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.