Kirsten Leute

Kirsten Leute

• 1.
  Kirsten Leute [email protected]
• 2.
  • Professor, Deanand Provost • Steeples of Excellence • Hewlett and Packard, Litton • Stanford Industrial Park (now Stanford Research Park)
• 3.
  Mission To promote the transfer of Stanford technology for society’s use and benefit while generating unrestricted income to support research and education. Technology Transfer Portfolio Patents Copyrightable Material Software Biological Material
• 4.
  Federal & industry OTL decides IP protection research money for invention and markets invention broadly Stanford researcher discovers new invention & submits disclosure ,© Additional OTL licenses invention research funding to Company Company makes new products Company pays royalties to University
• 5.
  • Patentable Technology University takes title to all inventions created with more than incidental use of University resources www.stanford.edu/dept/DoR/rph/5-1.html • Copyrighted Works University takes title to copyrightable works created with significant University resources www.stanford.edu/dept/DoR/rph/5-2.html • SU-18 Patent and Copyright Agreement www.stanford.edu/dept/DoR/rph/su18.html
• 6.
  • Use ofStanford funds to file a provisional patent application • Creation of physical prototypes • Acquisition of data for invention or to develop an invention • Use of the Machine Labs
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  • Use ofthe library • Use of computers resources available to all students • Email • Dorm rooms • Use of classrooms to discuss projects
• 8.
  1970 – OTLEstablished 1971 – FM Sound Synthesis ($22.9M) 1974 – Recombinant DNA Cloning ($255M) 1981 – Phycobiliproteins ($46.4M), Fiber Optic Amplifier ($48.4M), MINOS ($4.1M) 1984 – Functional Antibodies ($318.9M) 1987 – Selective Amplification of Polynucleotides ($20.3M) 1990-1992 – Discrete Multi-tone technologies for DSL ($29.6M) 1993 – Microarrays ($2M), MIMO for Wireless Broadcast ($0.12M) 1994 – In vivo Bioluminescent Imaging ($7.2M) 1996 – Improved Hypertext Searching - GoogleTM ($337M) 2004 – Refocus Photography ($0.15M) 2012 – the next big thing ???
• 9.
  • Steps – Disclosure (done online through Researcher Portal) – Evaluation – Licensing Strategy • File patent? • Market to potential licensees – The License – Maintaining the Relationship • “Licensing Associate & Licensing Liaison” teams – Technical degrees and marketing focus – Responsibility for inventions from cradle-to-grave
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  • Disclose inventions •Identify potential licensing prospects • Participate in patent preparation and prosecution • Host visits and/or provide technical information to potential licensees • Provide input into the licensing strategy • Sometimes consultant to licensee(s)
• 11.
  • Financial terms • Non-financial terms – License issue fee – Definitions – Annual minimum payments – Grant – Earned royalties – Development milestones & • % of Net Sales diligence provisions • $ per product sold • Prototype – Reimbursement of patent • First Commercial Sale costs – Warranties and indemnities – Equity in start-up companies – Infringement actions – Dispute resolution
• 12.
  - Universities wantto share in the upside and help with economic development - Conflict of interest issues are primary concern - We avoid negotiating with the inventors who are founders due to their conflicted positions - Many start-ups first take option agreements for 6-12 months - Most work with local VC firms
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  • Typical situation: – Researcher discloses invention and states s/he would like to found a company around the technology – OTL markets technology – Often start-up is the only interested party – Start-up submits business plan – Negotiate financial terms with business person – OTL initiates conflict of interest review if inventor-faculty member involved – Remainder of agreement negotiated – Often the first agreement is an option
• 14.
  • 6-12 monthsin duration • Small payment plus reimbursement of patent expenses incurred under option • Short, easy to negotiate • Gives startup time to seek funding, do more research or prototyping, or other activities to get the company off the ground • Time to move the research out of the lab • Template is on our web site
• 15.
  • Upfront considerationincludes cash and perhaps equity • Annual minimums, ramping up over passing years • Earned Royalties on Net Sales of products • Milestone payments – often large towards time of product sales to account for smaller upfronts • Yearly diligence milestones • Sublicensing – scaled down over time/development
• 16.
  • If theresearchers are new to start-ups, we try to help them use their attorney-time wisely – Highlight clauses that are non-negotiable – Keep tabs on “over-lawyering” • Start-ups are evolving entities, so they need some flexibility – Diligence may be a moving target – More renegotiation with start-ups – Concentrate on the end goal – products to help people • Startups often have many moving parts so need efficiency and time-sensitivity from a TTO
• 17.
  • OTL doesnot have the goal of stimulating the local economy • Stanford does not have an on-site incubator (although we have other resources) • Stanford never assigns patent rights to another party in a license • OTL does not help write business plans • OTL can provide introductions to VCs and other funding sources, but the start-ups usually use their own routes • About 15% of our licenses each year are to start-ups
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  • Graduate School of Business (GSB) • Multidisciplinary – Center for Entrepreneurial Studies – AIMS (Association of Industry-Minded Stanford – Center for Social Innovation Professionals) – Graduate School of Business (GSB) Entrepreneur Club – Cross-disciplinary Healthcare Innovation Partnership at – GSB Energy Club Stanford – Stanford Institute for Innovation in Developing Economies – European Entrepreneurship & Innovation – Stanford Program on Regions of Innovation and – Hasso Plattner Institute of Design (d.school) Entrepreneurship – Stanford IP Innovation Society – Stanford Media X • School of Engineering (SoE) – Start X – Asia Technology Initiative – The Precourt Institute for Energy – Epicenter (National Center for Engineering Pathways to – Woods Institute for the Environment Innovation) – Product Realization Network • Student Groups – Stanford Institute for Electrical and Electronics Engineers – Asia-Pacific Student Entrepreneurship Society – Stanford Technology Ventures Program – Business Association of Stanford Entrepreneurial – US-Asia Technology Management Center Students – Society for Entrepreneurship in Latin America • Graduate Program in Journalism: Digital Media – Stanford Energy Club at Stanford – Stanford Law & Technology Association • Office of Technology Licensing – Stanford Venture Capital Club – Stanford Women in Business • School of Medicine – Biodesign – School of Medicine Career Center
• 19.
  otl.stanford.edu