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2010/IPEG/SYM/002

Technology transfer in a Malaysian University: UPM’s Experience

Submitted by: UPM

 

Innovating Intellectual Property Exploitation Symposium

Sendai, Japan9 September 2010

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Technology transfer in Technology transfer in gygya Malaysian University: a Malaysian University:

UPM’s experienceUPM’s experience

Mohamed Shariff Mohamed DinMohamed Shariff Mohamed Din

Putra Science ParkUniversiti Putra Malaysia (UPM)

ContentsContents• General introduction to UPM

• Structure & functions of TTO

• UPM’s success in TT

• Philosophy for success in TT

IP t• IP management

• Modes for TT & opportunities

• Challenges & strategies

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UPM FacultiesUPM Faculties• Agriculture

• Biotechnology &

• Food Science & Tech.

• ForestryBiotechnology & Biomolecular Sciences

• Computer Science & Information Technology

• Design & Architecture

• Economics & Manage.

Forestry

• Human Ecology

• Medicine & Health Sciences

• Modern Languages & Communication

S i• Educational Studies

• Engineering

• Environmental Studies

• Science

• Veterinary Medicine

• Agri. & Food Sciences

1616Total :Total :

R&D InstitutesR&D Institutes1. Inst. of Bioscience (IBS)

2. Inst. of Advanced Technology (ITMA)

3. Inst. for Mathematical Res. (INSPEM)

4. Inst. of Agri. & Food Policy Studies (IKDPM)

5. Inst. of Trop. Agriculture

6. Inst. of Trop. Forestry & Forest Products p y(INTROP)

7. Inst. of Social Science Studies (IPSAS)

8. Halal Product Res. Inst. (HPRI)

9. Institute of Gerontology (IG)

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University information

Academic staff No. 1,492

St d t N 30 000Student No. 30,000

Research Funding Research Funding 20062006--20102010

•• Public Public FundsFunds

ScienceFund 523 27.0Fundamental 608 13.3

Total:Total:US$81.1mUS$81.1m

Projects Nos. US$

RUGS 876 18.8Top Down Nat. Biotech. 25 5.1Technofund 11 2.7MTDC 10 6.5Others 6 0.2Others 6 0.2

•• Private Private Funds Funds

FELDA 28 1.5MPOB 17 1.0Others MTSF, GABA, Etc.) 45 2.5

•• Inter. FundsInter. Funds International 59 2.1

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VC

Organizational Options for Organizational Options for Tech. Tech. Transfer Transfer OfficeOffice

DVC Res. & Innovation

DVC StudentAffair

DVC AcademicAffairs

Research Management Centre (RMC)

Innovation & Commercialisation 

Centre (ICC)‐ TT office

ICC ORGANISATIONAL STRUCTURE - UPM

Director

DVC Research & Innovation

1 April 2006 Director

General AdminIT

Legal

p

Currently 29 staff

Deputy Director Promotion /Training

Deputy Director Intellectual Property & Contract research

Deputy Director Commercialisation

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TTO Divisions & functions

Promotion/Training

IP/Contract Research

Commercialisation

Promotion/ IntellectualPl i Promotion/ Training

- Promotion- Roadshow- Training- Public retlation- Branding- Matchmaking

Intellectual Property

- Patent- Trademark- Plant variety

Com Dev. Research

- Contract

Planning- Business planning - Business develop- Market research- Garage/incubators- Issues/Policy

Commercialisation Matchmaking ContractResearch

- Technology transfer

Commercialisation- Entrepreneurship- Marketing- ‘Spin-off’

Company- Commer grant- Monitoring

project/Co.

Patent 2009Patent 2009

5353Patents Granted

318318 Patents Pending

9898Filed in foreign countries

• China• European• India• Indonesia• Japan

• Philippine• Singapore• Switzerland• Thailand• Taiwan

• United Kingdom• United States• Vietnam

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123120

140

28

83

25

57 64

40

60

80

100

25

0

20

2007 2008 2009

Bil Permohonan Bil Pemfailan Applications Filing

Medicine & Health

Science

Design and Architecture

1%

Computer Science

1%

STATISTICS ON PATENT FILED (2000~2009)

Agriculture2% Biotechnology

& Biomolecular

Sciences19%

Food Sciences

18%

Science10%

1%

Engineering30%

Veterinary Medicine

6%Science

13%

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Commercialisation

2020

Gross Sale

2020 Products/technologies

>RM28 ($8.57 million>RM28 ($8.57 million

Vita-Grow R ZAPPA RVita Grow RM 16.1 m

Fowl Pox VaccineGS: RM 2 m

ZAPPA GS: RM7.3 m

NDV : V4-UPMGS: RM 1 m

MyVAC UPM93GS: RM 800,000

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ZAPPAZAPPA®®PLUSPLUS

• Provide vigorous growth to rice seed grown under aerobic & anaerobic systems

• Increases root growth (130%) & shoot growth (62%)

• Increases Paddy Yield between 40 - 57%

• Conserves water usage

• Reduces diseases, & increases seed purity

Rank top out of 16 others products !Rank top out of 16 others products !

