N OMEDIK L ABS I NCUBATION

C OMPARATIVE A NALYSIS :
I NDUSTRIAL L AB A SSIMILATION

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Nomedik Labs.

Object: The purpose of this prospectus is to illustrate key parallels that exist
between the Tepper School of Business Innovation Transfer and Nomedik Initiatives.
Explored is the current status of corporate industries under scrutiny for affirmative IP
product placement. Finally introduced is the concept of hybrid industrial labs within
the university system as a solution to serial IP innovation and commercialization.

Inserts from An Integrated Model of University Technology Commercialization and

Entrepreneurship Education by Arthur A. Boni, Ph. D. and S. Thomas Emerson, Ph.
D. of Donald H. Jones Center for Entrepreneurship, were used to support the above
claim. All other assertions are from chief researcher Robert G. L. Newkirk III,
founder of Nomedik Holdings Group.

In this prospectus, four perspectives are analyzed:

1. Nomedik’s Intellectual Property and its ability to assimilate into the Carnegie
Mellon IP Pipeline agenda in a conventional manner.
2. Systemic voids in Corporate IP Research and Development and factors that
prevent consistent IP dominance.
3. Introduction of Nomedik’s Solution driven IP Research and Development
process.
4. The deployment of a Corporate-Industrial Labs within the Carnegie Mellon
System that produces serial IP commercialization.
I. Background:
Nomedik is the brainchild of five years of research and development; we have
composed an agenda along with flagship intellectual properties that are of high
revenue volume. Within Nomedik’s structure is Eyebok Media Group, a project of
great potential with numerous intellectual properties. Nomedik’s ideology is a
microcosm of the entrepreneurial pipeline outlined by Dr. Boni and Dr. S. Thomas
Emerson. We wish to fully benefit from all facets of faculty knowledge and
incubation offered, by creating a symbiotic relation with Carnegie Mellon, while
generating revenue and commercialization of IP products.

Nomedik is also in agreement with a streamlined licensing center that aggregates

intellectual property and allows its commercialization effortlessly – referred to as the
Transfer Center. We chose an industry that will influence numerous business
sectors, legal precedent, and social architectures; it is of utmost importance to place
our program within a university with prominent influence and high standards in all
disciplines. Carnegie Mellon is a campus with reputable facilities, faculty, and
research standards – the University as a function is highly coveted within academic
circles.

C ar ne gie Me llo n is r eco gniz e d natio nal ly fo r its

e xtr ao r dinar y succe ss at inno vatio n , pr o ble m so lving and
inte r disci pl inar y co llabo r atio n. T he o ppo r tunity to wo r k
clo se ly w ith e xper ts in o ther fie lds is a ke y attr actio n fo r
many o f the o utstand ing faculty , staff and stude nts w ho
cho o se to co me to the unive r sity. N o t o nly doe s this
cultur e cre ate an inte lle ct uall y stimu lat ing e nvir o nme nt,
but it also is co nducive to ge ner ating co mmer cially
pr o mising inno vatio ns that can co ntr ibu te to e co no mic
gr o w th, e spe cially in the Pittsbur g r e gio n.

The nature of Nomedik’s intellectual property is predicated on the transport of the

digital commodities industries – music, movie, video game, and software – upon
wireless, digital networks via broadband. Through significant research and analysis
of emerging networks that are gaining interoperability, we have designed certain
axioms that will allow for full actualization of wireless distribution. The creation of a
proprietary wireless network that is secure and ubiquitous will also spawn a number
of intellectual properties and industry solutions that will need incubation – referred to

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as serial IP production. Also, as previously mentioned, Eyebok Media Group will
introduce the foundation and pedagogy of 2nd generation media via a University
System distribution model, creating synergy with Nomedik. Research and
development of wireless network architectures is a sector worthy of recognition, and
will transform the method at which society interacts with technology and amongst
itself. A Laboratory that concentrates on IP designed for wireless intervention,
pedagogy, and assimilation will create commercial opportunity within the university
sector.

Nomedik believes in creating solutions and patents for markets of high commercial
revenue. Solutions with multi-sector dynamics will generate sufficient R&D monies –
and serve as a viable alternative to industries whose patents are marginal or
experimental. The Digital Commodities Industry is a 60 Billion Dollar Industry – we
are confident that our patents will be exploited for premier value.

