Darryl MitchellInnovative Partnerships Program Office

Goddard Space Flight CenterGreenbelt, MD

Project Management Challenge2010 Annual ConferenceGalveston, TX

Used with Permission

The Importance of Innovation Innovative Partnerships Program Overview The NASA Patent Licensing Model Ocean Tomo The Live Intellectual Property Auction License

Model Results of the First Live Auction of a

Government Patent License Next Steps

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Source: NEWSWEEK-Intel Global Innovation Survey 2009

Source: NEWSWEEK-Intel Global Innovation Survey 2009

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Legal & Policy Obligations

Benefits to Agency

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GSFC

GRC

LaRC

KSC

JSC

MSFC

SSC

DFRC

ARC

JPL

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ESMD

SMD

SOMD

ARMD

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Small Business Innovation Research (SBIR)

Small Business Technology Transfer Research (STTR)

IPP Seed Fund

Centennial Challenges

FAST Innovation

TransfusionNew Business

Models

Intellectual Property Management

Technology Transfer

New Innovative Partnerships

Technology Infusion

Innovation Incubator

Partnership Development

ContractCooperative Agreement Grant

Space Act Agreement

Patent/Copyright License

Software Usage Agreement

Enhanced Use Lease CRADA

Purpose Acquire goods, services, or both.

NASA funding provided to facilitate activities that accomplish a public purpose

Collaborations with the public and private sector

Transfer specific rights associated with NASA-owned Intellectual Property

Access to NASA developed software

Permits NASA to lease under-utilized real property assets

Rarely used by NASA for cooperative research and development.

Competition Required?

Generally, Yes

Generally, Yes In some circumstances

No No In some circumstances

No

Notable Requirements

- Goods or Services- Mission Need

- Public Purpose- NASA may be involved

-Subject to statutory and NASA requirements

-Intellectual Property- Royalty-Based-Commercialization

-Export Control Compliance- Depends on type of release

- Real Property - Federal Lab- R&D

NASA Funding to the Non-NASA Party?

Yes Yes Rarely No No No No

Authority Space Act; 31 USC 6303; 10 USC 2302

Space Act; 31 USC 6304; 31 USC 6305

Space Act 35 USC 207 NPD 2210.1A Space Act; 42 USC 2459j

15 USC 3710a

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Negotiated & executed at Field Centers Governed by 37C.F.R. §404

License application required Exclusive or non-exclusive

Non-Exclusive preference Exclusivity requires 15-day comment period

Preference to U.S. businesses Up-Front Fee, Running Royalties, Annual Minimums, and Practical

Application deadline Standardized language Government retains “March-in” Rights No Government warranty or indemnification No rights to NASA Logos granted Sublicensing rights granted to exclusive Licensees Annual Reports required of Licensee “Know-how” transferred under separate agreement (SAA)

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Field Center Director•NPR 2092.1A, Distribution of Royalties Received by NASA

from the Licensing or Assignment of Inventions

5+ Inventors•Equal shares

of $25K•Split 30% of

remainder

2 - 4 Inventors•$5k ea.

•25% ea. To $25K

•Split 30% of remainder

Single Inventor

•$5K + 25%

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Slow …. But improving! Constrained resources Cultural disconnects Limited flexibility Limited, or no, market validation of

technology

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Founded: 2003 Headquarters: Chicago, IL Business Type: Intellectual Capital Merchant

Banc Mission: Efficient Monetization of

Intellectual Property Best Known For: Live Auctions of Intellectual

Property Total Live Auction Transactions to Date:

$120M

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Can NASA actually sell its patents?RESOLUTION: No, but Ocean Tomo can auction the right to assume its exclusive license with NASA

What about the Federal Register Notice?RESOLUTION: Handled pre-auction with Ocean Tomo

What about export control issues?RESOLUTION: Screen with pre-qualification application

Should we go with a running royalty, or a one time payment?RESOLUTION: Technology and market sector dependent

What if it doesn’t sell at auction?RESOLUTION: Other transaction platforms available, and Ocean Tomo license expires within 3 years

What about Non-Practicing Entities (i.e. Patent Trolls)?RESOLUTION: NASA retains standard march-in rights

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Fall 2006: Contact with Ocean Tomo established

by Goddard IPP

Fall 2007: Goddard and Marshall authorized to

proceed with pilot programs

January 2008: Goddard posts a Federal Register Notice for 44 patents &

patent applications

February 2008: Objection to Federal Register Notice

received and resolved

Spring 2008: Detractors start gathering torches &

pitchforks

July 22, 2008: License executed with Ocean

Tomo

September 2008: Joint press release issued regarding upcoming

auction

October 14, 2008: Three Congressional inquiries

received

October 30, 2008: Goddard successfully auctions an exclusive license to its Hilbert-

Huang Transform (HHT) patent portfolio

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Ocean Tomo & NASA jointly identify candidate cases

Ocean Tomo submits license application NASA posts notice in Federal Register (15 day

comment period) Ocean Tomo & NASA jointly establish

license terms License executed with Ocean Tomo Ocean Tomo begins marketing campaign

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Interested bidders must submit a pre-qualification document (37 C.F.R. §404)

NASA provides expedited feedback on pre-qualification applications

Winning bid held in escrow by Ocean Tomo

Winning bidder submits remaining data required for license application to NASA

NASA executes a novation of the license with Ocean Tomo to transfer ownership to bidder

Ocean Tomo forwards funds to NASA less a standard fee (called out under terms of license) and collects separate fee from bidder

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HHT portfolio licensed after 8 years to DynaDx Corp. $50K Up-front Running & annual minimum royalties Product launched September 2009

Multiple organizations interested in 6 GPS patents post-auction

Tremendous publicity for NASA & Ocean Tomo WSJ Physics Today BBC News Many Others

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Founded: 2005 Location: Mountain View, CA Product: Multimodal Pressure-

Flow (MMPF) technique for analysis of dynamic cerebral auto-regulation

Applications: Stroke, Dementia, Traumatic Brain Injury

NASA Technology: Hilbert-Huang Transform (HHT)

Product Launch: September 2009

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NASA•More efficient

utilization of IPP resources• Creation of new

technology resources

Ocean Tomo

•Increased deal flow

•Leverage NASA brand recognition

Licensees•Simplified portal

to access federally owned patents

•Ocean Tomovetting process

Taxpayers•Potential life-

improving advancements entering the marketplace more quickly

•Economic impact

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Ocean Tomo Transactions acquired by ICAP Improved capitalization New ventures/platforms enabled (e.g. IPXI)

Other Federal Labs coming onboard DOE, NSA, APL, NIH, …

NASA released RFI on September 25, 2009 regarding licensing intermediary models

Portfolio bundling across labs and/or agencies? In FY 2007, 4,500 new invention disclosures, &

over 1,400 patents issued to federal labs

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Darryl MitchellTechnology Manager

Innovative Partnerships Program OfficeNASA Goddard Space Flight Center

Greenbelt, Maryland(301) 286-5169

Darryl.R.Mitchell@nasa.govhttp://ipp.gsfc.nasa.gov

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