9

BTS (MT/ha) Tahun 1st (35-47 Bulan)AJIBAJIB Trials done by RISDA

6

7

8

BT

S (M

T/h

a)

Control

21%

5

6

Fertilizer Types

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StellarLacTMFAST TARGET™GS RM 400 000 OS: RM 200,000

Fiber DuplexerModule OS: RM 150,000

Stone MasticOS: RM 120,000

GS: RM 400,000

MRT LatexometerTM

S: > RM 30,000

CNG Composite TanksCo: AdvancedCattle Breeding Co: Advanced

Composite Eng S.B.-P.Dr. Fakhru`l Razi-Dr. Mohd. Amran

gCo: Putra Al-Mawashi

Livestock (M) S.BA.P. Dr. Wahid Haron

High Quality OrchidC O hid Lif S B

Satiri SuperdwarfCo: Satiri S.B.A.P. Dr. Mohd

Said Saad

Edu-Enzyme AssayCo: Xeno Lab S.B.

A.P. Dr. Mohd YunusShukor

Co: Orchid Life S.B (OLSB)

P.Dr. MaziahMahmood

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How do we do it in UPM?it in UPM?

Good Good understanding f li t !of our clients!

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Researcher’s roleResearcher’s roleSupervisor

MeetingsSeminars

StressedStressed

Commerciali

Research

Consultancy

Training

ServicesCommerciali

- sation!

Training researchers on all aspects of commercialization including IP protection

No experience in commercialisation or entrepreneuralship

Awareness Still only focus on publishing papers

Importance of commercialization?

Contribution to nation building?

Income they can generate for themselves & team!

IP & TT is a new culture in Univ.

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Top management

Awareness campaigns

Vice Chancellor Deputy Vice Chancellors Registrar Bursar Deans Deputy Deans

Involve the total enterprise!

All academic staff

Awareness campaigns

All academic staff

Road show to all faculties & Institutes

Get a feedback

Motivation!

Get a feedback

Role of TMO to synergise with researchers

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S l t d d i t ff

Training –Technology Transfer

Selected academic staff

Have a patent or potential candidates

At Univ. & PRIs

Building core of knowledgeable group

In Business

Explain Business Philosophy

IF

You don’t

INNOVATE

&&

COMMERCIALISE

You will

EVAPORATEKASS Int .Sdn Bhd

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To support business To support business & industry& industry

• Manufacturers need a continuing flow of new products

• Co. need new products for growth

• Product life cycles are getting shorter all the time

Industries need new technologies

Private sector still keep looking for Private sector still keep looking for technologies from advance countries

We have world class scientist & innovations

We need to be proactive in promoting our innovations

Engine for future growth

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Rich in BiodiversityRich in Biodiversity

Our natural resources

several commodities

byproducts

medicinal value

Some being patented by foreigners in other countries

Loss to the nation

Have to compete with

GlobalizationGlobalization

Have to compete with  

the rest of the world!

Cannot be complacent 

or else we will be 

dependent on other 

forever!

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Wealth Creation &

Nation Nation Building

Univ. Innovation ModelUniv. Innovation Model Massachusetts Institute of Technology (MIT)

best model for innovation: –

MIT’s charter directs Institute to Wealth MIT s charter directs Institute to Wealth Creation

Over 100 technology licenses/ year

About 20 companies founded/ year

> 4000 companies founded overall > 4000 companies founded overall

Involvement in annual sales $230B

Created 1,100,000 jobs

Wealth creation & Nation Building

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Journal papers

Past main research output

Presentations at seminars –national & international meetings

Human resource development Human resource development MSc, PhD

More

Additional research output

Patents

Lab scale technologies

Marketable products (prototype)p (p yp )

Paradigm shift required

Develop IP & technology transfer culture

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TTO must havethe expertise

Have the right expertise!

Policy making & procedures

Introduce policy, draw up Introduce policy, draw up strategies & guidelines for TT

Provide incentives

Make it easy for academic staff toMake it easy for academic staff to commercialize technologies

Synergize with research staff & private sector to commercialize technologies

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Incentives for Incentives for researchers!researchers!

RM5,000 for filing patent

RM10,000 on receiving patent certificatepatent certificate

RM500 on disclosure

o RM500 for Industrial design (Submission)

Incentives for researchers!

o RM500 for Industrial design (Submission)

o RM1,500 after Registered 

o RM2,000 for copyright (software)

o RM2,000 trademark for commercialised,product

o Provide equity in joint venture company

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Meeting every

2 weeks

: i) Learn technologyii) Approve/reject patent/copyright/TSiii) Fine tune iv) Add financial aspects

2-3

Meetings with entrepreneur & researcher

Match making with business partner

g puntil deal is finalised – MoA

i) License deal

ii) IP assignment

iii) Application for grants “Technofund”iii) Application for grants “Technofund”

iv) Formation of spin-off Co.