I N TE L L E CTU A L P R O P E R TY I S S U E S :
IP pr o te ctio n in a classr oo m/w o r ksho p fo r mat: In o ur
co ur se s we w o r k w ith stude nts o n de ve lo ping te chno lo gy
co mme r cializ atio n str ate gie s base d o n the ir o w n ide as, as
w e ll as disclo sur e s fr o m the unive r sity and the co mmunity .
Dur ing the co ur se o f classr o o m discussio ns the r e is o fte n
inve ntive mate r ial that e vo lve s (shar e d ow ne r ship issue s).
Addi tio nal ly, it is po ssible for the se wo r king gr o ups to be
co nside r e d as a public disclo sur e thus po te ntiall y
je o par diz ing pate ntin g. So , bo th no n- disclo sur e (pub lic
fo r um), and inve ntive co ntr ibu tio n to IP by te am me mbe r s
and classmate s has eme r ge d as a co ncer n. T his is
so me w hat diffe r e nt fr o m the wo r king gr o up in the te chnical
se tting , w he re the se issue s ar e so me w hat diffe r e nt and can
be tr e ate d by e xisting unive r sity po licie s and pr o ce dure s.
T her e for e , we have de ve lo pe d co nfide nt ial ity agr ee me nts
fo r use in o ur classr oo ms w her e such issue s may e xist.

Again, Nomedik is proposing a Laboratory that serves as microcosm of the URC

program as it is applied to wireless networks and industries. We will negotiate equity
on a per patent basis, or blanked fee. By streamlining the process of licensing IP,
and due to the subject matter of our IP, a team with specialized interest to facilitate
our requirements will be necessary. We will recruit students and faculty on a
semester basis with contracts to protect their ideas and ours. An academic journal,

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Medianomics will introduce our concepts to the academic and commercial industry
serving as a conduit to university/industry relations.

Also spli tti ng o f fo unde r’ s e quity and the e quity str uctur e
is an impo r tant subse t o f this issue . It is much easie r to do
this co r re ctly in the fir st place than to have to r e do it
late r . T he r e for e , as so o n as it be co me s appar e nt that a
co mpany is go ing to be for me d and spun o ff, w e active ly
co unse l the par ticip ants in this re gar d. Intr o ductio n is also
made to co mpe te nt co unse l. Alo ng similar line s, it is o fte n
ne ce ssar y to w or k w ith e me r ging te ams to ide ntif y qualif ie d
and e xper ie nce d te am me mbe r s, includi ng C EO s, C TO s, and
C FO s. T he se o fte n co me fr o m o ur ne tw o r ks bo th lo cally
and no n- lo cally, includin g o ur alumni .

Nomedik Labs is a patent actualization center within the Tepper School. Nomedik
Holdings LLP and Carnegie Mellon will negotiate equity and percentages on a per
patent basis or blanket fee. Nomedik Holdings is offering three IP’s that will be
researched and developed within the Nomedik Lab, then executed for commercial
exploitation. Also, we will create spawning industries that are IP worthy. We also
seek to deploy Eyebok Media Group as the provider of 2 nd Generation Media with
course and laboratory development, providing serial IP for interactive digital video
news portals. (Attached information provided)

Funding and University Interface

T he se or ganiz atio ns re pre se nt par tne r s via an allia nce w ith

the unive r sity to pro vide a smo o th tr ansitio n fr o m the
unive r sity and busine ss scho o l e nvir o nme nt into e me r ging
co mpanie s. It is po ssible via this ne tw o r k fo r eme r ging
co mpanie s to acce ss ~$ 1 - 1 .5 mill io n o f inve stme nt pr ior
to ange l and VC invo lve me nt. T ypicall y, the se inve stme nts
ar e no t “ pr ice d” and the inve stme nt co me s in the fo r m of a
co nve r tible no te w ith w arr ants that are value d at the fir st
r o und of institu tio na l inve stme nt .

Nomedik Labs will seek eventual angel and venture investment in order to establish
a spring board for industry investors – we have investors who are willing to initiate
this process. Investment will be utilized to license IP research from Nomedik
Holdings Group, and cover expenses of first stage incubation and faculty. Nomedik

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Holdings will then solicit investment from commercial industries by forming a trade
group, Digital Commodities Trade Group, where information and further research will
be conducted at Nomedik Labs (see attached document).

