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


Cory G. Acuff, Ph.D.
Associate Director,
Innovation Gateway

146 Terrell Hall
210 S. Jackson Street
Athens, GA 30602


Kevin Wu
Engineering Catalyst,
Innovation Gateway
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.