"University Patents matches intellectual property owners with those that can use the technology to create profits that both parties can enjoy."
University Patents will serve as a technology transfer conduit between universities and the business sector specializing in licensing. University Patents will primarily act as an agent of the university and actively research the possible applications of a patented technology. Using this analysis, it will identify and approach companies in those sectors that may have a use for the technology.
University Patents' advantage is in the focus of the company. First, by targeting patents that independently could not support a business, University Patents will not compete directly with the venture capital groups. Secondly, University Patent will look for universities where the office of technology has a small or non-existent staff dedicated to licensing. The expertise and network University Patents will develop through the research, promotion, and writing of many licenses a year, will be an asset to these universities who only write an average of six licenses per year.
University Patents will position itself as a partner of the university in the effort to move protected technologies to the private sector. As a partner and intermediary in the negotiation, University Patents will receive a percentage of the annual cash flows provided by the licensing agreement.
2.1 Start-up Summary
All of the start-up expenses will be financed by the founders either out-of-pocket or through personal debt.
2.2 Company Ownership
University Patents will be started as a Limited Liability Corporation (LLC) that is fully owned by the three founders: Anderson, Bradbeer, and Sorge. Due to the different geographical locations of customers and to reduce overall costs, we feel that the optimal structure of the company would be an organization with the owners working part-time for University Patents during the first three years in separate locations until the revenue can sustain a full time staff. In this manner, University Patents will be a bootstrap operation funded completely by the founders.
The founders will consider moving to full-time employment earlier than the projected timetable states through venture capital or other means, but will be hesitant to give up much more than 20% of the company ownership.