Once you have negotiated and taken a license to technology, there are certain milestones and obligations your company must meet.
Financial obligations include a cash license or an equity fee, and reimbursement of patent costs. A payment schedule for patent reimbursement can be set up to accommodate the specific needs of the company.
WARF also requires the company to submit royalty reports on a quarterly basis once product sales begin. The royalty rate is calculated as a percentage of the selling price of the products.
Finally, the company agrees to the following development obligations:
- Obtain the expertise necessary to independently evaluate the invention.
- Develop products for sale in the commercial market.
- Provide WARF with a development plan.
- Provide WARF with written development reports.
- Hire a qualified chief executive officer (CEO) within a specified period of time.
- Obtain an agreed upon amount of financing within a certain period of time.
- Specify a date of first commercial sale.
- Provide audited financial reports on a regular basis.
