Wwu Commercialization Recommendations

6/6/2014
WWU
Commercialization
Center
Recommendations

Alison Grinberg, Blake Bishop, Jeff Beyer, & Lauren Donohue
MBA 598-599, WINTER SPRING 2014
WWU Commercialization Center Recommendations
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Table of Contents
1 Abstract ................................................................................................................................................. 2
1.1 Introduction .................................................................................................................................. 2
1.2 Methodology ................................................................................................................................. 2
2 Recommendations ................................................................................................................................ 3
2.1 Staff/Departments: ....................................................................................................................... 3
2.2 Student Team Path ....................................................................................................................... 4
2.3 Researchers ................................................................................................................................... 5
3 Academia and Industry Relations ......................................................................................................... 7
3.1 Internal Partnerships .................................................................................................................... 7
3.2 External Partnerships .................................................................................................................... 8
4 Things to Consider ................................................................................................................................ 9
4.1 Mission Statement ........................................................................................................................ 9
4.2 10 things to know .......................................................................................................................... 9
4.3 Profitability .................................................................................................................................. 10
5 Closing Note ........................................................................................................................................ 11
6 Case Study ........................................................................................................................................... 11
6.1 PolyDrop Case ............................................................................................................................. 11
6.2 Appendix ..................................................................................................................................... 13

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1 ABSTRACT
1.1 INTRODUCTION
Western Washington University students have the spirit of innovation. With this spirit comes
new inventions, companies, and ideas that will change the world. However, WWU does not
have a center for commercialization or any dedicated space to support the students venture
outside the walls of the University. Our team was tasked with exploring the possibility of WWU
creating such a space in order to address this gap as well as to create an example path that a
start-up would take if it were to use the commercialization center.
1.2 METHODOLOGY
In order to begin our exploration on what makes a strong and successful center for
commercialization, we started with secondary research looking at the top Universities around
the country. We chose these schools based on the reputation and continued high rankings in
publications for top colleges for entrepreneurship, as well as vicinity to Western Washington
University.
1
The schools we researched the most were: the University of Washington,
Washington State University, Ohio State, Johns Hopkins, University of Utah, and Rutgers. From
these Universities we have identified suggested applications of how to create and maintain a
reliable center for commercialization for WWU students.

