Student Innovator Training

Conrad Foundation Webinar

12/01/2009

The Conrad Foundation and Fuentek Mainpresent Title…

Spirit of Innovation Technology g Transfer Training Laura A Schoppe President Fuentek, LLC [email protected]

December 1, 2009

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Course Overview Purpose

• Familiarize you with technology commercialization i li ti concepts t

• Understand the fundamentals of intellectual property Objectives • Develop tools to analyze the commercialization potential of your technology t h l

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Conrad Foundation Webinar

12/01/2009

Technology Transfer

What it is?

Why it’s important?

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Tech Transfer: What it is

Technology Transfer • Your • perspective • •

Identify a problem to solve Develop the solution Convert to commercial products Collect revenue

• Create new revenue sources Commercial • Maximize market share perspective • Reduce costs

better, faster, or cheaper = more $

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12/01/2009

Tech Transfer: What it is

Innovation Re-use Agriculture g Energy

Finding new applications for your innovations

Environment Manufacturing Medicine Transportation

… and many other areas 4

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Tech Transfer: What it is

Technology Transfer Example From devices developed for rocket assemblies to walkers for human patients, to a robotic joint allowing horses to remain standing during anesthesia or rehabilitation

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Conrad Foundation Webinar

12/01/2009

Tech Transfer: What it is

Technology Transfer Example NASA-developed temper foam for aircraft crash protection and seat cushions is now used for everything from mattresses and pillows to vehicle seats seats, saddles, roller coasters, and archery targets

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Tech Transfer: What it is

Technology Transfer Example These dental braces use brackets made of a nearly invisible ceramic material. This material is a Spinoff of NASA's advanced ceramic research to develop g materials for new,, tough spacecraft and aircraft

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Tech Transfer: Why it’s important

Benefits to You

Recognition • Conrad Foundation PR • News articles • Apply for awards like R&D 100

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Tech Transfer: Why it’s important

Benefits to You

Recognition Financial • You can license the patented technologies  Up-front license fee  Running royalty (e.g., % of net sales)  Minimum royalty

• Awards can be up to $100,000 9

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Conrad Foundation Webinar

12/01/2009

Tech Transfer: Why it’s important

Benefits to Others

Improves quality of life and public health Helps businesses be successful Increases economic development

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Intellectual Property

What it is?

Why it’s important?

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Conrad Foundation Webinar

12/01/2009

Patent

What Are Patents? •Patent noun, adj, verb pat•ent pat•ent, pat•nt • Exclusive right to an invention • Legal property right to be assigned, sold, or licensed • Enforceable by owner, not the patent office • License gives selected rights to others

Purpose • • • • 12

Preserve the rights to use the invention Establish proprietary rights Enhance the technology’s value Generate income

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Patent

What is Patentable? Device Machine Method Process Product System Technique q

Apparatus Article Chemicals Fixture Material Software Tool

Discovery ◆ Improvement ◆ Innovation ◆ Invention Subsystem • System • Component 13

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Conrad Foundation Webinar

12/01/2009

Patent

Why Protect Your Invention? • Filing a patent application before disclosure/publication protects your rights to the invention – Avoids 1-year clock (“stat bar”) for U.S. patent filing – Preserves the ability to secure foreign patents

• Typically a patent is needed for a license agreement (contract that gets you royalty revenue) • Companies want patents to protect their investment in your technology Keep a record, with accurate dates, of innovations and disclosures in a laboratory notebook to make filing easier 14

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See Appendix A • Other intellectual property definitions • Patenting process • Time line considerations • License types

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Conrad Foundation Webinar

12/01/2009

Commercialization

What do companies want?

How does your innovation fit?

