Inventor Perspective Named as inventor on 4 patent applications - - PDF document

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“Innovation, Jobs, and Patents: Understanding the Connection” Perspective of Technology Start-Up (Small Business)

Matthew Gevaert, Ph.D. Chief Executive Officer, KIYATEC Inc.

June 8, 2011

Inventor Perspective

• Named as inventor on

4 patent applications during graduate research at Clemson University

– Academic culture that recognizes and rewards student inventor role – Inventing and patents were a part of my education process – Took lead role on interactions with patent lawyers – Patent law and science are two different languages that often require a translator

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Technology Transfer Perspective

• Technology Commercialization

Officer: Biomed & Biotech at Clemson University Research Foundation

– Shepherded ideas from bench to businesses – Heavy emphasis given to likelihood and quality of anticipated patent issuance – Creation of multiple new businesses through licensing, each a source of new jobs – Added “business” language to patent law & science translator role

Focusing in on Technology Start-Up (Small Business) Perspective

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2D vs. 3D Cell Culture

• Cells in 2D culture
• Cells in 3D culture

Unnatural flat shape, ~50% contact with plastic ~50% contact with liquid Natural spheroid shape, contact in all directions

• w. scaffold or other cells

Superior In Vivo Relevance of 3D

Human 3D Cell Culture Mouse 2D Cell Culture Pearson Correlation Coefficient Most Relevant Human – Human = 0.45 3D – Human = 0.34 Mouse – Human = 0.28 2D – Human = 0.0 Least Relevant

Ridky TW, Chow JM, Wong DJ, Khavari PA. Invasive three- dimensional organotypic neoplasia from multiple normal human epithelia. Nature Medicine 16(12):1450-55, 2010.

In this study 3D cell culture had higher correlation than 2D or even the animal model

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Paradigm Shifts Happen In Small Biz

• Higher fidelity in vitro models have big

implications

– Finding safe and effective drugs quicker / cheaper – Using fewer animals in research – Identifying best patient-specific therapy first (improves patient outcome and saves $)

• Typical story – early commercial activity in

this emerging market space is led by start- ups based on patent licenses

Small Tech Biz Perspective

• Co-founder and CEO of KIYATEC Inc.

– Company is based on 3D cell culture platform technology – Patents and filed patent applications are key to company’s business proposition

• Major value inflection point when patents issue

– First employee in 2009; from 2009 – 2011 have raised funding and added jobs

• In worst economy since Great Depression

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Experience with Patent System

• Overall: not perfect but meets big picture
• bjectives

– Patents do issue, ideas are protected, companies are formed, jobs are created

• Observed areas for improvement

– Time to respond – Examiner turnover – Thoroughness of First Office Actions

Implementing Patent Strategies in Various Environments

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Patent Environment: Disclosure Control

University Technology Based Small Business Large Company

Typical Control

• f Public

Disclosure Low to Average:

faculty disclose prior to filing on a regular basis

Average to Strong:

strong for company filed; average for licensed IP

Strong to Very Strong:

employee disclosure tightly controlled

Typical Implication Often playing “catch up” Sometimes playing “catch up” Controlled filing process

Patent Environment: Timing of Filings

University Technology Based Small Business Large Company

Typical Time Between Invention and Filing Slow to Average:

faculty disclose prior to filing on a regular basis

Average:

can time strategically but

• ffset by resource

constraints

Average to Quick:

controlled disclosure plus resources

Typical Implication Often playing “catch up” Sometimes playing “catch up” Controlled filing process

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Patent Environment: Resources

University Technology Based Small Business Large Company

Typical Annual Patent Budget

(in- & out-sourced)

5 digits (hundreds of thousands) 4 digits (tens of thousands) 6 digits (millions) Typical FTE support

(in- & out-sourced)

1-5 <1 5+ Typical Implication Can selectively pursue higher cost strategies Highest cost constraints Least cost constraints

Summary Thoughts

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Role of US Patent System

• Patent invention: integral, beneficial part of US

graduate education in technology field

• Direct source of innovation and jobs through

small businesses formed around intellectual property

– Jobs through intermediaries in process such as technology transfer – Jobs through resulting companies

• Small businesses play a unique role

– Path for game changing innovation and fast growth

Perception of Patent System

• Not perfect, but business and personal

experience leads me to believe the US system is uniquely tied to leadership in technology innovation

– Unique: has characteristic history and differences from

• ther countries

– Balance between sources of innovation (university, small business, large company)

• Changes to patent system must consider

resulting balance shifts due to different implementation environments (resources, control)

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Thank you for the opportunity to provide input.

KIYATEC Inc. KIYATEC Research 511 Westinghouse Road Greenville Hospital System Pendleton, SC 29670 900 B West Faris Road 864.502.2013 Greenville, SC 29605 matt.gevaert@kiyatec.com www.kiyatec.com

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