OSICP - Start-ups

The Office of Strategic Initiatives & Corporate Partnerships (OSICP) assists Temple faculty and staff with the creation of new companies based on university research and technologies. It provides a university interface with multiple sources of early stage capital, identifies mentors and potential management team members and co-ordinates with the Office of Technology Transfer (OTT).

 

University's Relationship to the Start-up

Company

• The University may grant to the start-up company an exclusive, worldwide license for the technology with the right to sublicense. The terms of the license agreement generally will include the start-up company paying the University:
  - All future patent expenses, and the University may seek reimbursement for any past patent expenses;
  - A license fee and annual maintenance fees for years prior to first commercial sale;
  - Milestone payments due on each round of equity financing;
  - Milestone payments on achievement of critical product development events; and
  - An earned royalty on product sales by the start-up or sublicensees, with annual minimum amounts due in each year after first commercial sales (fully creditable against earned royalties).
  
• The start-up company will be obligated to provide the following diligence provisions required to maintain the license. Failure to satisfy these requirements may result in termination of the license by the University. The start-up company will:
  - Provide an acceptable development plan with at least semi-annual updates;
  - Meet all milestones;
  - Comply with all necessary steps to effectively manage conflicts of interest;
  - Indemnify and provide satisfactory insurance for the University for product liability and other risks;
  - Require that obligations of licensees are passed onto all sublicensees.
  
• The University's equitable interest and role in the start-up company:
  - Equity will only be taken if approved on a case by case basis by the University.

Specific Stipulations Regarding

Research Support by the Start-up

Company

The start-up company may, under very specific circumstances, support research projects at the University in the inventor/faculty member's lab, provided that:

• All projects are subject to the University's conflict of interest rules and, as such, a decision will be required that a conflict-of-interest either does not exist or has been appropriately managed.
• The scope of work is clearly defined and the research is not for product development for the company;
• No employees of the start-up company will be included as named participants on any research contract with the start-up company;
• All inventions arising from the work are owned by the University and are subject to an option to negotiate additional licenses;
• Students in the PI's lab will not be permitted to function as employees of the start-up company and should not be compensated under the research contract to ensure that they are free to pursue publication and thesis defense without restriction; and
• Commitment to fund research cannot be used to replace a license royalty payment obligation.

Permitted Use of Temple University

Research Space

The University recognizes that technology used as the platform for faculty start-ups is almost invariably at an early stage of development and is intimately related to the faculty's ongoing research interest. It is likely, therefore, that some technology development will be necessary at the University before it can be transferred to the new venture. The University will work with the new venture to assist in this transfer and to assure that University facilities and resources are not being used inappropriately to support product development and for-profit activities. The University will offer assistance to the faculty member to locate suitable off-site space for the start-up company, when this is appropriate.