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Commercialization

Things You Should Know

What problem/idea motivated your innovation Can you give an easy-to-understand description of innovation in less than 5 minutes What are unique/novel features and results/benefits What are potential commercial applications Who would license and who will influence decision Can you get intellectual property protection and is it enforceable

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Conrad Foundation Webinar

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Commercialization

Things Companies Care About • Advantages over competition – Quantifiably better – Wanted and/or needed

• Cost to produce – Switching costs – Cheaper manufacturing or materials

• Technology readiness – Proven and demonstrated (risk) – Time to market (investment)

• Market attractiveness – Revenue impact (cost savings, higher margin, greater sales, etc.) – Return on investment

• Intellectual property – Exclude competitors – Enforceable 18

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Commercialization

Criteria for Commercialization • Best potential – Quickest or Technology IP easiest entry Competitive within Protectable time and and – Least expense to investment enforceable implement – Sufficient market Market size Buyer wants or needs

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Conrad Foundation Webinar

12/01/2009

Commercialization

Developing the Technology Description Short, nondisclosing p description First sentence: This technology is

Innovative aspects

Describe what the technology does, not how it does it Focus on fit to market need

Applications who can use it, how, and why

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Benefits better, faster, cheaper

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Commercialization

Example: An Ultra-Efficient FreezeResistant Hydration System

The technology is an innovative freeze-resistant hydration system that substantially improves on existing hydration systems that cannot prevent water from freezing in the tubing, container, and mouthpiece in the harshest conditions on earth. This technology is designed to work to -40o C and 15 mile per hour winds over a 12 hour summit day, and likely well beyond. It was field tested on Mt. Everest in May 2009. Benefits • Improved Safety: Dehydration is a life-threatening complication for high-altitude climbers. The device will provide 2-3 liters of liquid beverage (water, tea or nutritional supplement) over the course of a full summit day. • Lightweight: The straw is insulated with aerogel or other highly efficient insulators, a feature that allows the heating system to work without extra thickness or weight. • Multiple approaches: The technology uses passive transfer of body heat in one option, an intermediate variant system in another, and a battery-powered micro-controller in a third. • Numerous applications: Although designed for climbers, it has applications for cold weather sports enthusiasts (skiers, snowboarders, snowmobliers, etc.) hunters, rescue crews and military personnel. Applications • Mountain climbers • Downhill skiers • Cross-country skiers • Winter campers • Snowmobilers • Hunters • Law enforcement and rescue personnel • Defense environments, including SEAL, underwater, and deep sea use

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Conrad Foundation Webinar

12/01/2009

Commercialization

Identifying Companies • Business Directories – Industry sector lists of key players (companies and executives)

• Market Research Databases – Table of contents and appendix list key companies

• Patent Databases – Assignees are potential licensees

• Online Searches – Companies with similar products

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Commercialization

Understanding the Market • Business Directories – Sales and market share by company

• Market Research Databases – Tables show market share – Pricing and market challenges

• Patent Searches – Inventors can be experts for information – Level of activity shows trends (who has most patents, when were most patents, are there a lot of patents)

• Online Searches – Product features and capabilities 23

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Conrad Foundation Webinar

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Commercialization

Information Sources Business directories

Market research databases

Thomas Register (www.thomasregister.com)

Dialog, Profound, OneSource, InSite Pro ( (www.onesource.com) )

Hoovers (www.hoovers.com)

Frost & Sullivan, BCC, Freedonia (www.bccresearch.com or www.frost.com)

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Patent databases

Online searches

USPTO (patents.uspto.gov)

Yahoo, AltaVista, Bing, Google

Patent Online (www.freepatentsonline.com)

The Standard (www.thestandard.com)

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Commercialization

Key Words • Two to four of the most important and unique words in description • Iterate using more and less words until there is a reasonable volume • Try different combinations of similar words ppe d B for o sea searching c g • See Appendix techniques

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Commercialization

Example Key Words •

Logical combinations – – – – –

•

hydration systems hydration bottles hydration container insulated hydration container high altitude hydration

Patent search results: – JFE Engineering Corp – The Lighthouse of the Blind – Japan Warmer Inc

