Licence agreement or company
Commercialisation of the invention takes place either in the form of a licence agreement with an established industry or by establishing a new company. The different options and what they entail are described below:
In the event of a licence agreement with industry, the industry buys the commercial rights to your invention. Licence agreements will always be different as they depend on the market and the licensee’s preferences, but there are some general principles:
- The employer retains ownership of any patents
- The licence agreements are entered into on market terms
- The employer, inventor and Inven2 are to take part in a possible future success.
It is common that an agreement entails that the licensee pays a signing fee, milestone fees and a share of their royalties. This income is then divided according to the three-way model; read more about that here.
Establishing a company
An innovation project can lead to the establishment of a new company to commercialise the innovation. Among other things, establishing a company includes the development of a business model and recruiting a competent management team and the first investors. Transfer of the commercial rights to your invention will then take place in the form of a license agreement based on the same principles as for licensing to established industrial players. See here for more information about establishing a company.