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What if OTC decides not to proceed with my technology?

If the Office of Technology Commercialization (OTC) decides not to proceed with your technology, there are three possibilities:

  • Return Rights: OTC may return rights to the inventors and the inventors may proceed with patenting or commercializing the invention on their personal time and with their personal resources. In this case, under UT System policy, UT System retains a 25% financial interest in the technology (after the first $50,000) and the inventors must give an accounting to the institution. Additionally, because state law prohibits the use of state resources for personal gain, the inventors are prohibited from conducting further research on the invention at MD Anderson unless a waiver is obtained from MD Anderson’s President.
  • License Back: Because of the issues with returning rights, OTC may license the rights back to the inventors. Under this scenario, MD Anderson retains ownership rights, so the inventors may conduct further research on the technology without a waiver, but the inventors will be entitled to keep 75% of any commercialization proceeds and will be entitled to retain 100% of the first $50,000 in revenue. The inventors will be responsible for making and paying for all patent-related decisions and actions.
  • Department Pay: if OTC decides not to proceed with patenting an invention, the inventor’s Department Chair may approve use of department resources to pay for costs associated with patent prosecution. The department resources cannot be state funds and may come directly from the inventors’ accounts. In such cases, the Department Chair must sign a Department Pay Agreement and the expended amounts will be reimbursed out of any licensing proceeds. MD Anderson will retain ownership of the invention and market and license the technology.

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