Pr o cee ds fro m the tr ansfe r o f inno vatio ns sho uld be shar e d

by all cre ato r s, w he ther or no t the y have facult y status. In
par ticul ar , the UR C sugge sts a change that wo uld e nable
staff me mbe r s to be tre ate d no diffe r e ntly fro m faculty
r e se ar che r s in this re gar d w he n the y co ntr ibute in a similar
w ay to o pe n- e nde d r e se ar ch activ itie s and the inno vatio ns
that re sult.
•
T he unive r sity sho uld de mand a smalle r pe r ce ntage o f
e quity in spino ff co mpanie s as we ll as o f lice nsing
r e ve nue s. T he cur re nt 1 5% sho uld be r e duce d to 5 % ,
e spe cially in tho se case s w he r e the unive r sity e le cts no t to
inve st its o w n r e so ur ce s in co mme r cializ ing the inno vatio n .
•
In or de r to o ffer ne w and br o ade r pro gr ams to e nco ur age
and e nable inno vatio n acr o ss the campus, the UR C
r e co mme nds that Car ne gie Me llo n change the algo r ithm
that is cur r e ntly in place fo r r e ve nue - shar ing amo ng
inno vato r s, the ir de par tme nts and the unive r sity
admin istr at io n. T he unive r sity sho uld fo llo w the e xample o f
o the r unive r sitie s such as Stanfo r d, by dr aw ing a
pe r ce ntage o f its gr o ss pr o cee ds fro m co mmer cializ at io n to
pay fo r the mo re e xte nsive cor e ser vice s that the
Inno vatio n N e tw or k w o uld pr o vide . (Se e G ame Pipe
Initia tive data)

By way of IP development and licensing within Nomedik Labs, there will be a number
of spinoff companies. We will create third party entities to exploit patents created
with Carnegie Mellon sharing with agreed percentages. Nomedik Holdings will
channel future IP to Nomedik Labs and establish a relationship with Carnegie Mellon
and its faculty, generating revenue and confidence (see attached Power Point).

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II. Corporate Research and Development
There are systemic voids in the method by which the corporate sector pursues
Intellectual Property. Where as in the past, companies were smaller, communicated
internally, and were not dependant to the public domain, today the environment has
shifted dramatically. The most significant and influential culprit is networked
technology.

Evolving technology has played as a catalyst in producing more aggressive markets.

These markets are under pressure from evolving conditions; from an enlightened
more demanding consumer, to global markets vying for market share (most with
conflicting regulation processes). A company can ill afford to produce IP for a
product that is not fully tested for commercial success. Nomedik refers to this as
Corporate IP Paradox (CIPP).

There are a number of circumstances contributing to Corporate IP Paradox:

1. Q U A R T E R L Y R E P O R T S : The nature of public companies has given rise to an

onslaught of litigation stemming from dissatisfied stock holders and
opportunistic counsel demanding better results per fiscal report. Recently, the
number of stock holder filed suits has quadrupled due to – what is perceived
as - under achieving stock prices. As a result, research and development of IP
suffers due to increased risk factor and industry trepidations, in creating
solutions with larger saturation potential.

2. L A C K OF INTER DEPARTMENT COMMUNICATION: Conglomerates

Consuming Conglomerates. These are the headlines that litter the newsstands
daily. Between the lines reads another beat: Another failed marketing
scheme due to lack of communication. SONY Electronics v. SONY Publishing 1,

1
Sony Electronic v. Sony Music Group: In 1998, Sony Music Group brought a complaint to Sony
Electronic regarding the development of the Mp3 player. Sony Electronic resigned to the claim that
the Mp3 player induced ‘ripping’ of music files and copyright infringement. This led to Apple and the
i-Pod taking a majority of the market share.

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 a case brought to court in 1998, is an example of this epidemic. SONY, a
company whose industrial dominance is a staple within consumer electronics /
publishing sectors, were unable to produce a commercial synergy addressing
digital piracy. One would imagine that a company monopolizing both
consumer electronic and content would be able to address these issues
internally. Consequentially, it took a competitor with marginal industry
market share (Apple) to conceive a solution shifting legitimate digital
distribution forever (i-Tunes, i-Pod).

3. C O N S U M E R A P T I T U D E : Times have changed. The Internet has undermined

conventional wisdom and propaganda; a portal that Corporate America once
dominated exclusively. These devices of perception are now subject to
networks spurred by viral – many times convincing – personal testimony.
The consumers’ aptitude has increased exponentially: their choices in market
venues have diversified. The corporation is now at the mercy of the
individual, whom under their own volition, have the ability to address product
dissatisfaction with one simple group email – or worse even a blog. Consumer
retention has become a science of quality control coupled with innovation and
convenience. Brands that relied on jingles must now sing and dance to a new
tune.

