Campus Highlights: UC San Francisco

Campus Notes:

• Effective July 1, 1996, UCSF’s newly established Office of Technology Management (OTM) assumed responsibility for managing the majority of new campus inventions. However, most inventions disclosed prior to the effective date remain in OTT’s portfolio, and OTT continues to receive new disclosures when multiple UC campuses are involved or the technology is closely related to one already administered by OTT.

• The number of newly disclosed UCSF inventions to be managed by OTT dropped by about 50% from FY96 to FY97. Overall patent activity and licensing remained relatively stable over this period.

• The University’s “Top 25” inventions in FY97 included eight from the OTT-managed portfolio (see page 13). Two inventions accounted for over 80% of UCSF’s income and virtually all of income growth: Hepatitis-B Vaccine earned $26.4 million and Process for Splicing Genes, managed by joint holder Stanford, generated $14.9 million for UC in FY97.

• Most of the $2.6 million drop in net legal expenses for the OTT-managed portfolio resulted from declines in activity for ongoing infringement actions involving Insulin and Human Growth Hormone. The majority of legal defense expenses were incurred for ongoing actions involving the MRI portfolio. Most patent interference expenses related to the Hepatitis-B Vaccine.

• The $2.8 million increase in inventor share payments from FY96 to FY97 reflected a $5.6 million increase in income from FY95 to FY96. The increase in State share was related to FY97 income growth. UCSF’s allocation of OTT operating expenses decreased by $200,000 due largely to a change in the method used to allocate OTT expenses to the campuses.

• During FY97 the newly formed OTM hired staff and established an infrastructure to support campus-based activity. By the end of FY97, the office was managing 108 inventions including 83 new disclosures and 25 that were transferred from the OTT portfolio. The office initiated 18 first patent filings and entered into nine new license agreements.

• In its first year of operation, OTM generated $65,000 in FY97 licensing income. Some of the patent expenses that contributed to net legal expenses of $188,000 are likely to be recovered by future reimbursements from licensees. The State share appears as a credit because FY97 net legal expenses exceeded income. Operating expenses for technology transfer-related activities of OTM were $190,000.

• Taken together, these factors resulted in a 20% ($2.6 million) increase in net income for the OTT-managed portfolio. UCSF also received interest earnings from this portfolio totaling $297,000, bringing the net campus distribution to more than $16 million. Net loss for the OTM-managed portfolio was $282,000.

• In addition to the activity reported above, OTM maintained an active copyright program with activity summarized below.

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