Transfer and Commercialization of NASA Technologies

U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R

A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R

h t t p : / / w w w . u s c . e d u / g o / t t c

Presented by:Martin Zeller

Date:May 28, 2003

SST 2003

What do These Have in Common ?What do These Have in Common ?

Presented by:

Martin Zeller

Teflon

Invented at DuPont in late 1930s

A product of Kraft Foods that NASA bought for astronauts

Invented in Switzerland in late 1940s by George de Mestral

History of Tech Transfer at NASAHistory of Tech Transfer at NASA

Presented by:

Martin Zeller

Tech transfer is a chartered activity of NASA• “The Administration shall provide for the widest practicable and appropriate dissemination of information concerning its activities and the results thereof.” (1958 National Aeronautics and Space Act establishing NASA)

NASA Tech Transfer InfrastructureNASA Tech Transfer Infrastructure

Presented by:

Martin Zeller

AerospaceTechnologyEnterprise(Code R)

CommercialTechnology

Division

SBIR/STTRNASA CenterCommercialTechnology

Offices

NTTC NASATechLink

RTI

Incubators RTTCs

StateAffiliates

NASA’s Commercial Technology NASA’s Commercial Technology DivisionDivision

Presented by:

Martin Zeller

Mission:1. Foster partnerships and cooperative activities with

U.S. commercial enterprises that will

- develop technology that is applicable to NASA mission needs and

- contribute to commercial competitiveness in global markets

2. Facilitate the transfer and commercialization of NASA-sponsored research and technology, including licensing of NASA-owned patents and the industrial use of unique NASA R&D capabilities and facilities.

NASA Commercial Technology NetworkNASA Commercial Technology Network

Presented by:

Martin Zeller

Mid-ContinentRTTC

SoutheastRTTC

MidwestRTTC

NortheastRTTC

Mid-AtlanticRTTC

Far WestRTTC

NASA Field CentersNASA Field Centers

Presented by:

Martin Zeller

AmesAmes – Information Technology, Astrobiology and – Information Technology, Astrobiology and NanotechnologyNanotechnology

DrydenDryden – Atmospheric Flight Operations – Atmospheric Flight Operations

JPLJPL – Unmanned Exploration of Space – Unmanned Exploration of Space

JohnsonJohnson – Human Space Flight – Human Space Flight

MarshallMarshall – Space Propulsion, Space – Space Propulsion, Space Transportation Systems, Space Optics and Transportation Systems, Space Optics and Microgravity ResearchMicrogravity Research

KennedyKennedy – Space Launch and Cargo Processing – Space Launch and Cargo Processing

LangleyLangley – Aeronautics, Atmospheric Science and – Aeronautics, Atmospheric Science and Materials and StructuresMaterials and Structures

GlennGlenn – Aeropropulsion and Communications – Aeropropulsion and Communications

GoddardGoddard – Scientific Research and Study of Earth – Scientific Research and Study of Earth from Spacefrom Space

StennisStennis – Rocket Propulsion Testing and – Rocket Propulsion Testing and Commercial Remote SensingCommercial Remote Sensing

NASA Technology PortfolioNASA Technology Portfolio

Presented by:

Martin Zeller

NASA’s Technology Assets Are NASA’s Technology Assets Are Available for Transfer and Available for Transfer and CommercializationCommercialization

• NASA-owned technologyNASA-owned technology

licensing opportunities from NASAlicensing opportunities from NASA

• Special expertise, capabilities and Special expertise, capabilities and facilitiesfacilities

Collaborative development Collaborative development opportunitiesopportunities

• Small business research fundingSmall business research funding

SBIR/STTR SBIR/STTR

What do These Have in Common ?What do These Have in Common ?

Presented by:

Martin Zeller

Teflon

They did not originate with NASA!!

