UC San Diego

Campus Notes:

  Management of UCSD’s invention portfolio is split between OTT and UCSD’s Technology Transfer Office (TTO). TTO assumed responsibility for managing most new campus inventions and selected older inventions effective October 1994. Thus, FY96 was the first full year of operation for TTO. OTT continues to receive some new UCSD disclosures when multiple UC campuses are involved or the technology is closely related to one already administered by OTT.

  Over half of total income for the OTT-managed portfolio in FY96 was attributable to earned royalties received for Radiographic Media, which is among the OTT’s “Top 25” (see p.13). Income on UCSD’s other top-earning invention, Marine Anti-inflammatory, decreased by nearly 70% due to production problems experienced by the licensee. UCSD’s share of its income, which is split evenly with the Santa Barbara campus, decreased by $236,000. New licensing activity, as measured by licenses completed (12) and issue fees received ($593,000), was brisk in FY96. Seven agreements generated issue fees of $40,000 or more.

  For the OTT-managed portfolio, the large number of secondary filings in FY95 were motivated by patent law changes related to GATT. In general, the number of new U.S. patent filings will decrease over time as the remaining portfolio ages. An increase in patent expenses for FY96 was more than offset by increased reimbursements from licensees, resulting in a $216,000 decrease in net legal expenses.

  The $201,000 increase in share payments for the OTT-managed portfolio from FY95 to FY96 resulted from a $638,000 increase in income from FY94 to FY95. OTT operating expenses decreased by nearly 11% ($46,000), reflecting the fact that responsibility for some inventions has been shifted to the campus in the last two years.

  For the TTO-managed portfolio, both the number of invention disclosures and the number of patent filings increased by over 200% from FY95 to FY96. Net legal expenses also rose dramatically, due to an increase in “at risk” patent filings and a lag in the receipt of patent reimbursements from licensees.

  An increase in TTO staffing and costs associated with the growth of a relatively new office resulted in a $138,000 (36%) increase in TTO operating expenses for FY96. Since legal expenses plus inventor share payments exceeded income for FY96, the State share actually provided a “credit” for TTO.

  As a result of these factors, from FY95 to FY96 net income distributed to UCSD rose from $292,000 to $459,000, net operating expenses by UCSD increased from $381,000 to $519,000 and net legal expenses at OTL increased from $12,000 to $246,000.

PORTFOLIO ACTIVITY