Why This Topic Is Important
The processes of market discovery and market formation often occur simultaneously for early stage
technologies, which presents great challenges for those seeking to license them. This section discusses
the nature of market opportunities for new technologies and how technology transfer can best approach
them. For the senior administrator, an awareness of these marketing functions of technology transfer will
help you to understand what is necessary to get the regional economy to take up your institution’s
technologies.
Key Implications and Best Practices: Section 12
Given that IP management is heavily context specific, these Key Implications and Best Practices are intended as starting points to be adapted to specific needs and circumstances.
- For private sector companies, the ultimate purpose of IP management is to enhance competitiveness and reduce risk. For public sector institutions, the ultimate purpose of IP management is to serve the greater public interest. These are not mutually exclusive goals, and they can be reconciled through sound technology marketing and licensing practices.
- The four characteristics of an alliance that generally define the allocation of value between an originator and a commercial partner are (1) its stage of development, (2) the role retained by the licensor in product supply or other ongoing activities, (3) the size of the market opportunity, and (4) the scope of the market granted to the development partner under the alliance agreement.
- The key to successful negotiation is having a clear understanding of the value each party brings to a relationship. Value may be objective and quantitative, or of a more qualitative nature.
- Perhaps the most important element in a negotiation is clear communication—also internally—with the negotiating partner about the benefits that will or could be obtained through a license agreement.
- In general, the public sector organization should consider offering the first draft of an agreement to cover a number of topics of particular concern to public sector organizations that would probably not be addressed by a company.
- Negotiating between public and private sectors ought not be confrontational and should be seen as an opportunity to forge a long-lasting and mutually beneficial relationship. Put differently, negotiating a fair licensing agreement should not be seen just as a process of “bargaining” toward a win-win outcome.
- For the private sector party, a well-tested and successful approach to negotiating an agreement is to offer initial terms that the public sector organization would be willing to agree to if it were on the other side of the negotiating table.
- Specific best practices and terms that allow public sector entities to meet public sector goals (ensuring broad access to innovation) include area of use, territory, price, labeling, white-knight conditions, and royalties.
- Senior management can set a positive tone for negotiation that will ensure that deals made with others are a vehicle for building strong relations and trust between parties.
- Integrated IP management (IPM) considers the critical role of IP management throughout the entire innovation life cycle. IPM allows managers to intervene, change course, amend or enhance patent applications, and in-license useful patents or technologies.
- Networking is important, if not essential, for successful technology marketing. Technology transfer officers and scientists particularly should be encouraged to network.
 Abstract
Biotechnology and Pharmaceutical Commercialization Alliances: Their Structure and Implications for University Technology Transfer Offices
by Mark G. Edwards
Abstract:
Understanding biotechnology and pharmaceutical commercialization alliances in the context of several evolving business models has implications for university technology transfer offices (TTOs), as well as for public policy-makers intending to promote biotechnology regionally. This chapter identifies the principal structural and economic elements of biotechnology and pharmaceutical commercialization alliances and the factors that influence partner selection for a particular alliance. The four characteristics of an alliance that generally define the allocation of value between an originator and a commercialization partner include stage of development, product supply, market opportunity, and scope. The chapter explains the types of economic terms typically found in biotechnology alliances and makes an empirical analysis of the economic terms from a sample of biotechnology alliances established between 1981 and 2000. Four specific alliances entered into at different stages of development are detailed as case studies. Several recommendations are provided for university TTOs, along with guidelines for drafting commercialization alliances.
Abstract
Business Partnerships in Agriculture and Biotechnology that Advance Early-State Technology
by Martha Dunn, Brett Lund, Eric Barbour
Abstract:
Given the expertise of large agricultural companies with respect to product development from cutting-edge research, these companies often choose to in-license technologies from small biotechnology companies and universities rather than relying solely on in-house efforts. This chapter provides an overview of the interest of large industry players in sourcing early-stage technologies from companies, how best to communicate those opportunities to companies, and what to expect in terms of valuing the technology and structuring a licensing deal. Large companies are generally interested in creating new products or new technologies that are commercially viable and that help establish sustainable agricultural economies. But, in addition, they generally support providing products and technologies that bolster subsistence farming and humanitarian efforts, while recognizing the need to protect the company’s intellectual property against unauthorized uses for commercial or other unintended purposes.
