1. From IP to Profit: Tips for Successful Commercialization MICHELLE KORMAN, SENIOR IP ANALYST METIS PARTNERS LIMITED X INTERNATIONAL SYMPOSIUM: IP IN INNOVATIVE ECONOMY Metis Partners © 2014

2. WHAT WE ARE GOING TO COVER  Innovation and Market Pain  Understanding Monetizable IP Assets  Routes to Commercialisation  IP-Backed Finance  Case Studies Metis Partners © 2014

3. INNOVATION AND MARKET PAIN  To paraphrase English poet John Dunne, “No IP is an island, entire of itself”  Ideas/innovations only have worth if they solve a market pain  Ask yourself: “What problem/pain does my idea/IP solve?” Metis Partners © 2014

4. MARKET OPPORTUNITY  Need to identify the relevant market(s) your innovation would benefit  Think laterally!  Understand the commercial advantages associated with your idea/IP Metis Partners © 2014

5. CASE STUDY: BAGTRAKKA ID Tag - keeping you in touch with your luggage Metis Partners © 2014

6. PROBLEM  More than 34% of passengers experienced problems related to baggage on their most recent flight  Airlines lose 71,000 units of passenger baggage every day  The cost the airline industry is US$2.58 billion annually Metis Partners © 2014

7. MARKET TOTAL MARKET MARKET SEGMENTS 2.4 m 11% MIDDLE EAST - EUROPE 3.5 m 5% EUROPE – ASIA PACIFIC 3m 13% ASIA PACIFIC – MIDDLE EAST CAGR Passengers per month 170m FrequentFlyerspa 50%50% Experienced Lost Luggage 550m TotalFlyerspa Metis Partners © 2014

8. ADDITIONAL MARKET POTENTIAL THINKING LATERALLY Metis Partners © 2014  Airlines looking to use geolocation for:  Reducing passenger congestion (50%)  Monitoring of aircraft movements (32%)  Movement of passengers at airports (31%)  Geolocation for freight carriers  In 2011 there were 77,000 shipping containers tracked using tracking devices  In 2016 analysis expect there will be 1M containers tracked.  An increase from 0.4% to 3.6%

9. SOLUTION  A real time baggage tracking tag  Partner with airlines to market to their frequent flyer customers  Partner with global no.1 technology partner for airlines  Sell online through own online shop  Partner with golf, ski and surf retailers Metis Partners © 2014

10. WHICH IP ASSETS ARE CAPABLE OF MONETIZATION?  Traditionally, people focus only on registered IP as assets capable of monetization  Patents, trade marks and designs are all significant assets capable of monetization, but…  These may not be the only – or most significant – IP assets you/your company has  Technical specifications, test data, databases, software, and even know-how is capable of monetisation Metis Partners © 2014

11. METISOLOGY We look beyond “traditional” IP… … to ID, assess & unlock potential of all IP assets which underpin competitive advantage Metis Partners © 2014

12. CASE STUDY: A HIGH TECH COMPANY PRE-FINANCING  Waterproof technology manufacturer saw their patent portfolio as primary IP asset  But, core/relevant patents were close to expiry and additional patents had been pending for over 5 years  Our due diligence identified that the Company’s trade secrets & know-how underpinned competitive advantage  Company was able to secure significant financing on the back of this Metis Partners © 2014

13. ROUTES TO COMMERCIALIZATION  Licensing  Spin-Out  Sale to 3 rd Party  Direct-to-market Metis Partners © 2014

14. ROUTES TO COMMERCIALIZATION  Things to consider:-  What is your future involvement in the commercialization of the invention?  Is the innovation a one-off or part of a portfolio of inventions?  What is the potential market for the idea? Metis Partners © 2014

15. LICENSING  Effectively giving the right to do something that would otherwise constitute IP infringement  License-out to:  A third-party company which incorporates the IP into end product  A potentially infringing third-party  Via university tech transfer offices  Directly (i.e. software) Metis Partners © 2014

16.  Sharing risk  Revenue generation  Increasing market penetration  Reducing costs  Saving time WHY LICENSING? Metis Partners © 2014

17. CASE STUDY: PLASTIC ELECTRONICS SHIFTS BUSINESS STRATEGY  University spin-out  Operated under a direct-to-market strategy  Products never released  Went back to its IP-focused roots via licensing technology  Now have LoI from number of impressive blue-chip companies Metis Partners © 2014

18. SPIN-OUTS  University/research institution spin-out  No existing business to approach re: licensing  “Platform opportunity” / “disruptive technology”  Technology needs further development to obtain “full” value Metis Partners © 2014

19. SPIN-OUTS  Creation of a new “IPCo”  De-risks IP assets from the risks/liabilities of “OpCo”  Creates new revenue stream for the business  IP is recognised on the balance sheet Metis Partners © 2014

20. SALE TO 3 RD PARTY  Sale to 3 rd party might be ideal if:  Ancillary part of the IP portfolio  Not currently monetising the IP/no future plans to monetise the IP  Need influx of capital Metis Partners © 2014

21. CASE STUDY: FASHION BRANDS Metis Partners © 2014

22. DIRECT-TO-MARKET  IP makes up the core offering of your business model  You have the skills/expertise to commercialize the IP  You have identified a direct route to market Metis Partners © 2014

23. IP-BACKED FINANCE  IP securitization  IP-backed pension-led funding  IP valuations to support investment Metis Partners © 2014

24. Michelle Korman michelle@metispartners.co.uk Tel: (+44) (0)141 353 3011 Metis Partners © 2014