Advance License

Features of the Advance License:

  • Upon project approval, a sponsor may elect to negotiate a research agreement which provides the sponsor with the right to an exclusive, commercial license in a defined field of use for any invention that is conceived or reduced to practice in the performance of the research.     
  • Project approval is required by the researchers that will be involved in the project; their college; and the Vice President of Research.
  • The Advance License is royalty-free until annual net sales reach $20M, at which time a royalty rate of 1% of net sales will commence and be payable on an annual basis thereafter.  If the invention is an improvement to sponsor’s background IP, total royalties payable to NDSU are limited to $5M.
  • Sponsor is required to pay a non-refundable, issue fee equal to 10% of total project costs (direct and indirect expenses) prior to the start of the research.  The minimum issue fee is $15,000.
  • The funding provided by sponsor for the research project must include all personnel and other expenses reasonably associated with the performance of the research, including an assessment of indirect costs based upon NDSU’s Federally Negotiated Rate.  Research expenses will also include lab/facility rent if the researcher’s regular lab is located in a bond-financed building.
  • NDSU background IP is not included in Advance License, but may be otherwise available on commercially reasonable terms.
  • Sponsor may sublicense its commercial rights.
  • Sponsor is required to provide NDSU with an annual accounting of sales involving any invention.
  • The Advance License is contingent upon sponsor’s continued payment of all patent expenses for the invention and full payment of the research expenses.
  • The license territory is limited to those countries in which sponsor elects to patent invention.
  • These standard terms are not negotiable.  If sponsor desires alternative terms a different invention rights option should be selected.
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