As technology transfer offices seek to keep their costs down by making use of “free” sources of service, cautions Laura A. Schoppe, president of consulting firm Fuentek, LLC, they should keep in mind that “there’s a reason the phrases ‘You get what you pay for’ and ‘Caveat emptor’ have become clichés.” Writing on the Fuentek blog, Shoppe brings up the example of an arrangement between Texas Tech and Austin-based LGE Execs featured in an article on outsourcing strategies in the March 2010 issue of Technology Transfer Tactics. Under the deal, LGE provides a free assessment, or “opportunity rating,” of submitted technologies’ commercial potential. The university cites the arrangement as offering a “huge savings” on assessment costs. For technologies that make the grade, Texas Tech launches a start-up and LGE constructs and management team while beginning a search for investors. 

“In the Texas Tech example, technologies receive a no-cost rating that the university’s TTO uses for guidance about whether to form a start-up,” Shoppe notes.  While she does not advise against entering into such arrangement, Schoppe does, however, offer these words of caution: “TTOs that are considering following Texas Tech’s lead with this type of arrangement should ask themselves the following questions:

• Will we confirm for those techs that do receive a high rating that a start-up — rather than (or in addition to) licensing to an established company — is really the best way to go?
• Will we confirm that those techs that do not receive a high rating do not have opportunities for other value (e.g., humanitarian impact) or other commercialization options (e.g., collaborative R&D) before abandoning them?”

Shoppe says she’s all in favor of a bargain. “But just make sure your arrangements for free services are structured to serve your organization’s interests and that you confirm the recommendation. It should reflect the fit of the technology to the entire market and not just the interests of the organization providing the free service.”

Source: Fuentek Intellectual Property Marketing Blog

Posted May 4th, 2010 under Intellectual Property Marketing

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