The commercialisation process

6 MINUTE READ

We work with you along the path to commercialising your intellectual property (IP). Find out what the steps are in the process, and how you play an important part.

Universities may achieve impact from their research through partnerships with industry.

This is because most intellectual property (IP) developed by university research is at an early stage and needs further development. Universities focus on research rather than on product development.

IP is usually transferred from the University to a partner through a license agreement, where:

the University grants commercial rights to a licensee for a fixed period
the license is often limited to a field of use or geographical region.

The licensee might be:

an established company
a government agency or statutory authority
a new start-up or spin-out.

license agreements may include terms that state that the licensee:

must meet certain performance obligations
must make financial payments to the University.

Once the University makes back the costs of commercialisation, it shares these payments with:

the creators
their faculties
the University.

These funds support more research, education, and participation in the commercialisation process.

The typical steps in the commercialisation process

The commercialisation process typically includes the following steps. These steps can happen in a different order, and sometimes at the same time. As you further develop the IP, you may need to repeat steps in the process.

Research

Through your research activities, you make discoveries and create IP. More than one researcher may contribute to the creation of IP. This includes visiting researchers and students.

Pre-disclosure

You contact us to discuss the IP and get guidance. We talk to you about disclosing, evaluating and protecting it. The sooner you contact us, the sooner the IP assessment and protection process can start. Starting early means it’s less likely you’ll be delayed in disclosing the IP publicly. This includes publishing, presenting at conferences or disclosing it in other ways.

IP disclosure

You submit an IP disclosure form. This tells us you have created IP and begins the process of commercialisation. In the form, we ask you to describe the IP so we can look at options for commercialisation.

Assessment

With your help, we then:

review the IP disclosure
conduct patent searches (if needed)
analyse the market and competitive technologies to decide the IP’s commercial potential.

IP protection

We pursue some form of protection for the IP, for example a patent.

Patent protection begins when we file a 'provisional patent application' in Australia. We sometimes also file an application with international patent offices.

It usually takes several years and tens of thousands of dollars to get a patent. This step is often carried out together with an industry partner.

Development and marketing

We identify companies with the expertise, resources and business networks to develop the IP into a marketable product or service. We do this with your help.

If we choose one or more companies as potential licensees, we work with them to develop the terms.

In some cases, we decide that more development of the IP is needed before it’s ready for licensing. We decide this with your input, and sometimes with input from potential licensees. We also give advice on potential sources of funding for this development.

In other cases, with your input, we may decide that the creation of a new start-up or University spin-out is the right path. If this happens, we may help you plan, create and find funding for it, or refer you to other programs like TraM.

Licensing

The University and the licensee sign a license agreement. This is a contract where the University’s commercial rights to the IP are licensed, without giving up ownership, for financial and other benefits.

Commercialisation

The licensee develops commercial products or services based on the IP.

In most cases, they conduct more research and development to:

enhance the IP
reduce risk
prove reliability
meet the market requirements for adoption by customers.

Depending on the type of product or service, this might involve:

more testing (such as safety testing and clinical trials)
prototyping for manufacturability, durability and integrity
regulatory approvals
more work to improve performance and other characteristics
documentation for training, installation and marketing.

Your input and expertise are often needed at different stages. Your laboratory may be contracted to do more development work, which means valuable research funding and the creation of new IPs.

Revenues and re-investment

The University receives revenue from the licensee. We distribute revenue to you, the creator and your faculty when our costs of commercialisation have been recovered.

These funds:

encourage entrepreneurial endeavour
encourage participation in the commercialisation process
support more research and education.

How long the commercialisation process takes

The process of protecting IP and finding the right licensing partner may take months – or even years – to complete. The amount of time depends on:

the development stage of the IP
the potential market
competing technologies
the amount of work needed to bring a new concept to market
the resources and participation of the licensees and the creators.

Commercialisation revenues

In most license agreements, the licensee pays the University for the right to use its IP.

The licensing fee may take the form of:

a fixed payment - these may be upfront or on completion of certain milestones
a royalty - based on product sales, these can generate similar or greater revenues but take longer to be paid
equity – this can deliver similar returns as royalties, particularly if the company issues an initial public offering or is sold, which may also take some time.

Licensing fees vary, but most licenses don’t deliver big revenues. The University engages in commercialisation primarily to generate impact, not financial reward.

For IP creators, too, the rewards of seeing their creation reach a broader market are often greater than financial returns alone.

When commercialisation isn’t successful

license agreements usually include performance milestones based on the impact the licensee achieves. If these milestones are not met, the University may have the right to:

end the agreement
license the IP to another business.

Your role in the process

Your role in the commercialisation process can be different depending on:

your interest and involvement
the interest of the licensee in using your services
any sponsored research related to the license
any personal agreements.

What you can do to help

Avoid risks to your patent rights and make sure you don’t damage the opportunity to market the IP.

1. Talk to your Business Development team member as soon as you believe you’ve created or discovered something unique with potential commercial value. It is important that you talk to us:

at least a few months before you publicly disclose your technology or submit a manuscript for review and publication
before you discuss your creation with people outside the University community.

2. Submit the IP disclosure form with help from your Business Development team member.

3. Respond promptly to requests for information from your Business Development team member or the external patent attorney.

Some parts of the patent and licensing process may need significant participation on your part. But we’ll always strive to make efficient use of your valuable time.

4. Tell us in advance about upcoming publications or discussions with companies about the IP.

What's next?

What is IP?

Manage your research for commercialisation

Talk to us

General questions

If you have a general question or don’t know who to talk to, get in touch with us and we’ll point you in the right direction.

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Find a contact

Our local Business Development team members and central IP and Tech Transfer services team are here to help.

Business Development team

IP & Tech Transfer Services team