(287a) University Technology Transfer and Corporate Relations

Technology Transfer between universities and corporations bears two very distinct points of view. The emphasis in this presentation will be on the university's point of view. BYU is a private institution and places its primary focus on education. Nevertheless, BYU ranks first in invention disclosures, patent applications, licenses and options, and start-ups per research dollar according to the 2008 AUTM survey. As many as 15-20 start-ups could be spun-out this year, double 2008. BYU is not funded by any of our state's economic incentive funds like USTAR or Fund of Funds, yet it contributes greatly to the economic growth of our state. Universities receive a bad reputation for driving hard bargains and being greedy without receiving proper credit for economic growth stimulus. This begs the opportunity to talk about some of these misconceptions and misunderstandings. It can be argued that universities are essentially places for education not job creation. Many professors believe that all their inventions should be given freely to the world without any formal technology transfer interference. Licensing agreements are a fundamental element of tech transfer. Experience has taught that licensees are leery of any terms in the agreement that may hinder business opportunities. On the other hand, the interests of the university must be protected so general counsel is not fighting unnecessary business law suits. Misunderstandings that occur in licensing negotiations include but are not limited to liability, warranty of technology, termination, ownership of improvements, milestones, and product development versus research. The goals of universities and corporations are surprising similar. Both are trying to maximize return, do future research, make sales, find start-up funding and assistance, and find customers. The best deals are win/win contracts, and finding common ground is essential to success.