Commercialisation Of Technology: Key Issues To Remember

1) Universities or other private and public institutions regularly undertake research on various areas. Very often the research has as its ultimate goal commercialization, profit-making and winning competition. Research may be commercialised in two ways: (i) New companies are created which are provided with access to the intellectual property rights (IPR), facilities or assets of one party; (ii) Technology may be made available to existing companies. Typically, this would involve the commercial licensing of research work directly to industry, for example, to large pharmaceutical or medical companies.

2) For a collaboration to take place there needs to be an agreement between the parties in place clearly setting out the contributions of each party and of course the rewards should the technology be proved successful. This is achieved by entering into a Technology Transfer Agreement, which addresses the following:

1. Nature of the IPR involved/transferred
Define exactly what rights are to be transferred.

2. Method of the transfer
The next most fundamental issue to be resolved is the method by which the IPR will be transferred from one or more parties, that is, by assignment or licence.

a. Assignment
An outright assignment gives the assignee greater freedom in relation to the technology, since in a typical assignment, there are few, if any, controls placed on the assignee by the assignor. In the event of insolvency, the assignee has an asset that can be sold to create value for the shareholders. Of course, if the assignee has become insolvent it may be because there is no market for the product. However, if the product has failed for other reasons, such as lack of marketing support, lack of follow-on funding, or issues affecting customers a willing buyer may exist for the technology. The practical benefit is that it should be easier (or cheaper) to raise funds if the assignee has some form of assets. Investors usually prefer to invest in a company which owns and has freedom to use all of its assets. If an outright assignment is not possible, this can also be achieved with an exclusive licence.

b. Licences
A licence gives the parties a greater feeling of control and also an ability to participate in any successful commercialisation of the technology through royalty streams, as well as being able to participate in any growth of the spin-out business as a shareholder. A licence also ensures greater flexibility for the party; it may be possible to provide that the licence terminates if certain conditions are fulfilled (for example, if the licensee fails to exploit or to exploit successfully the transferred technology). The licensor then has the option to take back the licence and perhaps proceed with a new licensee.

A compromise worth considering is a licence with an assignment trigger built in. The trigger can be linked to the value of the licensee, the return to the licensor(s), or to some other factor. In this way the licensor(s) are protected at a time when the spin-out is most vulnerable and, from the licensee’s point of view, should it succeed, it is very likely that it will end up owning the technology outright.

In other scenarios, the licensee can be expected to agree to certain performance criteria. These will often be linked to the number of sales or revenue generated from sales or other commercial exploitation of the licensed technology. Failure to meet the criteria will see the licence come to an end or for the licence to become non-exclusive instead.

3. Consideration
The consideration for the transfer of technology can be made up of equity, up-front payments, royalties, or a mixture of all three. This tends to be an area which is most heavily influenced by policies adopted from time to time by the various parties to the agreement. Other factors may affect the value, for example, where one or more of the contributors to the technology was not an employee, but for example, a post-graduate student or consultant. In fact, a post-graduate student will generally fall outside the definition of “employee” under the Copyright, Designs and Patents Act 1988, and so the IPR may not belong to the university.

4. Other rights and obligations
Whatever the nature of the IPR transfer, the parties need to agree what continuing rights (if any) the parties will have to use the IPR. If a party is a university it is generally agreed that the university can continue to carry out non-commercial research and teaching using the transferred technology. However, it is worth investigating whether there are existing research projects, such as PhD theses, which need to be completed. If so, specific rights should be carved out of the transfer agreement as necessary to ensure that these projects can be completed. Also it is important to have a clear agreement as to which party will bear and be responsible for: (i) any prosecution and other protection of the transferred rights costs (for example prosecution of patent applications so that they become patents granted!) and (ii) any regulatory licences and approvals.

5. IPR Infringements
The key question to be addressed is which party will have primary responsibility for dealing with any IPR infringement of the transferred technology. It is important for the spin-out company/licensee to ensure that it has the appropriate rights to take action against a third party which is infringing the transferred technology in some way.

This article is for general purposes and guidance only and does not constitute legal or professional advice.

Copyright 2010 © Anassutzi & Co Limited. All rights reserved. Information may be shared or reproduced only if accompanied by the author’s name and bio.

Using Technology To Prepare For A Disaster

There are many types of emergencies that can strike virtually without notice at any time. Because of this, it is important to be as prepared as possible. One of the most important steps that should be taken should an emergency occur is the notification of the emergency to as many people as possible. This can be difficult, as you are often trying to reach a large number of people in a very short period of time, but there are developments in technology that make this an easier task than it has been in the past.

If you run a large company, you probably have a high number of employees. You will want to make sure all of them are notified quickly should an emergency occur. This can be especially important if evacuation is necessary, as there is often little time for everyone to leave the building or primacies. That is why an automated dialing system is a good idea.

An automated dialing system can be custom configured to fit your specific needs and are ready to dial upon receipt of the proper notification. Through such a system, you will be able to customize the voice scripts used usually through a vast library provided by the company installing the system. This library will most likely include all of the commonly needed scripts that explain what to do in the case of various emergencies. When a particular emergency occurs, the system is configured to recognize it, either through automation or a cue from you, and respond accordingly.

It is also possible to load over 200,000 phone records based on the zip codes you select when programming the system. It is also possible to load several Federal No Call Area Codes based on your specific registry.

It is a good idea to carefully consider your programming options when installing such a system, and make sure you have implemented them so they will be ready if and when they are needed. The next step is to notify your employees of what to expect, should an emergency occur. Show them the system, and let them hear a sample of a pre-programmed message so they will be somewhat familiar with it should they ever need to hear it. It is always important to keep in mind that the more prepared you are, the more prepared your employees will be, and the faster everyone will be able to execute an emergency plan. This is a piece of technology that will serve you well for many years to come.