welcome p&p topics for gfy 2002 patent awards tech transfer cycle: part iii food!!!! patents...
TRANSCRIPT
![Page 1: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/1.jpg)
Welcome
P&P Topics for GFY 2002
Patent Awards
Tech Transfer Cycle: Part III
FOOD!!!!
PATENTS & PIZZAJune 4, 2001
![Page 2: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/2.jpg)
PATENTS & PIZZAJune 4, 2001
Licensingand
Royalty & Development Income
Wayne E. SwannDirector of Technology Transfer
&Francis A. CoochPatent Counsel
![Page 3: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/3.jpg)
Introduction
• APL Technology Transfer Cycle• Outline of Presentation
![Page 4: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/4.jpg)
APL Technology Transfer Cycle
Introduction (cont.)
![Page 5: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/5.jpg)
Introduction (cont.)
Outline of Presentation•License Agreements•IP Policy Income & Distribution•Examples of Deals•Statistics•Definitions!
![Page 6: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/6.jpg)
Structure of Standard Agreement•Standard Income Clauses•Roles in Negotiations
License Agreements
![Page 7: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/7.jpg)
License Agreements
Structure of Standard Agreement
•Definitions•Grant•Development/R&D Funding•Fees/Royalties/Equity•Milestones•Term and Termination•Miscellaneous
![Page 8: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/8.jpg)
License Agreements (cont.)
Standard Income Clauses
• Development/R&D
1. R&D for Licensee under BOA2. Protect APL TDA role3. APL employees as consultants
![Page 9: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/9.jpg)
License Agreements (cont.)
Standard Income Clauses (cont.)
• Fees/Royalties/Equity
1. Option/License Fees• Cash/Equity• Nonrefundable• Not credited against
royalties
![Page 10: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/10.jpg)
License Agreements (cont.)
Standard Income Clauses (cont.)
• Fees/Royalties/Equity (cont.)
2. Running Royalties• Percent of Net Sales• Unit Royalty
3. Annual Minimum Royalties• Credited against royalties
4. Milestone Payments
![Page 11: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/11.jpg)
License Agreements (cont.)
Roles in Negotiations
•Office of Technology Transfer•Office of Patent Counsel•Inventors/Creators
![Page 12: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/12.jpg)
IP Policy Income &Distribution
Types•Restricted•Unrestricted
Development (Restricted) Income•Mechanics•Restrictions
![Page 13: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/13.jpg)
IP Policy Income &Distribution
(cont.)
Distribution of Unrestricted Income• Initial Share
1. $5,0002. “Off the Top”
![Page 14: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/14.jpg)
IP Policy Income &Distribution
(cont.)
Distribution of Unrestricted Income• Reimbursement of Expenses
1. Patenting (not reimbursed)2. Licensing3. Litigation4. Development Fund Grants
![Page 15: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/15.jpg)
IP Policy Income &Distribution
(cont.)
Distribution of Unrestricted Income• Net Unrestricted Income
1. 30% - Inventor’s Personal2. 15% - Inventor’s Professional
• For R&D• Accumulation Cap - $300,000• Expended within 2 years
![Page 16: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/16.jpg)
IP Policy Income &Distribution
(cont.)
Distribution of Unrestricted Income• Net Unrestricted Income (cont.)
3. 15% - Department Share• Use for R&D, disclosure/
application preparation,support general Tech Transfer activities
• No cap
![Page 17: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/17.jpg)
IP Policy Income &Distribution
(cont.)
Distribution of Unrestricted Income• Net Unrestricted Income (cont.)
4. 30% - Development Fund• Prototype Grants• Small Tech Transfer Grants• Business Plans• Partial Funding OTT/OPC• Patent costs
5. 10% - JHU
![Page 18: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/18.jpg)
IP Policy Income &Distribution
(cont.)
