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By Cwengile Cwele (Patent Professional Intern) with oversight by Chyreene Truluck (partner), at Spoor & Fisher

Innovation drives progress, but without a way to share and implement them, great ideas can go to waste. Technology transfer is the process by which knowledge is disseminated and skills are transferred from the laboratory bench to the world outside.

There are endless examples of how university and public sector research has shaped our world. It was the US Department of Defense’s funding of R&D in the late 1960s, that laid the groundwork for today’s global internet. Similarly, today’s global positioning technologies were developed by the US military but are now essential to us all. From navigation and aviation to smartphones and autonomous vehicles – they’re all enabled by GPS!

University research has shaped the development path of modern medicine. Magnetic Resonance Imaging (MRI) was pioneered in publicly funded university and government research labs and is now a cornerstone of modern medical imaging. CRISPR gene editing, which revolutionized genetic engineering, was originally developed at UC Berkeley and the University of Vienna. Every smart mobile device nowadays uses touchscreen technology, which evolved from the efforts of the University of London in the 1960s through government-supported research.

Locally, the GeneXpert molecular diagnostic platform, developed by the University of Cape Town, is licensed to US listed company, Cepheid and is now widely used in South African clinics and hospitals to rapidly detect TB and drug-resistant TB.

This continuous flow of knowledge from the public sector to the commercial environment is indispensable for fostering economic growth, solving complex global challenges, and enhancing the quality of life for many.

IP - Not just a legal formality

At its core, innovation is a high-stakes gamble. Developing novel technologies demands immense resources – time, capital, and the brilliant minds of researchers and engineers. Government expenditure on R&D in South Africa was about R28 billion in the year 2022/23 and this monumental investment carries significant risk and input, with no guarantee of success. Private investment to

commercialise the outcomes of R&D is similarly fraught with risk and challenges. So how does a technology progress from the development phase to commerce?

Although some may dream of an innovation ecosystem that is characterised purely by generosity and goodwill, innovators must be encouraged to innovate and businesses must be tempted by the promise of substantial returns, to commercialise these innovations. Intellectual property, particularly patents, are the ultimate incentive. Far from being a mere legal formality, robust IP rights serve as the unseen engine which ensures that ideas transfer to business. By giving inventors or their employers, exclusive rights to their inventions for a limited term (typically 20 years), patents create a vital window during which inventions can be brought to market, free from direct competition. This period of exclusivity allows innovators to recoup their costs and make a return on their investment – the light at the end of the long, costly tunnel of research and development.

Simply put, intellectual property reduces risks for investors, rewards creators for their work, and ultimately enables the efficient and equitable movement of transformative technologies across the globe. Without this critical safeguard, the gears of innovation would grind to a halt, and the promise of a technologically advanced future would remain largely unfulfilled.

More than just an incentive – a commercial tool

Beyond simply incentivising innovation, IP is the bedrock upon which effective technology transfer mechanisms are built, with licensing as the cornerstone. In its simplest form, a licence is a mechanism by which certain actions which would ordinarily constitute IP infringement, are authorised by the IP owner, usually in exchange for reward (often monetary). Without IP there is no possibility of infringement, and therefore no incentive for the licensee to agree to pay compensation. In an exclusive/sole licence arrangement, the IP can also be enforced against third parties, protecting the licensee from competition. By reducing risk, IP makes the reward worth the often-considerable costs and uncertainties of bringing technologies to market.

Importantly, IP also acts as a catalyst for collaboration and partnership, which are increasingly vital in today's complex technological landscape. Universities, research institutions, entrepreneurs and corporations frequently engage with one another to pool expertise, accelerate innovation and generate revenue streams. The certainty of legal protection and a framework for IP ownership, access and use, establishes trust within these collaborations, allowing partners to share proprietary information and knowledge without fear of losing their rights, along with their competitive edge. Additionally, an IP portfolio can attract funding and investment into further technical development and provide a lever in negotiations, resulting in more favourable terms and more valuable collaborations.

Conclusion

Technology transfer is the highway that connects innovation to practical application, research to commercialisation, and knowledge to societal benefit. IP is the very foundation upon which this critical

process rests. As the invisible force that transforms an idea into an asset, the role of IP in technology transfer is not merely supportive, it is fundamental. It not only incentivises innovation and collaboration but provides a mechanism for its dissemination and commercialisation, fostering widespread impact and, ultimately, a more progressive future for all.