What kind of financial terms are included in a license agreement?
The financial terms of a license agreement can vary greatly. They may include, but are not limited to, up-front fees, license reissue fees, minimum annual royalties, milestone payments, royalties and equity. Financial terms are widely variant and are tailored to fit the specific nature of each technology and each license transaction.
The financial terms of a license agreement can vary greatly. They may include, but are not limited to, up-front license fees, license re-issue fees, minimum annual royalties, milestone payments, royalties and equity. Financial terms are widely variant and are tailored to fit the specific nature of each technology and each license transaction.
Financial terms vary for each deal. University compensation can take on various forms but is usually some combination of a cash fee, patent expense reimbursements, royalties and equity. OTC designs these compensation schedules in collaboration with the commercialization partner. They reflect the anticipated commercialization plan and avoid unduly burdens on licensees while providing fair compensation back to the University.
