DoD Technology Transfer Program
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1 DoD Technology Transfer Program Focus: Patenting and Licensing Presentation to the Johns Hopkins Applied Physics Lab Pizza & Patents Cynthia E. Gonsalves DoD Technology Transfer Program Manager February 11,
2 Definition Technology Transfer (T2) is the intentional communication of knowledge, expertise, facilities and equipment, and other resources for application to military and non-military systems. It includes: Spin-off activities demonstrating commercial viability of DoDdeveloped technologies Spin-on activities demonstrating national security utility of technologies developed outside DoD Dual-use science and technology that develops technologies having both defense and non-defense applications
3 Technology Transfer 15 USC Ensure Full Use of the Result of the Nation s Federal Investment in R&D DoD Directive Domestic Technology Transfer Activities are Integral Elements of DoD s National Security Mission Must have a high-priority role in all DoD Acquisition Programs Technology Transfer Mechanisms Cooperative Research and Development Agreements (CRADAs) Patent License Agreements (PLAs) Educational Partnership Agreements (EPAs) State and Local Government Partnerships (incl Partnership Intermediaries) etc.
4 Why do Tech Transfer? 15 USC 3710(a) (1) It is the continuing responsibility of the Federal Government to ensure the full use of the results of the Nation s Federal investment in research and development. 10 USC Encouragement of technology transfer (a) The Secretary of Defense shall encourage...the transfer of technology between laboratories and research centers of the DoD and other Federal agencies, State and local governments, colleges and universities, and private persons in cases that are likely to result in accomplishing the objectives set forth in section 2510(a) of this title. (b) The Secretary shall examine and implement methods...that are consistent with national security objectives and will enable Department of Defense personnel to promote technology transfer.
5 Why do Tech Transfer? Federal Policy in 15 USC 3710: Technology transfer... Is a responsibility of each laboratory science and engineering professional. Each lab director shall ensure that efforts to transfer technology are considered positively in laboratory job descriptions, employee promotion policies, and evaluation of the job performance of scientists & engineers in the laboratory. Establishment of Research and Technology Applications Offices (ORTAs) Each Federal laboratory shall establish an ORTA
6 Practical Mechanisms for Technology Commercialization Cooperative R&D Agreements (CRADAs) Patent License Agreements (PLAs) Educational Partnerships State & Local Government Partnerships Partnership Intermediary: MT (TechLink Center) Exchange of Personnel Work for Others Independent Research & Development (IR&D) Program Small Business Innovation Research (SBIR) Program
7 CRADAs Total Active Total Quantity 2,300 2,200 2,100 2,000 1,900 1,800 FY98 FY99 FY00 FY01 Numbers Year
8 Technology Funnel 689 Useful IP quality Reduction Prototype/data Inventor & lab Fields of use Problem solve Pros & cons Risk & reward Market atmosphere AF 14% Army 26% Navy 60%
9 DoD Patent License Agreements 300 NUMBER Army Navy Air Force NSA USUHS TOTALS 0 FY 98 FY 99 FY 00 FY 01 YEAR
10 DoD ROYALTY INCOME $7,000, $6,000, INCOME $5,000, $4,000, $3,000, $2,000, $1,000, $0.00 FY 1989 FY 1992 FY 1995 FY 1998 YEAR FY 1999 FY 2000 FY 2001 Army Navy Air Force NSA USUHS TOTAL
11 P.L Report Requirement 15 USC 3710(f): Reports on Utilization of Federal Technology Explanation of agency s technology transfer program for the preceding fiscal year (see next slide) Agency s plans for conducting its technology transfer function, including its plans for securing IP rights in lab innovations with commercial promise Agency s plans for managing IP so as to advance the agency s mission & benefit U.S. industrial competitiveness
12 Patents and Licensing Plan/Report Senate Report , SASC Report on Defense Auth Act Directs the Department to develop a plan and to report to Congress on specific strategies for marketing its intellectual property more aggressively and for exploiting the findings of the DDR&E report. Include: Recommendations on staffing levels for appropriate IP experts Discussion on the role of ORTAs Descriptions of planned cooperative activities with the private sector & other government agencies Analyses of any regulatory or statutory barriers to fully marketing DoD IP Forecast the potential for increased revenues to the Department s labs as a result of more aggressive marketing efforts.
