Page 15 - 2020 Startup Guide

Intellectual Property Licensing Terms for Start-Ups
As part of continuing efforts to expand programs and support for FAU entrepreneurs who are interested in starting their own companies based on FAU innovations, OTD offers pre-negotiated intellectual property option and license agreements. These agreements are intended to speed up and streamline the licensing process.
An option agreement is often used to reserve rights in an innovation so a company can begin exploring funding opportunities in order to actually acquire the rights in question. A start-up company sometimes prefers to start by taking an option to a license, rather than an outright license itself.
The agreements are based on transparency and fairness, offering the exact same, very favorable terms to all FAU start-ups. They have been designed in consultation with attorneys, entrepreneurs, and investors to be “no negotiation” deals that companies can feel comfortable signing without reservation. By reducing the time and legal expense for both parties to finalize an agreement, entrepreneurs can focus their efforts on growing their business.
While FAU’s primary mission in licensing innovations to start-ups
is to promote the development of products or services that benefit society, FAU does seek a reasonable financial return so that it can reinvest in future education and research.
15