CREATION OF UNIVERSITY SPIN OFF / JOINT-VENTURE COMPANIES
Spin-off Definition“A company that is exploiting a university or research institution intellectual property. The university or research institution may or may not own equity in the company. However, the royalty (running royalty and upfront fees) will be charged by the parent organisation due to exploiting the IP rights based on the negotiation.”
In this context a joint venture company is defined as a spin-off company if the company exploiting the University IPs.
Type of UTM Spin Off
- With UTM equity in company (Dividends generated from the successful operation of the company and distributed to the participation organizations or individuals in proportion to the amount of equity they hold in the company)
- Without UTM equity in company
- Letter of intent or request of discussion from researcher
- If the proposed spin-off company will be a joint-venture company, form 49 and 24 of the existing company is required to be attached with the letter of intent.
- Negotiation takes place as related matter in 4.1
- Business plan preparation from the new company (proposed spin-off company)
- A paper work will be prepared by ICC to JPU for approval
- A paper work will be prepared by ICC to LPU for approval if it is a spin-off company with UTM equity