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Friday, September 27, 2024

CU Boulder Launches Licensing with EASE Program to Simplify Startup Technology Agreements

New Licensing with EASE initiative offers pre-negotiated, investor-validated terms designed to accelerate university technology commercialization for startups

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CU Boulder Launches Licensing with EASE Program to Simplify Startup Technology Agreements

The University of Colorado Boulder’s Venture Partners program has unveiled Licensing with EASE®, an innovative licensing pathway designed to expedite and simplify the process for startups seeking to commercialize university-developed technologies. The acronym EASE stands for Express Agreement for Startup Entrepreneurs, reflecting the program’s goal of reducing complexity and accelerating access to intellectual property (IP).

Licensing with EASE offers startups pre-negotiated licensing terms that have been thoroughly vetted by independent startup investors and law firms experienced in representing university startups. These partners have validated that the terms are both investible and equitable, providing confidence to founders and investors alike.

One of the program’s key advantages is its favorable financial terms. Venture Partners has benchmarked these terms against a database of over 1,000 university licensing deals and ensured they are significantly more advantageous than the national average for university-startup licenses. Notably, the program includes a risk-free equity provision: startups can opt out within the first year if they decide to pivot and no longer require the CU Boulder technology, with no equity taken by the university.

The Licensing with EASE terms are non-negotiable, reflecting their careful design and investor validation. Startups that choose not to accept these terms may enter into traditional license negotiations; however, such negotiations typically involve less favorable terms and a longer timeline. Venture Partners strongly encourages startups to leverage the streamlined Licensing with EASE program to benefit from its efficiency and founder-friendly conditions.

The program’s licensing terms are also more favorable than the guidelines recommended by the prominent startup accelerator Y Combinator, which advises university spinouts to seek royalty rates below 5% and a 3-5% equity stake for the university. Licensing with EASE offers terms that are considerably more advantageous to startups than these benchmarks.

Eligibility for Licensing with EASE requires that the startup be specifically founded to commercialize a CU Boulder innovation and meet several criteria. These include consensus among the inventors and any co-owning institutions to use the program’s terms, availability of the IP rights for licensing without conflicting third-party negotiations, and formalized employment or consulting agreements for university employees involved in the startup. These agreements must include the university’s standard third-party addendum and be accompanied by updated Disclosures of External Professional Activity (DEPA) forms and finalized Conflict of Interest Management Plans.

Startups interested in Licensing with EASE begin by submitting an online application. Upon meeting eligibility requirements, they receive the pre-approved licensing terms, eliminating the need for lengthy and costly negotiations. This approach aligns with Venture Partners’ commitment to supporting university innovators and founders by providing clear, fair, and efficient pathways to market.

In addition to Licensing with EASE, CU Boulder offers a suite of entrepreneurial training programs, funding opportunities, and mentorship resources through Venture Partners and affiliated initiatives such as the NSF I-Corps Hub West, Ascent Deep Tech Accelerator, and Lab Venture Challenge. These programs collectively support startups from innovation disclosure through commercialization.

By introducing Licensing with EASE, CU Boulder aims to enhance the university’s technology transfer ecosystem, enabling startups to focus on growth and product development rather than protracted licensing discussions. The program exemplifies a growing trend among research institutions to adopt founder-friendly licensing frameworks that facilitate successful university spinouts and accelerate innovation impact.

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CU Boulder Launches Licensing with EASE Program to Simplify Startup Technology Agreements The University of Colorado Boulder’s Venture Partners program has introduced Licensing with EASE® (Express Agreement for Startup Entrepreneurs), a streamlined licensing framework tailored for startups commercializing CU... Read the full IIPLA article: https://iipla.org/news/cu-boulder-launches-licensing-with-ease-program-to-simplify-startup-technology-agreements

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