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.

Carn egi e Mel l on is recogn i zed nat i on al l y f or its ext raordi n ary su ccess at i nn ovat i on , probl em sol ving an d i n t erdi sci pl i n ary col l aborat i on . Th e opport u n it y t o work cl osel y wit h expert s in oth er fi el ds i s a key att racti on f or man y of t h e ou t st an din g f acu lt y, st af f an d st u den ts wh o ch oose t o come t o th e u n iversit y. Not on l y does thi s cu l tu re creat e an in t el l ect u all y st i mu lat i n g en vi ronmen t , bu t i t al so i s con du ci ve t o gen erat i n g commerci al l y promi si n g in n ovat i ons t h at can con t ri bu t e t o econ omi c growt h , especi al l y i n t he Pi tt sbu rg regi on .

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



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 P prot ect i on i n a cl assroom/worksh op f ormat : I n our cou rses we work wi t h st u den t s on devel opi n g t ech n ol ogy commerci ali zat i on st rat egi es based on t h ei r own i deas, as wel l as di scl osu res f rom th e un i versi t y an d t h e commu ni t y. Du ri n g t h e cou rse of cl assroom di scussi on s th ere is of t en i n ven t ive mat eri al t h at evol ves (sh ared own ersh i p i ssu es). A ddi t i on al l y, i t i s possi bl e f or t h ese worki n g grou ps t o be con si dered as a pu bl ic di scl osu re t h us pot en ti al ly jeopardi zi n g pat en t i n g. S o, bot h n on -di scl osu re (pu bli c f oru m), an d i n ven ti ve con t ri but i on t o I P by t eam members an d cl assmat es h as emerged as a con cern . Thi s i s somewh at di f f eren t f rom t h e worki n g grou p i n t h e t ech ni cal set t in g, wh ere t h ese i ssu es are somewhat di f f erent an d can be t reat ed by exi sti n g u n iversit y pol i cies an d procedu res. Th eref ore, we h ave devel oped con fi den t i al i ty agreement s f or u se in ou r cl assrooms wh ere su ch i ssu es may exist . 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,



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

A l so spli t ti n g of f ou n der¶s equi t y an d th e equi t y st ru ctu re i s an i mport ant su bset of t hi s i ssu e. I t is mu ch easi er t o do t h i s correct l y in th e f i rst pl ace t h an t o h ave t o redo i t l at er. Th eref ore, as soon as i t becomes apparen t t hat a compan y i s goi n g t o be f ormed an d spu n of f , we act ivel y cou n sel th e part ici pant s i n t hi s regard. I n t rodu ct i on is al so made t o compet en t cou n sel . A l on g si mil ar l i n es, it i s of t en n ecessary t o work wi th emergi n g t eams t o i dent i fy qu al i fi ed an d experi en ced t eam members, i n cl u di n g CE Os, CTOs, an d CFOs. Th ese of t en come f rom ou r n et works bot h l ocal l y an d n on -l ocal l y, in clu din g ou r al umni . 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 2nd Generation Media with course and laboratory development, providing serial IP for interactive digital video news portals. (Attached information provided)

Funding and University Interface
Th ese organ i zati on s represen t part n ers vi a an all i ance wi th t h e u ni versit y t o provi de a smoot h tran si ti on f rom th e u n iversit y an d bu sin ess sch ool en vi ronmen t i nt o emergin g compan i es. I t i s possi bl e vi a t hi s n etwork f or emergi n g compan i es t o access ~$1 - 1 .5 mil l i on of i n vestment pri or t o an gel an d V C i n vol vement . Typi cal l y, t h ese i n vest men t s are n ot ³pri ced´ an d t h e i nvest men t comes i n t h e f orm of a con vert i bl e n ot e wit h warran t s t h at are val u ed at th e f i rst rou n d of i nst it ut i on al i nvest men t .

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



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).

