IPWatchdog.com is in the process of transitioning to a newer version of our website. Please be patient with us while we work out all the kinks.

Posts Tagged: "TTO"

The changing face of university technology transfer

Today (TTOs) are increasingly being run by professionals who are experienced in startups, licensing, monetizing and have tremendous depth of technical knowledge in a variety of fields. But they are all waging a losing battle in an industry where 73% of the offices are losing money and an additional 16% just breakeven. It is not because of the efficiency of these offices, it is because of the underlying business model… But the impact of technology transfer on the US economy has been enormous. Since 1980 more than 5,000 startups have been created. From 1996-2013 technology transfer has contributed $518 billion on the US gross domestic product, and $1.1 trillion on the US gross industrial output.

University exception to fee shifting in PATENT Act won’t help Iowa State or University of Iowa

Senator Chuck Grassley (R-IA) added language to the fee-shifting provisions in the PATENT Act that would offer an economic hardship exception to fee shifting for “an institution of higher education.” The reason that Iowa State and the University of Iowa find themselves on the outside looking in is because of the way they have structured their patent ownership and licensing efforts. As is rather common, Iowa State and the University of Iowa place ownership of patents outside the institution and in the hands of a Research Foundation, which is a separate entity altogether.

Post Grant Patent Challenges Concern Universities, Pharma

Gulbrandsen’s chief complaint with the U.S. system centers around the fact that it has become enormously easy to challenge issued patents once they have been granted. In fact, organizations in pursuit of acquired technology are leveraging the kill-rate at the Patent Trial and Appeal Board (PTAB) at the United States Patent and Trademark Office (USPTO), to negotiate lower licensing payments. Threats are made that patents will be challenged in Inter Partes review, “so that you amend the license and reduce the fees,” Gulbrandsen explained. “So, immediately you know that devalues the patent and devalues the license agreement that you’ve got.”

Hunting Bayh-Dole Vampires

The government is funding basic research at universities, not drug development. Bayh-Dole allows schools to own resulting inventions and license them for commercialization. These discoveries are more like ideas than products. The expense and risk of development falls on the private sector. A study in Nature Biotechnology on drugs commercialized from federally-funded inventions finds: “the private sector spends 100-fold or more to bring the product to market than the PSRI (public-sector research institution) spends in research directly leading to the invention.” Here’s why: for every 10,000 compounds about 250 make it to preclinical testing, 5 go to clinical trials, and one enters the marketplace. Of these just 20% turn a profit– and they must pay for all those which died in the pipeline.

It’s Not Paranoia – They Really Are After You

First of all, congratulations! You made The Washington Post and they even spelled your name correctly. Unfortunately, AUTM was specifically called out in an article titled Patent Trolls Have a Surprising Ally: Universities… For a profession that keeps a low profile and goes out of its way not to antagonize people, you may wonder what in the world’s going on that you are gaining such notoriety. The answer is that you are in the sights of several groups who do not wish you well. Some want to weaken the patent system for their short term benefit, some believe society would be better off if inventions were freely available without patents; some don’t think it’s moral for universities to work with industry, and others believe they should determine who reaps the rewards of innovation. While operating on diverse belief systems, they all have one thing in common: they don’t like you.

Spread the Word About Tech Transfer – It Works!

At IPWatchdog.com we write about Bayh-Dole, technology transfer and University innovation regularly. In 2014 we are going to more regularly write about University innovations in the hope of getting good information out to the public to demonstrate the important role of Bayh- Dole and the innovations coming from Universities. Help us help you! Below is a list of the information that would be extremely helpful to have, much of which we could not obtain publicly. Critical to a good, interesting story is conveying the back story, which may be about why the inventor pursued this path in the first place or perhaps about real people who have benefit from the innovation. I understand that some of the following piece of information may be deemed to be confidential, but the more you provide the more substantive and interesting any article can be, which will lead to greater “good publicity,” which patent owners sorely need in this political climate.

Does University Patent Licensing Pay Off?

Patent licensing or creating new companies is not a get rich quick path for schools despite the occasional blockbuster invention or Google spin-out. Indeed, enriching universities is not the goal of the Bayh-Dole Act which spurred the rapid growth of TTO’s. Still, every state now sees its research universities as key parts of their economic development strategy shows that it’s not just the traditionally dominant R&D universities that are making significant contributions under Bayh-Dole… AUTM estimates the impact from sales of products based on licensed academic research in 2012 totaled $80 billion dollars – that’s double the entire federal investment in university research. Another study found that university patent licensing supported 3 million jobs between 1996-2010 (that’s an average of 200,000 jobs per year).