Upfront IP Quick Guide
An IP approach where the financial terms for the use of foreground IP generated from an industry-sponsored research project are negotiated and paid for in advance
A number of universities have started offering companies the opportunity to fix the financial terms on any foreground IP that is created during a research project in exchange for an upfront fee. A variety of models have been developed and used over the years and include considerations such as whether the license is exclusive, whether there is a “home run” or “bonanza” clause, and which technology areas qualify for these contracting terms. This quick guide focuses specifically on the use of upfront or monetized IP terms in master research agreements. Some companies and universities have found that upfront IP terms, especially in master research agreements, can reduce the time to agreement and provide benefits to both parties.
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