1
http://www.entrepreneur.com/article/228454
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2 RECOMMENDATIONS
2.1 STAFF/DEPARTMENTS:
Initially, this technology and new venture commercialization initiative will most likely start as a
team that operates with students on a case-by-case basis. It may take years to manifest into a
physical center or office. Engaging the right individual to lead and support this team or
committees operations may determine its failure or success. Many offices have evolved from
simple one- or two-person operations to complex operations with many different positions to
address specific job tasks, including general administrative management, clerical support,
accounting support, paralegal services, and project management (evaluation, marketing,
licensing, etc.). We recommend that WWU start by forming an operating team or committee of
staff that can facilitate the following functions and roles that researchers, startups, and
innovators need to commercialize:
2.1.1 Technology Licensing
Responsibilities include evaluating, patenting, and licensing technologies to established
companies and student startups. The Technology Licensing Department will be set up to
support and define the ideas of inventors. It will help clarify research and provide a vehicle for
the transfer of student work to the community at large, by permitting exploitation both
commercially and otherwise in the public interest.
2.1.2 New Ventures Unit
Focuses on helping start-up companies, the New Ventures Unit would be set up to help WWU
students navigate the path from innovation to market. It will allow students to protect their
discoveries and ensure that they will be prepared for potential licensing by third parties.
2.1.3 Intellectual Property (IP) Management
Plans and directs the various functions of the IP Management unit, the IP Management unit will
help decided whether the start-up or innovation is protectable. There are a number of factors
that are evaluated in order to determine if the patent will be pursued. Technology assessment
takes into account the following factors, among others:
Stage of Development, Development Costs and Time: Innovations early in development
may need significant resources to reach a commercially viable and valuable point with
commercially useful claims.
Patentability: Novelty, obviousness and whether the discovery is enabled for use by
others.
Patent Coverage: The breadth of claim obtainable, as well as geographies where the
discovery can be protected.
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Technical Merit: Whether the technology is groundbreaking or game changing, and its
adaptability.
Market Breadth and Size: Whether appropriate for niche/small market or widely useful,
and whether it has a high or low market value.
2.2 STUDENT TEAM PATH
Start-ups and technology disclosure path:
2.2.1 Review Process
One of the many useful functions of a technology review process is its ability to harness the
expertise of its many faculty members to review and speak to technologies disclosed to the
commercialization. Our recommendation is to hold one or two quarterly Technology Peer
Evaluation Panel meetings where faculty review and select university technologies, or on a case
by case basis. The commercialization team would examine the technical evaluation of peer
reviewers when making a business decision on how best to proceed with each technology
disclosure. Review board members also could have the opportunity to support and assist with a
startup if they want to. This could be in a capacity such as a business mentor, board member,
founder, or an investor.
2.2.2 Orientation
So that you understand what to expect, your Technology Manager will thoroughly discuss our
start-up process, including a review of the licensing process and an explanation of WWU
conflict of interest policies.
2.2.3 Forming Your Team
Once a start-up is on the New Ventures docket, we establish a launch team. It will include your
Technology Manager and other commercialization center professionals, an Entrepreneur-in-
Residence (EIR), external mentors and advisors to work on the business plan. Over time the
team will evolve to include people with management experience who could potentially help run
the company.
2.2.4 Project Planning
The new team should work towards a project plan that lays out 1) the initial business vision for
the start-up, and 2) the technical milestones that will drive the innovation towards
commercialization. A preliminary business plan will be a natural outcome of this stage, and will
answer questions such as: who are the customers for the technology? What market(s) will be
targeted? How large are those markets? Whats the competitive landscape? Well help with this
process, pulling in EIRs and student mentors for assistance.
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2.2.5 Creating Your Company
For projects seeking SBIR funding or that are in license negotiations, it may be time to establish
an incorporated company. As we proceed, we can clarify issues regarding the founding team,
ownership of the company, etc. We provide sample legal documents, and connections to
experts who can help set up simple accounting, legal structure, and HR systems as the company
launches.
2.2.6 Securing Gap Funding
The center will work with the start-up team to gain access to as many commercialization
funding opportunities as possible. These can include an internal GAP fund, external investors or
grants. The Grants Manager heads the effort to identify and develop these grant options, grant
preparation procedures, and timelines.
2.2.7 Licensing From WWU
The Patent Agent will explain:
how the process works
what the center will need to see in a business plan to proceed
the key terms and what they mean to WWU researchers, the university, and the
licensee
what to expect during the negotiation itself
how conflicts of interest are managed at WWU, including the importance of identifying
potential conflicts early so appropriate management plans can be established through
the Office of Research
Typically, before a formal license or option is granted, a company is formed and has a
preliminary business plan so that significant milestones and "value inflection points" can be
established.
2.2.8 Raising Capital (External)
When the project has progressed sufficiently to begin raising capital, the New Ventures team
will help the project team prepare a top-notch investor pitch, fine-tune the business plan,
establish a strategy, target a list of investors, provide introductions, and position the venture
for presentation at angel investor events.
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2.3 RESEARCHERS
Technology Managers will be the primary contact between the university and student team.
Student teams will be the expert and owner of the research project plan and commercialization

2
For examples of paths from other Universities, please see Appendix.
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center will provide support and guidance on how to transform the research results into
products or services. For example, to advise on:
data needed to support patent applications and other IP protection
the proof-of-concept work that industry looks for
how to identify applications for your research
market size and potential interest by third parties
Our in-house patent agent will help manage intellectual property issues including WWU
research results, outside work agreements and sponsored research. As well as can conduct a
comprehensive search for patents and patent applications in your technical discipline. This type
of information will help you to:
determine which patents are now in the public domain
understand the activities and strengths of known competitors and identify potentially
unknown players by finding pending patent applications (publicly available 18 months
after filing)
determine how rapidly new innovation is taking place in your space
identify gaps in research and development
be aware of densely versus sparsely patented aspects of your research area
consider whether industry patent holders could become sponsors of your research
better position your technology to attract funding
Once the research team has started the patent process, the Technology Manager can introduce
them to other students and staff that might be interested in the project to join the research
team. As well as introduce research teams to the New Ventures Program for creating a startup.

