IP/C/W/657  
 
4 October 2019  
(19-6417) Page: 1/3 
Council for Trade -Related Aspects of  
Intellectual Property Rights  Original: English  
 
INTELLECTUAL PROPERT Y AND INNOVATION:  
PUBLIC -PRIVATE COLLA BORATIONS IN INNOVAT ION - IP COMMERCIALI ZATION  
COMMUNICATION FROM A USTRALIA; CANADA; CH ILE; THE EUROPEAN UN ION; HONG KONG , 
CHINA; JAPAN; SINGAP ORE; SWITZERLAND; TH E SEPARATE CUSTOMS T ERRITORY OF TAIWAN, 
PENGHU, KINMEN AND M ATSU; AND THE UNITED STATES OF AME RICA 
 
The following communication, received on 2 October 2019, is being circulated at the request of 
Australia; Canada; Ch ile; the European Union; Hong Kong, China; Japan; Singapore; Switzerland; 
the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; and the United States of 
America.  
 
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1  INTRODUCTION  
1.  "The medieval university looked backwards; it pr ofessed to be a storehouse of old knowledge. 
The modern university looks forward,  and is a factory of new knowledge." More than 150 years ago, 
British anthropologist Thomas Huxley realized that universities could be more than backward -looking 
learning esta blishments. While this perspective might have been visionary during Huxley 's times, it 
is certainly a well -established fact and practice in our times that public institutions team up with 
private stakeholders to achieve what otherwise would be beyond reach . Public -private collaboration 
can be a leading driver of innovation behind the "factory of new knowledge", and therein be an 
enabler of the commercialization of intellectual property (IP ). 
2  IP PROTECTION AS AN ENABLING COMPONENT F OR SUCCESSFUL 
COMMERCIALIZATION  
2.  Bringing innovative goods and services to the market is often the ultimate goal of research and 
development (R&D) efforts. Through the commercialization of IP, inventors and creators,  academics, 
students, and entrepreneurs, can reap the benefits of their knowledge, creativity and hard work. 
Likewise, those who have provided financial support during the process of commercialization can 
gain returns on their investments. Business opportu nities can also arise through the process of 
commercialization, which can lead to job creation and social development and economic growth. An 
essential enabling component for the commercialization of R&D and creations alike is sound IP 
protection. Not only  does this deter potential infringers and illegitimate free -riding, but it also opens 
up numerous channels through which valuable IP assets can be further exploited. For example, 
licensing agreements can be negotiated much more easily where intangible asse ts and know -how 
can be traced back to their original inventor(s) or creator(s), and parties have written proof of 
exclusive IP rights. This gives IP rights holders leverage in negotiations with potential partners when 
trying to commercialize their IP. IP l icenses and other assignment agreements, spin -offs, as well as 
contracts that contain terms on the use and exploitation of IP, can be the launch pad for public -
private collaborations with the aim of commercializing  IP.  
3  PUBLIC -PRIVATE COLLA BORATIONS: OPENI NG UP POSSIBILITIES  
3.  Public -private collaborations provide an opportunity for both parties to leverage resources, 
capacities, skills and expertise in order to commercialize IP and bring products to the market. IP/C/W/657  
 
