Roles and Perspectives in Science Collaboration – the view of the high-tech industry Dr. Peter Kurz Agilent Technologies International Sàrl Morges 25 April 2005

November 1, 1999 WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005

Semiconductor Products Agilent Revenue – FY04 Test and Measurement $2.9B Semiconductor Products $2.0B Automated Test $0.9B Life Sciences and Chemical Analysis $1.3B Speaker Notes: Total net revenue for fiscal 2004 increased by 19 percent compared with the previous year.   For the full year, orders were up by 15 percent compared with 2003. Agilent Laboratories WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005

Agilent’s university collaborations Basic observations & shifts in direction More basic research and less applied research @ universities, due to internal shifts in Agilent. Sometimes of philanthropic nature (e.g., funding a professorship). Not much contract research (of the type „Run this project for us“), rather funding of research conducted at the university, provided Agilent has an interest in the results. Exception: projects where only the university has expertise Some research funded by EU or local governments Acquisition of university spin-offs or university IP WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005

Agilent’s university collaborations Recent Issues Universitites under too much pressure to commercialize & do not understand a) the investments required for product development, b) the limits of IP protection and c) the basis of profit calculation. E.g., a 20% royalty on a lab-status technology is usually not an option, unless there are special leverages. Examples: Equity investment in spin-off failed because there were only 3 recently filed patent applications and one of the professors held unspecified rights in them Expected royalty rate was so excessive that Agilent decided not to fund a project, but rather hire a scientist from the university. Now, government money could not be assigned WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005

Agilent’s university collaborations Conflicts In our experience, conflicts arise rather during the negotiation of the contract, than during execution. There is one essential bottleneck that has a name: University Legal Departments. (Slow in response, no power to compromise, ...) One particular issue with the revision of § 42 Inventor Code in Germany: the professor is no longer the owner of his/her inventions. => 3 or 4 parties to agree (funding company, university, professor, student if any). Agilent has split up the agreements into 3 for that purpose. WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005

Thank you for your attention ! WIPO Conference on Dispute Resolution in International Science and Technology Cooperation Geneva 25 26 April 2005