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3 ACADEMIA AND INDUSTRY RELATIONS
3.1 INTERNAL PARTNERSHIPS
3.1.1 Graduate Research/Writing Center
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This newly formed graduate student services area located in the Writing Center at Wilson
Library. The Graduate Research/Writing Center is staffed by a team of graduate TAs from across
the disciplines. Each has a specific area of expertise, yet all are trained to assist in
research/writing from any discipline. During school year 2013 - 2014 the TAs disciplines
included: MBA, MIT (English), Kinesiology, and Environmental Science.
3.1.2 Faculty Outreach
In order for technologies to be successfully commercialized in a university setting, they need
consistent feedback and communication with faculty. To help foster this we would recommend
hosting Boot Camp or Open House events to help faculty learn what the commercialization
center does and how to get involved.
3.1.3 Entrepreneurial Faculty Scholars or Technology Review Board
One of the many useful functions of a technology review process is its ability to harness the
expertise of its many faculty members to review and speak to technologies disclosed to the
commercialization center. Our recommendation is to hold one or two quarterly Technology
Peer Evaluation Panel meetings where faculty review and select university technologies. Only
faculty well versed in the academic fields from which the technologies under consideration
originated are invited. The commercialization center examines the technical evaluation of peer
reviewers when making a business decision on how best to proceed with each technology
disclosure. Review board members also could have the opportunity to support and assist with a
startup company for the technology if they want to. This could be in a capacity such as a
business mentor, board member, founder, or an investor.
3.1.4 Business School Collaboration
Teaming up with Westerns CBE, students have opportunities through courses and programs to
evaluate and formulate business plans around WWU related technologies. Offering structure,
curriculum, great instructors, and access to mentors can help streamline ideas into the
university commercialization process.
3.1.5 Internships or Graduate Assistantships
There would be great opportunities for employment at a commercialization center. Interns or
GAs could become associates in Law, Design, New Ventures, Finance, Web Development,

3
http://libguides.wwu.edu/gradwritingcenter
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Licensing, and Business. This would help students build their networks, develop experience, and
deliver value to university technology.
3.2 EXTERNAL PARTNERSHIPS
3.2.1 Entrepreneurs-in-Residence
This is a way to get local business executives, entrepreneurs, and industry experts to evaluate
startup opportunities based on university technologies. They can help in the review and vetting
process as well as participate in taking to market the intellectual property disclosures at WWU.
3.2.2 External Advisors or Investors Committee
The sequence by which inventions or ideas are developed into commercially feasible
applications is often extensive, work-intensive and costly. However, the more Western
develops and nurtures relationships with external investors the more successful we will be in
successfully commercializing technologies and start-up ideas. By integrating the feedback of
external investors regarding technologies disclosed and start-up ideas to our office, we would
become better positioned to make informed decisions about which inventions are
commercially promising, and thus deserve funding, and which ones are not.
3.2.3 Licensees
According to our findings the relationship with licensees in the tech transfer industry has
transformed dramatically. Partnerships are increasingly wary to make investments in young and
experimental technologies without assurances that they will have a good chance of becoming
commercially viable. In response to this development we recommend that Westerns
commercialization process focus on de-risking, developing and adding value to university
technologies by vetting them through a thorough and specific process. This could include
funding further development and attaching business models to them. These actions make
technologies that would otherwise be non-licensable, licensable. Outside partners should make
up crucial aspects of any review or vetting committees as well as the external advisory
committee that reviews our Commercialization Centers actions each quarter. Through
collaboration, increased communication and trust, external partnerships will make taking
technologies from initial disclosure to license smoother and more efficient.
3.2.4 Research and Development Grants
Due to the high rate of technology commercialization failure, the private sector is hesitant to
fund technologies in their early stages. Recognizing this, governments have created research
and development grants to help fill in the gap. The three most common grants we see in our
reach are Small Business Innovation Research grants, Small Business Technology Transfer
grants, and Washington State funded grants. An extensive look into these will be essential into
acquiring more funding for university technologies, research, and start-ups.

