The TTI unit assist innovative researchers in protecting intellectual property (IP) and obtaining funding for the development and commercialisation of the technology generated at the DUT. This unit may also participate in and contribute funding into one or more funds which invests in commercial activities at DUT. Investments may also be made into opportunities or entities locally or internationally for which researchers identified opportunities at conferences or other institutions.

 

Technology Transfer Process

This is defined in section 1 of the IPR Act, NO. 51 of 2008  to refer to “the process by which any intellectual property emanating from publicly financed research and development is or may be adapted or used for any purpose that may provide any benefit to society or commercial use on reasonable term; and commercialise(d) shall have a corresponding meaning”. 

 

Intellectual Property Rights

In the course of their academic work, researchers, students and staff of the university generate intellectual property in the form of inventions, software, audio-visual material, textbooks and other artifacts. The successful commercialization of this intellectual property requires protection as well as an appropriate manner in which to introduce the intellectual property to the business world. The Technology Transfer and Innovation unit (TTI) offers adequate support with regard to the protection and commercialization of intellectual property by co-ordinating the activities amongst different inventors, government departments, research institutions, legal practitioners and other project owners. Support is provided by the TTI in respect of the following activities:

  • Providing information on intellectual property rights.
  • Finding industrial/business partners.
  • Facilitating and overseeing processes pertaining to patent and license.

 

The TTI unit’s policy with regard to the protection and commercialisation of the intellectual property is adequately laid out in the Durban University of Technology : Third Stream Income Policy. The Director: Technology Transfer & Innovation will screen the invention or technology using the criteria defined in the policy. The Director will proceed with the filing of the provisional application. If the intellectual property has been developed in partnership with industrial or other partners, such agreements will be screened in order to determine ownership and filing obligations. A commercialization team will determine the potential route for commercialization and establish if the intellectual property infringes on any existing intellectual property rights. Should the intellectual property or technology be viable for commercialization, the TTI unit will select an appropriate commercialization vehicle and source funding to continue with the development of the intellectual property or technology. The commercialization team may at any point of time decide to terminate its engagement in the development and may also engage with the originators of the intellectual property to transfer the rights to the originators and/or any other party or spin-off company based on the principles of this policy.

 

Licensing

A license is a legal document which allows an individual or company (licensee) to use the intellectual property of another individual or company (licensor) in return for remuneration which is usually in the form of royalty payments or an upfront lump sum payment. The license allows the licensor to retain ownership rights of the intellectual property. The advantage of licensing is that the responsibility for manufacturing, selling, distributing and further development of the product can be transferred to the licensee. License agreements are very complex and need to be as comprehensive as possible to protect the rights of both parties. The license agreement should encompass the period of its validity, the market in which licensee can market the product, nature of royalties and sub-licensing provisions. As with intellectual property rights, because of the complexity of these agreements, it is recommended that they are carried out with the assistance of a legal specialist in this field.

 

Types of technology licenses

  • The majority are for patents, copyrights and a single license may relate to more than one patent.
  • Exclusive license is where the licensee receives exclusive rights to develop products.
  • Patent commercialization licenses provides the licensee with rights to patent technology.
  • Non-exclusive licenses give several licensees and the licensor the right to develop products using the intellectual property.
  • This is normally the case where the technology has the potential to benefit the public.
  • Commercial evaluation licenses (options) grant a potential licensee the option (for a fee) to negotiate a license within a specific time while the company assesses the commercial potential of the technology.
  • Biological materials licenses provides licensee with access to non-patented materials or biological materials.

 

Royalties

A license is a transfer of value and royalties and upfront fees are the agreed price of that value. Upfront fees should be high enough if possible to meet the licensors need for short term income. The shorter the life of a product, the lesser the licensor can ask for upfront fees and to a lesser extent royalty. Royalty rates differ depending on the type of product, the industry involved, the stage of development of the product when licensed out, term and exclusivity of license. If the license is based on a patent, the levels of royalties may decrease or the license may even expire at the end of the patent life.

Spin Off Companies

The TTI unit supports and promotes the transfer of knowledge and technology to industry. The creation of spin-off companies has become an important mechanism for the commercialization of university research results. The success of a spin-off company is dependant on a highly motivated team that can ensure the technology transfer from the research group to the spin-off company and scientific expertise technology and products which the spin-off company can build on and capitalize on in a competitive corporate environment. The TTI unit offers support with regard to the setting up of spin-off companies as far as the following are concerned:

  • development of a business plan
  • protection of the intellectual property
  • negotiation process and legal support

 

According to the DUT Third Stream Income Policy, the management of the spin-off company is appointed in consideration with investors and the parties providing capital investment. There is no obligation to appoint the inventor or originator of the intellectual property in the spin-off. Typically, the inventor or originator remains in his/her position at DUT to continue normal duties and may be contacted to conduct work and/or research for the spin-off. Existing spin-off companies (initiated by staff without DUT consent) can also be acquired to allow the staff the opportunity to legally bring their business activities and consultation work into the university system. If the inventor(s) wants to further develop the intellectual property or exploit commercial applications of the intellectual property, then this can be considered as a separate spin-off company by the university in collaboration with the inventor(s).

  

Funding

Below are some of the government organizations that provide support in this regard.


THRIP

The Technology and Human Resources for Industry (THRIP)

The Technology and Human Resources for Industry (THRIP) Program is a partnership program which challenges companies to match government funding for innovative research and development in South Africa. It is managed by the National Research Fund. The objectives and priorities of THRIP are to ensure that the projects not only result in competitive world class technologies but the growth and development of our nation as all the projects funded by THRIP must also include human resources development. Funding occurs in the following manner:

  • Firms and THRIP invest jointly in research projects where project leaders are from academic staff of South African Higher Education Institutions (HEI’s)
  • It also matches investment by industry in projects where researchers from science, engineering and technology institutions are trained through the projects.
  • It also facilitates technology innovation promotion through the transfer of researchers and students between industrial participants.

 

SEDA Technology Program

The Seda Technology Program (STP) is an organization aligned to the Department of Trade and Industry. It has been formed as a result of the merger between the GODISA programme of the Department of Science and Technology, the National Technology Transfer Centre (NTTC) and the Technology Advisory Centre(TAC) to create a national institution which will be responsible for a broad array of business and technology services and support. The STP was created to provide support to small enterprises as far as technology and business development is concerned. It strives to stimulate economic growth and development through facilitating technological innovation and increasing accessibility to technical support for small enterprises.

 

DUT Third Stream Income Policy

This is a policy on the management of commercial and intellectual property rights, commercial activities as well as the application and distribution of associated returns/benefits. The policy is applicable to the Durban University of Technology (DUT) as well as associated legal entities locally or internationally. The policy will run continuously, with provision for a revision every two years in order to evaluate the impact of the policy content. The policy aims to create a framework and vehicles for commercial technology transfer and innovation as well as providing assistance to DUT staff, students and divisions to identify, participate and execute multidisciplinary commercial activities in support of the DUT brand.