Technology Transfer Leading Intellectual Property to Tangible Results Elandel Forum Mit Israel

1. Turning Technology
into Business
Turning Technology
into Business
Technology Transfer
Leading Intellectual Property to Tangible Results
Raphael Barki
VP Marketing, Elandel Services
raphaelb@elandel-services.com
Tel. +972-73-2262614
Mob. +972-52-3000519
Day of the Entrepreneur
June 3rd, 2008 - Tel Aviv University
MIT Enterprise Forum, Israeli Chapter

2. Outline
• Intellectual property -
protecting your innovative
ideas
• Technology transfer - from
theoretic ideas to practical
products and services
• Monetization - when intangible
assets generate tangible
results

3. • 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

4. 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

5. 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

6. Definition of Technology Transfer
the process of
transformation
of the results of
R&D into
marketable
products or
services

7. • Tech. Transfer
office
• Tech. Transfer
office
• Incubator
• Business Angels
• Founders
• Friends / family /
fools
• Venture Capital • IPO
• Trade sale
R&D /
patent
Proof-of-
Concept /
Prototype
Seed capital
Series
A
Series
B
Series
C
Start-up
Growth
company
Spin-off
Licensing
Technology Transfer Critical Link between
a Bright Invention and a Business

8. 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?

9. 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

10. Suitable for the Israeli Market?
personal rain saver
cockroach swatting slippers
solar powered lighter

11. 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

12. 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

13. 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

14. IP Sellers and Buyers - Drivers
NPE = non-practicing entity
patent trolls (a.k.a. NPE)
bankrupt
need claims for litigations
sell rather than litigate
market control
build relation
buying simpler than filing
just research
strengthen IP portfolio
not core business
shorten the R&D cycle
immature technology
gain competitive advantage
willing to monetize now
buyers
sellers

15. Israel #1 in Patent Filings

16. Israel's Competitive Edge
Source: World Economic Forum
Global Competitiveness Yearbook
2006-2007

17. Israeli Universities
Tech 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)

18. 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