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Most Favored Licensee: The Licensor's Clause from Hell »


Comment from: Larry Schroepfer [Member]  

Comment received off-line, that I thought was excellent:


Always enjoy your posts. Of course the university can negotiate real terms into the negotiation right, there are plenty of ways around the tax issue, but only a small percentage of universities have the sophisticated legal office that can do it. Here’s the real reason what you suggest is not done in the university space in corporate sponsored research agreements. The sponsoring corporations aren’t interested. Only one in three disclosed inventions gets licensed. Fewer than one in 10 corporate sponsored research agreements result in an invention. Therefore only about 1 in 30 results in a technology that is licensable, and even that one may not be desired by the sponsor. So the sponsors have no desire to spend legal costs doing 30 negotiations (or more) for every one that they actually complete. And the sophisticated ones also know that so long as they have the first right, they can get the license for a cost they desire, as usually they are the only entity interested.

06/08/16 @ 17:05
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06/13/16 @ 06:59