Provision Database

Issue Introduction: Benefit Sharing

Benefit sharing provisions address the right of funders to receive a share of any commercial benefits that arise from the development of a funded product. Commercial benefits received by a product developer could include:

  • Revenue from the commercial licensing of project-related intellectual property;

  • Government-granted incentives such as Priority Review Vouchers; and/or

  • Revenue from the commercialization of derivative products.


Questions to consider when developing a commercial benefit sharing provision

  • How will the parties share any commercial benefits related to the project?

Example approaches found in the MAPGuide

  • MAPGuide provisions related to this issue generally require the product developer to notify the funder of any commercial benefits that arise. Sharing mechanisms include: 
    • Profit share; 
    • Allocation of a number of doses of the funded product; and
    • In-kind contributions.
  • Some development funding agreements also require milestone payments to be made to the funder if the developer is successful in making commercial sales of a funded product.