Page 16 - 2020 Startup Guide
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An option or license agreement will include the following non-negotiable terms:
Option
• Issue Fee: $500
• Term: 1-year term
• Field of Use: Reasonable field of use restrictions based
on business plan
• Territory: Reasonable territory restrictions based
on business plan
• Protection: University maintains sole responsibility
and control over intellectual property rights
• Development: Achievement of commercial development
milestones based on business plan
License
• Issue Fee: $1,000
• Term: 5-year term, option for subsequent 1-year renewals • Field of Use: Reasonable field of use restrictions based
on business plan
• Territory: Reasonable territory restrictions based
on business plan
• Protection: University maintains sole responsibility
and control over intellectual property rights
• Legal Expenses: Full reimbursement of past and future
legal expenses
• Development: Achievement of commercial development
milestones based on business plan
• Milestone Payments: Set payment per milestone achieved
based on business plan
• Royalty Rate: 3% of net sales of the licensed product(s)
• Non-Royalty Sublicense Consideration: 10% of payments
received from sublicensee(s)
• Exit Fee: 1% of consideration received by licensee
for a liquidation event or IPO
