Mr Tom Higgison Dr John Jeffrey University

Mr Tom Higgison & Dr John Jeffrey, University of Edinburgh South Korea University Visit 8 th February 2007

The University of Edinburgh Research & Innovation Commercialisation of Intellectual Property (IP) South Korea University Visit 8 th February 2007

The University of Edinburgh Founded in 1583 Top 5 UK Universities for research awards 20860 students( 16165 Undergrads, 4695 Ph. D) 3195 academic/related full-time staff(7146 total) Top research University in Scotland 90% of research staff rated 4, 5 or 5* in 2001 RAE 9 out of 49 research units rated 5* which include electronics & engineering South Korea University Visit 8 th February 2007

University Drivers Research Teaching South Korea University Visit Commercialisation 8 th February 2007

Goals in Research & Commercialisation “To build on our standing as one of the world’s leading research-intensive institutions: to be a vibrant research community that stimulates new ideas and discoveries and to contribute to the economic, social, cultural and environmental development of Scotland the world” South Korea University Visit 8 th February 2007

The Universities Famous Inventors • James Dewar – vacuum flask & cordite • Joseph Lister – Pioneer of antiseptic surgery • James Clerk Maxwell – Pioneer in electromagnetism • James Simpson – Pioneer of Anaesthetics • Ken Murray – First genetic Engineered Hepatitis B vacine • Stephen Salter – Designed forerunner of industrial assembled robots South Korea University Visit 8 th February 2007

Uo. E Spin-out Companies Wolfson Microelectronics plc • Mixed analogue-digital integrated circuit design • Market capitalisation over $1 B, 300 employees VLSI Vision • Low cost CMOS sensors, now part of ST Microelectronics, over 100 employees Micro. Emissive Displays • Producer of smallest colour TV screen • 37 employees South Korea University Visit 8 th February 2007

Edinburgh Research & Innovation - we do Pre-award research support including European Office Consultancies Technology evaluation Licensing Company formation Incubation South Korea University Visit 8 th February 2007

ERI is a wholly-owned University Company ERI’s primarily objectives are to: • Increase range of research funding to 40% of total funding (vs charities & RC’s) • Currently 24% in 2004/5 • Increase volume of research funding by 15% each year • Currently around 7% Effectively exploit the research base & optimise impact on the local economy South Korea University Visit 8 th February 2007

Commercialisation of University IP Mandate: • Sponsor requirements • Income to University Policy • Shared return for University/Inventor Process • Disclosure and Commercial Evaluation • Protection & Valuation • Sourcing Buyers/Licence Negotiation/ Company formation South Korea University Visit 8 th February 2007

Management Structure of ERI Board of Directors Managing Director Operations Business Development Business Incubation Science & Engineering Business Group Medicine Business Group Humanities & Social Sciences Business Group South Korea University Visit Legal 8 th February 2007

ERI Commercialisation Performance Target metrics South Korea University Visit 8 th February 2007

Structured interview Prelim. market / Pat. study Patentability report Evaluation of Idea Protection Strategy Exploitation Strategy Licensing Route UK Patent Filing Production of NCD PCT Decision National Phase Create Company NCDs to Targeted Companies Opps on ERI Website Opps on ‘Free’ Websites Feedback from Co’s Negotiate the Licence Monitor South Korea University Visit 8 th February 2007

Intellectual property Ownership If invention made during the course of member of staff’s work then belongs to their employer eg the University Ph. D students tend to own their IP but depends how they are funded Undergraduates own their IP South Korea University Visit 8 th February 2007

Patents: Why do it? A basis for funding both licensing opportunities and setting up companies • Venture Capitalist/Business Angels look for secure IP position • Guarantee monopoly for new business/licensee competitive advantage • Barrier to entrants/competition • Tradable commodities • Renders inventions/IP to paper allowing trade • Usually through license agreements • Define term, scope, territory, return South Korea University Visit 8 th February 2007

Licence opportunity Get to know the market Identify potential licensees Prepare Non-confidential Disclosures Get interest before NDA’s in place Term: Exclusive or non-exclusive Scope: Application/Market Territory: World-wide or UK, Europe, US Return: royalty • % of sales, % of profits, minimum royalty Claw back improvements to invention, do not assign initially, set milestones, limited liability, patent costs! South Korea University Visit 8 th February 2007

