License and Licensee
What is a License?
A license is written agreement which defines the intellectual property and conveys the right to make, use, and sell product and processes using the intellectual property. OTMC develops and negotiates such agreements on behalf of UNO.
Who at UNO conducts the licensing negotiations?
All license negotiations are handled by the staff of OTMC, who has experience in negotiating such agreements.
Who signs the license agreement?
The President of UNO signs the license agreement on behalf of the University.
Does UNO license technology and IP to start-up companies?
Yes. Often, UNO technology is in such an early stage of development that existing companies are unwilling to undertake the risk of development. In such cases, a start-up company may be able to move the technology further down the "pipeline" so that it can be commercialized, licensed, and/or acquired by an existing company.
How will OTMC market/license my invention?
Marketing is an important first step in the licensing process. Generally, companies known by and/or working with the inventor are the best candidates for licensing the technology. In addition, OTMC can do market research to identify potential licensees and may utilize consultants and other experts to assist in defining target market opportunities. In some cases, UNO colleges and inventors will assist in providing a market assessment and a list of target companies.
What is Royalty Income?
These are the fees paid to UNO by licensees of UNO technology. These payments generally include such payments as:
- An up-front fee (or equity)
- A running royalty on sales
- A minimum royalty or license maintenance fee
- Other possible payments depending on the agreement
Funds received as part of the research grant are not part of the distributable royalties
Does UNO ever take equity as part of the license?
Yes. UNO may take equity in a company as part of the consideration for the license–usually in lieu of up-front licensing fees. Typically, equity deals are associated with licensing to start-up companies that need cash for operations.