Proceeds f rom t h e t ran sf er of in n ovat i on s sh ou l d be sh ared by al l creat ors, wh et h er or n ot t h ey h ave f acu lt y st atu s. In part i cul ar, t he U RC su ggest s a ch an ge t h at wou l d enabl e st af f members t o be t reat ed n o di f f eren t ly f rom f acu lt y research ers i n t hi s regard wh en t h ey con t ri bu t e in a si mil ar way t o open -en ded research act i vi ti es an d t h e i nn ovat i on s t h at resu lt . ‡ Th e un i versi t y sh ou l d deman d a smal l er percent age of equ i t y i n spin of f compan i es as well as of l i cen sin g reven u es. Th e cu rren t 1 5 % sh oul d be redu ced t o 5 %, especi al l y in th ose cases wh ere t h e un i versi t y el ect s n ot t o i n vest it s own resou rces in commerci al i zi n g th e in n ovati on . ‡ I n order t o of f er n ew an d bro ader pro g rams t o en courage an d en abl e i nn ovat i on across th e campu s, th e U RC recommen ds th at Carn egi e Mell on ch an ge t h e al gorit hm t h at i s cu rrent l y in pl ace f or reven u e-sh ari n g among i n n ovat ors, t h ei r depart ment s and the u n i versit y admi n i st rati on . Th e un i versi t y sh ou l d f oll ow t h e exampl e of ot h er u n iversit i es su ch as S t an f ord, by dr awi n g a percen t age of it s gross proceeds f rom commerci al i zat i on t o pay f or t h e more ext en si ve core servi ces th at th e I n n ovati on Net work wou l d provi de. (S ee G amePi pe I n it i ati ve dat a) 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).



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. technology. The most significant and influential culprit is networked

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






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 Publishing1,

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 µripping¶ of music files and copyright infringement. This led to Apple and the i-Pod taking a majority of the market share.




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 µrespond-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.



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. Gone Wild! Clones

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.






Market i n g in put earl y ± most oft en un iversi t y f acu lt y an d st u dent research ers f ocu s prin ci pal l y on t h e t ech n ol ogy an d n ot t h e market . I t i s import an t t o creat e an en vi ron ment wh ere sol u t i ons f or real probl ems i n t h e market are i den ti f i ed earl y, an d i n n ovati ve t ech n ol ogi es can t h en be u sed t o provi de solu t i ons f or th e market. Th e f i rst an d l east of t en en coun t ered f ai l u re mode i s t echn ol ogy ± 10 % of t h e f ai lu res; i . e., t h e t echn ol ogy i s n ot abl e t o perf orm at t h e n ecessary l evel , n ot able t o t ran sit i on f rom th e l aborat ory in t o commerci al pract i ce accou n t s, or t o be scal ed u p at al l or n ot econ omi call y t o commerci al l evel s Our defined criterion for preparing products and market capitalization is a patent within itself. trademark This was achieved by conducting research within the patent and 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

³Four Corners¶ and µThree 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

H IG H L Y C O N F I D E N T IA L 10

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 OLOGY : 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 ON 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).

H IG H L Y C O N F I D E N T IA L 11

Three Point Stance


Identify and pronounce the inevitable solute within an industry. Create pathways for financial and technology conversions via process patent. After 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 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 party invention will be placed into existing industries to increase visibility within propaganda markets.

H IG H L Y C O N F I D E N T IA L 12

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 µcold calling¶ commercialized University IP centers. under

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.

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

H IG H L Y C O N F I D E N T IA L 13

aggregating funds from outside investment (the university will subsidize incubation 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:
Proceeds f rom t h e t ran sf er of in n ovat i on s sh ou l d be sh ared by al l creat ors, wh et h er or n ot t h ey h ave f acu lt y st atu s. In part i cul ar, t he U RC su ggest s a ch an ge t h at wou l d enabl e st af f members t o be t reat ed n o di f f eren t ly f rom f acu lt y research ers i n t hi s regard wh en t h ey con t ri bu t e in a si mil ar way t o open -en ded research act i vi ti es an d t h e i nn ovat i on s t h at resu lt . Page 5 , S ecti on 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.

Commer cializ ation 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

H IG H L Y C O N F I D E N T IA L 14

universities role in creating third party entities. By creating a partnership / holdings 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.

H IG H L Y C O N F I D E N T IA L 15

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