virginia tech e-club: john geikler on intellectual property

IP 101 and Technology Licensing

VT E-Club

October 11, 2010

Virginia TechIntellectual Properties, Inc.

Virginia Tech Intellectual Properties

OverviewOverview

• BackgroundBackground

• IP typesIP types

• VTIP Licensing ProcessVTIP Licensing Process

• Example TechnologiesExample Technologies

IP 101/Technology Licensing


Geikler BackgroundGeikler Background

• 30 years experience30 years experience– Westinghouse, NASA, intelligence community, industry, Westinghouse, NASA, intelligence community, industry,

universities, research consortiauniversities, research consortia

• Joined VTIP in 2008Joined VTIP in 2008– Manage portfolio of 200+ physical sciences technologiesManage portfolio of 200+ physical sciences technologies

• IP managementIP management– Technology in- & out-licensing, product management, Technology in- & out-licensing, product management,

research roadmaps, scouting, mergers & acquisitionsresearch roadmaps, scouting, mergers & acquisitions

IP Management


IP TypesIP Types

• Trade SecretsTrade Secrets

• TrademarksTrademarks

• CopyrightsCopyrights

• PatentsPatents

IP Management


Trade SecretsTrade Secrets

• Formula, pattern, process, method or know-how Formula, pattern, process, method or know-how that provides competitive advantagethat provides competitive advantage

• Term: perpetual, as long as kept secretTerm: perpetual, as long as kept secret

• No public disclosureNo public disclosure– Can disclose under confidentialityCan disclose under confidentiality

• Cost: no registration but cost to maintain secretCost: no registration but cost to maintain secret

IP Types


TrademarksTrademarks

• Non-functional word, logo, symbol or design that Non-functional word, logo, symbol or design that distinguishes a productdistinguishes a product

• Protection from copying or confusingly similar Protection from copying or confusingly similar

• Term: perpetual if worked, policed, & defendedTerm: perpetual if worked, policed, & defended

• Registration (by jurisdiction) recommendedRegistration (by jurisdiction) recommended

• Quality implicationsQuality implications

• Cost: Inexpensive to register – but multiple Cost: Inexpensive to register – but multiple countries and maintain, work & defendcountries and maintain, work & defend

IP Types


CopyrightsCopyrights

• Protects works of authorship from copyingProtects works of authorship from copying– Expression, not ideaExpression, not idea

• Arises at creation in a tangible mediumArises at creation in a tangible medium– Registration recommendedRegistration recommended

• Term: ~ author's lifespan plus 70 yearsTerm: ~ author's lifespan plus 70 years

• Need not fully divulge – e.g. softwareNeed not fully divulge – e.g. software

IP Types


PatentsPatents

• Protects idea by excluding others from making, Protects idea by excluding others from making, using, selling using, selling

• 20 Years from filing (14 for design)20 Years from filing (14 for design)

• Must provide enabling descriptionMust provide enabling description

• First to invent vs. fileFirst to invent vs. file

• Expensive to register & maintain Expensive to register & maintain

IP Types


Comparisons of IP TypesComparisons of IP Types

• What is protectedWhat is protected

• Strength of protectionStrength of protection

• TermTerm

• TerritoryTerritory

• RegistrationRegistration

• MaintenanceMaintenance

• Other costsOther costs

• Enabling competitionEnabling competition

IP Types


VTIP MissionVTIP Mission

• Technologies become products that benefit societyTechnologies become products that benefit society

• Additional benefitsAdditional benefits– Sponsored researchSponsored research

– Faculty start-upsFaculty start-ups

– Complementary researchersComplementary researchers

• VT and inventors reap financial benefitsVT and inventors reap financial benefits• Inventors - 50%Inventors - 50%

• Department - 10%Department - 10%

Licensing


VTIP FY10VTIP FY10

• $ 3.3 M Licensing Income$ 3.3 M Licensing Income

• 44 Licenses/Options44 Licenses/Options

• 148 Invention Disclosures148 Invention Disclosures

• PatentsPatents– 96 provisionals96 provisionals

– 65 worldwide applications65 worldwide applications

– 37 issued37 issued

• 4 Associates4 Associates

BackgroundBackground


Patentability & Commercial PotentialPatentability & Commercial Potential

• PatentabilityPatentability– Can an invention be patented?Can an invention be patented?

– How strong a patent?How strong a patent?

• Commercial PotentialCommercial Potential– Is there a market?Is there a market?

– Is there a commercial partner?Is there a commercial partner?

VTIP Decision Criteria


LicensingLicensing

• MarketMarket

• NegotiateNegotiate

• AdministerAdminister

VTIP Commercialization Process


Commercial PotentialCommercial Potential

• Market sizeMarket size

• Industry structure/Value chainIndustry structure/Value chain

• BarriersBarriers

• CompetitionCompetition

• Partner EvaluationPartner Evaluation

Commercial Assessment


Market Research/MarketingMarket Research/Marketing

• Identify value chainIdentify value chain

• Interview expertsInterview experts

• Develop marketing strategyDevelop marketing strategy

• Making ContactMaking Contact

• EvaluationEvaluation

Marketing


License ValuationLicense Valuation

• Industry normsIndustry norms– http://www.njsbdc.com/SciTech/scitech120804weiler.ppt#445,42,RoyaltySource® Transaction Analysishttp://www.njsbdc.com/SciTech/scitech120804weiler.ppt#445,42,RoyaltySource® Transaction Analysis

– Income modelingIncome modeling

– 25% Rule25% Rule

• ComparablesComparables– www.royaltysource.com

• Establish ranges to support negotiating strategyEstablish ranges to support negotiating strategy

• PrinciplesPrinciples– Partnering - shared risk & rewardPartnering - shared risk & reward

– Recognize risks and contributions on both sidesRecognize risks and contributions on both sides

– Know walk-awayKnow walk-away

Negotiation


Example TechnologiesExample Technologies

• VTIP Available TechnologiesVTIP Available Technologies– http://www.vtip.org/availableTech/http://www.vtip.org/availableTech/

• Energy/Nano - e-ZLMEnergy/Nano - e-ZLM– http://www.vtip.org/availableTech/technology.php?id=282293http://www.vtip.org/availableTech/technology.php?id=282293

• Software/Medical – Ultrasound Cardiac DiagnosticSoftware/Medical – Ultrasound Cardiac Diagnostic– http://www.vtip.org/availableTech/technology.php?id=261231http://www.vtip.org/availableTech/technology.php?id=261231

VTIP Portfolio


Questions? Questions?

John GeiklerJohn Geikler

[email protected] [email protected]

(540) 443-9228(540) 443-9228

www.vtip.orgwww.vtip.org

IP 101

virginia tech e-club: john geikler on intellectual property

Education

competition ip types

secret ip types

comparisons of ip types

software ip types

licensing market

vtip portfolio

vtip mission technologies

licensing income