|Title:||Terms for Faculty Start-up License|
|Policy Owner:||Office of Economic Development|
|Effective Date:||February 15, 2012|
|For More Information, Contact||Office of Economic Development|
|Contact Information:||(860) 486-4792|
|Annual license fees||$0|
|Annual minimum royalties||Year 3 anniversary of Effective Date: $1,000Year 4 anniversary of Effective Date: $3,000Year 5 anniversary of Effective Date on: $5,000|
|Royalty rate||5% of net sales of product or service.|
|Equity||5%; undiluted until the investment of the first $1M of bona fide investment; UConn Observer seat and annual shareholder meetings required.|
|Sublicense revenue share||On sale of Licensed product by Sublicensee: 75% of royalty as if sold by Licensee. On other Sublicense payments, such as upfront fees and annual payments, 25%.|
|Patent reimbursementU.S. and/or PCT
|Yes, for all non-recouped, out-of-pocket costs incurred by UConn up to the Reimbursement start date. Reimbursement Start Date to be 3 year anniversary of Effective Date, 25% annually for 4 years.|
|Forward going patent costs||Company shall pay all forward going costs and all non-US, except PCT, from Reimbursement Start Date on a quarterly basis within 30 days of invoice from UConn.|
|Milestone: Management||Engage a Business Advisor (BA) or equivalent within 90 days of Effective Date. Have a formally committed, active and experienced business manager/CEO as part of management within 1 year of the Effective Date. Creation of an active and diverse Board of Directors is encouraged. Compensation may be equity or salary.|
|Milestone: Business plan||Detailed Business Plan reasonably acceptable to UConn due 6 months after effective date of commitment with CEO.|
|Milestones: Product/Business||Incorporated into license from the accepted Business Plan.|
|Meetings||Provide no less than quarterly updates of progress against all Milestones via face-to-face meetings with follow up written report. Must demonstrate progress against the Milestones to maintain the license.|
|Remaining terms||All those customary in licenses of this type.|
Faculty Start-up Requirements
1. Submit a complete invention disclosure to the Center for Science and Technology Commercialization (CSTC).
2. Work with the CSTC to determine the technology’s commercial potential to assure a well informed decision is made by its Patent Committee.
3. If selected by UConn R&D, discuss with them the idea of starting a new company to reach a mutually agreeable decision on working as partners or not to form and grow a startup.
4. If not selected by UConn R&D, but you wish to start a company on your own, work with the CSTC to determine if a company rather than a license to an existing company is the best way to commercialize the technology. If a new company, work with the CSTC and other UConn resources to identify a business mentor. With your mentor, utilize additional UConn resources to generate an Executive Summary of a business plan addressing:
a. Management, specifically your experienced business advisor or business partner
b. The problem to be solved and the cost to solve it with existing means
c. The solution to the problem your company will provide and its advantages
d. The current status of the technology and its development, including time to market
i. Projected milestones with timeframes for each (Gantt Chart)
ii. Location of the business
e. The size of the opportunity for your company
f. The business model, i.e. how you will make money; who pays and how much
g. The competition, including other start-ups
h. Barriers to market entry and how they will be overcome
i. Marketing, i.e. how the product or service will be sold
j. Funding requirements and financial projections
k. The exit strategy.
5. Via your business advisor/partner negotiate a license from the CSTC. Expect that license to include: diligence requirements, financials (such as upfront payments, royalties, etc.) which are flexible for start-ups, equity, and many other standard license terms.
6. Acquire and provide to the CSTC the necessary releases from your department head and dean concerning release time, conflict of interest, consulting, etc.
7. Consider applying to the Technology Incubation Program for space and services.
8. Execute against the diligence requirements in the license which will be aligned with the milestones in the Executive Summary.
For More Information
Michael Newborg, 860-679-2518 or email firstname.lastname@example.org.
February 15, 2012