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 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
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