TUM Fast-Track IP Negotiation Process
TUM's new Fast-Track model to increase efficiency in technology transfer
We constantly aim to improve our services and to lead your matters to success with the highest level of efficiency through transparency and professionalization.
"Our goal is to sign the contract within 12 weeks."
For this reason, TUM ForTe Patents and Licensing (P&L) has developed the TUM Fast-Track process for IP negotiations in consultation with external experts. This process is designed to make IP contracting for start-ups faster, less complicated and more efficient. The legitimate, individual requirements of the start-ups are taken into account.
The TUM Fast-Track is transparent and structured. Since there is a fixed time frame, a strong commitment from all parties is necessary for success. This ensures that the negotiation period is efficiently structured and that there are no unnecessary delays or duplications. In addition, the Fast- Track model also provides the opportunity to identify risks and chances early on, thereby minimizing them.
"A share agreement and a license agreement are always required."
The participation agreement defines regulations for the virtual participation of TUM and the associated license agreement specifies the rights and obligations as well as individual conditions regarding the rights of use of the relevant intellectual property (IP).
The goal is to complete the entire negotiation process within 3 months. If no agreement can be reached in the Fast-Track process, a detailed case-by-case review with in-depth analysis will be carried out.
Of course, at the request of the start-up, an individual, intensive and detailed consideration of the IP apart from the Fast-Track model is also possible. For such cases, the timeline of the Fast-Track is not applicable.
The Phases of the TUM Fast-Track Process
The TUM Fast-Track process consists of five phases: Initial Assessment, Feedback, Consolidation, Contract Development, and Contract Closure. You can download the entire process, a checklist for your preparation and an overview of the different models as a PDF.
- Before starting, the course is set for a fast and efficient negotiation. In order to go through the Fast-Track, a kick-off meeting is scheduled (checklist).
- Goals of the kick-off are:
1) Mutual introduction of the founding team and P&L. 2) The team names the IP relevant for the start-up. 3) P&L presents the different Fast-Track models and the process steps. 4) Clarification of goals and expectations to set a common agenda.
- Subsequently the founding team submits the required documents.
- The goal of the phase is to rank the technologies according to their relevance to the start-up project by consulting with a panel of experts. The ranking is carried out to gain an understanding of which technologies and resources are needed to implement the idea of the start-up. Based on the assessment results, the amount of virtual shares and the terms of the license agreement are determined.
- P&L conducts a thorough analysis of the project to ensure that all relevant information has been provided and formal requirements are met.
- The outcome of the phase is a term sheet draft that sets out the basic terms and conditions for the virtual participation and the license agreement.The term sheet will be jointly developed in subsequent phases.
- The feedback phase is intended to consider all interests and needs. It is an important step on the way to successfully licensing the IP and founding a promising company. The founding team has the opportunity to react to the term sheet prepared by P&L and, if necessary, to introduce requests for adjustments.
- If a consensus is reached, the next phase, the consolidation phase, can be started. If this is not the case, the founding team leaves the Fast-Track model and the project is negotiated in an individual, intensive and detailed process.
- In the consolidation phase, all changes to the term sheet resulting from the feedback phase are discussed and consolidated.
- If both parties agree with the term sheet, the term sheet can be signed and the next phase can be initiated.
- If consensus cannot be reached, the founding team leaves the Fast-Track process and the project is negotiated in an individual, intensive and detailed process.
- The goal of the consolidation phase is to reach a consensual and workable term sheet.
- The contract elaboration based on the term sheet.
- Two contracts are concluded:
1) virtual share contract and
2) license agreement.
- Together we have reached our goal. The contracts have been negotiated, all contractual partners have signaled their agreement to sign.
- In addition, the signatory power is checked once again in this phase. The signature process can now begin
"Our goal is to sign the contract within 12 weeks".
Of course, at the request of the start-up, an individual, intensive and detailed consideration and negotiation of the IP apart from the Fast-Track model is also possible. For this, the timeline of the Fast-Track is not applicable.
- PDF Checklist A checklist to help you prepare for the kick-off meeting, detailling the information we need to start the process.
- Overview TUM Fast Track Models
- Summary TUM Fast-Track process Overview and description of the whole TUM Fast-Track process.
- Guide: Founding at TUM The guide "Founding at TUM" offers a range of information on the start-up process at TUM (version: 03/2023).