Defining Sublicense Income to Avoid Problems Down the Road
les Nouvelles - Journal of the Licensing Executives Society, Volume LIII No. 1, March 2018
10 Pages Posted: 7 Mar 2018 Last revised: 18 Mar 2018
Date Written: January 16, 2018
Abstract
This article looks at sublicense income payment provisions in academic licenses. A majority of academic licenses are granted to small companies which are likely at some point to grant a sublicense to a large company to take the product to market. The article examines the three structures that have evolved to share the payments received by the small company from its sublicensee with its academic licensor and then looks at problems that have risen over the issues of milestone payments and profit sharing arrangements.
Keywords: academic licenses, small company, sublicensee, academic licensor, milestone payments, profit sharing
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