Types of Licensing Agreements
Option: A simple, short-term agreement, usually for about 6 months, which gives the first right to enter negotiation for a license to a given technology. For the duration of the Option, PRF will not actively market the technology or seek other potential licensees. In exchange, the party receiving the Option often pays a modest fee and typically assumes the responsibility for ongoing IP expenses during the period. This type of agreement is generally used when a prospective licensee wants the ability to conduct due diligence on the market or technology before entering into a full license.
Commercial Evaluation License: Often, the diligence a prospective licensee wishes to conduct on a technology cannot be completed without access to samples or data. In this case, commercial evaluation licenses are used to grant the right to use a technology, under limited circumstance and for a limited time, to evaluate that technology.
Tangible Research Property License: IP takes many forms, and inventions that are not patentable or copyrighted can still be licensed. For example, published cell lines or antibodies can be licensed as a tangible property, where the licensee is granted the right to use and sell those materials that were created at Purdue.
License Agreement: This agreement can be tailored to suit many circumstances and generally represents a long-term partnership between PRF and a licensee. Licenses can grant exclusive or non-exclusive rights, such as the right to make, use and sell the technology, and they normally impose obligations on the licensee, such as the requirement to diligently develop the technology into a product or service and to pay an agreed-upon financial consideration. A license can usually be terminated at the discretion of the licensee, but PRF may only terminate that same license under predefined conditions, usually involving a material breach of the agreement. Upon termination, rights to the IP revert back to PRF.
Express License: Under the “Purdue Innovator Express Start-up License,” Purdue innovator(s) who are the founders of their first new venture formed to develop and commercialize their innovation may apply for an exclusive express license under a standard form of license with pre-set terms. To learn more about the express license, click here.
The key to success in licensing Purdue technology is to create a partnership between PRF and the licensee around the mutual interest of seeing Purdue technologies realized as commercial products and services.