PhD advisor making start up company based on my thesis work. How do I prevent this from delaying my graduation? I am a fifth year PhD student who has independently developed a project for my thesis. Recently, I have presented some promising preliminary results. My professor called it a 'gold mine', and wants to start a company based on it. I prefer to publish it and make most of the data open source. 

Today, my advisor hired a senior research scientist who intends to learn my work and start a company based on it. Apparently, they have been talking to each other for several months without my knowledge. The scientist intends on becoming CEO of this company and eventually wants equal inventorship, despite not having any experience in this field yet. My PI has made it clear that it is my responsibility to transfer the ideas and technologies that I have developed over to him before the end of my PhD.

I have argued with him that this work is not ready for a company, and such a start-up would rest on shaky foundations (I have not published or patented, or finished animal studies).

I also feel that he is holding my PhD degree ransom, as he has done more than once with other students in the past. He has a pattern of doing this with other students- hiring a 'CEO-type' senior research scientist to learn from a younger PhD student, working with the research scientist to start a company while the PhD student does most of the work, not allowing the PhD student to graduate until the company is off its feet, and then making millions selling the company, with minimal benefit or recognition to the student.

How should I approach this? Is there legal recourse and should I approach a third party? I have already discussed this many times with my PI, but he will not listen. I fear that my graduation will be delayed, andI would like to avoid burning any bridges.
How should I approach this? 


Jump at the opportunity! Your professor considers your work a "gold mine" and wants to commercialise. This is an extremely rare opportunity for any student and I recommend that you seriously consider embracing the opportunity. Let me consider some of your ideas and alleviate some of your concerns:


  I prefer to publish it and make most of the data open source.


This is a worthy academic goal, but it mightn't result in your desired outcome. Academics share results for others to build on, yet many results have no impact: If you're hoping your results will have impact, then why not make sure they do yourself? Keep the results private, build a company, make an impact.


  Today, my advisor hired a senior research scientist who intends to learn my work and start a company based on it...The scientist intends on becoming CEO of this company 


Is there any reason to believe that this scientist should be CEO? As opposed to CTO, for instance? Why is the scientist even necessary? Consider taking the CEO role for yourself and maybe consider hiring the scientist. 

Whether your supervisor should be involved is open for debate. They seem well-connected, so they could perhaps be very useful.


  [The senior research scientist] eventually wants equal inventorship


Inventorship (in terms of IP law) cannot be shared: An inventor has to have invented, they cannot come onboard. Perhaps you meant equal ownership? 


  I have argued with him that this work is not ready for a company, and such a start-up would rest on shaky foundations (I have not published or patented, or finished animal studies).


You can start a company, strengthen the foundations, and patent the results. (NB: Your university may actually own the rights to any patents, it depends on your precise scenario. Regardless, you might not need to patent results that would be owned by the university, since patenting later results might suffice.)