Phase 2 (Quick Start License)
The startup must complete and meet all of the following requirements (where not already accomplished):
- Complete Phase 1, successfully addressing all general requirements and any other requirements identified in the startup’s individualized gap analysis.
- Obtain documented disclosures of Conflicts of Interest, as well as Outside Work approvals, as required by KSU policy for all KSU faculty and staff involved with the startup.
- Complete KSU’s Innovation Launch Pad program or equivalent customer discovery process training (I-Corps, ATDC training, etc.).
- Attend meetings with KSU Office of Research staff, startup mentors, and others as needed
- Apply for proof of concept funding (e.g. Georgia Research Alliance (GRA) Venture Development grant or other sources as appropriate).
- Meet one of the following: (a) apply for and receive a Phase I Small Business Technology Transfer (STTR) or Small Business Innovation Research (SBIR) grant; or (b) raise seed or Series A funding from external, dilutive sources.
- When all Phase 2 requirements are met, report completion to KSU Office of Intellectual Property Development with supporting documentation.
Once the KSU Office of Intellectual Property Development confirms that all Phase 2 requirements have been met successfully, then the startup is eligible for the Quick Start Patent License and other benefits identified below.
Quick Start Intellectual Property License
- Upfront fees – none.
- Patent expense reimbursements – no reimbursement due in license years 1 and 2; in license years 3 and 4, reimbursement due on a fixed schedule of $500/month; at license year 5, all remaining past patent expenses are due; thereafter, quarterly reimbursements for KSURSF’s ongoing patent expenses.
- Royalty payments due on sales of products/services leveraging the licensed patent rights; royalty rate of 2% (for pharmaceutical drugs/therapeutics) or 3% (for all other products/services).
- Sublicense fees – sublicense fees paid on non-royalty revenue from the startup’s sublicensees; sublicense fee rate of 15%.
- Success fee – if the startup company is acquired, merges, or goes public, then the startup pays a success fee of 1% of the startup’s value; the success fee takes the place of equity and will be paid only if the startup is acquired, merges, or goes public.
- Non-negotiable terms – if significant changes are requested to the Quick Start IP License terms, then the license process will revert to a negotiated license.
- Company Reporting Requirement - yearly progress reports through the life of the license, quarterly Royalty Reports.