This One Did Originate With NASAThis One Did Originate With NASA

Presented by:

Martin Zeller

Temper Foam

• Use the RTTCsUse the RTTCs

• Websites and Staff of the NASA Field Websites and Staff of the NASA Field Center Commercial Technology OfficesCenter Commercial Technology Offices

• Websites of the NASA Field CentersWebsites of the NASA Field Centers

• NASA Technology Portal Website NASA Technology Portal Website ((http://nasatechnology.nasa.gov)http://nasatechnology.nasa.gov)

• NASA Tech Finder Website NASA Tech Finder Website ((http://technology.nasa.gov)http://technology.nasa.gov)

• NASA Technology.com NASA Technology.com ((http://www.nasatechnology.com)http://www.nasatechnology.com)

• NASA Tech Briefs Magazine NASA Tech Briefs Magazine ((http://www.nasatech.com)http://www.nasatech.com)

Discover NASA’s TechnologyDiscover NASA’s Technology

Presented by:

Martin Zeller

A Few ExamplesA Few Examples

Presented by:

Martin Zeller

PROBLEM ADDRESSED Critical weather information systems are inadequate at thousands of general aviation airfields. Portable wireless units could deliver vital airfield wind and other safety information to pilots in real time on takeoff and landing approach.

TECHNICAL ELEMENTS (1) compact handheld portable cockpit receiver and display unit and automated ground unit at airfield; (2) display unit automatically activated 8 to 10 miles from airfield, with a simple digital readout showing gust and average wind velocity, direction, and most favorable runway; (3) ground unit weather station containing sonic anemometer coupled to a microprocessor, broadcasting data digitally over a half-watt spread spectrum transmitter at 900 MHz, powered by AC or solar power with battery backup.

From NASA Dryden

AIRFIELD WIND ADVISORY SYSTEM(Patent # 6,311,107)

Another ExampleAnother Example

Presented by:

Martin Zeller

REHYDRATION BEVERAGE(Patent # 5,447,730)

PROBLEM ADDRESSED A beverage for rapid rehydration of persons whose water content has fallen below normal

TECHNICAL APPROACH A specially designed beverage for rapid restoration of hydration homeostasis, based on plasma volume restoration (1) 270 mOsmol/kg water solution with only 0.36% of Na ions, consisting of 9 gm of sodium chloride, 15.44 gm of sodium citrate, and 9.72 gm of aspartame in 2 liters of water, with practically the same osmolality as extracellular fluid [285 mOsm/kg water] (2) Optimal fluid absorption and retaining of plasma water assured by isotonicity (3) Any undesirable salty taste alleviated by artificial sweetener aspartame.

From NASA Ames

Another ExampleAnother Example

Presented by:

Martin Zeller

Video Image Stabilization and Registration (VISAR)(Patent applied for)

• Software incorporating algorithms to enhance videotape images and image sequences• Stabilizes effects due to camera rotation and zoom• Stabilizes images against moving backgrounds• Removes jitter, blurring, noise (snow)• Smooths jagged edges of images• Enhances image clarity• Currently a post-processing tool only• Runs on Windows and Mac platforms

From NASA Marshall

Last ExampleLast Example

Presented by:

Martin Zeller

Pill-Shaped Biotelemetry Transmitter(Patent applied for)

PROBLEM ADDRESSED An implantable or ingestible pill-sized sensor/transmitter for collecting and transmitting in-vivo physiological data to a nearby external receiver/signal processorTECHNICAL APPROACH A biotelemetry system consisting of an implantable or ingestible miniaturized sensor/transmitter package, and external electronics: (1) A pill -sized package containing one or more battery powered (e.g., 40 microwatts with 10 month lifetime) miniaturized sensors - e.g., pressure, temperature, pH, ions, blood gases, glucose, electrical - along with a pulse interval modulated transmitter with carrier frequency in biomedical range (174-214 MHz); (2) External receiver at 3-10 ft distance along with data acquisition card and signal processor

From NASA Ames

Recent Licensing ActivityRecent Licensing Activity

Presented by:

Martin Zeller

DCTune• Image compression technology from Ames• Non-exclusive license to small Hawaii company

Ames Spatial Auditory Display (ASAD)• Surround sound technology from Ames• Non-exclusive license to small Los Angeles company

