Transcript Innovations at U of T the business of ideas

Innovations at U of T
the business of ideas
Presentation to the Institute for Optical
Sciences
December 1st, 2006
Dr. Cyril Gibbons
Director, Commercialization
Physical Sciences and Engineering
Synopsis
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IUT and UofT
IUT and IOS
Ontario Research Commercialization
Program (ORCP)
Why Commercialise ?
Licensing and Spin-outs
Success Stories
Summary
IUT and U of T
• Innovations at U of T is the commercialization arm
of the University of Toronto
• IUT comprises a staff of commercialization
professionals concentrating their efforts in three
areas:
• life sciences
• IT/communications
• physical sciences/engineering
IUT and U of T
• Now part of the Office of the VicePresident, Research and Associate
Provost
• “One-stop Shop” – directed by Executive
Director/Assistant Vice-President of U of T:
• IUT – Commercialisation
• IP and Contracts – Research Services
• IUT works ONLY with researchers at U of T
and the affiliated hospitals.
UofT Inventions Policy
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Inventions are initially co-owned by
inventors and UofT
 You have the right to:
• take personal ownership (with the other inventors) or
• offer (assign) ownership to the University
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Owners receive 75% of net revenues
Assignment to: UofT Share
UofT
75%
Inventors
25%
Inventor Share
25%
75%
Partnering with IUT
Most inventors take personal
ownership, but many then partner with
the IUT to help with patenting and
commercialisation
 Revenue Sharing then changes to:
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• Inventors – 60%
• UofT/IUT – 40%
What can IUT do for you?
IUT can help you
• License technology
• Create spin-off companies
• Find funding for:
• Spin-offs
• Proof of Concept / Commercialisation
• Facilitate relationships with industrial
research sponsors
Why work with IUT?
• We protect your intellectual property
• We pay the bills and handle the paperwork
• We manage a process that can take up to
seven years
• We source industrial or financial partners
• We negotiate the deals
• You are free to concentrate on your
research
Why work with IUT?
• We have close relationships with investors
of different scales (angels, venture capital
firms)
• IUT Staff have experience:
• Technical - industry and academia
• Commercial – Finance, Business Development
• Legal – IP deals, patent prosecution
• New location - MaRS Discovery District >>
enhanced visibility and network of
connections
Why work with IUT?
• Key Staff:
• Physical Sci/Engineering Group:
• Mark Bennett: (IOS contact): semiconductors,
materials, photonics, nanotechnology
• Cyril Gibbons: chemistry, energy & environment,
materials, engineering processes
• Sam Visaisouk: engineering (mechanical, chemical)
manufacturing, materials
• Fabio Almeida: electronics, photonics, sensors
• IT Group: software, telecoms, wireless
• Life Sciences Group: pharma, biotech, medical
Project Screening
• IUT does not take on every disclosure
• Key screening criteria:
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Market potential
Patentability
Stage of development
People
MARKET POTENTIAL !
IUT and IOS
Collaborative Partnership wrt
commercialisation
 Contacts:
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• Mark Bennett (IUT)
• Karen Grant (IOS)
IUT and IOS
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IUT/IOS Technology Assistants
• Grad students trained in due diligence
for commercial opportunities
Collaboration on NSERC I2I
applications
 “Working structure” to look at other
opportunities in technology transfer
and industry relations
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ORCP
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Tech Transfer Toronto
– Proof of Principle Fund
• 10-15 projects annually:
• Stage 1 ($15k - $25k)
• Stage 2 (up to $60k)
• Eligible activities:
• Stage 1: technical feasibility and technology
assessments, Business plan development,
Competitive market intelligence / Market studies
• Stage 2: Prototyping / New product development
(75% of the fund)
ORCP
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Tech Transfer Toronto
• TTT Network includes
– UofT, Sunnybrook, Bloorview Kids Rehab, Toronto
Rehab and York University
– OPIC and CNII
• Three Technology Transfer staff to manage
program and support projects
• TTT POP fund is open to all members of the
TTT Network if approved by the Tech Transfer
Office or Business Development Officer
Why commercialize?
• It brings recognition to you and to your
institution
• It allows you to see your hard work being
put to use
• Products created from your research could
help create jobs and wealth, save lives or
improve living standards
• It can be profitable
Commercializing Inventions
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First step is to obtain ownership from the
University:
• Disclosure
• Assignments
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Decide if you want to do it on your own or
work with a partner (e.g. IUT)
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Commercializing IP takes time, money
and expertise. Most inventions never
even recoup costs of patenting.
Licensing
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Licensing is a contractual arrangement
allowing someone to make, use or sell
your patented technology without fear
of litigation, usually for a share of profits
(royalties)
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Advantage over selling IP because a
license can be terminated – ownership
is forever!
Licensing Arrangements
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Exclusive vs. non-exclusive
Limited by:
• field-of-use and/or
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territory
Up-front fee, Annual fee, percentage of sales,
per unit fee
Royalty rate will depend on market-readiness,
profit margins and value added or cost savings
• Never over-value your IP (1-5% is typical)
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Annual minimums, milestones
Start-up companies may want ownership
Start-Ups
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Very difficult to commercialize disruptive
technologies by licensing
• Set up a company to develop, prove concept,
prove market etc.
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A technology company is not likely to
succeed on a single product idea
• need a platform technology/ies
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Most VCs will not be interested in companies
with products whose target revenues are
under $100 million annually.
Company Creation
Technology ≠ Product
 There is always a competitive product
 People factors and management
experience start to overtake technology in
importance
 Time to market vs. burn rate is critical
consideration
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Success Stories
Opalux Inc.
• Photonics Crystals IP – Geff Ozin
• IUT managed the IP portfolio
• IUT brought in:
• Angel Investors
• CEO
• Funding (OCE/MMO)
• IUT negotiated the deals:
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3 patents licensed in return for equity and royalty
Shareholders agreement
Ongoing research contracts
Investment in company
Summary
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If you think something may have commercial
value, take the time to get advice and consider
patenting
Do not disclose in a public forum unless you are
certain you have no wish to patent
• Patent, Publish, Prosper!
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You are in the driver’s seat, but there is lots of
assistance available
* ALWAYS DISCLOSE TO UofT *
Finally
Any Questions?