Licensing Options
In addition to an up-front research license, sponsors may be to elect one of the four licensing models described below.
How it Works
Entities sponsoring projects at NC State University will obtain an up-front, non-exclusive, non-commercial license to the project’s data and final report in addition to the first, time-limited, exclusive right to negotiate a non-exclusive or an exclusive, commercial license to the project’s intellectual property once said intellectual property is disclosed to the sponsoring entity (See Option A below).
Under non-federally funded work and non-new plant variety projects, the university may also be able to offer sponsoring entities with an up-front, commercial license to the project’s intellectual property once the project starts in exchange for the payment of pre-determined license fees. These additional licensing options eliminate a sponsoring entity’s potential uncertainty associated with licensing fees and/or royalty rates that are typically negotiated once a project’s intellectual property is disclosed to it (please see Options B, C, and D below).
| Option Type | Option A | Option B | Option C | Option D |
|---|---|---|---|---|
| Up-Front, License Descriptions | Up-front, non-exclusive, non-commercial license to project data and final report with right to negotiate a commercial license once the intellectual property is disclosed to sponsoring entity | Up-front, three-year, exclusive, commercial license to project intellectual property once license fee is paid | Up-front, perpetual, non-exclusive, commercial license to project intellectual property | Up-front, perpetual, non-exclusive, commercial license to project intellectual property with right to pre-negotiate exclusive license rates/fees |
| Up-Front, Pre-Determined License Fees | None | 5% of total sponsored costs* (minimum $2,500*) | (a) 5% of total sponsored costs* (minimum $2,500*) (b) $5,000 in year 2* (c) $5,000 in year 3* | (a) Non-exclusive license fee is 15% of total project costs* (minimum $15,000*) (b) Exclusive license rates/fees negotiated prior to agreement’s execution^ |
| Additional Notes | First, time-limited, exclusive right to negotiate for either a non-exclusive or an exclusive commercial license to project intellectual property once disclosed to sponsoring entity | License extension’s rates/fees are subject to negotiations and mutual agreement near the end of the initial three-year term | First, time-limited, exclusive right to negotiate an exclusive, commercial license after intellectual property is disclosed to the sponsoring entity | Right to elect an exclusive license at the pre-determined rates*^ once the intellectual property is disclosed to the sponsoring entity |
* Non-refundable minimum dollar thresholds apply
^ Due after IP is created
NC State researchers are the key to the NC State research enterprise. Therefore, use of Options B, C, and D require NC State faculty team member and departmental approvals. NC State University can also create other customized approaches upon request.