“IP Management @ Universities” Istanbul, April 14 to 15, 2011 Albert Long Hall, BOGAZICI UNIVERSITY TTO Experiences in Turkey, Sabancı UniversityZeynep

“IP Management @ Universities” Istanbul, April 14 to 15, 2011 Albert Long Hall, BOGAZICI UNIVERSITY

TTO Experiences in Turkey, Sabancı University Zeynep BirselManager, Research Projects & IPSabancı University, İstanbul Turkey

“It is what you can’t see that can say the

most about an [institution’s] long-

term health”

Leif Edvinsson & Michael Malone “Intellectual Capital”



TTO Experience @ Sabancı University

• The ecosystem• Purpose and mission; positioning of a TTO • How the process works; Challenges

• The organization • Portfolio • Issues for further consideration



The ecosystem; Last 10 Years2000 2009/2010

Region %GDPΣ R&D Exp

(in billions)

% Research Funding%GDP

Σ R&D Exp (in

billions)

% Research Funding

Public Private Public Private

USA 2,7 $ 280 B 71 29 2,8 $ 398 B 27,1 67,3

EU 1,9 $ 143 B 55 45 2 $ 299 B 37,2 54,3

Turkey 0,64 $ 1,3 B 43 57 0,85 $ 8,6 34 41

ROI scheme; US%8 performed by Universities ($22 B)$ 1,07 B licensing revenue (9007 licenses)494 new start-up

ROI scheme;US%13 performed by Universities ($54 B)$ 2,3 B licensing revenue (5328 licenses)596 new start-up

~ 5%



The ecosystem; 2010 in depth

High-technology exports

(% of manufactured exports)*

2009/2010

Region %GDPΣ R&D Exp

(in billions)

% performed

Industry Higher Ed Government

USA 2,8 $ 398 B 72,6 12,8 10,6

EU 2 $ 299 B 61,2 24 13,6

Turkey 0,85 $ 8,6 40 47,4 12,6

Research Expenditure by institution category

$ 8,6 B ~ %0,3 > high tech export > global market



Success Stories Licensing Revenues

Michigan State $160 Million 2 cancer related patentsStanford $143 Million recombinant DNA gene-splicing patent

Florida State Univ. $ 67 Million Taxol preparation method

Univ. Of Florida $ 37 Million Gatorade

UC San Francisco $ 21.5 Million Hepatitis B Vaccine

UCLA $ 10 MillionSamsung – 9 multimedia communications

UC System: $ 100 million Licensing Rev.Tech Licensing Operating Expenses / Licensing Rev

appx. 10% OE22-23% Legal costs

UC System: $ 100 million Licensing Rev.Tech Licensing Operating Expenses / Licensing Rev

appx. 10% OE22-23% Legal costs



Purpose and mission; positioning of a TTO Purpose: Commercialize research outputs & create economic value / streamline & align industrial R&D activity + entrepreneurial development

Tools:

• Licensing (TTO) –in house-

• Start-up activity (including JV, spin-off…) mostly external to the institution

Common Characteristics

Large Research Universities: licensing activity > $ 50 M/year

VP TC Direct report to President or

Separate Foundation (Cornell, Brown, SUNY, Purdue, Harvard etc.) or

Organized under Research Centers / Institutes

What are they called? Office of / Division of ...

Technology Transfer & Enterprise Development

Intellectual Property & Technology Transfer

Technology Licensing

Technology & Trademark Licensing

Corporate Liaison & Technology Transfer

Technology Commercialization

Intellectual Property & Licensing

Technology Collaboration & Licensing



Positioning of a TTO; How to organize efforts and the instution?

Who Manages IP Strategy?