Perilog• Suite of data mining tools from Ames• Non-exclusive license pending to small Los Angeles company

NASA has a variety of mechanisms for technology transfer, including:

Space Act Agreements• Reimbursable• Non-reimbursable

• Patent and Copyright License Agreements

• SBIR/STTR Program

Doing Business With NASADoing Business With NASA

Presented by:

Martin Zeller

• Company partners with NASA to develop technology of interest to both the company and the Agency

Implies direct ties to NASA mission interests

• NASA may provide personnel, services, facilities, equipment, data, etc. and share resources and results in a collaborative effort

• No transfer of funds by the government

• Company may reimburse NASA for expenses incurred by the Agency

Space Act AgreementsSpace Act Agreements

Presented by:

Martin Zeller

• NASA actively promotes the licensing of its technology

• Patents, patent applications, and copyrights can be licensed

License AgreementsLicense Agreements

Presented by:

Martin Zeller

Why Does NASA License its Technology?Why Does NASA License its Technology?

Presented by:

Martin Zeller

• To benefit the U.S. economy

• To improve U.S. competitiveness

• To protect investments made by industry to commercialize NASA technology

• Sharing of royalties with inventors provides an incentive to participate in technology transfer

• Governed by federal regulation (37 CFR Part 404) - Licensing of Government owned inventions

• Licensed technology must be substantially manufactured in United States • U.S. Government Retains Irrevocable, Royalty-free Right to use technology

• Royalties/Fees

• Schedule and Key Milestones

• Annual Reports Required

Terms of a Typical NASA License Terms of a Typical NASA License AgreementAgreement

Presented by:

Martin Zeller

• Prospective licensee submits letter of intent and Prospective licensee submits letter of intent and application for licenseapplication for license

• Application will be evaluated based on:

Technical Expertise Understanding of technology Facilities Manufacturing capabilities Marketing Plan Capital and credit rating Committed resources Distribution channels Commercialization history

Typical Evaluation CriteriaTypical Evaluation Criteria

Presented by:

Martin Zeller

Nonexclusive

• Minimal development and production cost

• Multiple applications

Types of LicensesTypes of Licenses

Presented by:

Martin Zeller

Exclusive or Partially Exclusive

• Substantial development or production cost

• Fields of Use, Period of Time, or Geographic Area

Presented by:

Martin Zeller

SBIR/STTR – What is it?

• SBIR and STTR are federal set-aside programs for small businesses.

• SBIR/STTR funds high-risk, early-stage technology R&D projects that have potential for commercial success.

• SBIR/STTR funds are not loans!

SBIR/STTR Program ObjectivesSBIR/STTR Program Objectives

Presented by:

Martin Zeller

• Stimulate technological innovation

• Use small business to meet federal R&D needs

• Increase private sector commercialization derived from federal R&D

• Encourage participation by disadvantaged and minority persons in technological innovation

Legislative Basis for SBIR/STTRLegislative Basis for SBIR/STTR

Presented by:

Martin Zeller

• SBIR Program originally authorized in 1982 by the Small Business Innovation Development Act (P.L. 97-219)

• SBIR reauthorized by Congress in 1992 and in 2000

• SBIR program extended to 2008

• STTR originally authorized in 1992

• STTR Reauthorized in 1997 and 2001

• STTR program extended to 2010

Eligilibility Requirements for Eligilibility Requirements for BusinessesBusinesses

Presented by:

Martin Zeller

• Only small businesses can participate Only small businesses can participate

• Fewer than 500 employees, including all affiliatesFewer than 500 employees, including all affiliates

• Must be U.S. owned and independently operated, Must be U.S. owned and independently operated, with principal place of business in the U.S.with principal place of business in the U.S.

• Must be organized for profitMust be organized for profit

Federal Agency Participants in SBIRFederal Agency Participants in SBIR

Presented by:

Martin Zeller

• Ten agencies with extramural R&D budgets in excess Ten agencies with extramural R&D budgets in excess of $100 million per year are required to set aside 2.5% of $100 million per year are required to set aside 2.5% of that budget for SBIR projects.of that budget for SBIR projects.

