Royalty rates for university-bred technology

BVWireIssue #186-3
March 21, 2018

intellectual property
licensing, royalty rate, ktmine, license agreement

Many universities rely on the money they earn by licensing intellectual property they develop as part of their research activities. Analysis of data on eight universities show they received royalties at an average of between 3.5% and 4.6% and a median of about 3% of net sales, according to a blog post from ktMINE. The license agreements these universities (which include MIT, Stanford, Ohio State, and others) negotiated generally trend toward the healthcare industry. The three most active fields for licensing activity are pharmaceuticals, biotechnology, and healthcare products and supplies. All of the eight universities have licensing agreements for manufacturing and process intangibles, which makes sense because they typically patent their innovations. For more details on the ktMINE database, click here.
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