Marketing of an Intangible Asset with Limited Resources

1. Marketing of an Intangible Assetwith Limited Resources "Marketing Your Innovations: Best Practices for Tech Transfer Professionals"September 5, 2007 Michael J. Martin President TechTransfer Associates, Inc.

2. 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

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

4. 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 Industry Administration Faculty

5. 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 How to Create a Intangible Marketing Organization 3 to 10 years; 0.5 to $20 million Concept Generation Commercial Operation Technology Feasibility Product Development Pilot Plant Scale up Interim Mfg.. Applied Research and Development 90% Cost Basic Research ~ 10% cost

6. 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.

7. Invention Protect if Publication is Imminent • 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.

8. 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 Positioning with the Faculty

9. 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

10. 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!

11. 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.

12. 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.

13. 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

14. 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.

15. NO, Return to Inventor? Marketing – Define the Product Disclosure Evaluation Maybe, Discuss with Inventor YES, Submit for Patenting/Marketing • 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?

16. Marketing – Define the opportunity • 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

17. Marketing – Define the Promotion Strategy • 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

18. Selling - Develop Contacts • Inventor network • Business network • Internet Listings • Patent Citations

19. 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

20. 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

21. 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

22. 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 Drying curve for red oak part

23. 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

24. 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)

25. 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!

26. Technician (Patent Agent + Scientist + Engineer) Dealmaker (Market/Business/Product Developer + Sales+ Negotiator) “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