1 Cambridge Enterprise Limited An overview April

2 University of Cambridge University established in 1209 Students: 16,500 (11,600 u/c, 5,000 p/c) 20% from overseas representing 100 countries Over 100 departments, faculties and schools World Class Ranking (Shanghai 2005) 1.Harvard 2.Cambridge 3.Stanford 4.Berkeley 5.MIT 6.Caltech 7.Columbia 8.Princeton 9.Chicago 10.Oxford

3 Data for 2005/6 University research funding Total £295.5 million

4 The Cambridge Phenomenon University people and ideas are at the core of many new technology ventures Over 1,000 innovation based companies –>500 in IT and >200 in the Life Sciences, the most rapidly expanding sectors –Nicknamed ‘Silicon Fen’ –8% of all European venture capital invested in Cambridge (Library House: first half of 2004) University organisations have helped develop the infrastructure of the ‘cluster’ –Trinity College: Cambridge Science Park –St. John’s Innovation Centre –Peterhouse Technology Park

5 Teaching and research Intellectual property RSD Partnership Group Cambridge Enterprise Large companies SMEs Embedded research labs andLicensing research communitiesConsultancy Support for technology transfer

6 Existing business Form a business Inventions Software Materials Patenting & Marketing Commercial Agreements 3 months Due Diligence & Revenue Distribution 6 – 24 months 6 months – 20 years Baseline - Selected Technology Transfer Metrics for 2005/6 152 annual disclosures 800 cases under mgmt 59 new patent applications 350 patent families Under mgmt 61 agreements, (4 spinouts) 243 agreements under mgmt (54 spinouts £3.3 million

7 Baseline For fiscal year 05/06: –61 commercialisation contracts closed with new and existing companies to commercialise University of Cambridge innovations. –£6.2 million was generated in consultancy and technology transfer –£5.3 million was distributed to stakeholders (academics and departments). –£1.6 million in seed fund realisations (most of which is available for reinvestment per evergreen structure) –25 FTEs and costs of operations/personnel covered by net revenues, grants and HEIF funding

8 Baseline - assets under management Three overlapping portfolios –Licensing contracts and corresponding revenue streams (250+) –Consultancy contracts with corresponding revenue streams (150+) –Equity holdings obtained in consideration of license, equity investment or non-financial support (60+)

9 Recent relevant policy and organisational milestones Intellectual Property – as of December 2005 The University has the initial right to apply for patents arising from work of staff and students of the University Cambridge Enterprise reviews inventions for patenting within 30 days – or longer if mutually agreed Copyright in software belongs to academics Organisational Structure – as of December 2006 Cambridge Enterprise is a Limited Company The University of Cambridge is the shareholder

10 Structure and Governance Cambridge Enterprise Relationship to University of Cambridge Committee Structure Regent House Council Finance Committee Cambridge Enterprise Ltd Board of Directors Interfaces Here Planning & Resources Buildings General Board Education Research Policy Cambridge Enterprise Ltd Chief Executive Interfaces Here as a member RPC Councils of Schools

11 Markets The focus of the plan are the internal and external markets CE must understand and address: –The primary internal customers are University of Cambridge academics and also include: Academics and Students Administration (VC, Pro-VC, Registrary, Financial Director) Departments and Schools Colleges Units with overlapping interests (RSD, Communications, Development) Governing bodies –The primary external customers are buyers of IP or licensees but also include: Companies interested in IP Investors interested in University affiliated companies and entrepreneurs Organisations with relationships with the above such as Consultancies Professional advisors (fund raisers, banks, law firms, accountants Service providers such as incubators Government and other granting agencies

12 Principles 1.Accept cases into the portfolio with the strongest potential to make a significant positive impact and using commercial channels is the most reasonable means to bring the idea forward. 2.Take the course which supports commercialisation of the technology. 3.Work effectively with the inventor(s) to support their aspirations, manage conflicts and encourage synergy with the mission of the university. 4.Find the best partner (licensee or start-up senior management and investors) to take the idea forward. 5.Negotiate fair and reasonable terms which reflect the contribution of the assets and expertise being transferred. 6.Close lots of good deals. 7.Look after the deals once they are closed.

13 9 points to consider in licensing university technology 1.Universities should reserve the right to practice licensed inventions and allow other non-profit and governmental organisations to do so. 2.Exclusive licenses should be structured in a manner that encourages technology development and use. 3.Strive to minimize the licensing of future improvements. 4.Universities to anticipate and help manage technology transfer related conflicts of interest. 5.Ensure broad access to research tools. 6.Enforcement action should be carefully considered. 7.Be mindful of export regulations. 8.Be mindful of the implications of working with patent aggregators. 9.Consider including provisions that address unmet needs, such as those of neglected patient populations or geographic areas, giving particular attention to improved therapeutics, diagnostics and agriculture technologies for the developing world.

14 Closing thoughts The environment for our working grows increasing complex. These complexities are: cultural, political, legal, financial, operational, technical and interpersonal. Working well at the interface of for-profit and not-for-profit systems is one of the keys capturing value from innovation. Both systems work well: for-profit system and the academic innovation machine. If you compromise either one delivering innovation to the public isn’t sustainable. In order to work at this interface it’s important to understand and respect both machines. One of major challenges in working at this interface is managing multiple missions. That is we are, as a university, engaged in commercialising certain research results for the purpose of: a better world, a more robust economy, service and support to academics and students, building industry relationships, and revenue generation. Capturing a fair return on our intellectual property assets is not only and responsibility, it is irresponsible not to do this. Accordingly, a principle centred approach is more important than ever. And, innovation is more important than ever: innovation doesn’t just need to occur in the laboratory, it needs to occur in policy, legal, financial and business arenas as well.

15 A selection of technology companies formed by University of Cambridge staff and students - Cambridge Positioning Systems Ltd High accuracy mobile location solutions October 1997 Cambridge Display Technology Inc Application of light emitting polymers July 1992 Granta Design Limited Software for engineering materials IT April 1994 BlueGnome Ltd Statistical modelling software for drug- discovery. October 2001 Cambridge Flow Solutions Ltd Consultancy and provider of CFD software February 1999 ZinWaveLtd Unified wireless infrastructure November Metalysis Ltd Generic Electrolytic Processes October 2001 Hypertag Ltd Wireless Information Access December 2003 Plastic Logic Ltd Development of Plastic Semiconductors November Cambridge Semiconductor Ltd Power Electronics July 2000 CEDAR Audio Limited Signal Processing February 1989 Genapta Ltd Next generation biophotonics July 2001

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18 Cambridge Enterprise Limited University of Cambridge 10 Trumpington Street Cambridge CB2 1QA Tel: +44 (0) Fax: +44 (0)