In practice, if the sponsor chooses a license, the parties are almost always able to obtain acceptable terms for a license agreement for the intellectual property resulting from the sponsored research. If no agreement can be reached, mediation or arbitration can sometimes be helpful. Sometimes, despite these efforts, no agreement can yet be reached within the agreed deadlines. In this case, the university has the right to negotiate with third parties. If the University is able to enter into an agreement with a third party on more favourable terms than those submitted to the Sponsor, the Sponsor has the right, under the right of first refusal, to accept such license offered to a third party. The research agreement provides for an option period during which the proponent has the exclusive right to choose a licence negotiated in good faith. While a disclosure of an invention or the filing of a patent application is important, many inventions for which applications are filed are never commercialized. Therefore, at the time of submission, a proponent generally does not have sufficient information to make an informed decision as to whether or not to engage in commercial development under a licensing agreement. However, one of the reasons why the University enters into a license agreement is to commit the Sponsor to a 2.4 In exchange for the Sponsor`s obligation to make the payments described in the article above, the University grants the Sponsor the opportunity to negotiate an exclusive worldwide license paid under patent and technology rights to practice any invention and use any technology.
that was produced during the research program. This option may be exercised as follows: If the University, in its discretion, believes in good faith that it has commercially exploitable subject matter under patent and technology rights (“Subject Matter”), it will submit the Subject Matter confidentially to the Sponsor. Within thirty (30) days of such submission, the Sponsor must notify the University in writing if it wishes to exercise its option for this item, and a license agreement will be entered into in good faith for a maximum period of one hundred and twenty (120) days from the date the Sponsor exercises its option or a mutually agreed upon period between the parties; Negotiated. In the event that the Sponsor and the University do not enter into an agreement during this period, the rights to such inventions and technologies will be sold in accordance with the University`s guidelines, without further obligation to the Sponsor. Until this object. B, such as a disclosure of invention, patent, patent application or identifiable piece of non-patented technology, as set out above, the University will not offer any rights in the subject matter to third parties. In general, licensing provisions are not included in research agreements. 10 If this is the case, the promoter often accepts a series of royalties and defers the determination of the actual interest rate.
The pre-specification of the license set – or a series of sentences – does not preclude the discussion of other financial considerations during license negotiations. The sole and exclusive right to any invention or discovery related to the drug, patentable or not, made by the Sponsor in the performance of the Work under this Agreement is the property of the Sponsor. Any other invention or discovery under this Agreement is the property of the Institution and will be treated in accordance with the University of Texas System Intellectual Property Policy. The Institution hereby grants the Sponsor the opportunity to negotiate an exclusive royalty license for any invention or discovery resulting from research conducted under this Agreement that has been designed and reduced to practice in the course of this study, or that results from research conducted under this Agreement and that is reduced to practice [within six (6) months of completion. work under this Agreement. of this Agreement. The Institution shall promptly notify the Sponsor in writing and marked as confidential of any invention or discovery resulting from research conducted under this Agreement, and the Sponsor shall notify the Institution in writing within ninety (90) days of disclosure to the Sponsor if it wishes to obtain a commercial license. If the Sponsor elects not to obtain a license, or if the Sponsor and the institution do not enter into a license agreement within one hundred and eighty (180) days from the date of the Sponsor`s election to obtain such license or a reasonable period of time that the parties may subsequently agree in writing, the rights in such inventions and discoveries, which are disclosed herein, in accordance with the institution`s guidelines without further obligation to the sponsor. In exercising the right of option granted hereunder, the parties shall negotiate in good faith the terms of a license agreement. 5.3 The Institution agrees to grant the Sponsor the opportunity to negotiate an exclusive, worldwide, royalty-based license to manufacture, use or sell any invention or discovery that is wholly or partially owned by the Institution and that has been put into practice or designed and reduced during the term of this Agreement or within six (6) months thereafter, and which is a direct result of the conduct of research under this Agreement.
Results of the agreement, with right of sub-license with accounting at the university. The Sponsor has three (3) months from the disclosure of an invention or discovery to notify the institution of its desire to enter into such a license agreement, and a license agreement will be negotiated in good faith within a period not exceeding six (6) months from the notification by the sponsor to the institution of its desire to enter into a license agreement. or the mutually agreed time limit between the parties. 9. Clauses specific to intellectual property rights. Certain clauses specific to the type of intellectual property rights licensed in the license agreement, either to ensure that the requirements of applicable laws are met, or to ensure that the rights of the owner of the intellectual property are adequately protected, or both. For example, Canada`s Trade-marks Act (which was significantly amended in June 2019) is the law that governs Canada`s system of trademark ownership and protection, including the licensing of trademarks to third parties. If the license agreement involves the granting of the right to use, advertise or display a trademark, in order to comply with the law and ensure the protection of the rights of the owner of the intellectual property, it is crucial to include clauses that deal with the continuous control of the owner of the intellectual property over the character and quality of the products and services associated with the licensed trademark. This includes the right of the intellectual property owner to inspect such products and services to ensure that they have a character or quality required by the intellectual property owner and defined in the license agreement. .