technology resource of the southeast, inc. technology bundling & clustering may 17, 2007
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Technology Resource of the Southeast, Inc. Technology Bundling & Clustering May 17, 2007. Is there really a buried treasure?. Who has the map? Is it real? How do I get to it? What does it cost Is it worth it?. Why bundle technologies?. - PowerPoint PPT PresentationTRANSCRIPT
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Technology Resourceof the Southeast, Inc.
Technology Bundling & Clustering
May 17, 2007
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Is there really a buried treasure?
• Who has the map?• Is it real?• How do I get to it?• What does it cost• Is it worth it?
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Why bundle technologies?
• Wealth of “unused”technologies from large & small business, Universities, Government Laboratories and trade associations
• Expand revenue potential – broaden product lines• Promote Economic Development – Business
expansion, start-ups and joint ventures
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What purpose does it serve?
Answers to a common business problems • Increase sales• Develop new markets• Develop and dominate new areas of core expertise
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Examples of projects based on recent events
• Washington Post Story – “Rice Industry troubled by genetic contamination”
• Barbaro – winner of the 2006 Kentucky Derby, euthanised because of a hoof infection
• Kaufman Report – Changes needed in tech transfer methods to create more opportunities
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What does a technology bundle look like?
Genetic Engineering (In development)• 1 issued Patent• 3 Patent Applications• 2 Applications being written• Collaborative Research Agreements• Pre-agreed terms for splitting royalties/income• 2 Cross-Licensing Agreements
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What does a technology bundle look like?
Laminitis/Hoof Injury ( In operation)• 3 Patent applications• 2 design patents• 2 Trademarks• 2 Cooperative research agreements• Pre-agreed terms on royalties/income • Expanding uses to include drug delivery systems• In-Licensing of synergistic product concepts (4)
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What Does a technology bundle look like?
Kaufman Recommendations (In formation)• Assistive Technology start-up based on
cooperation of Universities and commercial enterprises targeting the “boomer generation”
• In-license of 5 Patents• 2 Joint Development agreements • Pre-agreed royalty/income distributions
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What do these potential projects have in common?
• Available technologies from Universities• Available technologies from Private Industry• Available technology from trade association
members• Potential for collaborations to form successful
business expansion, partnerships or spin-offs
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What is the value proposition?
• Models are developed that make sense from a business plan perspective. This makes them attractive to investors and/or industry partners
• Individual IP valuations are very low when valued as single items
• Combined IP provides an exponential valuation potential
• IP is searched and screened on basis of synergy
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One solution
• Bundle one-off solutions from University and Bundle one-off solutions from University and Government Labs into technology clusters large Government Labs into technology clusters large enough to attract start-up capital & managementenough to attract start-up capital & management
• Identify commercial concerns and public agencies Identify commercial concerns and public agencies willing to cooperate with the bundling conceptwilling to cooperate with the bundling concept
• Encourage corporate sponsorships and donations Encourage corporate sponsorships and donations in kind to the pool of available technologiesin kind to the pool of available technologies
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Hurdles to overcome & potential solutions
• Agreement to work together is the primary issue• Revenue distribution is the number one challenge• Independent, third party objective evaluation and
valuation provides the threshold for agreements• As a technology is located and identified as a
component, terms of the agreement are then approved and become consistent between all parties based on the independent assessment and value of each individual component
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What will the evaluation process look like?
• Verification of all pertinent facts• Patent Hierarchy Analysis• Technical, Market and Competitive Assessment
of the Technology• Full Valuation Analysis using “Triangulation”
Methodology• Valuation and Financial Modeling to build a
framework for negotiation issues
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Basic Triangulation Methodology
• Used for analysis based on a technology value.
• If B approximates C and C approximates B, and if A compliments B, then C must compliment A and thus confirms the Technology Value.
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Technology Value• The Technology
Triangle within a triangulation model
• Each component compliments and verifies each other component– A approximates B– B approximates C– C approximates A
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One final reason to bundle
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Why doesn’t everyone bundle ?
• It takes a lot of time to conduct a proper search• Not all identified target owners will be willing
partners• All technologies must be clean and Patentable• Foreign rights must be in a preserved state• All agreements must be “exclusive licenses”
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Presenter
Richard W. Sheehan, President Technology Resource, Johnson City, TN
(423) [email protected]