Commercial Exploitation of Inventions at the Technische Universität München

1. Centre for Research Support and Technology Transfer - SFT Commercial Exploitation of Inventionsat the Technische Universität München Dr. Alexandros Papaderos Inventor Consultant Technische Universität München WIPO UNIVERSITY RESEARCH AND DEVELOPMENT INITIATIVE: Subregional Workshop on Searching of IP Information for University IP Coordinators Vilnius, Lithuania May 18 and 19, 2006

2. Centre for Research Support and Technology Transfer - SFT Outline • Short presentation of the Technische Universität München • Knowledge and Technology Transfer from Universities • Implementation of the Bayern Patent Project at the TUM • 3 success stories from the TUM © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

3. Centre for Research Support and Technology Transfer - SFT The Technische Universität München • founded in 1868 by King Ludwig II. as “Polytechnische Schule München”, since 1970: University • highly-modern research and teaching institution offering12 faculties as well as numerous scientific, educational and administrative facilities • four leaved model: Natural Sciences, Engineering, Life Sciences, Medical Science • interdisciplinary collaboration and innovation-promoting processes of a future-oriented approach • Nobel Prize Laureates, famous scientists and inventors including: Rudolf Diesel, Carl von Linde, Willy Messerschmitt, Emil Erlenmeyer, Hans Fischer, Robert Huber © Dipl.-Biol. Alexandros Papaderos, Inventor Consultant, Technische Universität München

4. Centre for Research Support and Technology Transfer - SFT The Technische Universität München Summer semester 2006 • students: ca. 20,000, 30% female • freshmen: 4,800 • graduates: 2,800 • students from abroad: ca. 20% • 260 chairs, 440 professors • 8,500 staff (academic andnon-academic staff • total budget 2004: € 678.3 million • research funding: € 137.5 million • fundraising: € 81 million (endowed funds since 1998) • for further information, please see also: www.tum.de © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

5. Centre for Research Support and Technology Transfer - SFT Knowledge and Technology Transfer Knowledge and Technology Transfer is the connecting link between basic and applied research and between applied research and development • commercial utilization and economic exploitation of IPR, esp. patents, are one aspect of Knowledge and Technology Transfer between science and economy • licensing and sale of patents have a long tradition in the Anglo-Saxon countries (Research Corporation founded 1912 in the USA) • in other European countries (including Germany) the active commercial utilization and economic exploitation of IPR is now evolving © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

6. Centre for Research Support and Technology Transfer - SFT Technology Transfer from Universities IPR: • licensing of IPR to companies (IPR remains the university) • sale and assignment of IPR to companies (IPR is assigned to the company) • provision of IPR to university start-up companies: • exclusive licensing (IPR remains with the university) • sale of IPR (IPR is assigned to the company) • sale or exclusive licensing of IPR; university obtains in return shares of the company (IPR is assigned to the company) • contract research and services offered by the universities (in most cases IPR is assigned to the contractor) © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

7. Centre for Research Support and Technology Transfer - SFT Technology Transfer through IPR USA/Germany • USA • in 1980: ~ 250 patent applications (1980: Bayh-Dole Act) • in 1991: ~ 1,600 patent applications • in 2003: ~ 8,000 patent applications • Germany • before 2002: negligible amount of university patent applications • 2002: abolition of the “Professor’s Privilege” • in 2004 519 patent applications in the name of German universities, including technical colleges © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

8. Centre for Research Support and Technology Transfer - SFT Technology Transfer through IPR Benchmarking USA • AUTM Licensing Survey: Fiscal Year 2004 (approx. 195 institutions) • 16,871inventions reported (82% potentially patentable inventions) • 10,517new patents filed, 3,680 patents issued • 462new companies (in 52% of the cases institutions received an equity interest) • license income: 1.385billion US-$ • since 1980: a total of more than 4,543companies, 2,671 still operating • since 1998: 3,114new products on the market © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

9. Centre for Research Support and Technology Transfer - SFT Technology Transfer through IPR The situation in Germany before the year 2002: • legal framework (“Professor’s Privilege”) • scientists in Germany focus more on publications • lack of interest from the inventors and universities for the patent system • lack of resources for the financing of patent applications, etc. • lack of infrastructure for patenting and commercial exploitation © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

10. Centre for Research Support and Technology Transfer - SFT Bavarian Universities and Technical Colleges BavariaHigh-Tech Initiative Fraunhofer Patent Center for the German Research Commercial Exploitation of University Inventions in Bavaria © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

11. Centre for Research Promotion and Technology Transfer - SFT Starting pointsof the Bayern Patent Project • raise awareness for the importance of patents • promote and intensify the patent culture • provide funds for patenting and commercialising of inventions • provide infrastructure: • Inventor Consultants • Patent- • Licensing Bureau e.g. at the TUM at the Fraunhofer Patent Centre for the German Research (FhG-PST) © Dipl.-Biol. Alexandros Papaderos, Inventor Consultant, Technische Universität München

12. Centre for Research Support and Technology Transfer - SFT Mission of the Inventor Consultant at the TUM • the Inventor Consultant is the junction between inventors,TUM administration, Technology Transfer Agency (Bayern Patent Project), industry etc. e.g.: • consulting and support for the inventors • contact with high inventive potential research groups of the TUM • support for the identification of patentable research results • organisation of information events, conferences, workshops etc. • enforce the legal frame • mission is complemented by the Bayern Patent Project © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

