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Marketing of an Intangible Assetwith Limited Resources

"Marketing Your Innovations: Best Practices for Tech Transfer

Professionals"September 5, 2007

Michael J. MartinPresident

TechTransfer Associates, Inc.

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Outline

• Marketing with Limited Resources and Multiple Jobs in a Small Office (≤ 3 FTE )

• The TTO Brand – Internal and External

• Marketing vs. Selling

• Success Stories from the Front Lines

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How Small is Small?• 50.3% of offices ≤ 5 FTE• 31% of offices ≤ 3 FTE

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Multiple Jobs: How to Prioritize•Research Agreements, MTA, CDA•Encourage and Evaluate Disclosures•IP Resource for University•Economic Development

•Manage Patent Applications•Market Disclosures•Negotiate Licenses

•Manage Licenses•Maintain Patents

Inactivate Inactivate

Administration Faculty Industry

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How to Create a Intangible Marketing Organization

• Leverage Highly capable people that can multi-task: Be not afraid,

Many hats Wise and creative use of resources: Interns, Review

Committees, Alumni, Customer Service Surveys, Lawyers Know your priorities: Deals, Research, Disclosures Be Present in the Community

• Barriers to success– Confronting the Star– Leadership is not

Committed– Do More with Less:

Burnout

3 to 10 years; 0.5 to $20 million

ConceptGeneration

TechnologyFeasibility

ProductDevelopment

Pilot PlantScale up

InterimMfg..

CommercialOperation

Basic Research~ 10% cost

Applied Research and Development90% Cost

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Internal Branding of TTO

• Positioning Statement: “VTIP is a full service affiliate that can leverage the commercialization of technology and help attract research funding.”– Increase disclosures by increasing

inventor recognition. – Strengthen customer service image

• reducing time from disclosure to notification of intent

• reviewing commercialization plans with faculty.

Disclosures

0

20

40

60

80

100

120

140

FY 94 FY 95 FY 96 FY 97 FY 98 FY 99 FY 00 FY 01

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• Create Atmosphere for Invention disclosures– Remember: Not part of academic culture and Research agenda not

set by market place– Walk the halls; Get to know the stars

• Work shops about what is IP and how it supports Research/Economic Development/ Academic mission

• Receptions that recognize inventors, patent recipients, etc; but invite everyone.

• Respond quickly – 48 hr receipt, 2 – 3 months interview, 6 – 12 months plan.

Invention

Protect if Publication is Imm

inent

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Positioning with the Faculty

Position: TTO can assist in• Career Development - Patents are dissemination• Research Development - IP is Gateway to Industry• Income Development - “Homeruns”How • Work with only 10-20% of the faculty – identify the stars

and determine their interest in commercialization. • Ask questions – not an expert in anything but IP and

business development• Offer assistance to complete disclosures

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Lessons Learned Dealing with faculty

– Offer assistance in forming research consortia

– Offer workshops to departments, lectures to graduate and undergraduate classes; and the staffs of Deans and Directors.

– Involve the faculty in marketing and negotiating but explain there can only be one person at the table

– If interest in starting business, require that they have a business person involved with whom you will negotiate

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Positioning with university and lab administration

• Position: TTO is the most viable expression of the outreach mission

• How – TTO could generate financial support for the

university, but manage expectations– Benchmark with best practice– COMMUNICATE! COMMUNICATE! COMMUNICATE!

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External TTO Branding• Reposition VTIP from a reactive

property management organization to an independent, successful affiliate organization with: an industrial oriented portfolio, a targeted promotional strategy, significant licensing flexibility, and a strong entrepreneurial focus.

• The goals of this repositioning are to: – Increase income from new licenses

managed by VTIP to $400,000 by FY 1999.

– Become a “recognized” leader in University Technology Transfer.

– Be recognized as a “partner” in attracting research investment for the University.

– Increase “active” participation in economic development for the Commonwealth.

FY '97 Forecast of Licensing Income From

New Licenses

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1996 1997 1998 1999

New Software

New PhysicalScience

New Life Science

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Position of TTO with legislators and community

development agencies • Position: The TTO is a representative of the university

community that is willing and able to add economic wealth to the state/nation

• How:– Explain the difference in cultures, missions, and role each

plays in economic growth– Support matchmaking efforts with workshops and tech

transfer trade fairs.– Think about the necessary legislation and work with

appropriate representatives.