Company Formation Bigger risk but larger potential reward Lifestyle firms --> Middle-Market firms High Growth Firms Routes to market options • Direct distribution • Licensing • Strategic alliance Identify the 3 M’s • Market • Management • Money Business Plan South Korea University Visit 8 th February 2007

Who does what and how Spinouts Startups EPIS Primarily University Primarily staff students Anyone Licence of University IP not usually required No University IP Grant Wheeler + Beccie Difford Georgina Hamshaw South Korea University Visit Adrian Smith 8 th February 2007

Issues to deal with Spin-out Companies Conflicts of interest Managing expectations Effect on School – loss of staff, loss of income, effect on RAE Research licences Leave of absences, secondments On-going relationship with School South Korea University Visit 8 th February 2007

Company Formation Assistance What we look for Committed staff Good technology baseline Business Plan Market Management Money South Korea University Visit What we do We encourage We check We We help prepare identify attract secure 8 th February 2007

Research Base Collaboration Licensing Co Formation Start Up Support Funding SIE EPIS Incubation SMC Info ETTC Bio Science Park Technopole South Korea University Visit CBR Bio. Med Biomedical Park 8 th February 2007

EPIS (Edinburgh Pre-Incubation Scheme) Required different thinking • For entrepreneurs to “work-up” the idea before incorporation Required buy-in Open to all policy • Flexible - Part-time / spare-time • Academic and business mentoring • £ 10, 000 zero interest loan • No University (or other third-party) IP position Been running for 30 months Welcomed by Schools 15 companies 27 jobs South Korea University Visit 8 th February 2007

Scottish Microelectronics Centre OFFICE 1000 m² of office space on three levels CAT 5 E wiring for voice, data and fax. conference and meeting rooms. Kings Buildings campus facilities. CLEANROOMS 10 class 10 cleanroom bays. SUPPORT SERVICES includes book-keeping, telephone answer service, event management, etc. South Korea University Visit 8 th February 2007

Scottish Microelectronics Centre Joint initiative Uo. E, SEE&L, SE Specific microelectronics incubator 300 sq m clean room, 1200 sq m office Currently 6 companies & 1 Trade org Runs business support & mentoring progs. Managing MIAC – support for microelectronic industry Cash positive & self sustaining South Korea University Visit 8 th February 2007

Edinburgh. Technology Transfer Centre Joint Uo. E ECC initiative – joint company 553 sq m Office Space Houses 14 companies (50 employees) Has assisted 29 companies (61 employees) Provides supportive management structure (professional clinics, workshops, “sheltered housing”) South Korea University Visit 8 th February 2007

Edinburgh Technopole • • Located at Bush estate, 126 acres • Science & Technology park • Owned by Uo. E, backing from Grosvenor • 2 Multi-occupancy buildings + Bush House • 7 Companies (77 Employees) • More buildings planned South Korea University Visit 8 th February 2007

Bio-Medical Park Proposed site located at Little France, adj to new Medical School (25 hectares) Joint project Uo. E, SEE&L, ECC, Trust Specific Bio Medical Theme incorporating Bio Incubator Very early stage, completed feasibility study South Korea University Visit 8 th February 2007

Centre for Biomedical Research South Korea University Visit 8 th February 2007

ERI Commercialisation Performance Metrics: Targets vs Actual Metric Technology Disclosures Patents filed Licenses negotiated Consultancies Spin-out Companies Start-up Companies South Korea University Visit Target vs Actual (2004/5) 100 vs 103 25 vs 80 15 vs 31 >£ 2 m vs £ 2. 9 m 5 vs 3 10 -15 vs 20 8 th February 2007

$M research funding required for 2003/04 Top 11 US Univ. Top 8 Scottish Univ. 1 Disclosure 2. 5 1. 8 1 Patent 3. 8 3. 9 1 licence 6. 2 9. 1 $1 M royalties 42. 5 50. 3 119. 6 49. 6 1 Spinout South Korea University Visit 8 th February 2007

Company Formation Metrics Last 5 years Last 20 years No. of company formations 64 100 No. still trading 54 76 Investment raised £M 17 185 Jobs 180 780 SMART Awards 30 36 South Korea University Visit 8 th February 2007

Further Information Name - Dr John Jeffrey Telephone +44 (0)131 651 4060 Fax - +44 (0)131 650 9019 Email - John. Jeffrey@ed. ac. uk www. research-innovation. ed. ac. uk South Korea University Visit 8 th February 2007