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Patent Licensing Policy

Licensing Framework

General:

The Office of Technology Transfer carries out the technology transfer function of the University.

Initial Fee:

Initial fees will be sought for licenses -- the amount determined by a number of aspects relative to the licensee such as:

  • Maturity of the Company
  • Field of use
  • Geographic area covered by license
  • Terms of license relative to other similar licenses granted
  • Exclusive/non-exclusive
  • Domestic vs. non-domestic manufacture

    The initial fee required may be paid in installments depending upon the circumstances surrounding the license. The initial license fee will not be so large as to stifle interest on the part of potential licensees.

    Licenses to develop products may be granted with no initial fee required. However, a license to manufacture and sell products would typically require an initial fee.
  • Exclusivity:
  • Under certain circumstances where profitability of the licensee is critically dependent upon protection of their market, a sole or exclusive license may be granted. The circumstances under which such terms may be granted are:
    • Where the licensee is a start-up company seeking to develop a unique product; Location in a specific geographic area.
      area with the licensed product;
    • Where the licensee is an established company, but is entering a new business
    • Where there is a distinct economic advantage to Kent Research Corporation either at the time of granting the license or in the near future.
  • An exclusive license, if granted, may be made subject to a number of constraints such as:
    • Exclusivity for a fixed, limited period of time after which the license becomes non-exclusive.
    • Performance goals, such as dollar amount of sales, by a specific time or the license becomes non-exclusive.
    • Location in a specific geographic area.
  • Running Royalty:
  • A running royalty will be charged. It will be taken into account that typically the bulk of income earned from licensing technology is earned from royalties and not initial licensing fees. The factors upon which a running royalty will be based are:
    • Industry norms for royalties on similar technology;
    • The contribution of the licensed technology to the final product;
    • Whether the licensed technology is "enabling;" that is, would a product exist without the technology;
    • Whether the license is exclusive or non-exclusive;
    • Whether the product is manufactured in the U.S.;
    • Whether the product is manufactured in Ohio.
  • similar on royalties for norms Industry
  • Equity Positions:
  • Under some circumstances, equity in a company may be accepted in lieu of cash for an initial license fee and/or running royalty. It is recognized that the acceptance of an ownership interest in a licensee represents a sharing of risk and consequently a greater reward must be anticipated. Therefore, such licensing arrangements will be entered into carefully.

Questions or comments? Email: partner@kent.edu
©2003 Kent State University
Updated: Wednesday, February 11, 2004

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