Allocation of success: licenses and revenues

Property rights, such as patents or utility models including relevant know-how, are the basis for KIT's license agreements with companies. Through the license agreement, the company acquires commercial rights of use to the intellectual property of KIT, for example in order to launch new products or processes on the market. Licenses are granted in return for standard market license fees that are adapted to the scope of commercial use. For this reason, intellectual property rights represent assets for KIT. The resulting revenues from the commercial exploitation of these assets contribute to the refinancing of new transfer projects, e.g. through KIT's NEULAND Innovation Fund. The KIT licensing team is responsible for the negotiation, drafting and administration of license agreements, including revenue and remuneration management.

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Clarify questions about remuneration

To the license team

Returns from license income

Employees benefit from successful commercial exploitation. This is because the proceeds from licensing agreements and other types of commercialization (e.g. sale of intellectual property, out-licensing of software) are distributed transparently in accordance with the guidelines on technology transfer at KIT (PAL guidelines). KIT benefits from these returns in several ways:

  • Inventor or group of inventors (invention royalty)
  • Institute or organizational unit of KIT where the intellectual property underlying the license income was created
  • NEULAND Innovation Fund (KIT's internal funding program for technology transfer projects)

 

Financial incentive for scientific innovation

The remuneration of employees for their inventive achievements in the event of successful commercialization (invention royalties) is both financial recognition and an incentive to develop new and innovative ideas. Every successful technological transfer from science to industry also represents a special reputation for KIT. The royalties depend on the income generated by the commercialization. KIT employees can find all relevant regulations as well as application examples for invention royalties and the handling of license income in the guidelines for technology transfer.

 

Invention bonus vs. invention royalty

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Invention bonus – inventiveness and creativity are rewarded

You have invented something and KIT applies for a patent for your invention? Then you will receive a bonus for your inventive activity in accordance with the PAL regulations in the guidelines for technology transfer. The prerequisite for an invention bonus is that a patent application has been filed in the name of KIT. The invention bonus is administered by the patent team.

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Invention royalty – commercialization pays off

Have you invented something and also exploited the protected knowledge in the form of a license? In this case, you will receive an invention royalty. The basis for the invention royalty is the income from license agreements. The PAL regulations in the guidelines for technology transfer at KIT regulates the remuneration of inventions, software and qualified technical improvement proposals. Invention royalties are managed by the license team.