4. C O M P E T I T O R S B L O C K – C L O N E S G O N E W I L D ! Due to the increase in

consumer aptitude, and business globalization, corporate competition has
reached unparalleled heights. Product release and evaluation are critical
measures of success –timing and market saturation are paramount if one is to
retain or increase market share. For this reason, a new epidemic has
surfaced where products are released on a ‘respond-react’ interval. It is this
respond-react condition that stymies innovation and sector competency:
Company A is so preoccupied responding to Company B’s latest release, that
they arrest research and development IP that would intercept the market’s
momentum at future crossroads. The appraisal of a successful product launch
depends upon IP release that guides the market into areas of increased IP
exploitation from said company – or serial IP development by one team.

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 Singular IP only signifies the opportunity for multiple companies to produce
clones, thus increasing competition and decreasing market share dominance
per IP release. The reality is a company can never fully wrap their hands
around an industry. By the time an alpha product is released, clone versions
are being marketed, packaged and shipped via alternative venues. Clones
Gone Wild!

5. B U S I N E S S R E G U L A T I O N S : IP licensing and dissemination is becoming more

regulated by government outfits pressured by trade regulation groups. This
pressure is avoidable if research and development underwent a process of
interdisciplinary agendas and protocol. We elaborate more on this topic in the
next section.

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III. N O ME D I K S O L U TI O N P RO CE S S : I N V E R S IO N OF I N N O V A TIO N

Mar ke ting input e ar ly – mo st o fte n unive r sity faculty and

stude nt re se ar che r s fo cus pr incipal ly o n the te chno lo gy and
no t the mar ke t. It is impo r tant to cr e ate an envir o nme nt
w he re so lutio ns for re al pr o ble ms in the mar ke t ar e
ide ntif ie d e ar ly, and inno vative te chno lo gie s can the n be
use d to pr o vide so lutio ns for the mar ke t .

T he fir st and le ast o fte n enco unte r e d failur e mo de is

te chno lo gy – 1 0% o f the failur e s; i. e ., the te chno lo gy is
no t able to per fo r m at the ne ce ssar y le ve l, no t able to
tr ansit io n fr o m the labo r ato r y into co mme r cial pr actice
acco unts, o r to be scale d up at all or no t e co no mically to
co mme r cial le ve ls

Our defined criterion for preparing products and market capitalization is a patent
within itself. This was achieved by conducting research within the patent and
trademark legal industry, then cross referencing product saturation within
commercial legal sectors. As noted, commercial entities share similar inadequacies
in marketing products that are premature and lack efficient research.

Research and development for IP should always rely on multidisciplinary sectors of

the economy. Nomedik Research offers the following Pipeline for IP labeled the
“Four Corners’ and ‘Three Point Stance’ -respectively- for accurate IP development.
By deploying this model, our object is to produce serial IP, intended to fully exploit
all conceivable products of emerging sectors. We suggest the collaboration of
interdisciplinary agendas, then streamlining IP development by channeling ideas
through a diversified pipeline of solution based experts and mechanical researchers.
Nomedik believes that if you can pronounce a solution that placates the Four Corners
of IP development, then you can create accurate, high revenue, serial IP.

Nomedik Labs subscribes to a process protecting high risk research and development
funding by first analyzing the effect of technology on current business models, then

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providing solutions that merge the technology with conventional operatives.
Innovation, although required, is tailored to consider all facets of the market.

The Four Corners of Innovation:

T E C H N O L O G Y : What inventions are on the horizon and how will they
affect global standards?
Industry : Is the industry being affected ready for a shift in business
logic?
L E G A L : What legal conditions are preventing full saturation of this
technology?
C O N S U M E R : Is the consumer buying into this new paradigm?

Nomedik Labs will seek regular correspondence with leading technology enterprises
who will invest in the research and development. Due to the magnitude of our
flagship IP – the Digital Commodities Line – we will rely on uniform intervention from
all related industries (see attached data).

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 Three Point Stance

Identify and pronounce the inevitable solute within

an industry. Create pathways for financial and
technology conversions via process patent. After

S OLUTION the process of conversion is founded, the

technology application can be introduced that
fosters all elements of conversion. The solution
phase is the most researched and requires the most
interaction between individuals of high authority
and expertise within the Nomedik think tank
structure.

Once the solution is secure and process patents are

registered, Nomedik solicits industry leaders to
P RODUCT implement products upon the newly developed
protocol. Nomedik also will develop its own pipeline
via the University System to fully exploit conceived
patents. Our product placement will depend upon
the effectiveness of our process patented solution.

Products developed via in-house team and third

AGENDA party invention will be placed into existing

industries to increase visibility within propaganda
markets.

