Issue link: https://htpgraphics.uberflip.com/i/729690
Case Study... A new spin-out company is being formed which will be dealing with the real time management of diabetes. As part of the establishment of the company, the University will transfer three separate patents to the company. The inventors named on these three patents are different individuals. How will revenue sharing be dealt with? It does not matter that the spin-out company is receiving three patents. The University's shareholding in the spin-out company is still based on the above rules i.e. 15% + 15% because of UMIP's involvement. The inventors' percentage shareholding and the University's percentage shareholding will not change at all, but will simply be worth more because the company will own three patents rather than just one patent. The University leaves the inventors to decide for themselves how their 70% of the shares is to be split between them. (It is usually based upon their respective contributions to the invention(s)). >>> 33 you back into research at the University. If UMIP declines to commercialise particular IP and it is transferred back to you (and any co inventors/creators) the Substantial Sum will not apply and the University's share remains at 7.5%. Where the IP is commercialised by licensing it, then the originators' share represents their percentage share of the net revenue received by the University from such licensing. If, however, the commercialisation is through a spin-out company, then their percentage share will be represented by a percentage of the shares in the spin-out company, which will be owned by the University and the creators of the IP.