Industry Pricing

Why is there an industry pricing policy?

  1. To provide a framework for consistent pricing of research across the University.
  2. To reach financial sustainability: to grow the University research funding on a financially sustainable basis.
  3. To fulfil subsidy control obligations: a subsidy is financial assistance given, directly or indirectly, from public resources by a public authority that confers a selective economic advantage on an enterprise. Using taxpayer-funded resources to provide assistance to one or more organisations in a way that gives an advantage over others may be a subsidy.
  4. To retain the charitable status: due to the University’s charitable status the research activities undertaken must be for public benefit and the University has a legal obligation to protect its assets and to cover its costs.

What is the industry pricing structure?

  • University owns arising intellectual property (IP) but grants the option to negotiate a commercial licence: minimum 100% fEC
  • University owns arising IP but grants an automatic non-exclusive licence for commercial use: minimum 120% fEC
  • University owns arising IP but grants an automatic exclusive licence for commercial use: minimum 140% fEC
  • University assigns ownership of IP: minimum 140% fEC

Existing contracts

If you have a new project under an existing Framework Agreement with an agreed pricing structure, this policy will not apply until the Framework Agreement is renewed or renegotiated. If you have an amendment to an existing contract that increases the budget, this policy will not apply. 

Please note:

There is no change to the Income Allocation Policy - all overheads remaining after direct costs have been met are to be split in the proportion 50:50 between the Chest and Department.

What is arising IP?

In the context of this policy ‘arising IP’ means something that is created in the course of University research, such as algorithms, data, designs, discoveries, formulae, improvements, information, inventions, materials, methods, processes, results, software, specifications and techniques, which may be capable of protection by registration, copyrighting or patenting.

What is a non-exclusive licence?

A non-exclusive intellectual property (IP) licence grants permission for one party (a licensee) to use specific IP without preventing the owner (the licensor) or other licensees from using it too. These licences can be limited to use for a particular purpose or time or within a specific territory.     

What is an exclusive licence?

An exclusive intellectual property (IP) licence grants permission for one sole party (a single licensee) to use specific IP, preventing even the owner (licensor) and other parties from using it, creating market exclusivity for the licensee. These licences can be subject to a limited reservation of rights for academic research and limited to use for a particular purpose or time or within a specific territory.

What is assignment?

This is when ownership of intellectual property (IP) created in the course of University research is transferred to another party.

Where arising IP is assigned or licensed in advance in a research contract, this could impact  the personal revenue entitlement of inventors under the University’s intellectual property policy.

What if an industry partner wants to pay less than the required fEC rate?

In exceptional cases where a Department deems it appropriate for strategic reasons to accept a research contract with an industry partner at less than the required fEC rate:

  • the Department must make a formal request (see process below);
  • if approved, the Department would have to fund the shortfall

What is the escalation process if there is any deviation from the industry pricing policy?

If the proposed terms of any research contract with an industry partner deviate from the industry pricing policy, the Research Office needs approval (with justification) from the relevant Head of Department.

The matter will then be escalated by the Research Office to the Complex Applications Review Group (CARG) who will decide if the exception is acceptable and under which conditions. 

CARG may decide to consult with the School as part of its analysis.

Who to contact?

Please get in touch with your School Contracts Team at the Research Office.