Posted on: Monday, July 26, 2004
Patent revenue for UH sees 51 percent increase
By Sean Hao
Advertiser Staff Writer
The University of Hawai'i's ability to convert research into marketable products improved in the past year, but the university acknowledges it can do a better job.
Income from licenses of UH discoveries rose 51 percent to about $800,000 in the year to June 30, up from $530,000 a year ago. The number of unique ideas by faculty that have patent potential doubled to 50 in that same period, according to preliminary figures provided by the UH Office of Technology Transfer.
Converting research into real-world solutions is key to the university playing an increased role in the growth and diversification of the state's economy. Historically, UH has done relatively well in attracting research dollars, but has ranked near the bottom of American universities in terms of technology transfer.
For example, UH generates less income from licenses than do numerous schools that spend half as much on research, including Louisiana State University, St. Louis University and Brigham Young University. UH's royalty income is relatively low when compared with the $160 million or so in research financing it receives annually.
"It's not where we want it to be, but the year-over-year growth rate for right now is pretty healthy," said Dick Cox, director of the UH Office of Technology Transfer.
Overall, royalty revenue at UH has grown sharply since 2001, when the university's licensing and patent office was reorganized and the way profits from licensing agreements were divided was changed. As an incentive, university researchers now get more income before the university is repaid for the patenting.
Just how much money UH should derive from its inventions is debatable, but an amount ranging between $1.6 million and $2 million would at least offset the patent and budget costs associated with technology transfer, Cox said.
Although universities historically have focused on basic and theoretical research, dwindling state budgets have increased the need to generate money from research efforts.
Cox said UH is focused more on signing licensing agreements, which could be profitable in the long run, than on extracting immediate income in the form of royalties. During the past 12 months UH signed 17 licensing deals, and that was on top of 18 the year before, Cox said.
"It is a balancing act," he said. "We're focused on getting deals done right now, rather than on getting dollars."
During the 12 months that ended June 30 the types of licensing deals signed included:
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
