Policies for Startups
The mission of the Office of Technology Licensing (OTL) includes the encouragement of innovation, and the commercialization of the Institute's intellectual property. Our goals include ensuring public benefit from Georgia Tech research, and providing inventor satisfaction and motivation. As part of satisfying our mission and attaining our goals, OTL encourages inventors who wish to start a new company based on the results of their research. Here we give an overview of the support OTL, and other offices with which OTL collaborates, provides to start-up companies, and what GTRC expects in return. We also list answers to Frequently Asked Questions.
Preparing to Launch the Company.
If establishing a start-up with a Georgia Tech technology makes good business sense, OTL will not seek other licensees for a limited period, the duration of which is agreed but which will not exceed six months, to allow the inventor to make the necessary arrangements for the establishment of the company. In return for OTL not seeking other licensees during the agreed period, the inventor commits to meeting specified milestones within the agreed period, including the development of a business plan, the assembly of a qualified management team, the acquisition of an appropriate level of financing and capital, and the approval of the Institute's Conflict of Interest officer or committee. If after taking these steps the inventor wants to proceed with the start-up, OTL will seek approval to license the technology to the company in return for equity and other consideration, and on terms and conditions, that are normal in GTRC's licensing agreements.
GTRC's/OTL's role in Start-Ups.
After approval has been given, GTRC enters into a license agreement with the company. In lieu of an upfront cash licensing fee, GTRC will usually accept equity (usually 10%) as the initial consideration. This allows the company to devote its resources to the development and marketing of the technology. A stock purchase agreement will be put in place to reflect the equity arrangement. In all other respects, the license will resemble a typical technology license, including development benchmarks, financial and other business milestones, payment of royalties on sales, and reimbursement of patent costs. OTL also seeks protection of the technology and may defer, for a limited period, reimbursement by the company of the U.S. patent costs, once again to help the company during its initial stage; a cost reimbursement schedule that the company can afford is agreed. The company will always be responsible for all foreign patent costs. OTL does not help the company prepare its business plan, nor does it play any role in the management of the company or accept any board position. It also does not invest in the company. However, it will collaborate with the company and other Institute affiliated organizations, such as VentureLab, ATDC and Yamacraw Seed Fund, to secure assistance in those areas for the company.
Additional Resources Available to Start-Ups.
Many resources for start-up companies exist both within Georgia Tech and the Atlanta community. Within the Institute, OTL interacts with ATDC, VentureLab, the College of Management, and Yamacraw Seed Fund, all of which can provide assistance in the conception and establishment of the company. They may also be able to arrange introductions to sources of capital, and to management expertise. They can also provide advice on government programs such as Small Business Innovation Research (SBIR) and related grant proposals. ATDC also provides laboratory and office space for start-ups, as well as office services.
Thinking About a Start-Up?
If you believe that your Georgia Tech technology may be appropriate for a start-up, and you would like to be involved in that start-up, contact OTL.
