What We Look For in a Potential Licensee
Standard licensing agreements typically include a reasonable initial licensing fee and reimbursement of associated patent costs, as well as royalty rates which generally reflect our confidence in the technology’s future commercial success. We are looking for industry partners who:
- Have a desire to work to the mutual benefit of all, and will partner with us to achieve this
- Demonstrate the capability and desire to develop nascent and early-stage university technologies and bring them to market
- Submit a viable plan and commitment to commercialize a licensed technology
- Indicate they will share the potential commercial success of the technology with the UIRF through distribution of royalties, equity, and developmental milestone revenues
Typical Components of a Licensing Agreement.
This is the initial fee that a licensee pays when a new license agreement is executed.
By protecting rights to the technology, the UIRF will have incurred various patent costs. In the case of an exclusive license, it is expected that a licensee reimburse the UIRF for all of these costs, and pay for ongoing patent costs as well. Partners with exclusive licenses in only certain fields will be asked to reimburse the UIRF up to a certain percentage of total costs.
Developmental Milestone Payments
For technologies that involve longer or more conditional development phases to reach marketability, the UIRF generally requests that partners provide some type of developmental blueprint to outline the various development phases. Certain points in the development process are identified as milestones and may involve a payment to the UIRF. In this way, the UIRF can link developmental successes directly to financial payments.
Royalties are payments made to the UIRF as a percentage of product sales. The UIRF only receives royalty payments when our partners sell products.
Equity Equity may be part of the portfolio of license compensation for startups licensing UI technologies or for University of Iowa spinout companies.