Safeguarding innovation: why intellectual property matters

In a Louisville-headquartered company, there is a cabinet with two combination locks kept behind a vault and a triple-locked door. Lying in this cabinet are 11 vials of herbs and spices as well as a yellowed, handwritten note describing one of the most well-guarded secrets of all time: KFC’s original recipe.

Recipes are prized as trade secrets in the food sector. Trade secrets and patents are types of intellectual property (IP) available in other sectors as well, such as search engine algorithms and patented drugs derived from research innovations.

By turning an idea or invention into IP that is legally protected and owned, using it will require authorisation from the IP owner. For scientists, understanding their IP rights is fundamental, especially when their research is translated into practical applications.

To support translational research at NTU, the University’s innovation and enterprise company – NTUitive – is committed to helping NTU scientists protect their discoveries and launch them from the lab to the marketplace.

MANAGING IP

“IP management is important because it allows inventors to legally protect the potential value of their discoveries and inventions,” says Mr David Toh, CEO of NTUitive. “This protection encourages inventors to invest time and effort into research and innovation, knowing that they have legal protection to safeguard their IP.”

Overseeing and managing NTU’s IP assets, NTUitive supports the University’s mission of developing an innovative ecosystem that fosters entrepreneurship and facilitates research commercialisation. It aids in evaluating technology disclosures from NTU researchers to ensure that they align with statutory patentability requirements before determining the most suitable mode and strategy for filing IP protection.

NTUitive also teams up with external parties to oversee the drafting, prosecution and maintenance of the patents in both local and international settings. It works closely with researchers throughout the process, educating them on the nuances of IP protection and dispelling common misconceptions.

Ms Christina Gee, Director of IP Management at NTUitive, says that many researchers assume that securing a patent is instant upon filing. In fact, patent filing is a lengthy and iterative procedure that can span two to seven years, depending on the nature of the technologies involved.

She encourages researchers to cultivate an awareness for spotting potential IP early in their projects. “To bring the benefits of their discoveries to the public, learning about IP rights would be the first essential step,” she says.

Securing IP rights ensures inventors are recognised for their ideas and hard work, while protecting their work from unauthorised use by others. IP holders, whether of a patent or other forms, are granted exclusive rights to control the use of their invention.

This can help facilitate collaboration, where industry partnerships can be formed, and licensing opportunities, where licenses can be granted to industry to bring the ideas to market. Patents also help spur innovation as they will subsequently be published, allowing others the opportunity to build on them.

In the complex landscape of IP protection, NTUitive offers researchers guidance on formulating cost-effective strategies and navigating revisions to IP filing, making sure there is room for products to potentially evolve over time.

NTU spinoffs, such as medical devices company Articares, have benefitted from NTUitive’s IP assistance. Articares is known for its flagship product H-Man – an intelligent and portable robot that provides stroke patients with minimally supervised, at-home arm rehabilitation.

According to Articares CEO Dr Asif Hussain, NTUitive’s support started as early as 2013 when research behind H-Man began, and continued until the company was spun off in 2017.

“NTUitive played a crucial role in guiding us through the complexities of IP planning. With limited knowledge in this domain, understanding how to protect our innovations effectively was a daunting task,” he says. “Their expertise proved invaluable as they educated us on the nuances of IP protection and also helped us discern which aspects to prioritise, particularly considering the associated high costs.”

Articares relies on cutting-edge hardware and artificial intelligence technologies, so safeguarding its IP assets has been crucial.

“Our collaboration with NTUitive was not just transactional – the insights acquired became an integral part of our company’s DNA. We were not just recipients of advice, but active participants in the process of fortifying our IP, which contributed significantly to our subsequent successes,” adds Dr Asif.

In the last 14 years, NTU has amassed over 5,000 technology inventions/disclosures and licensed out nearly 1,000 technologies. In 2022 alone, the University reported 518 technology inventions/disclosures, of which over 140 have been licensed – surpassing their figures from five years ago by 40%.

TAKING CONCEPTS TO INDUSTRY

IP protection is just one part of the research translation equation. After securing IP, commercialisation typically takes two pathways. The most common approach is to license out IP assets. In this instance, NTUitive leads the negotiation of license agreements to ensure financial and other benefits for NTU and its inventors.

Alternatively, NTU inventors can opt to establish a company like Articares. According to Dr Manish Sinha, NTUitive’s Director of Venture Building, establishing spinoffs can be a learning curve for scientists. This is why NTUitive offers diverse training programmes, such as the Lean LaunchPad bootcamp to assist inventors in developing business acumen.

“The process for creating spinoffs is non-linear and a long haul, but can be highly rewarding,” says Dr Sinha, who also emphasises the importance of identifying customer needs and staying abreast of international competition in building successful businesses.

Every project often begins with NTUitive identifying potential spinoffs based on market opportunities and the IP’s technological edge, followed by improving the IP’s market viability.

NTUitive’s non-dilutive proof-of-concept and proof-of- value grants, which provide sizeable capital allocations of about S$250,000 (US$188,000) and S$500,000 (US$376,000) per project, serve as substantial aid for IP commercialisation.

The company further leverages its entrepreneurial ecosystem by connecting inventors with mentors, industry players, and strategic and financial investors aligned with the execution of their ideas.

In under a decade, NTUitive has successfully incubated 330 startups and deep-tech spinoffs. The collective value of 70 of these deep-tech spinoffs – where NTUitive has current holdings – surpasses S$820 million (US$616 million), as determined by their latest funding valuations.

A CONTINUOUS JOURNEY

While spinoffs initially emerge from IP developed through research, this only marks the beginning of their journey. To remain competitive, ventures should continually develop new IP assets. NTUitive facilitates new IP creation with proof-of-concept grants and equity-linked funding.

Scientists, often the founding members of spinoffs, are also encouraged to maintain close ties with their ventures and continue to develop new IP. Integrating new technologies into spinoffs hones their technological advantage in the market.

Dr Sinha cites Articares as a prime example of how the continuous collaboration between CEO Dr Asif and co-founder Assoc Prof Domenico Campolo of NTU’s School of Mechanical and Aerospace Engineering has been fruitful for the company. He believes their joint efforts in developing future IP would strengthen Articares in the realm of intelligent robotics and patient care.

The NTUitive team is optimistic and energised for what lies ahead. Dr Sinha highlights that their goals have always extended beyond financial terms: “It’s on us to bring innovation from NTU to the global map and make an impact.”

For NTUitive CEO Mr Toh, he defines his team’s purpose as two-fold, saying: “Our activities are intended to translate research outcomes into societal and economic benefits and, at the same time, help make innovation and entrepreneurship a defining feature of NTU’s brand of education.”

The article appeared first in NTU's research & innovation magazine Pushing Frontiers (issue #23, March 2024).