>5-10 meetings – a slow process

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Commercialisation/Negotiation/Match Making Process

Researcher presentation to 

ICC

Client presentation to 

ICCICC ICC

Researcher presentation to potential client & ICC

Several rounds of meeting with client & researcher until deal is 

final 

Receive client offer – meeting with researcher

Final Univ. approval

Final approval 1) Management  2) Board

IP Protection: Appropriate Strategies

& Options

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Intellectual Property Hidden treasurers!

Engine for future growthEngine for future growth

Era of K EconomyEra of K EconomyEra of I EconomyEra of I Economy

Confidentiality

Panel members sign a non-disclosure gagreement (NDA)

Documents only distributed during meeting

Members cannot removed documents from meeting room g

Documents are kept in a safety cabinet

No circulating of documents!

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IP Management IP Management

Patent before participation inPatent before participation in exhibitions/seminars 

& publishing

Protect the technology!

IP Management IP Management

Non disclosure agreement :-

Students

Evaluators

New guidelines!

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MODES FOR MODES FOR TECHNOLOGY TRANSFER TECHNOLOGY TRANSFER

Modes :Modes :Technology TransferTechnology Transfer

Royalty 2Royalty 2--10%10%

Patent/Tech.Patent/Tech.

Formation Formation of spinof spin--off off companycompany

Technical Technical R&D support R&D support ConsultancyConsultancy

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Equity in Equity in SpinSpin--Off CompanyOff Company

Assist in getting funds for spin-off company

No financial contribution

Contribution of expertise

Equity in CompanyEquity in Company

ConsultancySell or License Co su ta cySe o ce se

5-10% University Holdings

10 40% Negotiable10-40% Researcher/Technical director/Advisor

40-70% Entrepreneur

Negotiable

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Equity for researchers

B h k f ith Benchmark of success with researcher’s involvement©

Security for entrepreneur

Sense of belonging for researcher –thus commitment

C t t i f t h l

Equity for researchers

Constant renewing of technology –forefront in market

Assurance of quality control of product in the marketproduct in the market

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Di t ib ti f i

Distribution of Distribution of IncomeIncome

Distribution of income

generated from commercialisation

University25%

Researcher/ Inventor

75%

PatentTech Transfer

Further product Product Market Opportunities

Collaboration with industry

Opportunities for Funds

development Feasibility study

Product developmentNew benefit

Safe

CRDF 1

CRDF 2-4

Garage

BioTech Corp

CommercialProduction

Market DevelopmentTechno

fund

Garage fund

Product Sales

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CHALLENGESCHALLENGES

P i t t

Private sector’s perception

Technologies

Private sectorskeptical of local

Technologies

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Convince the industry

Work smart to win them

Convince the industryWorld class expertise & technologies

Win ‐Win situation =Win  Win situation smart partnership

Importance of a right partner

Finding the right collaboration/ business partner is an important process

Wrong partner can make life miserable

Sometimes it worked so well that partners ended up getting married

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W k i h l b l

Going globalGoing global

Work with global partners 

Local market small & non 

sustainable

Th TT/ i li ti / b i i

New culture & shy scientists

The TT/ commercialization/ business is a new culture in University

Scientists not aggressive in marketing themselves & their productsthemselves & their products

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SlowSlow

Approval from various levels

Legal Management

For private sector –time is money

Unclear policies

U di t bl h Unpredictable changes

New leaders – different vision

Private sector – loses trust with the institution

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Patent – non-tangible asset, evaluation is difficult

Patent difficult to evaluatePatent difficult to evaluate

is difficultE.g. E.g. 1st offer  RM200,000

Final offer RM 4 million

+ 20% equity to researcher+  20% equity to researcher

+  5% equity to UPM 

+   Consultancy

Right expertise to negotiate 

Challenges

Disclosure of critical technology knowledge can induce misconductknowledge can induce misconduct

Research is a long term commitment –return on investment is extended

S i ti t f d f t lliScientist very found of telling everything to everybody!

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IP ownership IP ownership –– joint research programsjoint research programs

Challenges on joint Challenges on joint ownershipownership

Depending on the contribution

• Negotiate for full ownership

• If joint 50:50 (if possible assigned to

Univ. for commercialisation)

Sign non disclosure agreement (NDA)

Branding

Promote the institution as the inventor i dibilit & li bilit– increases credibility & reliability

Create impact on customers

Improve chance of getting venture capital

Differentiate you from your competition

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Lab scale to market takes time to materialise (pilot scale)

Nurturing clientsNurturing clients

(p )

Close monitoring on progress

Provide assistance when necessary

Use of incubators & other facilties

Assistance in seeking funds

Provide guidance from expertise available on campus/institution

Strategies for Successful Commercialization

Identify selected technologies for up-scaling

Promotion & marketing activities

Links with industries

Evaluate possible investorsEvaluate possible investors

Protection of IP rights

Legal support e.g. ownership of IP& documentation

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TYCOMPLEXIT

TechnologyTechnology

EconomicsEconomics Learning TheoryLearning TheoryTools

Generic

SCOPE OF STRATEGY RESEARCH

SystemsSystems Creativity/InnovationCreativity/InnovationGeneric Strategy PIMS

Human Human BehaviourBehaviour