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

“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 1

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 2

2D vs. 3D Cell Culture • Cells in 3D culture • Cells in 2D culture Unnatural flat shape, Natural spheroid shape, ~50% contact with plastic contact in all directions ~50% contact with liquid 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 In this study 3D cell 2D – Human = 0.0 culture had higher Least Relevant correlation than 2D or even the animal model 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 . 3

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 4

Experience with Patent System • Overall: not perfect but meets big picture objectives – 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 5

Patent Environment: Disclosure Control University Technology Large Company Based Small Business Typical Control Low to Average to Strong to Very of Public Average: Strong: Strong: Disclosure faculty disclose strong for company employee prior to filing on a filed; average for disclosure tightly regular basis licensed IP controlled Typical Often playing Sometimes Controlled filing Implication “catch up” playing process “catch up” Patent Environment: Timing of Filings University Technology Large Company Based Small Business Typical Time Slow to Average: Average to Between Average: can time Quick: strategically but Invention and faculty disclose controlled offset by resource prior to filing on a disclosure plus Filing constraints regular basis resources Typical Often playing Sometimes Controlled filing Implication “catch up” playing process “catch up” 6

Patent Environment: Resources University Technology Large Company Based Small Business Typical Annual 5 digits 4 digits 6 digits Patent Budget (hundreds of (tens of (millions) (in- & out-sourced) thousands) thousands) Typical FTE 1-5 <1 5+ support (in- & out-sourced) Typical Can selectively Highest cost Least cost Implication pursue higher constraints constraints cost strategies Summary Thoughts 7

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 other 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) 8

™ 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 9