University TechTransfer Who Does It Serve Who Owns IP A University Perspective

1
University TechTransferWho Does It Serve ? Who
Owns IP ? A University Perspective

• American Chemical Society
• Orlando, April 2002
• John Fraser
• The Florida State University

2
Impact of University Research/Inventions

• Products - Insulin, Gatorade, Taxol, Pablum,
  Strawberry Varieties, etc
• New Industries - Netscape, Gene Engineering

3
Does It Serve the University ?

• Very high risk
• As a business model, poor ROI, but serves
  University in public service mandate
• Partnership with business for development only
  way to go - add skills, spread risk.

4
University Ownership Of IP ?

• Bayh - Dole Act allows/encourages it
• Different culture / Different Ground Rules
• the Commons Argument
• Status Quo - many firms find acceptable
• Corporate funding usually adds increment to
  previous IP, corporate ownership of new IP
  complicates situation

5
Own, but License

• A workable mechanism - License IP
• Terms are usual in that industry
• Exclusive, long term - pharma
• Non-exclusive, short term - chip
• RD grant, plus 5 royalty over time
• Dealing with TT Office
• Moving to Efficiency

6
Why Own? - Incentives

• Incentives drive the US economy
• Incentive to commercialize for public good
• With ownership, US Universities cover up-front
  costs, then share revenues, generously, with
  inventors

7
Why ? - Start - Up Companies

• Bulk of University research too early for
  corporation development
• Start-Up companies (454 reported in 00)
• 3,300 since 1980. e.g. Genentech, Chiron, Cetus,
  Akamai, etc.

8
Changes in IP Ownership?

• Problems - like any large industry activity
• Financial conflicts, mistakes, cover-ups
• Activity created by Government legislation for
  job creation can change with society needs -
  drug prices, etc.
• Evolutionary vs. Revolutionary

9
Conclusion

• Current IP ownership by University works
• All Parties can do deal
• All Parties benefit
• What is alternative? Why? Who benefits?