Dr. Tom Corr CEO Accelerator Centre Waterloo Research and Technology Park Associate Vice President of Commercialization – University of Waterloo April 28, 2008 IP Protection: A Catalyst for Innovation

Presentation Overview What’s in the water in Waterloo? UW’s “Creator Owns” IP Policy The importance of protected IP Conclusion: IP as a Catalyst for Innovation

What’s in the water in Waterloo? Waterloo Region is one of North America’s leading concentrations of technology players, commercialization expertise, venture and early stage capital, and innovation “One of the brightest stars in the Canadian economic skies.” –Bank of Montreal

What’s in the water in Waterloo? Waterloo Region’s ICT Sector: –327 high tech companies in 2004, 514 in 2008 –284 companies in ICT sector –$13 billion in revenue –13,000 employees representing 10% of the total workforce –250 companies are spin-offs of the University of Waterloo –$344 million in private sector R&D (2006) –150 research institutes In 2007 Waterloo saw a record year of deal flow - $300 million infused into local start-ups

What’s in the water in Waterloo? Invested Venture Rate ( ): –Waterloo –Ontario –Canada –California –Massachusetts –New York % of high-tech companies in Waterloo Region hold technology patents, totaling 1,457 current plus 274 pending

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy “Inventors own their inventions and are free to profit commercially, without obligation to share benefits with the University, with the exception of industry sponsored research.” –UW Policy 73 Inventor ownership is an incentive that attracts high quality entrepreneurial researchers Ownership is the best motivator to facilitate the transfer of University-developed knowledge and technology for societal use and benefit

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy Notable UW Spin-offs and Waterloo Start-ups: –Dalsa (1980) –Northern Digital Inc. (1981) –Virtek Vision Corp. (1986) –Waterloo Maple (1988) –Open Text (1989) - Descartes Systems Inc. (1981) –Research in Motion Ltd. (1987)

The University of Waterloo’s Contribution? Its “Creator Owns” IP Policy Accelerator Centre - 2 years old –Provides facilities for UW spin-offs and other start-ups from the Waterloo region –Currently house 20 companies –A second building is being built to house 15 more companies who will move in in September

The importance of protected IP The Definition of Success: –capturing “disruptive” IP and productizing it –Creating new ventures and starting companies –Supporting R&D, entrepreneurs, risk-takers What are the VCs looking for? We asked them, and they said: –Patents! –IP ownership, not IP licensing, is key! –University IP policies must be clear

Conclusion: IP as Catalyst for Innovation Without IP Protection, entrepreneurs cannot attract venture capital IP Protection is the first link in the productivity chain: –Protection of IP –Attraction of investment –Creation of Spin-offs and start-ups –Creation of jobs and economic activity for Waterloo Region IP creates the activity that moves inventions from the lab to the marketplace The bottom line: IP creates jobs and economic development