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4 THINGS TO CONSIDER
Fundamental questions to consider before initiating the planning process for a technology
commercialization center:
1. Does technology, start-up, and research commercialization align with our mission?
2. Do the quality and quantity of research, technology, and new ventures warrant the
establishment of a technology and venture commercialization center?
3. Is the university willing to make a long-term commitment to the commercialization
center?
4.1 MISSION STATEMENT
If initiated, the first step should be to establish a transparent mission statement developed in
alignment with WWU and the constituent partners (CBE, researchers, administration, industry
partners, etc.). We suggest a mission primarily focused on objectives such as service, economic
development, and income.
4.2 10 THINGS TO KNOW
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4.2.1 The economic five:
1. Technology transfer will not make your university rich. A successful program will make a
small profit but will not support the university. It will, however, provide many other
benefits to the students, institution and the community.
2. Building a robust technology transfer program takes sustained financial investment.
Investments are required to develop a patent portfolio, attract expert talent, and train
office professionals.
3. It will likely take eight to ten years before your program stops losing moneyand it may
never make your institution any substantial amount. It takes time to build an IP
portfolio, establish contacts, and develop skills in technology transfer. Following the
setup, the TTO may begin to make money.
4. It may take two decades or more before a university technology transfer program
(including entrepreneurial spinouts) substantially affects the local economy. Impact in
regional economic development takes 20 to 30 years. Expecting substantial returns in a
few years leads to underinvestment and disappointment.
5. The ultimate impact may be very largeboth economically and culturallyfor the
university, its graduates, and the community.

4
www.iphandbook.com
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4.2.2 The implementation five:
1. Sustained effort requires visible supportfiscal and otherwisefrom senior
administration. Senior management must not only lead the way, but also sustain the
effort to change the culture of research and investment.
2. Only senior administration can set the mission, policies, and priorities for the program.
Clear mandates will help technology transfer professionals choose among competing
priorities and the ever-present trade-offs between business and academic values. These
policies will ultimately help to define the university. They need to be clearly stated, and
supported from the top, so that technology transfer professionals can make the best
decisions and withstand pressure from competing interests.
3. Clear policies on IP ownership, the roles of researchers in interactions with industry, and
other ground rules should be set up before the program begins. Working out such
policies in the middle of making deals leads to confusion and bureaucratic lethargy,
slows down the learning process, and hurts a universitys reputation for being able to
consummate deals.
4. Conflicts of interest, both real and perceived, are inevitable. Clear policies and a well-
understood review and appeal process need to be put in place early. Much can be
learned from the experience of others in the technology transfer field. Again, support
from senior administration is critical.
5. Technology transfer is a talent-based business. It is difficult to find people who can
speak the two languages of academia and industry and who also have the creativity to
craft agreements that meet the needs of both sides. One should not underestimate the
combination and level of skills required. These skills and experiences are very different
from those needed to conduct research.
4.3 PROFITABILITY
Building a program to break-even profitability takes time and money. Studies have shown
that it can take a technology transfer program eight to ten years or more to reach
profitability. They key to becoming profitable is sustaining the effort long term.
4.3.1 Expenses:
4.3.1.1 IP costs
The costs of evaluating, protecting, and maintaining IP coverage are substantial and might
include the following: patent and trademark search fees, patent and trademark filing fees,
maintenance fees, copyright filing fees, issue fees, attorneys fees, and drafting fees.
4.3.1.2 Physical Infrastructure
Eventually this could turn into a physical office and will require elements of physical
infrastructure including, but not limited to: office space, office furniture, computer and
communication systems, general office supplies, and various software packages.
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4.3.1.3 Human infrastructure and talents
Initially professors may volunteer their time but as responsibilities and commitments increase
and roles are developed, people will want to get compensated for their time and effort. May
include: office director, administrative support, licensing specialist, attorney, consultants, and
students.
5 CLOSING NOTE
Overall, creating a commercialization center at Western Washington University is a significant
way to help fill the entrepreneurial gap that currently exists. By developing a system that
supports student start-ups and innovations, we are progressively moving our university in a
more functional direction. This process may be time consuming and complicated but is
extremely important to the long-term success of students and the overall competitiveness of
the University within the state and NW region.
6 CASE STUDY
6.1 POLYDROP CASE
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We were able to make contact with a previous student start-up from the University of
Washington by the name of PolyDrop. According to their website, PolyDrop was birthed out of
the collaboration of a team of students and researchers at the University of Washington. That
team included degree holders and candidates in Chemical Engineering, Mechanical Engineering,
Biosresource Science, Law and Business Administration. Team members had already gained
scientific and business experience with corporations such as Boeing, Alcoa, and Microsoft.
Initially, PolyDrop was just a product, but in 2013, the development team branded both the
product and the company as PolyDrop. The objective of the new corporate team is to drive the
full-scale production and commercialization of the PolyDrop product to fulfill needs that have
long been unmet in the aerospace industry and many others. We messaged them through
their website at www.polydrop.net.
I am a student at Western Washington University and I was recommended to contact
you to ask about what issues you had in going through the commercialization stages at
UW. My team and I are looking at the feasibility of creating a Center for
Commercialization here at Western. If you have the time in the next few days I would

