raphael barki technology transfer

Turning Technology

into Business

Turning Technology

into Business

Technology TransferLeading Intellectual Property to Tangible Results

Raphael BarkiVP Marketing, Elandel Servicesraphaelb@elandel-services.comTel. +972-73-2262614Mob. +972-52-3000519

Day of the EntrepreneurJune 3rd, 2008 - Tel Aviv UniversityMIT Enterprise Forum, Israeli Chapter

Outline

• Intellectual property -protecting your innovative ideas

• Technology transfer - from theoretic ideas to practical products and services

• Monetization - when intangible assets generate tangible results

• Anyone can buy real estate

• Anyone can build manufacturing capacity

• Anyone can borrow money

• Anyone can hire an ad agency

• Anyone can hire skilled labor

but

only IP provides a unique advantage

The Differentiating Value of IP

Why IP Protection?

• IP is unique

• Inventions can lead to better products or processes (R&D)

• IP protection safeguards your competitive advantage (marketing)

• Investors love protected IP

When Is IP More Valuable?

• Broad scope– Trial & error in product development

– Multiple applications

– Wider IP protection

• Pioneering nature– First mover and learning curve advantage

– Less prior art means better IP protection

• Exclusivity

• Age

Definition of Technology Transfer

the process of transformation of the results of R&D into marketable products or services

• Tech. Transferoffice

• Tech. Transferoffice

• Incubator

• Business Angels

• Founders

• Friends / family / fools

• Venture Capital • IPO

• Trade sale

R&D /

patent

Proof-of-

Concept /

Prototype

Seed capital

SeriesA

SeriesB

SeriesC

Start-upGrowth

companySpin-off

Licensing

Technology Transfer Critical Link betweena Bright Invention and a Business

From Ideas to Business

• Technology is a driver of success

• Sometimes unavailable inside the organization

• Buyers don’t care about technology, they care about what’s in it for them and why they should care

• How much units can it sell and with what profit

• How strong is IP protection?

• Is it ready for manufacturing?

Darwinism Applies to IP

• At least 70% of university patents never find a commercial home (Technology Transfer Tactics)

• 80% of inventions licensed by MIT never ship (Academy of Mgt. Journal)

• Only 1% of University technology disclosures ever ship (AUTM & independent data)

• Independent inventors face even more challenging odds

Suitable for the Israeli Market?

personal rain saver

cockroach swatting slippers

solar powered lighter

How to Transfer Your Technology

• Understand the position of your IP within the technology marketplace

• Have clear in mind all technology, legal and business aspects

• Define a compelling business value proposition

• Target large, growing markets with licensable applications

Technology Transfer Deliverables

• Technology assessment

• Market analysis and target applications

• Create and manage the marketing process

• Identify prospective buyers and licensees

• Deal negotiation

• Patent sale, licensing agreement, investment, acquisition

Technology Transfer KSF*

• Access to technical decision makers and IP executives

• Keep it confidential

• Marketing and communication skills

• Negotiation and deal closure capability

* KSF = Key Success Factors

IP Sellers and Buyers - Drivers

NPE = non-practicing entity

patent trolls (a.k.a. NPE)bankrupt

need claims for litigationssell rather than litigate

market controlbuild relation

buying simpler than filingjust research

strengthen IP portfolionot core business

shorten the R&D cycleimmature technology

gain competitive advantagewilling to monetize now

buyerssellers

Israel #1 in Patent Filings

Israel's Competitive Edge

Source: World Economic Forum Global Competitiveness Yearbook 2006-2007

Israeli UniversitiesTech Transfer Income (2007)

• Yeda (WIS): $100M

• Yissum (HUJ): $40M (400 licenses in 40 years)

• Ramot (TAU): $6.7M, 26 deals (11 in Israel)

• BGN: 15 licenses in 3 years

Sources: Globes, universities’ web sites

TT market value ~US$105B (Forrester Research)

Conclusions

• By protecting your IP you protect your competitive advantage

• Technology transfer is not a trivial process (Darwinism)

• Intangible assets can generate tangible revenue

Raphael Barki+972-52-3000519

raphaelb@elandel-services.com