The technology transfer process follows a general pathway to commercialization that may take months or years to come to fruition. The process will depend on the technology’s development stage, the market, competition, the amount of work needed to bring it to market-ready status and the resources and willingness of the licensees and inventors.
Commercialization Steps
- Research: Observations and experiments during research activities often lead to discoveries and inventions.
- Pre-Disclosure: Researchers are invited to reach out to a licensing officer to discuss inventions and get guidance about the disclosure, evaluation and protection processes.
- Invention Disclosure: This is the official, written notice of invention to the Innovation and Commercialization Team that begins the formal technology transfer process. An invention disclosure remains a confidential document and should fully document an invention so that the options for commercialization can be evaluated and pursued. Researchers must submit inventions through Cayuse Inventions.
- Assessment: A licensing officer will facilitate evaluation of the intellectual property with respect to patentability, commercial potential and obligations to sponsors or other third parties.
- Intellectual Property Protection: Safeguarding intellectual property (IP) with protection through patents and copyrights is crucial to fostering innovation. Without the protection of ideas, universities, individuals and licensees would not have an economic incentive to develop inventions to the point where they can be brought to market. This common legal protection method begins with the filing of a patent application with the U.S. Patent Office (USPTO) and, when applicable, foreign patent offices. Once a patent application has been filed, it typically will require several years and tens of thousands of dollars to obtain issued U.S. and foreign patents. Other protection methods include copyright, trademark and contractual use restrictions (e.g., for databases or tangible research property [e.g., biological material]).
- Marketing: This may involve marketing to an existing company or entrepreneurs seeking opportunities for a startup company. The Innovation and Commercialization Team identifies candidate companies or entrepreneurs that have the expertise, resources and business networks to bring the technology to market. If a startup pathway is chosen, the licensing team can help recruit business talent and identify sources of capital for the company. Active involvement can dramatically influence the marketing process. Traditionally, inventors are the best source in identifying potential licensees.
- Selecting Licensees: Once potential licensees are identified, the Innovation and Commercialization Team, with inventor input, selects and works with those companies to develop the appropriate financial and diligence terms to fully commercialize a technology.
- Licensing: A licensing officer will negotiate a technology license agreement that will be executed by the Ohio State Innovation Foundation (OSIF). An option agreement is sometimes used to enable a third party to evaluate the technology and its market potential for a limited time before making a decision about licensing. OSIF manages and facilitates commercialization of intellectual property developed at or created by the university and is staffed by Innovation and Commercialization Team members.
- Commercialization: The licensee continues the advancement of the technology and makes other business investments to develop the product or service. This step may entail further development, regulatory approvals, sales and marketing support, training and other activities.
- Revenue and Reinvestment in Research and Education: Revenues received by the university from licenses are distributed to inventors and appropriate university entities to fund additional research and education and to encourage further participation in the technology transfer process.