2.4 IP ownershipIP is an asset. Its owner has legal rights to exploit its value. Joint ownership is common.
Legally, IP owners are the ‘applicants’ listed on registered IP protection.
IP may be assigned to a new owner, by being sold or legally given away, or IP rights may be licensed, in which case ownership is unaltered. Licensing is like renting a house: the tenant has user rights but doesn’t own the house. ‘Clean’ IP ownership is clear and uncomplicated, which is highly desirable for commercialisation of the IP. Unfortunately, the ownership of IP created in universities is often ‘unclean’, i.e. there are multiple owners, particularly if the IP arises from R&D involving several organisations or funding sources.
Identifying potential IP owners depends on defining the IP creators, which depends on defining the IP precisely. The IP may be highly specific or small compared with the R&D project from which it arose. If so, not all the researchers, organisations and funding sources involved with the R&D project may have created the IP.
The following people are not necessarily creators:
Having identified the IP and its creators, the next ownership issues are: Who employed the creator/s? Who funded their R&D? What organisations participated in the R&D?
You’ll find answers to these questions in employment contracts, university IP policy, R&D funding contracts and R&D collaboration contracts. Later, commercialisation agreements usually alter original ownerships.
The ownership of each IP item must be individually assessed. But there are ownership trends in Australian universities:
- percentage of profits. The university asserts full ownership or, if external funding or collaborating organisations are involved, at least part ownership. To confirm this, researchers are usually expected to execute a formal assignment of their IP ownership to the university. In most cases, this assignment simply confirms the IP ownership situation that is created through their employment contract with the university.
- When a student creates IP in collaboration with a university staff member (e.g. their supervisor), the IP is usually jointly owned by the university and the student. If so, the university may request that the student assigns the IP to the university, so that the university can fulfil contractual obligations with any R&D funders and collaborators. The student will usually share in any commercial returns.
Students not employed by the university or funded by university funders and/or collaborators, who create their IP without assistance from university staff, usually own their IP. Through the university’s entrepreneurship hub/incubator – they can gain access to advice, resources, networks and opportunities, and will still share in any commercial returns.