Transcript Today, I propose that we accept the challenge to place

Marketing of an Intangible Asset
with Limited Resources
"Marketing Your Innovations: Best
Practices for Tech Transfer
Professionals"
September 5, 2007
Michael J. Martin
President
TechTransfer Associates, Inc.
1
Outline
• Marketing with Limited Resources and Multiple Jobs in
a Small Office (≤ 3 FTE )
• The TTO Brand – Internal and External
• Marketing vs. Selling
• Success Stories from the Front Lines
2
How Small is Small?
• 50.3% of offices ≤ 5 FTE
• 31% of offices ≤ 3 FTE
3
Multiple Jobs: How to Prioritize
•Research Agreements, MTA,
CDA
•Encourage and Evaluate
Disclosures
•IP Resource for University
•Economic Development
•Manage Patent Applications
•Market Disclosures
•Negotiate Licenses
Inactivate
Inactivate
Administration
•Manage Licenses
•Maintain Patents
Faculty
4
Industry
How to Create a Intangible Marketing Organization
3 to 10 years; 0.5 to $20 million
Concept
Generation
Technology
Feasibility
Basic Research
~ 10% cost
Product
Development
Pilot Plant
Scale up
Interim
Mfg..
Commercial
Operation
Applied Research and Development
90% Cost
• Leverage
• Barriers to success
 Highly capable people that can multi-task: Be not afraid,
Many hats
 Wise and creative use of resources: Interns, Review
Committees, Alumni, Customer Service Surveys, Lawyers
 Know your priorities: Deals, Research, Disclosures
 Be Present in the Community
5
– Confronting the Star
– Leadership is not
Committed
– Do More with Less:
Burnout
Internal Branding of TTO
• Positioning Statement: “VTIP is a
full service affiliate that can
leverage the commercialization
of technology and help attract
research funding.”
– Increase disclosures by increasing
inventor recognition.
– Strengthen customer service image
Disclosures
140
120
100
80
60
• reducing time from disclosure to
notification of intent
• reviewing commercialization plans with
faculty.
40
20
0
FY 94
6
FY 95
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
Invention
• Create Atmosphere for Invention disclosures
– Remember: Not part of academic culture and Research agenda not
set by market place
– Walk the halls; Get to know the stars
• Work shops about what is IP and how it supports
Research/Economic Development/ Academic mission
• Receptions that recognize inventors, patent recipients, etc; but
invite everyone.
• Respond quickly – 48 hr receipt, 2 – 3 months interview, 6 –
12 months plan.
7
Positioning with the Faculty
Position: TTO can assist in
• Career Development - Patents are dissemination
• Research Development - IP is Gateway to Industry
• Income Development - “Homeruns”
How
• Work with only 10-20% of the faculty – identify the stars
and determine their interest in commercialization.
• Ask questions – not an expert in anything but IP and
business development
• Offer assistance to complete disclosures
8
Lessons Learned Dealing with faculty
– Offer assistance in forming research consortia
– Offer workshops to departments, lectures to graduate
and undergraduate classes; and the staffs of Deans
and Directors.
– Involve the faculty in marketing and negotiating but
explain there can only be one person at the table
– If interest in starting business, require that they have a
business person involved with whom you will negotiate
9
Positioning with university and lab
administration
• Position: TTO is the most viable expression of the
outreach mission
• How
– TTO could generate financial support for the
university, but manage expectations
– Benchmark with best practice
– COMMUNICATE! COMMUNICATE! COMMUNICATE!
10
External TTO Branding
•
•
Reposition VTIP from a reactive
property management organization to
an independent, successful affiliate
organization with: an industrial
oriented portfolio, a targeted
promotional strategy, significant
licensing flexibility, and a strong
entrepreneurial focus.
The goals of this repositioning are to:
FY '97 Forecast of
Licensing Income From
New Licenses
$250,000
$200,000
– Increase income from new licenses
managed by VTIP to $400,000 by FY 1999.
– Become a “recognized” leader in University
Technology Transfer.
– Be recognized as a “partner” in attracting
research investment for the University.
– Increase “active” participation in economic
development for the Commonwealth.
New Software
$150,000
New Physical
Science
$100,000
New Life Science
$50,000
$0
1996
11
1997
1998
1999
Position of TTO with legislators and community
development agencies
• Position: The TTO is a representative of the university
community that is willing and able to add economic
wealth to the state/nation
• How:
– Explain the difference in cultures, missions, and role each
plays in economic growth
– Support matchmaking efforts with workshops and tech
transfer trade fairs.
– Think about the necessary legislation and work with
appropriate representatives.
