Technology Commercialization

Corporate Partnering & Sub-Licensing

Can corporate partnering be part of a sustainable business model?

If you have generated and/or control intellectual property around invention(s) that constitute a potential technology “platform”, and you believe your development team has the potential over time to create multiple products and applications covered under the IP, it may make sense to seek a funding agreement for your first product with a corporate partner. Technology-based, out-license agreements take many forms.

If, for example, your company is developing medical technology and its engineering skills, and/or specialized manufacturing processes are unique or complementary to an interested industry player, they may prefer entering into a joint development and marketing agreement, where the corporate partner would pay an initial license fee and then fund your company to continue R&D until reaching a defined development milestone.

As has been discussed in other sections of this website (see POC Demo Expectations), what constitutes a “working” prototype is somewhat “in the eyes of the beholder”, or in this case, the financing partner.

Depending upon the experience of the startup management team and the internal capabilities of the partner...


Joint development agreements may provide for a transition of formal product development to the partner’s organization, with the startup engineering team serving as consultants and the company receiving development-related milestone payments.

Agreements of this nature are not unusual for medical technologies, where formal product development and transition toward manufacturing must be conducted and documented in compliance with FDA Quality Systemsimg-tatric-3 Regulations, all in preparation for the submission of a marketing authorization application [510(k) or PMA]. For more information on this subject, go to Design Controls.

In such joint development agreements, post-approval marketing would typically be the responsibility of the corporate partner, and the startup company would receive product revenue royalties throughout the life of the agreement.

If such a partnership is of interest, perform an internet search with the phrase “joint development and marketing agreement” and you will find templates for such contractual agreements. Doing so will familiarize you with typical agreement provisions, but before proposing anything of this nature to a prospective industry licensee, it is advisable to consult an attorney experienced in such negotiations.

About The Proof of Concept Institute, Inc.

The Proof of Concept Institute, Inc. is a California 501(c) (3) non-profit corporation, whose mission is to develop educational materials and programs for research scientists, clinicians, and engineers that will facilitate more efficient transfer of public-funded (university and federal laboratory) technology and intellectual property to the private sector, where products and services can be developed for the common good and to support U.S. global competitiveness.

GET IN TOUCH

UC San Diego Research Affairs
Office of Innovation & Commercialization

Call Us: (858) 534-5815
Email: innovation@ucsd.edu

DISCLAIMER
INFORMATION PROVIDED ON THIS WEBSITE IS OFFERED SOLELY BY THE PROOF OF CONCEPT INSTITUTE, INC.(PCI). THE CONTENT OF THE TECHCOMM REFERENCE GUIDE IS FOR GENERAL INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR PROFESSIONAL ADVICE.

INFORMATION ON THIS WEBSITE IS NOT INTENDED TO BE A COMPLETE PRESENTATION OF ALL ISSUES ASSOCIATED WITH ANY TOPIC. WHILE AN EFFORT IS MADE TO POST ONLY THE MOST ACCURATE AVAILABLE INFORMATION, PCI DOES NOT GUARANTEE THE INFORMATION POSTED IS ALWAYS CURRENT, NOR DOES PCI WARRANT OR MAKE ANY REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION, TEXT, GRAPHICS, LINKS AND OTHER ITEMS CONTAINED ON ITS WEB PAGES.

FROM OUR WEBSITE, YOU CAN VISIT OTHER WEBSITES BY FOLLOWING HYPERLINKS TO THESE SITES. WHILE WE STRIVE TO PROVIDE ONLY LINKS TO RELEVANT EDUCATIONAL CONTENT, WE HAVE NO CONTROL OVER THE CONTENT AND NATURE OF THESE SITES AND THE LINKS TO OTHER WEBSITES DO NOT IMPLY A RECOMMENDATION FOR ALL THE CONTENT FOUND ON THESE SITES.
Technology Commercialization Navigation
Menu