When you think of intellectual property (IP) rights, you probably think of an individual or company doing everything they can to ensure their IP doesn’t fall into the hands of others. On occasion, especially in the research realm, a business entity may develop an IP with the intention of selling it to a third-party all along.
However, the goal is not always to protect or sell. In some cases, it makes sense for one party to license its IP to another party. This enables the party who developed the IP to retain its rights and control while allowing the other party to use the developed IP for its benefit.
The University of Wisconsin-Milwaukee (UWM) Research Foundation has been exploring treatments for convulsive disorders, such as epilepsy. Another company, RespireRX Pharmaceuticals Inc., has been conducting research into treating sleep disorders with cannabinoids. RespireRX has also been looking into treatments for central nervous system disorders.
Recognizing that the research conducted by UWM may benefit their research, Respire RX entered into an agreement to license the work done by UWM. RespireRX will have the use of compounds developed by UWM to use in their sleep disorder treatments. In exchange, RespireRX will pay for the past costs of UWM patents, as well as providing them with other payments as their research progresses.
The licensing of IP can be financially lucrative for both sides, especially in the area of medical and pharmaceutical research. It’s essential that both parties understand what they are exchanging with one another. A skilled legal professional can help guide you through this process while protecting your valuable interests.