© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Optimizing The Commercialisation Of Technology A NuAge Vision Workshop Stevenage 19 th May 2015 NuAge Vision Ltd Sponsor

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Business Models & Intellectual Property (IP) understanding how IP can help underpin a business’s vision and its operating model Dr Pete Hotten NuAge Vision

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Basic questions Issues What  Products / services  Pricing model  Corporate structure Who  Target customers  Competitors / partners How  To build value : brand, technology, know-how Business Modelshow you make money

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Basic question What is it  Knowledge  Formal  patents, design rights, copyright, trade marks, etc.  Informal  Know-how Intellectual property (IP) A Defence or a Tradable Asset NOTEOwning an IP asset does not necessarily provide the owner a right to commercialise the technology concerned

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Partners Global market? UK start up Majority of sales potential outside of the UK? Supply through established multi- national? Set up own agents? But do I have global IP freedom to operate?

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Partners  R&D*  Distribution  Manufacturing*  Working in foreign territories * IP rights  Acquiring rights (R&D, licensors)  Sharing rights (joint ventures)  Maximising benefits (licensees) Is the scope of my IP alone sufficient to justify a company Market of interest Is my IP dominated? If so where?

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Who to be aware of An IP perspective

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Examples where IP played a major part in deciding the business model Platform technology IP owner (OGT)  Technology enabled genomic research and product development  Existing VC backed company looking to control the market  Wish to make the technology widely available  Disliked the ‘VC’ model  Rich stream of R&D ideas for future products  Little available cash Conclusion  A licensing model based on FRAND principles  Use royalty income to support R&D  Slowly bring new products on-stream  Acquired application specific IP

© NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0) Examples where IP played a major part in deciding the business model Specific technology owner where technology IP was dominated by third party IP (Nimblegen)  Wished to develop technology and create sales revenue  VC backed  Didn’t want to lose value by acquiring licence that simply gave them the right to commercialise their own technology Conclusion  Identified a territory where the dominating IP didn’t exist (i.e. not in a major GDP country)  Developed a global service business (could only transmit data; product manufacture & sales would have been subject to third party IP rights)  Sold to a ‘multi-national’ who acquired necessary licences for full product business

Understanding Intellectual Property (IP) & how it supports business As the name implies IP is a form of property, an asset, and like any other asset it can be owned, traded, given away, or used for commercial purposes. IP has a value. © NuAge Vision Webwww.nuage-vision.com Tel:+44 (0) (0)