellers
Israel #1 in Patent Filings
Israel's Competitive Edge
Source: World Economic Forum Global Competitiveness Yearbook 2006-2007
Israeli UniversitiesTech Transfer Income (2007)
• Yeda (WIS): $100M
• Yissum (HUJ): $40M (400 licenses in 40 years)
• Ramot (TAU): $6.7M, 26 deals (11 in Israel)
• BGN: 15 licenses in 3 years
Sources: Globes, universities’ web sites
TT market value ~US$105B (Forrester Research)
Conclusions
• By protecting your IP you protect your competitive advantage
• Technology transfer is not a trivial process (Darwinism)
• Intangible assets can generate tangible revenue
Raphael Barki+972-52-3000519
