1. Innovations at U of T the business of ideas Presentation to the Institute for Optical Sciences December 1 st, 2006 Dr. Cyril Gibbons Director, Commercialization Physical Sciences and Engineering

2. Synopsis IUT and UofT IUT and IOS Ontario Research Commercialization Program (ORCP) Why Commercialise ? Licensing and Spin-outs Success Stories Summary

3. IUT and U of T Innovations at U of T is the commercialization arm of the University of Toronto IUT comprises a staff of commercialization professionals concentrating their efforts in three areas: life sciences IT/communications physical sciences/engineering

4. IUT and U of T Now part of the Office of the Vice- President, Research and Associate Provost “One-stop Shop” – directed by Executive Director/Assistant Vice-President of U of T: IUT – Commercialisation IP and Contracts – Research Services IUT works ONLY with researchers at U of T and the affiliated hospitals.

5. UofT Inventions Policy Inventions are initially co-owned by inventors and UofT You have the right to: take personal ownership (with the other inventors) or offer (assign) ownership to the University Owners receive 75% of net revenues Assignment to:UofT ShareInventor Share UofT75%25% Inventors25%75%

6. Partnering with IUT Most inventors take personal ownership, but many then partner with the IUT to help with patenting and commercialisation Revenue Sharing then changes to: Inventors – 60% UofT/IUT – 40%

7. What can IUT do for you? IUT can help you License technology Create spin-off companies Find funding for: Spin-offs Proof of Concept / Commercialisation Facilitate relationships with industrial research sponsors

8. Why work with IUT? We protect your intellectual property We pay the bills and handle the paperwork We manage a process that can take up to seven years We source industrial or financial partners We negotiate the deals You are free to concentrate on your research

9. Why work with IUT? We have close relationships with investors of different scales (angels, venture capital firms) IUT Staff have experience: Technical - industry and academia Commercial – Finance, Business Development Legal – IP deals, patent prosecution New location - MaRS Discovery District >> enhanced visibility and network of connections

10. Why work with IUT? Key Staff: Physical Sci/Engineering Group: Mark Bennett: (IOS contact): semiconductors, materials, photonics, nanotechnology Cyril Gibbons: chemistry, energy & environment, materials, engineering processes Sam Visaisouk: engineering (mechanical, chemical) manufacturing, materials Fabio Almeida: electronics, photonics, sensors IT Group: software, telecoms, wireless Life Sciences Group: pharma, biotech, medical

11. Project Screening IUT does not take on every disclosure Key screening criteria: Market potential Patentability Stage of development People MARKET POTENTIAL !

12. IUT and IOS Collaborative Partnership wrt commercialisation Contacts: Mark Bennett (IUT) Karen Grant (IOS)

13. IUT and IOS IUT/IOS Technology Assistants Grad students trained in due diligence for commercial opportunities Collaboration on NSERC I2I applications “Working structure” to look at other opportunities in technology transfer and industry relations

14. ORCP Tech Transfer Toronto – Proof of Principle Fund 10-15 projects annually: Stage 1 ($15k - $25k) Stage 2 (up to $60k) Eligible activities: Stage 1: technical feasibility and technology assessments, Business plan development, Competitive market intelligence / Market studies Stage 2: Prototyping / New product development (75% of the fund)

15. ORCP Tech Transfer Toronto TTT Network includes –UofT, Sunnybrook, Bloorview Kids Rehab, Toronto Rehab and York University –OPIC and CNII Three Technology Transfer staff to manage program and support projects TTT POP fund is open to all members of the TTT Network if approved by the Tech Transfer Office or Business Development Officer

16. Why commercialize? It brings recognition to you and to your institution It allows you to see your hard work being put to use Products created from your research could help create jobs and wealth, save lives or improve living standards It can be profitable

17. Commercializing Inventions First step is to obtain ownership from the University: Disclosure Assignments Decide if you want to do it on your own or work with a partner (e.g. IUT) Commercializing IP takes time, money and expertise. Most inventions never even recoup costs of patenting.

18. Licensing Licensing is a contractual arrangement allowing someone to make, use or sell your patented technology without fear of litigation, usually for a share of profits (royalties) Advantage over selling IP because a license can be terminated – ownership is forever!

19. Licensing Arrangements Exclusive vs. non-exclusive Limited by: field-of-use and/or territory Up-front fee, Annual fee, percentage of sales, per unit fee Royalty rate will depend on market-readiness, profit margins and value added or cost savings Never over-value your IP (1-5% is typical) Annual minimums, milestones Start-up companies may want ownership

20. Start-Ups Very difficult to commercialize disruptive technologies by licensing Set up a company to develop, prove concept, prove market etc. A technology company is not likely to succeed on a single product idea need a platform technology/ies Most VCs will not be interested in companies with products whose target revenues are under $100 million annually.

21. Company Creation Technology ≠ Product There is always a competitive product People factors and management experience start to overtake technology in importance Time to market vs. burn rate is critical consideration

22. Success Stories Opalux Inc. Photonics Crystals IP – Geff Ozin IUT managed the IP portfolio IUT brought in: Angel Investors CEO Funding (OCE/MMO) IUT negotiated the deals: 3 patents licensed in return for equity and royalty Shareholders agreement Ongoing research contracts Investment in company

23. Summary If you think something may have commercial value, take the time to get advice and consider patenting Do not disclose in a public forum unless you are certain you have no wish to patent Patent, Publish, Prosper! You are in the driver’s seat, but there is lots of assistance available * ALWAYS DISCLOSE TO UofT *

24. Finally Any Questions?