Three Easy Steps to Adopting a University Technology Licence
We sometimes get asked by CEO’s or Entrepreneurs what are the steps required to adopt a university or third level technology licence. At Montana Marketing we know what it takes to develop a new product from an early-stage invention and have experience in adopting such licences. It is a delicate balance and must be a win-win for both parties to have a successful outcome. We have outlined a three step process to ensure a smooth transition.
Step one to Adopting a University Technology Licence
Examine the 3 “C.”
Before one submits a Licence Application to the university or third level in question the three “C’s” must be examined. These are;
The Competition (i.e. the marketplace) and
The Company (i.e. your company)
There are many questions within “C” to be answered but at a high level here are a few;
- What are the development timelines, milestones, and revenue projections?
- How will you develop the technology into a market-ready product?
- What market and industry research has been conducted?
- Which risks are involved in this technology development?
- How will the technology fit with your current priorities?
Even getting the answers to these and other similar questions it is a big step for the entrepreneur or for the company executive taking on a new technology. Getting an independent external perspective is advisable, a commercial company such as Montana Marketing provide key information to help evaluate the “fit.”
Step Two to Adopting a University Technology Licence
Draft a Term Sheet
If you choose to pursue a particular technology, then you must go through that universitie’s / third level’s application process to apply for a license. Examine that process and then draft an initial term sheet to serve as the basis for a signature license. This term sheet may include:
- Field of use
- Grant of rights
- License issue fees
- Milestone payments
- Sublicensing provisions
A term sheet will then form the basis for the license agreement using the term sheet and the university’s required legal terms. Once all agree on the final language a licence is signed.
Step Three to Adopting a University Technology Licence Develop,
Market and Sell
A signed license agreement lets you begin developing your product. Again it is advisable to have an independent commercial company check-in as you progress to make sure the technology performs well in your environment.
Click here for common Third level Technology licensing terms and definitions. Click here for common Third level Technology licensing terms and definitions.