Scientific Strategic

IP

IPRs

R & D Business Strategy

IP [Legal] IP

ManagementInovent

IP Commercializ

ation

Research IP

Management



Main Strategy & Policy IssuesCommon Policy Implementations

“OBJECTIVES, CHARCTERISTICS AND OUTCOMES OF UNIVERSITY LICENSING: A SURVEY OF MAJOR U.S UNIVERSITIES”, Journal of Technology Transfer (62 Research Universities)

Ownership• Patent: University claims ownership • Copyright: %66 University ownership / %48 & % 15 ownership reside with inventor > different policies

• Books : author• Software : University / inventor

Sharing (Average response)Patent

• 40-50 % of net income > inventor (up to 75% of net income to be under control of inventor)• 16 % “ “ > Inventor’s Department / School• 26 % “ “ > Technology Licensing Office• 8% “ “ > Other (University, partners etc.)

Copyright• 55 % author; same in other sections



SU > IP Management Policy – highlights-

• Inventions, ideas or creative works produced as a result of research or any other

academic activity conducted at the University or by means of utilizing University

resources; – must be used for the best possible interest of the public at large

– while generating a fair return to the owners for further advancement of scholarly endeavors.

• Adequate consideration on the hand must be paid to – ensure that commercial concerns do not cause any conflict of interest

– or inhibit the process of scholarly production,

– or timely dissemination of research results and knowledge exchange.

• Procedures must be aligned with the Law on Intellectual and Artistic Works no.

5846 and the Decrees on the Protection of Rights on Patents and Industrial

Designs, no. 551 and 554, respectively





SU Current IP volume

• 2003-2010– Over 150 invention disclosures– Over 20 patent applications– 4 international patent registrations– 3 commercial licences; over 300 K in license

income



TTO Challenges• Disclosures: what to ask for & how to encourage?

• Evaluation; what to look for– Solution perspective > the problem solved?– Competitive advantage vs prior art– Immediate applications > the product– Stage of development (proof of concept, working prototype…)– Ease of application > further investment – Barriers to entry (existing standards, performance tests , prior approvals etc..)– Valuation assessment…



TTO Challenges• Managing TTOs

– Adhere to applicable laws, regulations, contractual obligations, and academic policies.– Optimize opportunity for public benefit.– Create or retain research opportunities or prerogatives.

• Managing performance: AUTM suggested metrics– Support for economic development– Ecosystem of institution– Human transfer activities– Technology & knowledge transfer activities– Network creation activity– Value creation activities

• Managing performance > Stanford footprints– A pipeline of innovation in a culture/environment: (a) Supportive of disclosure of inventions (b) incentives

that will encourage inventors to support and participate in the commercialization process. – An efficient, effective, and responsive process for (a) evaluating invention disclosures to determine if they

should be pursued; (b) developing an Intellectual Property strategy; (c) developing a marketing strategy to find potential licensees or entrepreneurs to start companies; (d) efficient and timely negotiation of agreements; (e) effective monitoring of diligence terms of agreements and an efficient process for making amendments if needed.

– Patience : short term returns short term income returns are very unlikely and there must be support to invest in a portfolio of technologies with the potential for commercialization



What lies ahead; points for further consideration

• Awareness; Business-industry, Government, NGOs, research institutions, scientists, decision makers..

• Policy issues (ownership, operational policies, conflict policies, return on investments & related incentive policies…)

• Performance issues; How to measure success in commercialization process• Tech transfer activity, economic indicators, IA reporting-balance sheets• Valuation & IA Strategic Management• Gap funding; from lab to market (seed, incubation, angel, VC)• Legal framework > Revisions on IP law, EU allignment /

unified patent systems..• Qualified HR; Professional education & certification



Suggested Resources• Licensing Executives Society• Association of University Technology Managers• Association of Science & Technology Managers• WIPO, AIPPI, EPO, TPE• OECD Main Science & Technology Indicators• OECD Intellectual Assets & Value Creation• World Bank• Journal of Technology Transfer• Intellectual Asset Management (bi-monthly journal)



“One of the greatest pains to human nature is the pain of a

new idea”Walter Bagehot, 1872

[email protected]

Thank you

mailto:[email protected]




Documents

“IP Management @ Universities” Istanbul, April 14 to 15, 2011 Albert Long Hall, BOGAZICI UNIVERSITY TTO Experiences in Turkey, Sabancı UniversityZeynep