Licensing university technology provides a crucial bridge between research and industry. We seek to foster innovation to enhance the wellbeing of our students, Oregon, the nation, and the world. To fulfill that mission, Industry, Innovation, and Translation (IIT) works with potential licensees to develop a business and technology plan to ensure a purposeful product launch.
Anatomy of a License
Licenses are written agreements that grant rights to intellectual property (IP) to a company, known as the licensee. In return for these rights, the licensee agrees to meet certain obligations to commercialize the technology. Licenses are negotiated to serve the best interests of the company and the technology.
- License rights: The grant of rights can be limited. For example, exclusive, non-exclusive, territory, or field of use.
- Royalties: When products are sold a percentage of the sales may be paid back to the university. Rates are negotiated based on the industry and business model that the product is sold under.
- Minimum royalties: Minimum payments are established for periods where the royalty returns fall under the level projected by the product diligence plan.
- License fees: Upfront payments, payments based on meeting certain milestones, or time-gated payments, separate from royalties. These fees reflect the UO’s investment in technologies but can be structured to reduce the burden on companies actively devoting resources to development.
- Expense reimbursement: The UO recoups expenses from protecting IP and bringing technology to market.
- Diligence Milestones: Performance expectations on development of technology and entry into the marketplace. Milestones are specific to the industry, product, and strategic plan.
- Reporting: Periodic reports for diligence and milestones from the licensee show they comply with the agreement's terms.
Before a License
Inventions made as part of your work at the UO or using UO resources are assigned to the University (see UO IP Directives). IIT works closely with researchers to evaluate and secure intellectual property. Additional development may be necessary to attract a licensee or before deciding to begin a startup. When a licensee is identified, a plan for the development of the technology and a business plan may be incorporated into the license as diligence milestones.
Benefits of Licensing
As a researcher, licensing is one of the most impactful things you can do with your work. Bringing your work to the marketplace helps it reach a larger audience and generates interest in your work. In addition to personal incentives through a share of royalty payments, you may attract industry sponsorship for your research. The revenue generated from licenses benefits the UO and can fuel the local economy.