Licensing – Frequently Asked Questions
A license is a legally binding written agreement in which the licensor (who legally owns property), transfers or grants some part of those rights to another party (licensee) for some type of benefit including royalties, license fees, milestone payments, and/or equity. In our case, Innovus Technology Transfer Office (TTO) is the custodian of intellectual property (IP) that emanates from Stellenbosch University (SU) research. If a company or institution wishes to utilise such IP or technologies, they should request a license. Our team manages this licensing process and can provide any further information to ensure that companies receive the necessary information, know-how and legal rights to utilise the intellectual property.
There are various types of licenses with three main forms, namely exclusive, non-exclusive and sole license.
- Exclusive license – The licensor grants the licensee exclusive rights to the intellectual property being licensed in a specified territory and for a specific application. In addition, the licensor agrees not to grant another licence like that and undertakes not to operate the licensed technology itself in the specified territory.
- Non-exclusive – The licensor retains the right to license to other third parties to simultaneously use the intellectual property rights licensed. This type of license is effective if the technology has benefits to many companies and does compromise the competitive advantage of any. Waste management, efficiency improvement technologies and software are often licensed on a non-exclusive basis.
- Sole license – It is comparable to an exclusive licence in that the licensor grants a licence in a specified territory, with an undertaking not to grant any other licences in that area but retains the right to use the intellectual property in the same manner.
Yes, SU offers such licenses, namely:
- Instant Access License – This license is available to entrepreneurs and companies that wish to trial the University’s novel technologies by integrating it into their own production systems. The license allows the technology to be accessed for a period of 6-18 months for a nominal fee.
- Evaluation license – This license grants the right to use the technology derived from the university’s IP for the purpose of evaluating its feasibility for the application that the licensee is considering. The license is for a limited time and does not grant the licensee rights to sell the technology or products emanating from the evaluation.
Every license agreement is different, and the terms and conditions will vary depending on the technology being licensed. However, the following clauses are among those that are usually included in most license agreements:
- Background statement
- Definitions
- A list of parties entering into the agreement
- Exclusivity and territory clause
- License Fees and Royalties
- Confidentiality
- Limitation of liability, indemnification, warranties and disclaimers
- Mediation & Dispute resolution
- Rights to publication of research results in case of Research and Development (R&D) contracts
- Licensor’s obligations and licensee’s obligations
- The term of the agreement and termination procedures
Yes, the licensor will discuss and review the licensing terms with the licensee, ensuring that all parties involved understand their respective rights and obligations.
SU, through Innovus TTO, may conclude agreements with interested partners to commercially exploit the IP developed by its staff and students. We have contact details and a comprehensive list of technologies that are available for licensing here.
If you have any queries, please send an email to TTO@sun.ac.za
Licensing fees and/or royalties are determined based on the type of license awarded and its value in a commercial product development. Since every technology has a different market value, the exact cost amount is negotiated on a case-by-case basis.
If you have any queries, please send an email to TTO@sun.ac.za