Tatsuo Itoh began his research without realizing the profit he could be making for UCLA.
In 2001, the UCLA professor of electrical engineering began to develop new metamaterial structures, which allow for smaller electronic components in products. Itoh patented his technology through UCLA’s Office of Intellectual Property and Industry Sponsored Research.
With Itoh’s consent, San Diego-based Rayspan Corporation licensed his technology for commercial use in cell phone antennas and other mobile devices in 2006, said Maha Achour, co-founder and chief technology officer of Rayspan.
Rayspan is among 104 companies in California that currently use UCLA technology in their products. From these companies, UCLA receives royalties, which in 2009 amounted to nearly $30 million.
Since 2005, OIP has increased the number of UCLA inventions through outreach to faculty and companies and housing developing companies, said Kathryn Atchison, vice provost of OIP.
“When the faculty have research funding … they have an obligation if they can think of something that can be commercialized to let us know,” Atchison said.
Although UCLA develops the technology, Atchison said contacting companies is necessary because the school will not make money unless technology is licensed and turned into a product.
Further outreach efforts by OIP include an investor’s convention, where inventors from UCLA, USC and Caltech present technology to venture capitalists and private equity groups.
While Rayspan gave Itoh funding to continue his research, OIP frequently supports growing companies that use UCLA research through an on-campus incubator.
Located in the California NanoSystems Institute building, the incubator provides new companies with temporary space to develop their products. OIP is also looking into building or renting an off-campus incubator, which will allow UCLA to work with more companies, Atchison said.
From these companies, UCLA receives 1 to 7 percent in royalties of the net sales of any products sold containing university technology.
“Under the agreement, UCLA does get some benefits from our success,” said Sandy Godsey, chief intellectual property counsel for Rayspan. “You can consider us partners ““ if you do well, we do well.”
Despite increased revenues from licensed UCLA technology, some private colleges still generate more funds. In 2009, Stanford received $65.1 million in royalties, while MIT received $75.7 million.
Although it takes years for UCLA to receive profit from its commercialized technology, Atchison said efforts to increase the size of OIP and publicize UCLA research will benefit UCLA’s future financial situation.
“From what we are doing right now … there will be money coming in, but money coming in after I am probably retired,” she said.