5
It has also been highly suggested that whomever moves forward with this project to contact Connie Bourassa-
Shaw, Director of the Buerk Center at the University of Washington. She would be very helpful in terms of what
works/what doesnt about UWs C4C.
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greatly appreciate a quick email explaining the challenges with IP and other aspects of
getting out of the University and into your own space.
THEIR RESPONSE IS BELOW:
Our process was fairly hard, but I think there are couple of things that can ease it:
1. Forms with typical deals by your university
2. Guide on your website for students/inventors/start-up founders
(Guide should include: disclosure of invention, typical pathway of start-ups to license
technology, range of terms for exclusive licensing, other opportunities for raise funding:
investors, competition and government funds)
Here is a couple of examples from other Universities which I find super useful:
Stanford - http://otl.stanford.edu/documents/OTLstartupguide.pdf
University of Colorado - https://content.cu.edu/techtransfer/downloads/Bulletin-
StartupProcess.pdf
MIT (single digit equity) - http://web.mit.edu/e-club/www/presentations/tlo.pdf
University of Nevada - http://tto.unr.edu/faculty/elicense
At the same time my overall experience with C4C was great! They provided and still
providing a lot of help and resources for start-ups. I can share it with you in more details
once I complete my fellowship.
Volha Hrechka
volhahrechka@polydrop.net
(206) 601-2191

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6.2 APPENDIX
6.2.1 Appendix 1
6

6
http://tco.osu.edu/#new-ventures The Ohio State University
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6.2.2 Appendix 2
7

7
https://www.tvc.utah.edu/tco/engine.php - The University of Utah
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6.2.3 Appendix 3
8

8
http://www.otc.utexas.edu/8steps.jsp - University of Texas at Austin
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6.2.4 Appendix 4
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6.2.5 Other Startup Guide Links
Purdue - http://otc-prf.org/sites/default/files/startup_guide_web_9.pdf
University of Southern California - http://www.usc.edu/org/techalliance/comprocess.htm
Stanford - http://otl.stanford.edu/documents/OTLstartupguide.pdf
University of Colorado - https://content.cu.edu/techtransfer/downloads/Bulletin-
StartupProcess.pdf
MIT (single digit equity) - http://web.mit.edu/e-club/www/presentations/tlo.pdf
University of Nevada - http://tto.unr.edu/faculty/elicense

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http://industry.gatech.edu/researchers/tech-commercialization/ - Georgia Tech

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