•

Key player (market research and on-line) patent activity: – CamelBak – 14 patents in hydration area but none appear to be specific for low temperature or high altitude – Johnson Outdoors – over 100 patents but none appear to be related to hydration

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– Chori Company LTD (Japan) – Hama Corporation (Japan) – CardioSearch Inc. – Cascade Designs – 15 patents but none appear to be related to hydration – ARC’TERYX – 2 patents but neither appear to be related to hydration

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Summary

Your Responsibilities • Call upon the expertise of the Conrad Foundation staff and volunteers • Avoid premature and unnecessary disclosure of information • Maintain invention documentation (lab notebooks) • Develop a good marketcentric description • Do research to • Understand market needs and fit • Determine market size • Identify key players 27

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12/01/2009

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Main TitleA: Appendix Additional Patent Information

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Fuentek, LLC

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Patent

Patent Criteria • Not known or published

Novel

Unobvious

– Presentation or publication – Offered for sale – Publicly used

• Not obvious conclusion by those skilled in the art

Useful • Not frivolous or immoral US First to invent Foreign First to file 30

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Patent

Patent Types

• Devices • Methods • Composition of matter

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Patent

Provisional Patent Application • Less formal and less costly than standard application • Invention disclosure, white paper, presentation • No claims required but description must support later claims in regular application • Never examined • Full F ll patent t t application li ti d due within ithi 1 year • Priority date set at provisional filing

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Patent

Patent Cooperation Treaty (PCT) • Allows filing for international patents in selected countries • Must be filed within 1 year of U.S. application • Examiners perform international patent search for applicant • Foreign patent filing due 20 months after priority date

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Patent

Copyright

• Not available if developed solely by federal employees • Underlying concepts may be patentable • Software patentable if integral and necessary for f qualifying lif i machine, hi manufacture, or process • Term of author’s life plus 70 years – Registration – Renewal 34

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Patent

Trademark

• Specification registration • Declaration of continued use or excusable nonuse • Term of 20 years, years renewable for 10 years – Registration – Renewal

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Patent

The Patent Process Invention creation

Patent and Trademark Office examination, office actions, and responses

Novelty search/ assessment

Patent application

Patent granted

Patent granted 3.5 years

20-year term from priority date

7.5 years 11.5 years 36

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Patent

Potential Patent Road Blocks Disclosure • Presentation or publication • Offered for sale • Publicly used

Policies • US: first to invent • Foreign: first to file

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Patent

Timing Considerations must file for patent protection

invent public disclosure

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1 year

stat bar issue US: 20-year 20 year term

file date

no foreign coverage

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Patent

Timing Considerations must file for patent protection

invent public disclosure

invent

1 year

stat bar issue US: 20 20-year year term

file date

patent application

US: 20-year term 1 year

disclosure

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no foreign coverage

foreign: 20-year term foreign applications

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Patent

Types of Licenses

Non-exclusive • Multiple licensees • Risk reduction for NASA

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Exclusive • Field-of-use segmentation • One or limited licensees • Typically higher royalty terms

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Main Title Appendix B: Boolean Searching g

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Searching

Boolean Operators OR

any of the terms

AND

all of the terms

AND NOT

exclude a term

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•42

Searching

Operator OR

razor razor

shave shave

razor OR shave

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•43

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Searching

Operator AND

razor

shave

razor AND shave

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•44

Searching

Operator AND NOT

razor

shave

razor AND NOT shave

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Searching

Proximity Operator IN • Search term TI • Search term in AB

title abstract

For example: – razor TI • razor in the patent title – (razor OR shave) AB • razor or shave in the patent abstract – (vaccine TI) AND (veterinary AB) • vaccine in the patent title, and • veterinary in the patent abstract

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Searching

Proximity Operator NEAR/N (data management) • Returns results such as: – “Process data management system” – “Management of data in a system”

• But ut not: ot – “Host storage management control of outboard data movement using pushpull operations” 47

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•47

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