1. The assessment of commercial viability
UMIP®
The University of Manchester Intellectual Property Ltd

2. Overview The process we use Assessment criteria Trends at Manchester
Benefits for researchers
Case studies

3. A judgemental process Its not an exact science
Seek quantitative and qualitative data
Relies on experience
UMIP people all have technology background
Many industry background
The process asks key questions

4. Commercialisation Executive
Business Manager
Timing: Start
Screening
Decision If ‘Yes’
Shaping
(0 to 4 weeks)
(+ 4 to 8 weeks)
(within 12 weeks)
( + 1 to 3 months from decision)
Activities
Phase One
Meet Academic(s)
Information Gathering on:
- Technology or Idea
- Possible Applications
- Stage of Development
- Industry Links
- IP Position
- Research Funding
Academic Background
Publications
Phase Two
Search for Prior Art
Assess Strength of IP
[Arrange Independent Technical Assessment]
Identify Products or Services
Identify Customer(s)
Validate Market Applications
Conduct Market Analysis
Define Benefit/Added Value
Research Competitors
Test Academic Commitment
Phase Three
Review
Outcomes:
EITHER: Reject, then
Inform Academic(s)
Signpost Elsewhere
OR: Accept, then
Allocate resource
Phase Four
Protect IP
Define Commercial Plan
Seek Funding (if required)
Confirm IP Assignment
Formalise Arrangements with Academic(s)
Determine Milestones

5. Unique selling proposition Technology confidence
Stages of assessment
Overall
market size
Unique selling proposition
Route to
market
Technology confidence
Initial assessment
Market
Further deeper assessment
Liability
issues
People
Invention disclosure meeting
Barriers to competition
Technology
People IP
Ownership
Market
inertia
Nature of competitors
Financial
return
Dependence on
3rd party IP
Market dynamics

6. General rule
It generally takes much more effort to commercialise a technology that only has a modest set of ingredients than it does for one that has a strong set of ingredients
Risks higher
Fund raising more difficult
Time to market longer
Returns smaller

7. The balance Potential “World” value Perceived risk Likely effort/
timescale

8. Value and Risk: the balance
Potential value
Cost
Perceived Risk
HIGH

9. Some bad calls

10. ‘We don’t like their sound - groups of guitars are on their way out.’
Decca Records rejecting The Beatles, 1962

11. ‘I think there is a world market for maybe five computers.’
Often attributed to Thomas Watson Sr,
in 1943 (later Head of IBM),

12. ‘Who the hell wants to hear actors talk?’
Harry Warner, Warner Bros, 1927

13. Other noteworthy mistakes

14. One from Microsoft…

15. Palm Centro - a $99 entry-level smartphone
This might be one…
Palm Centro - a $99 entry-level smartphone

16. 1 Overall market size Spin-outs - big markets excite investors
If the overall market is £1Bn then even a niche part of it could have significant commercial potential
Licensing – potentially higher royalty rates to be negotiated

17. 1 Overall market size Information gathering
What is the full range of applications that the technology could be used for?
Market reports
Data on existing companies e.g. turnover
Market validation
Contact end users, distributors, industry insiders

18. 2 Unique selling proposition (USP)
What are the features of the technology that would make it the technology of choice
Function
Cost
Quality
How novel/attractive would it appear to a user/customer?
Is there a clear unmet need?
Information gathering
A thorough knowledge of the existing and emerging technologies
Dialogue with end users/distributors/industry insiders

19. Unique selling propositions

20. 3 Route to market viability
Is there a credible route to market?
Existing distributor chains/outlets?
If no, does setting up an appropriate route to market seem
Sensible/affordable
Information gathering
Typical margins and overheads in existing distribution systems
Identify key players – assess what would motivate them to work with us
make contact if appropriate

21. What would be the route to market?
A technology that enables electronic components and control switches to be woven into fabrics
A low cost cancer imaging technology that has great value ……but all the existing players want to keep it out of the market

22. 4 Confidence in the technology
Do we have clear proof of concept?
Function
Scale up potential
Clear understanding of the technical risks/downsides/limitations
Information gathering
Potential external technical critique, testing or evaluation
A good understanding of the investment required to bring to the technology production.

