What happens to future improvements to technology licensed to a start-up?
In most cases, start-up companies seek exclusive licenses from the University to the intellectual property needed to form the core assets of the business. However, in nearly all cases, the work performed in the lab to generate the underlying IP continues well after the initial disclosure and subsequent patenting process. Additional discoveries are often more important to the commercialization of technology than the original invention. As a result, companies seek to secure rights to follow-on improvements via an Option to Future Improvements. Options grant a company a period of time in which to evaluate an improvement for inclusion in the companys IP asset portfolio. If the company elects to exercise the Option, this can be done for a small up-front fee and an agreement to incorporate the new technology into the companys License Agreement under the same terms and conditions as the original. If the company decides not to license the new technology, it is returned to the TTO for licensing