13 Technology Transfer Benefits: Technology developed in DoD lab licensed to commercial firms Military & Commercial applications produced on commercial line Royalty income to labs $6.2M in FY 2001 Reduced cost of items to DoD Maximally Security Computer Network for Processing Highly Sensitive Data Deicing Nozzle Baggage Screening Machine (detect plastic explosives) iscreen Keopsys Fiber Amplifier Chemiluminescent Lightsticks OSD PoC: Cynthia Gonsalves, ODUSD (AS&C)
14 CRADA Funds Cash-in CRADA Income ($ in M) $ $ $ $ $ $ $0.000 FY96 FY97 FY98 FY99 FY00 FY01 Cash-in Years
15 Intellectual Property Management Information System (IPMIS) How does DoD manage IP? How SHOULD DoD manage IP? Why IPMIS? Tracking, managing, & reporting inventions, patents, other IP, & related matters Current: ONR working with Air Force Security Target date for resolution: Navy, Air Force, Army/AMC commitment Future
16 What is a CRADA? Cooperative Research & Development Agreement Legally-binding agreement signed by Federal laboratory director Partners may be: other Federal agencies units of State or local governments public & private foundations other persons industrial organizations nonprofit organizations CRADAs allow: Federal lab to accept, retain, & use funds, personnel, services & property from partner Federal lab to provide personnel, services, & use of property granting of patent licenses or options w/retention of government use waiving of rights to inventions except for government use former employees to participate in efforts to commercialize inventions Partner may choose prenegotiated field of use
17 Value Added to the Mission - CRADAs General Findings Many Labs see CRADAs as mission extenders CRADAs can: provide a means for industry to talk openly with government advance research to points that would otherwise have taken longer to achieve independently provide access to government/military facilities that are not otherwise commercially available result in new, improved, or more cost effective products/processes eliminate barriers arising as a result of a contract advance research for both partners leading to new programs/contracts CRADAs continuing between organizations is an indicator of progress
18 Value Added to the Mission Derived Insights CRADAs do not take a simple linear route to commercialization and may only serve as one step in a series of steps along the route. Each partnership is unique in its process to meet its objectives Some partnerships are a continuation of an earlier contractual agreement for the purposes of commercialization of a product Some CRADAs are specifically for PLAs, bringing dollars back to the labs Some CRADAs leverage R&D dollars and make small advances in a specific technology area which over time (and maybe many CRADAs later) may lead to a product/process which DoD can access. NVESD 2 Publications 1 Leveraging R&D R&D Community TI Naval Air Warfare Center (NAWC) Leveraging R&D Use of software Developed Free of charge 2nd- generation software $ 2nd- generation software at a discount Motorola 1st/2nd Generation Software $ Sales 1st/2nd Generation Software Game-related Software $ Sales of Game-related Software Industry & other Government Air force Research Lab (AFRL) 1 $ Contract 2 CRADA Leveraging Development $ 5 $ Royalties Modern Technologies Corporation (MTC) Commercial Product 3 4 $ Sales Industry & other Government
19 P.L Report Requirement (Details) Explanation of agency s technology transfer program for the preceding fiscal year: Information includes: # of patent applications filed # of patents received # of fully executed licenses receiving royalty income exclusive, partially exclusive, or nonexclusive time from date license requested in writing to the date the license was executed total earned royalty income, including stats: total earned royalty income of top 1%, 5%, 20% range of royalty income median income disposition of royalty income # of licenses terminated for cause other parameters relevant/unique to agency s technology transfer practices
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