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March 31‚ 2011
Department of Energy Announces “America’s Next Top
Energy Innovator” Challenge
By Thomas R. Burton,
Audrey C. Louison,
and Christian W. Termyn
American entrepreneurs and innovators can soon take advantage
of reduced upfront costs and paperwork requirements for licensing
groundbreaking technologies developed by the U.S. federal laboratories.
Announced Tuesday by Energy Secretary Steven Chu, the “America’s
Next Top Energy Innovator ” challenge will lower hurdles to
commercializing innovation to support a core component of the Obama
administration’s national innovation strategy that aims to double the
number of start-up companies coming out of the work done at the
laboratories.
For the challenge, the Department of Energy (DOE) will offer
online access from May 2 through December 15, 2011 to a streamlined option
agreement allowing companies to identify a technology of interest and
submit a business plan for consideration. For start-ups short on the
resources, time, or expertise to negotiate individual licensing agreements,
the program’s simplified licensing process and standard set of terms are a
unique opportunity. The DOE estimates that dropping the licensing fees to
$1,000 will help save companies $10,000 to $50,000 in upfront fees
alone.
Accepted proposals will have the benefit of reduced time and
cost to process a license, allowing faster access to the DOE’s patents and
enabling the DOE to process more licenses in a shorter amount of time.
Other license terms, such as equity return and royalties, will be
negotiated on a case-by-case basis; payments will typically be due once the
company achieves commercial success. Furthermore, entrepreneurs that complete
the process and demonstrate progress towards commercializing the technology
will have the opportunity to be showcased at the 2012 ARPA-E Energy
Innovation Summit, which convenes key players in the nation’s energy
innovation community.
Currently, only about 10% of federal patents have been
licensed to be commercialized. All 15,000 unlicensed patents and patent
applications held by our 17 federal laboratories are available for
licensing and will be covered by the challenge. Available technologies can
be viewed on the DOE’s Energy
Innovation Portal, and are far-reaching in the energy sector. These
include, for example, a solar energy storage, transportation and conversion
system; a grid-friendly appliance controller; high-performance
semiconductor materials; and a diesel NOx emissions reduction catalyst.
The secretary made his announcement at the Massachusetts
Institute of Technology while participating in a Startup America roundtable
event, emphasizing that “our goal is simple: unleash America’s innovation
machine and win the global race for the clean energy jobs of the
future.” The administration’s Startup America Initiative,
which is sponsoring the challenge, seeks to accelerate high-growth
entrepreneurship nationwide and is facilitated by the U.S. Small Business
Administration’s Entrepreneurial
Mentor Corps.
Mintz Levin will provide additional information on the
implementation of the challenge as it becomes available. If you have any
questions about this alert, please contact one of the authors or your Mintz
Levin Energy & Clean Technology attorney.
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Technology professionals.
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