UNR, DRI create streamlined research commercialization

The University of Nevada, Reno, and the Desert Research Institute said last week they've taken steps to streamline the process of creating commercial applications from research in their laboratories.

Key elements of the streamlined process:

* Creation of a standard licensing agreement that spells out the terms for companies that want to use technology developed at UNR or DRI.

* Development of a program that allows faculty members to take an option on intellectual property they develop, giving them a year to seek funds to begin building a commercial venture while they maintain control of the intellectual property.

Michael Birdsell, director of IP marketing and business development for the Technology Transfer Office that serves UNR and DRI, described the terms of the new standard licensing agreement as "one of the most aggressive in the nation."

The agreement calls for a 2 percent royalty on net sales to be collected by the Nevada System of Higher Education from technologies developed in UNR and DRI labs. (The royalty is 1 percent for clinically approved medical products.)

In addition, the state's university system would take 0.75 percent of the proceeds when a company built around UNR or DRI research was sold or completed an initial public offering.

The new option on intellectual property, meanwhile, would be available to faculty members after they've completed a preliminary business plan to take their research into the commercial arena.

They'll pay $4,000 for a one-year option. The option can be exercised once the startup has funding to sustain its operations for 18-24 months.

Ryan Heck, a patent lawyer who serves as director of the Technology Transfer Office, said the creation of a standard licensing agreement provides a clear guideline to researchers and entrepreneurs who want to bring discoveries out of the lab and into the marketplace. Previously, license agreements were negotiated one at a time.

"We want to remove any barriers to start-up potential. The lack of a standard, clearly posted policy by itself was a significant barrier," Heck said.

The Technology Transfer Office is wrapping the first deal under the new licensing agreement with IBUCS, a company that's based on DRI faculty research into a "smart meter" technology. The IBUCS system allows businesses and consumers to monitor the energy use of individual appliances.

UNR researchers, meanwhile, are working to license technology for the drying of wastewater sludge, a technology that appears to have applications in energy production as well.

Heck said university officials believe that creation of companies based on DRI and UNR research will be one step toward economic recovery in Nevada.

The Technology Transfer Office currently is looking for commercial partners for more than 30 technologies in fields ranging from renewable energy to medicine.

At the same time, Birdsell said the office is working to increase the awareness among researchers of the possibilities of commercial applications for their work.

"For researchers, their main job is research," he said. "Business is new to them."