12
Position of TTO with Business
• Position: TTO is the flexible, entrepreneurial
organization representing the University
• Prospective Licensees
– Demonstrate an understanding of business/ product
development principles and their objectives in
licensing outside technology.
– Explain the goals of the TTO/University/Lab:
Dissemination and betterment of society
– Return phone calls and e-mails within 48 hours.
– OPEN COMMUNICATION AND TRANSPARENCY
13
Position of TTO with Business
• Position: TTO is the flexible, entrepreneurial
organization representing the University
• Prospective Research Sponsors
– Share research capabilities/capacity with industry
– Set up meetings with faculty with similar interests
– Listen to business development needs.
– Do not have to give away IP.
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NO, Return to
Inventor?
Disclosure
Evaluation
Marketing – Define the Product
Maybe, Discuss with Inventor
YES, Submit for Patenting/Marketing
• Protectability – Is there an invention?
• Technical Merit – “Robust Solution” to an “Important
Problem”?
• Commercial Potential – Multiple applications?
• Inventor Attitude – Participate in commercialization?
• Economic Development – Start-up?
15
Marketing – Define the opportunity
• Market Research: Outside the box
– Market(s) Potential
– Market(s) Trends (Technical and Business)
– Market(s) Competitive Analysis
Marketing/
• Use Students – provide outline with Selling
expectations (preliminary decision tool)
• Use Alumni – involve beyond $
• Use Faculty – Know more than they
know @ business development
16
Marketing – Define the Promotion
Strategy
• Develop single page, nonconfidential description with:
problem solved, benefits of
solution, potential applications,
and status.
• Promotions Strategy:
– Determine Media to communicate
solution to market
– Effective use of interns
17
Marketing/
Selling
Selling - Develop Contacts
•Inventor network
•Business network
•Internet Listings
•Patent Citations
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Selling - How Do We Find Each Other
• Industry and Professional Associations
– Volunteer to speak
– Participate as mentor, leadership positions, meeting
planning
• Trade Shows
– Target both geographically and market sector
– Collaborate with other outreach efforts on booth
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How Use the Internet
• Web Sites
– Two audiences: Internal and External
– Make it easy to do business: Be
Transparent and easy to find.
– Succinct, Interactive, Searchable
– 85% use Search Engine
• E-mail
–
–
–
–
–
Readable Format
Excite interest (Why take action)
NO or Limited attachments (Firewalls)
Link to more information
All contact information in signature,
including phone number
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Success Stories: Support Research CPES
• ERC proposal – NSF requires IP plan
• Negotiated MOU with 5 universities and industry
advisory board.
• Developed Agreements for 2 different
membership levels
• Developed IPPF – Fund and Process for
Patenting CPES inventions
• NSF uses CPES as a Model
21
Success Story: Vacuum Dryer for
Wood
• Simple, robust solution for
critical market problem
• Post on web site then:
• Option to build prototype
• Have two orders if it
works
60
50
MC%
– Market rep wants to start
business
– Pacific Rim inquiry
70
40
30
20
10
0
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75
Time (h)
Drying curve for red oak part
22
Success Story: Direct Marketing with
Start-up
• Initial Marketing VTIP/Atlas
– Product = Beta Tested
– Price = $32,000 to $16,000 to $5,000
– Promotion = Newsletters, Trade Shows,
Testimonials
– Position = Another advancement from
VT
– Protected Niche = Loyal to Librarian
Solutions
• Now OCLC/Atlas
23
Summary - Balance of Skills for small TTO
• Social – Bridge two cultures and translate benefits/needs
• Business – Work in both not for profit accounting and investment
capital, product development analysis
• Science – Understand the basic underpinnings and look beyond
the initial application of discovery
• Law – Understand the basics of intellectual property law and be
able to read and negotiate license agreements
Dealmaker
Technician
(Market/Business/Product
Developer + Sales+
Negotiator)
(Patent Agent +
Scientist +
Engineer)
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Summary - Marketing v. Sales
• Position TTO as a proactive entrepreneurial
agent of the university for faculty and business
• Leverage students, alumni, advisory boards, and
the web
• Be Present in the Business Development
Community
• Communicate! Communicate! Communicate!
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Dealmaker
Technician
(Market/Business/Product
Developer + Sales+
Negotiator)
(Patent Agent +
Scientist +
Engineer)
“We need a bullheaded yet friendly individual for a highly
repetitive and completely thankless job. They should be
willing to take extreme pressure from both sides of a
negotiation, accept terms that make no sense as political
presses require, and fully accept blame for all unfavorable
outcomes from such decisions. Now the salary would be
commensurate with low-level administrative positions which
require none of these skills. Interested?”
R. MacWright , UVAPF
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