Phase 2 – Action Plan, Express IP License & Startup Program Benefits

Contact

Cory G. Acuff, Ph.D.
Associate Director,
Innovation Gateway
706-542-5682
cacuff@uga.edu
146 Terrell Hall
210 S. Jackson Street
Athens, GA 30602

 

Kevin Wu
Engineering Catalyst,
Innovation Gateway
 706-542-2051
kwu@uga.edu
126 Innovation Hub
210 S Jackson St
Athens, GA 30602

Phase 2 Requirements

In Phase 2, the startup must complete and meet all of the following requirements (where not already accomplished).

  • Complete the startup’s action plan, 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 UGA policy for all UGA faculty, staff, and students involved with the startup.
  • Complete UGA’s I-Corps accelerator program or equivalent customer discovery process
  • Attend meetings with Innovation Gateway 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 Innovation Gateway with supporting documentation.
Process flowchart for Georgia Startup License: Phase 2

Phase 2 Benefits

Once Innovation Gateway confirms that all Phase 2 requirements have been met successfully, then the startup is eligible for the express patent license and other benefits identified below.

  • Discounted Incubator Lease Rates
    • UGA incubator office and lab spaces lease rates (depending on building/space).
  • Express 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 UGARF’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 Express IP License terms, then the license process will revert to a negotiated license.