Why should you engage in Technology Transfer?
There are numerous benefits to Technology Transfer, in particular seeing the IP that you were involved in the development of reaching a mass market, whether it is for profit or not-for-profit. In addition, the IPR Act mandates benefit-sharing between the public institution commercialising the IP and the inventors who contributed to the development of the IP. This is described in detail in the IP policy .
There are generally 3 scenarios resulting in benefit-sharing between the university and inventors:
If the IP is sold to a third party resulting in a lumpsum payment to the university, the inventors will have first right to a proportion of the lumpsum paid to the university. Thereafter, the university will deduct any expenses incurred in the commercialisation of the IP (including patent protection). Finally, the balance of the monies are split between the inventors, university and UKZN InQubate.
Where the IP is licensed for a royalty instead of being sold, this also results in a revenue, albeit periodic, which is paid to the university by the third party. These monies are shared between the university and the inventors in the same way as the above scenario.
Where the inventors are entrepreneurial and engage in the operation of a spin-off formed by UKZN, as shareholders, they would benefit from the increase in value of the company’s shares over time, from dividends, and if they decide to sell their shares, from the value paid for those shares.