Easy Introduction to Economy

There are several problems with the protection of IP in spinouts. The first is the uncertainty that surrounds the question of ownership of IP when university research is carried out in collaboration with a third party. Simply put, who owns the IP, the university or the third party? In the end the decision could rely on the nature of the written collaboration agreement and whether the collaborator is considered to be an agent of the university or not.

This uncertainty over ownership makes negotiations between spinouts and potential investors longer and more expensive than otherwise would be the case, and sometimes prevents investment deals from being completed (and longer-term exit plans coming to fruition).

Probably more worrying for those who set up spinouts is the question of whether they are able to patent their research. This comes down to two separate issues, namely is there any unique property for which a patent will be granted, and has the company itself done anything to prevent it from applying for a patent?