CPI Technology Transfer & Commercialization 2 — Questions and Answers
Question 1: A university researcher discovers a new polymer with industrial applications. Which office is typically the first point of contact for initiating technology transfer?
- The dean's office
- The technology transfer office (TTO) (Correct answer)
- The department chair
- The sponsored research office
Correct answer: The technology transfer office (TTO)
Technology Transfer Offices (TTOs) are the designated university units that evaluate, protect, and commercialize inventions disclosed by faculty and staff.
Question 2: What is the primary purpose of a field-of-use restriction in a technology licensing agreement?
- To limit the geographic territory of the licensee
- To restrict the licensee to specific application markets so the licensor can license to others in different fields (Correct answer)
- To cap the royalty rate the licensee must pay
- To prevent the licensee from sublicensing the technology
Correct answer: To restrict the licensee to specific application markets so the licensor can license to others in different fields
Field-of-use restrictions allow licensors to grant multiple licenses in different market segments, maximizing commercialization breadth while avoiding conflicts.
Question 3: Which metric best measures the commercial traction of a technology licensed from a university?
- Number of patent citations received
- Royalty income generated and product sales by licensees (Correct answer)
- Number of continuation patents filed
- Amount of research funding that led to the invention
Correct answer: Royalty income generated and product sales by licensees
Royalty income and licensee product sales directly reflect whether the technology has achieved market adoption and commercial value.
Question 4: A startup wants to license university IP but cannot afford upfront fees. What deal structure is commonly used to accommodate early-stage companies?
- Flat-fee perpetual license
- Equity-plus-royalty arrangement with deferred milestones (Correct answer)
- Cross-licensing agreement
- Compulsory license issued by the government
Correct answer: Equity-plus-royalty arrangement with deferred milestones
Equity-plus-royalty deals with milestone-based payments allow cash-strapped startups to access technology while giving universities upside if the company succeeds.
Question 5: What is the Bayh-Dole Act's primary impact on technology commercialization in the United States?
- It established the USPTO patent fee schedule
- It allowed universities and small businesses to own patents on federally funded research inventions (Correct answer)
- It created tax incentives for corporate R&D spending
- It mandated open-source licensing for all government-funded software
Correct answer: It allowed universities and small businesses to own patents on federally funded research inventions
The Bayh-Dole Act of 1980 transferred ownership of federally funded inventions to universities and small businesses, dramatically increasing academic commercialization.
Question 6: In technology commercialization, what does 'freedom to operate' (FTO) analysis determine?
- Whether a startup has regulatory approval to sell its product
- Whether a company can commercialize a product without infringing existing patents (Correct answer)
- Whether a university has rights to license a technology
- Whether a technology meets export control regulations
Correct answer: Whether a company can commercialize a product without infringing existing patents
FTO analysis reviews existing patents to determine if a product or process can be commercialized without risking infringement liability.
Question 7: Which technology readiness level (TRL) is typically required before most commercial partners will consider licensing a university technology?
- TRL 1–2 (basic principles observed)
- TRL 4–6 (validated in lab/relevant environment) (Correct answer)
- TRL 8–9 (proven in operational environment)
- TRL 3 (experimental proof of concept only)
Correct answer: TRL 4–6 (validated in lab/relevant environment)
Most industry partners prefer technologies at TRL 4–6, where the concept has been validated, reducing their commercialization risk to manageable levels.
CPI Technology Transfer & Commercialization 2
A university researcher discovers a new polymer with industrial applications.
Which office is typically the first point of contact for initiating technology transfer?