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  Without private sector involvement, many ideas stemming from research would not materialize into 
tangible assets, i.e. innovative and competitive products and services. The public sector often lacks 
the capacity and experience to develop and distribute new technologies suitable for the consumer 
market.  The challenge for the public sector is therefore to attract private sector participation, 
collaborate in the development of new technologies, and make them available to the market and 
consumers for the benefit of the public. To accomplish this, the public  sector must strengthen their 
relationships with potential private sector partners.  
4.  The following mechanisms within the framework of public -private partnerships can facilitate IP 
commercialization:  licensing, joint ventures, and public procurement for inno vation.  
5.  The establishment of a separate legal entity known as an academic spin -off1 is one possible 
vehicle through which the IP output of public -private collaboration can be commercialized. Academic 
spin-offs (henceforth, simply "spin -offs") have receive d growing attention over recent years. In the 
following section, spin -offs are examined in more detail as one form of public -private collaboration 
for IP commercialization.  
4  ACADEMIC ENTREPRENEU RSHIP: FROM UNIVERSI TIES TO MARKETS  
4.1  Paradigm shift: Students b ecome entrepreneurs  
6.  Spin-offs are becoming popular vehicles for driving innovation. Under this vehicle, academics and 
students, often assisted by technology transfer offices (TTO), take the risk of "spinning -off" a 
promising idea that arose from their univ ersity work. Thus, more and more universities are 
complementing pure research and education by promoting commercialization through the creation 
of spin -offs.2 Many scholars have emphasized the importance of transferring and commercializing 
the knowledge ge nerated in universities, instead of pursuing solely academic agendas.3 Not only do 
spin-offs serve as a vital connection between universities and industry, but they also spark a 
paradigm shift. Academics and students receive a better understanding of the m arket needs. Private 
sector actors in turn gain insights into the intricacies of R&D processes at academic institutions. This 
mutual understanding on both sides allows for the creation and utilization of synergies to strengthen 
and further develop collabor ations.  
4.2  IP management for further development and growth  
7.  The protection and licensing of the IP created with public funding facilitates the collaboration 
between public universities, spin -offs, and industrial partners, and helps exploit the knowledge 
generated by public research. Strategic IP management can raise revenues for universities, which 
can contribute to financing further research projects. More importantly, the IP that emerges from 
universities and the respective spin -offs may have great implicat ions for economic and social 
development. These activities can have significant positive spillover effects for the local economy by 
stimulating additional R&D and job creation4, since spin -offs play an important role in the formation 
of high -tech clusters in close proximity to their parent institutions. Strong IP portfolios make 
universities more attractive to potential industry sponsors and investors, while high value patents 
can help to recruit leading researchers and academics as well. Through the public ation of patent 
information, other researchers, the private sector and the public gain access to an enormous 
database of useful information about the state of technology, including technology still under patent 
protection and which technology is already in  the public domain and thus freely accessible.  
                                                
1 While there are many different definitions of university spin -offs, some relevant commonalities seem to 
exist: (a) Spin -offs are independent legal entities not under the direct control of the parent organization; (b) 
Spin-offs exploit the knowledge developed within the ac ademic framework at universities; (c) The aim of spin -
offs is the commercialization of new technologies.   
2 Lerner, J. The University and the Start -Up: Lessons from the Past Two Decades. Journal of Technology 
Transfer, 30(1 -2): 49 -56. 2004.  
3 Hague, D., & Oakley, K. Spin-Offs and Start -Ups in UK Universities.  London: Committee of Vice -
Chancellors and Principals of the Uni versities of the United Kingdom.  2000. ; Branscomb, L. M., Kodama, F., & 
Florida, R. L. (Eds.). Industrializing Knowledge: University -Indus try Linkages in Japan and the United States.  
Cambridge, MA: MIT Press.  1999.  
4 United Nations Economic Commission for Europe . Intellectual Property Commercialization: Policy 
Options and Practical Instruments.  New York and Geneva . 2011. IP/C/W/657  
 
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  8.  In sum, academic spin -offs are one of a variety of vehicles for the direct commercialization of 
publicly funded R&D for the benefit of the public. For universities – "factories of new knowledge" – 
these benef its are not simply in the form of additional revenues that can boost further R&D and give 
relief to public finances, but they also foster reputation and partnership opportunities. Students 
move beyond the "academic world " and the role of inventors towards becoming innovators and 
entrepreneurs, converting their ideas into tangible products and services. Publicly available patent 
information stimulates  further innovation and accelerate technological development.  
5  CONCLUSION  
9.  There are various avenues to commercialize the innovative and creative assets of an 
entrepreneur, an artist, a researcher, or a designer, to enter and navigate the markets whilst being 
both innovative and competitive. Through IP commercialization, state of  the art technologies and 
creations are made available to the whole of society. Ultimately, IP commercialization not only 
facilitates bringing new products and services to market, but also facilitates job -creation, prosperity, 
and societal progress.  
6  QUEST IONS FOR FURTHER DIS CUSSION  
10.  Members are requested to share their experiences and further examples of initiatives that have 
supported and facilitated the commercialization of IP across a wide range of industries and sectors. 
In doing so, the following quest ions may help guide the TRIPS Council 's discussions:  
• What role can be played by governments and policy makers in linking companies and 
universities on the one hand, and investors on the other hand?  
• What forms of public -private collaboration, including university spin -offs and other 
arrangements, have Members had positive experiences with in commercializing IP?  
• Which IP -related measures taken by Members have been particularly successful in 
supporting those individuals, companies, or public inst itutions that may have lacked the 
necessary resources and expertise to commercialize their IP?  
• Do Member States offer basic IP training or other courses to researchers, entrepreneurs, 
SMEs, and other innovation actors to support them in the commercializat ion of their IP?  
• Have Members gained positive experiences with experimental facilities like science parks 
where public and private actors collaborate for IP commercialization?  
 
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