Abstract
An Introduction to Marketing Early-Stage Technologies
by Marcel D. Mongeon
Abstract:
This chapter describes marketing concepts and how to use them to create marketing plans for newly developed technologies in the health and agricultural sectors. The traditional marketing model invokes the “four Ps” of marketing: product, price, place, and promotion. This chapter, however, concentrates on the “five Ws” of marketing, which are more relevant to early-stage technologies: who? what? where? when? and why? The author then discusses the concept of the unique selling proposition (USP) and, finally, considers the marketing of technology transfer activities, or internal marketing.
Abstract
IP Portfolio Management: Negotiating the Information Labyrinth
by Jeremy Burdon
Abstract:
The management of intellectual property is all about managing innovation with the procedures and processes that are required to turn that innovation into valuable patent rights. A truly strategic approach to IP management will span conception to product market release. Integrating IP management into the R&D, advance development, and product development cycles seamlessly provides opportunities to gain and enhance IP protection while offering the potential to reduce risk and lower costs. The following chapter discusses some of the key elements of IP portfolio management and how the combination of the right IP tools, procedural know-how, and organizational attributes and behaviors can contribute to successful implementation.
Abstract
The IP Sales Process
by Todd S. Keiller
Abstract:
Marketing an institution’s intellectual property (IP) is essential but challenging work. This chapter provides helpful information about how to locate potential licensees, how to determine whether or not they are qualified to manage a particular technology, and how to persuade them to begin licensing negotiations. The chapter stresses the importance of self-knowledge: having a clear sense of your institution’s own IP goals, as well as the institution’s strengths and weaknesses. Having this awareness makes it possible for a technology transfer office to choose wisely when it evaluates the strengths and weaknesses of potential marketing targets. Indeed, the chapter, rather than simply providing a basic overview of the marketing process, offers concrete suggestions and tough questions for those who aim to successfully market academic intellectual property.
Abstract
Negotiating an Agreement: Skills, Tactics, and Best Practices
by Richard T. Mahoney
Abstract:
License negotiations involve substantial real or potential value. They therefore should be supported by a team of experts. The essential skills and expertise needed for conducting successful negotiations include: business strategy and development for leading the negotiations, marketing for estimating commercial potential, law for evaluating IP and patents and carrying out a variety of related tasks, science and medicine for evaluating new and potential health products, manufacturing and production know-how to determine equipment and additional training needs, and finance for analyzing input from other experts on the team to combine into a comprehensive report. The strength of such a team is in its interdisciplinary composition; each of the skill areas can complement the other. From the perspective of international licensing, licensors can seek to improve the availability of health products in developing countries, possibly moving from the “traditional” approach to licensing toward one that incorporates public sector needs. The best approach for a public sector organization negotiating an agreement with a private sector entity is usually to offer initial terms that the organization would be willing to agree to if it were on the other side of the table. Negotiating a fair licensing agreement should not be seen as a process of “bargaining.” Rather, a licensing agreement is establishing, in written form, the rules of operation for an ongoing relationship where mutual trust and confidence will be necessary for success.
Abstract
Product Development and IP Strategies for Global Health Product Development Partnerships
by Sandra L. Shotwell
Abstract:
The mission of global health product development partnerships (PDPs) is to develop effective, affordable health products and make them available and affordable to those in need. The not-for-profit product development partnerships (PDPs) often seek for-profit partners to access essential technology, expertise, and resources. These may be early-stage companies, leveraging philanthropic and government resources to develop a platform technology or established companies building out from existing markets or testing new technologies. Such not-for-profit/for-profit partnerships require unique product development and IP (intellectual property) strategies that both recognize the company’s need for commercial benefit and deliver important health products to developing countries.
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