University Patents is a program that allows technology to be transferred from research universities to companies by licensing patents.
Many universities have a technology transfer office that helps bring university-generated research/patents to market. Some universities have been very successful in this area, such as Stanford, U of Wisconsin or MIT. However, most universities lack the network and workforce necessary to place most patents. Universities are traditionally focused on patents that will make them money. Yet, less than 0.6% generate more than $1,000,000 annually in royalties. University Patents has the ability to not only assist the universities in placing technology but, due to the singular focus of the company, also increase the revenue to the university by increasing the number of licenses written. University Patents can make an income by taking a percentage of each successful placement.
Many patents that are the result of university research cannot be used to support a business. They are most valuable to existing companies already in a market that can use new technology to increase a product line or slightly diversify their business into a market in which they have an expertise. These patents are very small and Venture Capital (VC) firms do not want to invest in them. Universities will also be reluctant to place them. University Patents will be able to focus on these smaller patents and the business will depend on bringing several of these patents to market per year.
University Patents’#8217′ business model will involve working with universities to place technology patents with corporations. University Patents will study the market and develop a value-model to identify potential licensees. University Patents will bring these parties to negotiation and will receive a commission based on the licensing agreement and any future royalties generated by the patent.
1.1 Objectives
First year objectives
- Four universities will be established in the first year.
- Four patents can be commercialized in the first year.
- In the first six months, develop a process to contact public and private businesses.