Master Alliance Provisions Guide (MAPGuide)

NIH – Non-Profit, Model License Agreement Terms

  • Business model | Payment Structures


License Fee:  $2,000 up front fee.  For biological materials, upfront costs may include the cost of providing the materials.

Royalty:  1.5 % (Exclusive) or 0.75% (Nonexclusive) of Licensee’s Net Direct Sales of Licensed Product(s) or Process(es) excluding sales to public sector institutions or to institutions using public-sector funds (such as PEPFAR or Global Fund)

Sublicense:  Exclusive: 15% (which NIH can attribute first to patent expenses) if NIH has provided in vivo model data; 10% (which NIH can attribute first to patent expenses) if NIH had not provided in vivo model data. Nonexclusive: Half these amounts

Milestone Payments:  None.  Enforceable performance (diligence) milestones are required based on the specific elements of the Development Plan.

Minimum Annual Royalty:  None.

Stacking Royalty Clause:  If Licensee is required to pay royalties to one or more third parties in order to make, use or sell the Licensed Product, then Licensee may deduct 50% of all such royalties paid to such third party from the royalties due to PHS [NIH].  In no event will the royalty payable to NIH be reduced by more than 50%.