Today (October 7), the University launches an updated Intellectual Property (IP), Equity and Revenue Sharing policy. This refreshed policy makes changes in two key areas, namely:
- The level of equity taken by the University in new spin-out companies.
- Revenue sharing arrangements between the University and individual staff and research student inventors.
In all other aspects, the policy is unchanged – other than updates throughout to improve clarity.
Why has this policy been updated?
The revised policy is the outcome of the Intellectual Property Exploitation and Revenue Sharing Policy Task & Finish Group, established as a Sub-Group of the University Enterprise and Innovation Committee.
The overarching purpose of the Group was to review the University’s current policy to ensure that it is fit for purpose and aligns with institutional ambitions around the commercialisation of intellectual property in support of our Aberdeen 2040 strategic objectives, the Regional Economic Strategy, Scotland’s National Innovation Strategy and Entrepreneurial Campus Blueprint.
Changes to the policy are also designed to support our financial recovery strategy by incentivising academic commercialisation activities.
Spin-out Equity
The University’s previous Policy stated that the University expected an equity stake in its spin-out companies that was not less than 21% pre-investment. The revised policy, launched today, aligns the University’s equity position with the proposals in the HM Treasury Independent Review of University spin-out companies published in November 2023 (i.e. equity stakes in the range 5-25% depending on sector).
For life sciences spin outs (or others with significant University IP), equity splits identified via TenU’s University Spin-out Investment Terms (USIT) Guide will be used as a starting point (10-25% University equity). Exact terms will vary, depending on the wider commercial deal and the support (including research costs) provided by the University prior to spin out.
For start-ups involving unregistered intellectual property or academic expertise only, often focused on software, stakes can be lower (between 5-10%).
Furthermore, the University will not require anti-dilution provisions, allowing investors to dilute the University’s share/interest pro-rata with other equity holders.
The University equity stake in spin outs will continue to be negotiated on behalf of the University by Research & Innovation, based on the principles above.
Revenue Sharing Arrangements
The previous policy allocated revenue (i.e. income from commercialisation of research outputs and University intellectual property) on the basis of 33.3% each to the Inventor, Academic School/Directorate and University.
The revised policy provides Inventors and contributors to IP development with a more generous share of licensing income, as follows:
Up to £5k | £5k-£25k | £25k-£100k | £100k-£1M | >£1M | |
Inventor | 100% | 60% | 50% | 40% | 33.3% |
Academic School /Directorate | 0% | 20% | 25% | 30% | 33.3% |
University | 0% | 20% | 25% | 30% | 33.3% |
Where Can I Get More Information?
A full description of the policy can be found in the Policy Zonesection of the University web site.
The following contacts are also able to answer queries:
- Commercialisation Manager, Research & Innovation:
- Ann Lewendon (a.lewendon@abdn.ac.uk)
- Dean for Enterprise & Innovation (for queries on the TFG process):
- Dr Heather May Morgan (h.morgan@abdn.ac.uk)
Pete Edwards Vice-Principal Regional Engagement p.edwards@abdn.ac.uk
Liz Rattray Director of Research & Innovation e.rattray@abdn.ac.uk