Campus Highlights: UC San Diego
- 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. 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.
- For OTT-managed cases, the overall level of basic patent and licensing
activity remained relatively stable from FY96 to FY97. However, adjusted
gross income increased considerably. About 40% ($1.1 million) of income
received in FY97 was attributable to Radiographic Media. The FY97 total
for this invention included a $409,000 settlement for past-due royalties.
A newly commercialized invention, Interstitial Cystitis Therapy, generated
$411,000 in royalties for FY97, up from $25,000 in FY96. In addition, seven
agreements generated issue fees of $50,000 or more, and another four agreements
generated minimum royalties of $50,000 or more. Due to production problems
that have only recently been resolved, UCSD’s share of income on Marine
Anti-inflammatory (invented jointly with the Santa Barbara campus) decreased
by $75,000 to only $32,000 in FY97. The future of this invention is now
- Over 90% of FY97 patent prosecution expenses for the OTT-managed portfolio
were reim-bursed by licensees, resulting in a drop in net legal expenses.
The State share increased due to an increase in income and a decrease in
net patent expenses. UCSD’s share of operating expenses increased because
a greater portion of professional time was allocated to support the campus
on licensing and related research issues.
- For the TTO-managed portfolio, both patent and licensing activity increased
dramatically in FY97. The total number of patent filings more than doubled,
and the number of new letter, option, and licensing agreements rose substantially.
Of the 18 new licenses reported for FY97, three actually were executed
- Because the TTO-managed portfolio consists largely of younger inventions
still in the developmental stage, most of the $192,000 of adjusted gross
income came from license issue fees rather than royalties.
- The rise in net legal expenses for TTO-managed cases resulted from
an increase in “at risk” patent filings and a lag in the receipt of reimbursements
from licensees. A portion of these filing costs are due to be recovered
from licensees in FY98. Since legal expenses plus inventor share payments
exceeded income for FY97, the State share actually provided a “credit”
for TTO. An increase in TTO staffing and costs associated with the growth
of a relatively new office resulted in a $180,000 (35%) increase in TTO
operating expenses for FY97.
- As a result of all of these factors, UCSD net income from OTT activity
increased by over 50% to $704,000. The campus also was allocated a portion
of interest earnings totaling $13,000, bringing the net campus distribution
to more than $717,000. During the same period there was a $347,000 increase
in net loss for the TTO-managed cases.
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