Technology Licensing FAQ

Does the University sell intellectual property rights to third parties?
No. OTC grants licenses to practice, manufacture, sell or otherwise use certain intellectual property. OTC will not assign a patent or otherwise sell intellectual property.

How long does it take to negotiate a license?
It can take less than one week to negotiate terms and execute an agreement. OTC has reasonable template agreements which, if used in their entirety, leave only the business terms such as compensation up for discussion. If a partner is unable to accept certain terms or language in the OTC template, a more extensive legal review process is required. The process extends dependent upon the number of iterations.

What kind of financial terms are included in a license agreement?
Financial terms vary for each deal. University compensation can take on various forms but is usually some combination of a cash fee, patent expense reimbursements, royalties and equity. OTC designs these compensation schedules in collaboration with the commercialization partner. They reflect the anticipated commercialization plan and avoid unduly burdens on licensees while providing fair compensation back to the University.

Can equity be included in a license?
Yes. The University frequently receives an equity stake in a new ventures licensing University technology. While almost any type of ownership stake is acceptable, the University will expect a reasonable exit opportunity.

Who owns intellectual property created at The University of Texas at Austin?
If the intellectual property was developed by an employee of UT Austin or invented at UT Austin facilities under the supervision of UT Austin personnel, the intellectual property is owned by The Board of Regents of The University of Texas (see Regents Rules). Each inventor must assign his or her rights in the intellectual property to the Board.

Does The University accept patent donations?
The University of Texas at Austin gratefully accepts patent and other IP donations which further the research objectives and the mission of The University. For each gift, a plan is submitted for approval by The Office of The Vice President for Research. The plan includes information concerning the intended use of the IP and the benefiting research effort. OTC champions the creation of the plan and facilitates these transactions.