13. Centre for Research Support and Technology Transfer - SFT Mission of the Patent Bureau • evaluation of inventions (patentability, technical feasibility, economic exploitability) • recommendation to the TUM whether to claim or release the invention • instructing patent attorneys, supervising patent applications and patenting process • co-ordination regarding patenting strategy with the TUM according to business and market specific criteria (what kind of protection to apply for, in which countries, maintain applications etc.) • initiation of licensing activities by the Licensing Bureau • central database for patented technologies © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

14. Centre for Research Support and Technology Transfer - SFT Mission of the Licensing Bureau • commercial exploitation of inventions covered by patent applications • co-ordination of the licensing strategy in co-operation with the TUM • drafting of technology offers • search for potential licensing partners • presentation of the invention at companies • negotiation of the conditions for the licensing agreement between TUM and industry partner • supervision of licensing agreements • balancing accounts of licensing revenues © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

15. Centre for Research Support and Technology Transfer - SFT Special provisions for university employeesin the German Employees’ Inventions Act • University employee • decision, if and when to disclose the invention • in case of disclosure, obligation to:  report the invention to the university  indicate the disclosure date (normally two months before disclosure) • University • decision whether to claim the invention or release it (4 months) • in the case of claiming  obligation to file a patent application • in the case of realization of profits  obligation to compensate the inventor © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

16. Centre for Research Support and Technology Transfer - SFT Workflow in case of a invention • inventor contacts the Inventor Consultant for (legal) advice • inventor reports his invention to the TUM • Bayern Patent Project evaluates the invention and gives a recommendation • TUM decides either to claim the invention or to release the invention to the employee • in the case of claiming: TUM files a patent application (mostly in Germany) • parallel to patenting the invention: commercial exploitation begins © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

17. Centre for Research Promotion and Technology Transfer - SFT Sharing of revenues and costs RevenuesCosts Inventor30%0% !!! TUM 45%10% BayernPatent 25%100% !!! 1 : 50% for the academic group/institute/department © Dipl.-Biol. Alexandros Papaderos, Inventor Consultant, Technische Universität München

18. Centre for Research Support and Technology Transfer - SFT Statistical Data from the TUM * *:09/2000-12/2000 *: 194 inventions are made within the framework of industry research funding projects and are assigned to contractor © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

19. Centre for Research Support and Technology Transfer - SFT Example of a successfully commercialized IPR I: Spider Silks: • exceed the characteristics and properties of man-made materials • superior mechanical properties such as strength, toughness etc. Self assembling spider silks • identification of a gene for the fabrication of nature-like spider silks • transfer in bacterial cells, which produce spider silks Commercial applications: • medical products (i.e. as non allergic material in wound-closure systems, artificial ligaments, tendons) • textiles (i.e. protective clothing, parachutes, body armour, ropes, fishing nets) • cosmetics • leather and paper refinement © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

20. Centre for Research Support and Technology Transfer - SFT Example of a successfully commercialized IPR II: • beercontaining xanthohumol : XAN Wheat Beer and • XAN Wellness Drink Xanthohumol: Xanthohumol from hop can dispose free radicals due to its antioxidant nature and can thus contribute to keep the somatic cells healthy Special brewing method (pending patent application): concentration of the natural active ingredient Xanthohumol is up to 15 times higher in the XAN Wheat Beer and up to 50 times higher in the alcohol-free XAN Wellness drink in comparison to usual wheat beers © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

21. Centre for Research Support and Technology Transfer - SFT Example of a successfully commercialized IPR III: ANTICALINS® technology: • ANTICALINS® are engineered ligand-binding proteins with antibody-like functions • therapeutic use in a variety of diseases, particularly in cancer and cardiovascular diseases • technology invented in a large part at the TUM and developed at PIERIS Proteolab AG • Cooperation and license agreement between TUM and PIERIS • PIERIS was founded in January 2001 – after being awarded the first prize in the Munich Business Plan Contest 2000 • Laboratories and offices are located at Freising-Weihenstephan, well situated in the neighbourhood of the TU Munich life science campus see also: www.pieris.biz © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

22. Centre for Research Support and Technology Transfer - SFT Key Factors for a successfulIP- and TT-management • establishment of a systematic IP- and TT-management process • backup through the academic and administrative management in form of IP- and TT-guidelines • establishment of patent and licensing bureaus and use of all communication channels • information about possible IP-exploitation partners • further education of the staff members • professional contractual commitments for all IP- and TT-matters • soft factors: measures for establishing an IP-culture © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

23. Centre for Research Support and Technology Transfer - SFT AgreementsSupervision Commercial Exploitation Protection Evaluation Ongoing Activities • identification and evaluation of the market relevance of the invention • evaluation of protectability • check-up with existing patent portfolio • identification of exploitation strategies • development of exploitation strategies, e.g. licensing, transfer, start-up etc. • implementa-tion of the exploitation strategies • close contact to researchers • continuous analyzing of the research activities • screening of patent literature • IP-culture and infrastructure • patent application • defence against infringers • revenue management • monitoring of license agreements • legal problems © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

24. Centre for Research Support and Technology Transfer - SFT Contact: Dr. Alexandros Papaderos Patent- and Licensing Bureau Technische Universität München Arcisstraße 19 80333 München Tel.: +49 / 89 / 289-22611 E-Mail: papaderos@zv.tum.de internet: www.wimes.hr.tu-muenchen.de/erfinder.html www.bayernpatent.de © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München

25. Centre for Research Support and Technology Transfer - SFT Remotely Controlled Steerable Ball (US 6855028) What is claimed is:1. A remote controlled ball amusement device adapted to aerodynamic change trajectory in mid-flight as it is propelled through air... Thank you for your attention! Questions? © Dr. Alexandros Papaderos, Inventor Consultant, Technische Universität München