Campus Highlights: UC Berkeley

Campus Notes:

• Management of the UCB invention portfolio is split between OTT and the campus Office of Technology Licensing (OTL). Most UCB inventions in the OTT portfolio were disclosed prior to establishment of Berkeley’s OTL. OTT continues to receive some new UCB disclosures when multiple UC campuses are involved or when the technology is closely related to one already administered by OTT.
  
• For OTT-managed cases, the overall level of basic patent and licensing activity remained relatively stable from FY96 to FY97.
  
• Nearly 75% of adjusted gross income for OTT-managed cases and most of the $370,000 increase in income was attributable to two inventions. Fluorescent Conjugated Probes generated earned royalties of $921,000 in FY97, an increase of $136,000 over FY96. Weighted Capacitor Converter, an older invention that did not generate income in FY96 and has now expired, earned $163,000 in FY97 due largely to a one-time settlement for past-due royalties. Income from a third invention, Indicator Dyes for Calcium Ions, increased slightly to $109,000.
  
• For OTT-managed cases, net patent prosecution expenses decreased by nearly 90% to only $24,000 in FY97. However, the University also spent $331,000 defending itself in ongoing litigation related to a 1986 invention. These litigation costs were not recoverable, thus total net legal expenses increased in FY97. The State share increased as a result of the increase in income. However, UCB’s share of OTT operating expenses decreased substantially due to resolution of several complex licensing matters that previously required a commitment of staff time.
  
• Campus-based activity continued to increase as the OTL invention portfolio grew in size. The number of new inventions disclosed to OTL increased by 28% in FY97 and the number of initial patent filings nearly tripled. Some of the new license agreements issued included monies to support ongoing campus research. Three new start-up companies were created based on licensed technologies and three licensing agreements also included equity terms.
  
• Adjusted gross income for OTL cases grew by 37% to $868,000 in FY97. Increased patent activity contributed to a $319,000 rise in net legal expenses. A substantial portion of these expenses will be recovered from licensees whose reimbursements had not yet been received by the end of the fiscal year. Operating expenses increased by 17% to $543,000 while the State share dropped by $34,000.
  
• After all expenses and distributions, net income for OTT-managed cases increased from $61,000 in FY96 to $344,000 FY97. The campus also was allocated a portion of interest earnings totaling $6,500, bringing the net campus FY97 distribution to nearly $351,000. During the same period, there was a 65% increase in net loss incurred by OTL.
  
• The first section of the Annual Report does not cover activity of OTL’s software program. However, the separate financial statement below shows that although software income decreased by $20,000 to $94,000 in FY97, a $27,000 reduction in operating costs resulted in an increase in net income to $45,000 for the program.

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