Can Innovation be monetized?

Components of S&P 500 Market Value

Data: Ned Davis Research, Inc.http://www.youtube.com/watch?v=3Uzmg2bEgv8&feature=player_embedded

University Patent Monetization

Are Universities Patent Trolls?

US Technology Commercialization in Numbers*

6

Research Funding (~$693B)

~293,000 Invention Disclosures

~152,000 Patent Applications

~61,200 Patents Awarded

67,102 activelicense & options,7,781 start-ups

* Source AUTM Licensing Survey 1991-2011

AUTM 2013 Licensing Survey

Highlights include:

24,555 total U.S. patent applications filed (+11%)14,995 new patent applications filed (+5.7%)5,714 issued U.S. patents (+11%)5,198 licenses executed (+1.3%)1,356 options executed (+9.2%)469 executed licenses containing equity (-2.9%)818 startup companies formed (+16%)4,206 startups still operating as of the end of FY2013 (+5.1%)

US University Technology Transfer in Numbers

Universities are far from being “patent trolls”

Patent is a negative right – right to exclude others

AUTM 2013 Licensing Survey

Top US Institutions by Licensing Revenue

Corporate Patent Monetization

“To match [their patent licensing] revenuestream, IBM would have to sell roughly $20billion worth of additional products each year,or an amount equal to one-fourth itsworldwide sales” – Harvard Business Review.

$2B in patent licensing revenue in 2014, 70% of revenuesAnd 94% of gross margin! Licensing revenues totaled €118 million in the

period, increasing by 7% year-over-year.

Qualcomm, one-third of its revenue comes from licensing, and licensing revenues represented 80 percent of its profits in 2013 - Robert Litan, Hal Singer

Nokia's (NYSE:NOK) licensing division, which accounts for about 22% of the company's value as per our estimates, generates revenues through royalties paid by other companies for the use of its intellectual property. From 2010 to 2014, the segment's revenues grew steadily from EUR 100 million to EUR 560 million, with a spike in growth to EUR 840 million in 2011, thanks to a settlement with Apple (NASDAQ:AAPL).

Patent Applicability – Option Value

50%

10%

15%

25%

ProductCompetitorOther divisionsOther Industries

Extracting value from IP

50%

10%

15%

25%

ProductCompetitorOther divisionsOther Industries

On an average of 40% value of technology is never monetized

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