• Agencies issue solicitations specifying topic areas for Agencies issue solicitations specifying topic areas for which proposals from small businesses are sought.which proposals from small businesses are sought.

• Agencies evaluate, select, and award funds for winning Agencies evaluate, select, and award funds for winning proposals.proposals.

Agency SBIR Funding LevelsAgency SBIR Funding Levels

Presented by:

Martin Zeller

Total of all agencies is close to $1.6 billion!Total of all agencies is close to $1.6 billion!

DoDDoD $773 Million (FY02)$773 Million (FY02)NIHNIH $482 Million (FY02)$482 Million (FY02)NASANASA $115.9 Million (FY03)$115.9 Million (FY03)DoEDoE $110 Million (FY02)$110 Million (FY02)NSFNSF $85 Million (FY03)$85 Million (FY03)USDAUSDA $15.7 Million (FY02)$15.7 Million (FY02)DoTDoT $5.4 Million (FY02) $5.4 Million (FY02) DoEDDoED $8.7 Million (FY02)$8.7 Million (FY02)EPAEPA $7.0 Million (FY02)$7.0 Million (FY02)DoCDoC $6.1 Million (FY02)$6.1 Million (FY02)

Three Phases of SBIRThree Phases of SBIR

Presented by:

Martin Zeller

Phase I: Feasibility Study Phase I: Feasibility Study • Funded at $50,000 to $100,000, depending on the Funded at $50,000 to $100,000, depending on the

agency agency • Six month effortSix month effort

Phase II: Prototype DevelopmentPhase II: Prototype Development• Funded at $225,000 to $750,000, depending on Funded at $225,000 to $750,000, depending on

the agencythe agency• Up to two year effortUp to two year effort

Phase III: CommercializationPhase III: Commercialization• No SBIR funds available for Phase IIINo SBIR funds available for Phase III• Small business procures other development Small business procures other development

funds, product orders, intellectual property funds, product orders, intellectual property licenses, commercial partners, etc.licenses, commercial partners, etc.

A Very Competitive ProgramA Very Competitive Program

Presented by:

Martin Zeller

• Approximately 12% of SBIR Phase I Approximately 12% of SBIR Phase I proposals are funded, on average, across all proposals are funded, on average, across all agencies.agencies.

• Approximately 40 % of Phase II proposals are Approximately 40 % of Phase II proposals are funded, on average, across all agenciesfunded, on average, across all agencies

STTR: Companion Program to SBIRSTTR: Companion Program to SBIR

Presented by:

Martin Zeller

• STTR is the Small Business Technology Transfer STTR is the Small Business Technology Transfer ProgramProgram

• Three-phase approach, just like SBIRThree-phase approach, just like SBIR

• Five federal agencies participateFive federal agencies participate

• Set-aside is only 0.15% of the agencies’ extramural Set-aside is only 0.15% of the agencies’ extramural R&D budgets (compared to 2.5% for SBIR)R&D budgets (compared to 2.5% for SBIR)

• A small business must form a partnership with a A small business must form a partnership with a nonprofit research institution to be funded under STTRnonprofit research institution to be funded under STTR

• The small business is the prime contractorThe small business is the prime contractor

• Goal is to facilitate commercialization of technology developed by a nonprofit research institution through the entrepreneurship of a small business

Investment Sources for Formative Investment Sources for Formative Stage CompaniesStage Companies

Presented by:

Martin Zeller

Family and Friends

Up to $100K

SBIR/STTR

Venture Capital

$350K to $850K per project

Average of $6.2 millionin first round*

* PricewaterhouseCoopers MoneyTree Survey, Q1 2003 Results

NASA Far West Regional Technology Transfer NASA Far West Regional Technology Transfer CenterCenter• http://www.usc.edu/go/ttc

• 213-743-2353213-743-2353

• 800-642-2872800-642-2872

• nasa@usc.edunasa@usc.edu

For Further Information . . .For Further Information . . .

Presented by:

Martin Zeller