Licensing models and IP Sales

There are three different methods of making an agreement about the commercialisation of a DTU Technology.
These include the licence model, the option + licence model and the sales model.

THE LICENCE MODEL

The Licence Model is typically the starting point, of making an agreement about the commercialisation of a DTU technology, as it is the most common way to obtain commercial rights to IP and technology.

DTU Tech Transfer offers a standardised approach for licensing IP to new spinout

companies. The licence for new spinouts has a structure that makes it possible to defer some of the payments until an exit event or until products reach the market.

It includes:

  • An upfront fee covering historical patent costs and other direct investments made by DTU.
  • Payment of future patent costs.
  • Royalties on net sales.
  • Buyout option to convert the license to full IP ownership.

 

As an alternative to a partial or full payment in cash, DTU Tech Transfer is prepared to accept payments as equity (shares in the spinout) for selected spinouts with a well-defined exit strategy.

A licence to DTU technology can be exclusive, partly exclusive or non-exclusive. The specific payment options offered by DTU Tech Transfer will depend on the structure of the specific licence terms agreed with the spinout company.

The payment options will always seek to reflect the tight liquidity situation in spinout companies, and we can apply different tools to relieve liquidity stress in the company’s early life.

 

THE OPTION MODEL

The Option Model is often used prior to the Licence Model in order to evaluate the value of the technology. The objective will typically be to obtain an exclusive licence agreement or to sell the technology.

The Option Model can be compared to a time-limited licensing agreement with less items to negotiate. Payments are always, as a minimum, equal to patent costs during a period of maximum 12 months.

 

THE SALES MODEL

In the sales model the objective is to sell the technology to industry. This can be done directly or in the aftermath of the option model.