•Multiple Inventors/Creators•Multiple Intellectual Property
Distribution of Unrestricted Income
![Page 19: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/19.jpg)
Examples of Deals
•Option Agreement•Option & Tech Development•License (Straight License Agreement)•License and Tech Development•Spin-Off Company License Agreement
![Page 20: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/20.jpg)
Option Agreement With Lakeshore Cryotronics
• Magnetometer – RTDC• Mature technology - requires a test and
evaluation period by company• Short term option reserves right to a license in
a specific field of use during evaluation• Small monthly option fee during a test and
evaluation period • Negotiate license terms during the option but
after valuation
![Page 21: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/21.jpg)
Option & Technology Development Agreement
with B.F. Goodrich• Micro DSAD - Space Department • Mature but specific work was needed by
company for a business assessment• 6 Month Option - assess license interest• Option Fee and Tech Development (R&D)
during the evaluation period• Negotiate the terms for the license after
valuation• Evaluate other technology of interest
![Page 22: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/22.jpg)
Straight License Agreement with Akorn
• Exclusive license for APL Technology for treatment of Age-related Macular Degeneration
• Mature technology and IP rights (US/world)• Further technology development - Human trials
done at/by company – not APL• Diligence by company to develop/sell products• Large License Fee split into payments• Royalty, Share of sublicensing fees, milestone
payments, reimbursement of IP costs• Company estimates market at $400 Million/yr
![Page 23: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/23.jpg)
License and Technology Development with FutureHealth
• IT Solution - Risk Management for Healthcare Technology early stage - RTDC
• Exclusive license to joint technology being developed with company – APL’s share of IP
• License Fee (cash and stock), significant multi-year Technology Development agreement, royalty on sales of product/service
• Market potential being defined by company• Economic development impact – working with a
regional company
![Page 24: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/24.jpg)
Spin-Off Company License Agreement with Syntonics
• Oscillators - Space Dept – mature technology • Exclusive license for space applications • License Fee (cash and significant equity in
LLC), multi-year two-way Technology Development agreement, milestones, royalty on sales of products, share of LLC earnings
• Market estimated at over $30 Million/year• Resident of NeoTech incubator – local
economic development impact
![Page 25: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/25.jpg)
Statistics
•Option/License Agreements•Licensing Income•Equity•Technology Development Income
![Page 26: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/26.jpg)
Option/License Agreements
• GFY 2000 – 12 separate agreements (35 invention disclosures - bundling)
• AUTM Statistics – Average = 24 agreements– Comparative Placement FY 1999 = 59th/137
Note: Invention Disclosures– APL 143 vs AUTM Average = 73– Comparative Placement FY 1999 = 20th/137
![Page 27: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/27.jpg)
Licensing Income
• GFY 2000 - $2,046,615
• 16 license agreements generating income
• AUTM Statistics – Average Income = $4,930,431– Comparative Placement FY 1999 = 46th/137
![Page 28: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/28.jpg)
Technology Development Income
• GFY 2000 - $1,886,005
• 5 different Projects
• AUTM Statistics – Average = $1,087,000– Comparative Placement FY 1999 = 23rd/137
Note: New Patent Applications– APL 84 vs AUTM Average = 36– Comparative Placement FY 1999 = 12nd/137
![Page 29: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/29.jpg)
Equity
• Equity is held in 6 Companies (1-30%)– Option for an equity stake in an S Corporation– Stock as shares in C Corporations– Options for Stock in C Corporations– “Partnership” in an LLC
• GFY 2000 - Equity in 4 start-up companies and equity through license agreements
• AUTM Statistics – Average for start-ups = 2– Comparative Placement FY 1999 = 16th/137
NOTE: Agreements with Equity 6th
![Page 30: Welcome P&P Topics for GFY 2002 Patent Awards Tech Transfer Cycle: Part III FOOD!!!! PATENTS & PIZZA June 4, 2001](https://reader036.vdocuments.us/reader036/viewer/2022081603/56649d975503460f94a81a4a/html5/thumbnails/30.jpg)
Summary
•License Agreements•IP Policy Income and Distribution•Examples of Deals•Statistics