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Position of TTO with Business

• Position: TTO is the flexible, entrepreneurial organization representing the University

• Prospective Licensees – Demonstrate an understanding of business/ product

development principles and their objectives in licensing outside technology.

– Explain the goals of the TTO/University/Lab: Dissemination and betterment of society

– Return phone calls and e-mails within 48 hours. – OPEN COMMUNICATION AND TRANSPARENCY

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Position of TTO with Business

• Position: TTO is the flexible, entrepreneurial organization representing the University

• Prospective Research Sponsors– Share research capabilities/capacity with industry

– Set up meetings with faculty with similar interests

– Listen to business development needs.

– Do not have to give away IP.

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• Protectability – Is there an invention?• Technical Merit – “Robust Solution” to an “Important

Problem”?• Commercial Potential – Multiple applications?• Inventor Attitude – Participate in commercialization?• Economic Development – Start-up?

DisclosureEvaluation

NO, Return to Inventor?

YES, Submit for Patenting/Marketing

Maybe, Discuss with Inventor

Marketing – Define the Product

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• Market Research: Outside the box– Market(s) Potential– Market(s) Trends (Technical and

Business)– Market(s) Competitive Analysis

• Use Students – provide outline with expectations (preliminary decision tool)

• Use Alumni – involve beyond $• Use Faculty – Know more than they

know @ business development

Marketing/Selling

Marketing – Define the opportunity

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• Develop single page, non-confidential description with: problem solved, benefits of solution, potential applications, and status.

• Promotions Strategy: – Determine Media to communicate

solution to market– Effective use of interns

Marketing/ Selling

Marketing – Define the Promotion Strategy

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Selling - Develop Contacts

•Inventor network

•Business network

•Internet Listings

•Patent Citations

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Selling - How Do We Find Each Other

• Industry and Professional Associations– Volunteer to speak– Participate as mentor, leadership positions, meeting

planning• Trade Shows

– Target both geographically and market sector– Collaborate with other outreach efforts on booth

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How Use the Internet • Web Sites

– Two audiences: Internal and External– Make it easy to do business: Be

Transparent and easy to find. – Succinct, Interactive, Searchable– 85% use Search Engine

• E-mail– Readable Format– Excite interest (Why take action)– NO or Limited attachments (Firewalls)– Link to more information – All contact information in signature,

including phone number

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Success Stories: Support Research - CPES

• ERC proposal – NSF requires IP plan• Negotiated MOU with 5 universities and industry

advisory board. • Developed Agreements for 2 different

membership levels• Developed IPPF – Fund and Process for

Patenting CPES inventions• NSF uses CPES as a Model

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Success Story: Vacuum Dryer for Wood

• Simple, robust solution for critical market problem

• Post on web site then:– Market rep wants to start

business – Pacific Rim inquiry

• Option to build prototype• Have two orders if it

works

0

10

20

30

40

50

60

70

0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75

Time (h)

MC%

Drying curve for red oak part

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Success Story: Direct Marketing with Start-up

• Initial Marketing VTIP/Atlas – Product = Beta Tested– Price = $32,000 to $16,000 to $5,000– Promotion = Newsletters, Trade Shows,

Testimonials

– Position = Another advancement from VT

– Protected Niche = Loyal to Librarian Solutions

• Now OCLC/Atlas

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Summary - Balance of Skills for small TTO• Social – Bridge two cultures and translate benefits/needs

• Business – Work in both not for profit accounting and investment capital, product development analysis

• Science – Understand the basic underpinnings and look beyond the initial application of discovery

• Law – Understand the basics of intellectual property law and be able to read and negotiate license agreements

Dealmaker(Market/Business/Product

Developer + Sales+ Negotiator)

Technician(Patent Agent +

Scientist + Engineer)

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Summary - Marketing v. Sales

• Position TTO as a proactive entrepreneurial agent of the university for faculty and business

• Leverage students, alumni, advisory boards, and the web

• Be Present in the Business Development Community

• Communicate! Communicate! Communicate!

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“We need a bullheaded yet friendly individual for a highly repetitive and completely thankless job. They should be willing to take extreme pressure from both sides of a negotiation, accept terms that make no sense as political presses require, and fully accept blame for all unfavorable outcomes from such decisions. Now the salary would be commensurate with low-level administrative positions which require none of these skills. Interested?”

R. MacWright , UVAPF

Dealmaker(Market/Business/Product

Developer + Sales+ Negotiator)

Technician(Patent Agent +

Scientist + Engineer)