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IV. C OM P A R A TI V E I N N O V A TIO N : C O R PO RA TE I N D U S TR IA L L A B S
The Tepper School is now lobbying the need of a streamlined IP commercialization
process as a faculty within the Carnegie Mellon system. As mentioned in the
research presented by Dr. Boni, universities located in places such as Silicon Valley
and Boston receive advantages from a community primed for IP incubation - allowing
programs at Stanford and Harvard to flourish. If this is where the University System
is headed, we offer a method to galvanize the process of IP research and
development. Nomedik offers a program that will give CMU the edge to compete
with existing incubation centers by creating an aggressive commercialization and
industrialization center that produces serial IP for third party exploitation. We
introduce Corporate-Industrial Labs, that serve as dual headed solution center for
the displaced, undernourished Corporate IP facilities and the ‘cold calling’ under
commercialized University IP centers.

As mentioned in Section II, corporate sectors are ill equipped to perform adequate
research and development for serial IP. The introduction of Corporate-Industrial
Labs to the Corporate and University community will create a new sector of Research
and Development. Corporate and University sectors will eventually defer to these
institutions for serial IP.

C O M ME R CI A L I Z A T I O N :
How would one layer / merge a commercial laboratory within the research and
licensing protocol of the University System?

Corporate-Industrial Labs will serve as conduits between the University IP Pipeline

Agenda and Corporate Industries. These labs will specialize in commercial solutions
and actively pursue dominance within industries of great commercial influence.

By definition, a Corporate-Industrial Lab will operate as a sovereign company,

utilizing University services and facilities, networks, and staff. They will function
under protocols of a corporation providing IP for the direct application of the
university licensing pipeline. These laboratories would be responsible for
aggregating funds from outside investment (the university will subsidize incubation

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and all expenses), preparing quarterly fiscal reports, presenting IP to Corporate and
University Board members, recruiting students, faculty and adjunct researchers. The
laboratory would supplement its sovereignty by publishing and licensing its own
propaganda and academic journals. Class instruction fostering interdisciplinary
objectives would be a requirement, as well as quarterly conferences aimed at
educating both university and corporate agendas.

IP Retention:

Pr o cee ds fro m the tr ansfe r o f inno vatio ns sho uld be shar e d

by all cre ato r s, w he ther or no t the y have facult y status. In
par ticul ar , the UR C sugge sts a change that wo uld e nable
staff me mbe r s to be tre ate d no diffe r e ntly fro m faculty
r e se ar che r s in this re gar d w he n the y co ntr ibute in a similar
w ay to o pe n- e nde d r e se ar ch activ itie s and the inno vatio ns
that re sult. Page 5 , Se ctio n II

IP contracts would also be addressed and negotiated with CIL participants as a

collective, instead of individually with each researcher. This would eliminate contract
disputes and delays when actualizing IP. All researchers, staff, and students would
sign contracts on an IP quarterly basis and be fully cognizant –as well as the
university – of their role in collecting royalties. Again, the Lab serves as a
microcosm of the corporate sector, and a partner of the university.

Commercialization Streamlining
How can we maximize the synergy of Corporate influence and University Incubation
while sustaining a positive, yet aggressive work environment for both parties?
University Holdings Groups Discussed

If the University System – in particular Carnegie Mellon – is to compete with the

corporate mechanism of creating and commercializing IP, it is important they not
only streamline the process, but also create agendas attractive to the CIL. Again, we
are asserting the need of a hybrid university / corporate entity within the Carnegie
Mellon Institution. Nomedik offers a commercialization process that galvanizes the
universities role in creating third party entities. By creating a partnership / holdings

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group with each I.L., all legalities, percentages, and other factors that normally stall
momentum would be minimized. IP is a competitive, time sensitive field; the object
is to maximize in developments as quick as possible in order to exploit the industry.

In its licensing activity, the university’s goal should be to maximize

both financial and non-financial benefits over a long term relationship
with each potential licensee. Procedures should be designed to be
simple, clear, fair, and fast. That is, even from an inexperienced
innovator’s point of view, each step of the process and its rationale
should be made easy to understand. There should be a sense that
policies are applied consistently. Finally, decisions must be made
without delay, recognizing that the commercial value of an innovation
usually depends on the licensee’s ability to bring a product to market
more quickly than a competitor can do. Page 5 section II

By creating mechanisms within the CIL, the negotiation period between the
University and the CIL can operate with confidence from both parties. Nomedik
offers the idea of the University creating a Holdings Group composed of board
member well reputed as leaders of the business community. By bringing familiarity
of the sector and creating third party entities to the table, both parties are able to
create pathways that are streamlined when merging with exiting industry leaders.
Also, the university and the CIL can retain a greater percentage of the third party
entities, and even create sectors with full sovereignty.

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