23. 4 Confidence in technology
How easily will the technology scale up
Reproducibility? – works every time in volume
Cost of manufacture in volume environment
Ability to manufacture with a commercially acceptable level of skill
How confident are we that it can deliver the performance desired by the market

24. 5 Potential return on investment
What is the ratio of gain to effort? Is it favourable?
If so, is this likely to be achieved within an acceptable timescale (e.g. 5-7 years?)
Time
Effort
Money
Society benefit
£ return
Environmental benefit
Economic benefit

25. 5 Potential return on investment
Information gathering
Potential business value
Other potential benefits – quantitative/qualitative
Resources/effort required to commercialise

26. 6 People
Commercialisation can be very time consuming and is not for everyone
Key attributes of successful entrepreneurship
Open minded
Flexible style
Focussed
Tenacity
Teamwork

27. 7 Barriers to competition
Does a strong intellectual property position exist currently?
Patents
Know how
Software
If “no”, is there a good likelihood that strong IP will be developed from the work ahead?
If “no” to both of the above
Are there any other measures that could be taken to help the technology/product stay ahead of the competition
Customer benefits
Cost
Information gathering
Prior art searches of existing and potential future IP
Identify Specific skills and expertise that are not replicated elsewhere
Technology road map
Can it be kept secret?

28. 8 Market inertia Is there either significant…
Customer entrenchment in this market sector?
Significant new infrastructure investment/required to get the technology/product to market
Has this sector already invested heavily in current technology, and will therefore be unlikely to orphan that investment?
Are there obvious opinion leaders or early adopters that could help overcome these barriers?
Information gathering
Canvassing of existing customers/distributors etc
Technology roadmap of industry

29. 8 Market inertia Changing money format has significant barriers both
practically and in terms of user habits and attitudes
The widescreen format took 10 years to take over

30. 9 Nature of competitors
Do we fully understand the strengths/weaknesses of the competitor technologies?
Are we confident that we could take a significant market share?
Would competitors be able to take measures to undermine our project? E.g.
Undercut on price
Offer additional feature/benefit
Information gathering
Competitor analysis
Contacting existing customers/distributors
Specialist opinions/consultants

31. vs vs 9 Nature of competitors
An ambitious competitor may end up winning, even if their product is inferior vs

32. 10 Market dynamics
Do the dynamics for this market match the timing of the product/technology?
A new mobile phone technology may be very risky if it has a 5 year development plan
What are the market trends/pace/volatilities?
Information gathering
Project timing plan
Legal or regulatory requirements/constraints

33. 11 Dependence on 3rd party IP
Is ownership of the technology clear
People who have been involved
3rd parties organisations who have been involved
“Freedom to operate”
Information gathering
Thorough questioning
Prior art searches
Search for umbrella patents

34. 12 People skills
Are we sure that the skills available to deliver the technology to market are available?
Management team?
Industry/sector experience?
Technical sales?
Technical/support skills?
Admin/accounting/finance?

35. 13 Liability issues
Product liability
Reputation
Ethical

36. 14 Scale of project Is the scale of the project within our experience
i.e. a £500M project is too big!
If so, the project is almost certainly limited to the licensing route
Investment criteria comfort zone

37. 15 Other risks? Health of key individuals?
Possible legislation changes?
Dependence on failure of a competitor technology?

38. Experience at Manchester – EPS data
200 invention disclosures in 2 years
30 active projects
170 - not currently commercially viable
110 – no intellectual property
or no market
50 – too early stage
10 – people commitment issues

39. Benefits of commercial activity
Harnesses the commercial world in getting your work out there!
Reputation
Organisation
Personal
Additional income
Department
The experience!

40. Case studies

41. Case study 1 Biomedica: antimicrobial peptides
Strengths
Broad range of applications in “world scale” markets
Market applications of
high potential value
low risk with
near term
low barrier
Longer term, high barrier, high risk applications
Good proof of concept
Patent protected
Weaknesses
Collaboration with US University complicated ownership – assignment obtained
Technology needed UMIP Proof of Principal investment to gain licensee traction

42. Case study 2 EPS example – toxic contaminant removal
Strengths
Worldwide market
Significant running cost advantages compared to existing technologies
Higher performance/more effective than existing technologies
Good proof of concept
Very broad range of applications
Simple technology
Patent protected
Weaknesses
Water industry generally very conservative on new technology
High investment cost for customers

43. For further advice or if you have any questions please get in touch with your relevant UMIP Commercialisation Executive