Technology Transfer For Transforming Patent Into a Commodity

Technology Transfer or Tech Transfer is a process of transferring and sharing the scientific knowledge and technical know-how of an intellectual property (IP) with public and private users for the purpose of commercialization. It is a way of IP Commercialization and IP Monetization in a systemic manner. Tech Transfer becomes a potential tool for creators such as Universities, Research Institutes, and Individual Inventors to bring their inventions from mind to market through licensing and generating revenues through upfront payments and royalties.

Though tech transfer is a golden term for creators and a highly desirable end goal of their innovation journey, the process is often a bumpy ride. Being an innovator, inventors, Universities, and research institutions need to essentially develop market awareness and business know-how, for, the tech transfer process is a perfect mix of scientific, legal, and business skills. As a result, mere good quality of invention or granted patent does not guarantee the transformation of a patent into a viable commodity. Hence, there is always a need for technology consultation, robust IP due diligence, risk analysis, and market analysis before taking a step towards IP Commercialization.

The “How”!

1.    Assessment of IPs for commercialization and identification of investors or prospective licensees or buyers.

2.    Engagement of inventors and investors/licensees/buyers through legal agreements.

3.    Technology assessment in view of market potential, highlighting its salient features and risks.

4.    Reviewing and proposing marketing strategy and assisting in technology scale-up.

5.    IP valuation is used to finalize the terms for negotiation.

6.    Final deal-making and necessary actions for transferring of IP.

Challenges and Way Forward

Mind The market approach for tech transfer also depends on several factors apart from scientific, legal, and business expertise. The industry poses separate challenges and requirements for the uptake of technologies from research institutions, academia, and individual inventors. The industry is ready to accept technology not before it is fully developed and ready for sale. However, academia has its own limitations, which lead to the production of inventions at low technology readiness levels (TRL).

The Critical Role of Academia-Industry Collaboration and Robust IP Management

To overcome such challenges, academia must focus on integrating R&D with industry needs through creating awareness and knowledge about TRL among their inventors. Furthermore, academia-industry collaboration is needed in an hour to enhance the output of IP monetization. This could only be achieved with the help of all the stakeholders involved in the journey of innovation and motivation to make a patent into a truly viable commodity.

Furthermore, often neglected, one of the most effective measures to facilitate the transfer of technology is to constantly take robust measures for IP Management. The research organizations must cater carefully, to the establishment of technology transfer offices (TTOs) and engaging IP professionals for catering the holistic approach to IP monetization.

Conclusion 

Hence, technology transfer bridges the gap between R&D and IP Commercialization by facilitating the collaboration of inventors with investors and industry. It must also be noted that tech transfer should not be considered as the end goal, rather it should be a start for reinitiating the journey of another invention. Thus, effective utilization of patents ensures social and economic development, enforcing innovation and scientific temperament in society for pushing the innovation journey of the country. 

FAQ

1. What is Technology Transfer?

Technology Transfer is the process of converting new inventions, innovations, and research results flowing out of a laboratory system into commercially deployable products or services. It is normally effected through IP licensing to existing companies or through the creation of startups to take such innovations to the marketplace.

2. Why is tech transfer important?

Tech transfer is important because, at its very core, it bridges gaps between academia and industry. It aids in the commercialization of innovations serving to better lives and advance economic growth, thereby providing funding to universities and research institutions for further research.

3. Who are the players in technology transfer?

Various parties are involved in the process of technology transfer: the researcher, the TTO, intellectual property attorneys, licensees or industry partners, and sometimes venture capitalists. The experts get involved in the protection of IP, evaluation of a technology’s commercial potential, and facilitation of technology transfer to the marketplace.

4. What process does tech transfer usually follow?

The general process for doing this usually follows a number of large steps:

Disclosure of invention: The researcher submits his invention to the TTO.

Protection of IP: protection by the TTO is conducted by seeking the help of patent attorneys in patenting or other forms of protection.

Commercialization Strategy: TTO accesses the market, assessing how to take further steps whether licensing to an established company or creating a start-up.

Marketing: The TTO markets the technology to potential licensees or investors.

Negotiation and Agreement: Terms are negotiated, and agreements on licensing or other collaborations are executed.

Product Development and Launch: At this stage, product development is carried out by the licensee or a start-up and launched in the market.

5. What are some of the benefits associated with tech transfer in the case of universities?

For universities, technology transfer can provide a bundle of benefits by Revenue generation fees and royalties bring financial returns to reinvest in research and education. Research visibility and commercialization success widen the recognition of university research, thereby attracting the best faculty and students. Innovation ecosystem-technology transfer inspires innovation and entrepreneurial activities in the university community.