September 23-24, 2004
ITEM 124-2005-R0904 Authorization for Joint Venture (MUSP 407); Montana State University-Bozeman
THAT: Consistent with the provisions of MCA 20-25-109 and MUSP 407, the Board of Regents of the Montana University System authorizes MSU-Bozeman to enter into a technology licensing agreement with Zdye, Inc. in which two faculty inventors at MSU-Bozeman will be allowed to own equity in the licensee, serve on a Board of Directors of licensee and accept part-time employment from licensee.
EXPLANATION: Dr. Edward Dratz and Dr. Paul Grieco have developed technologies which may have commercial potential as agents to identify diagnostic and therapeutic formulations for human medical applications. These technologies are covered by a University-owned patent filing.
MSU-Bozeman wishes to grant a license to Zdye, Inc. (The company derives its name from a group of chemical compounds central to the business) so that it may exploit these technologies commercially. Granting such license will not interfere with any contractual obligations the University holds, but will provide a business opportunity for a Montana-based company.
This license will provide opportunities for commercialization in all countries in which patents ultimately are awarded. MSU-Bozeman will negotiate for an up-front license fee, reimbursement of all patenting costs and a royalty on sales of products.
Negotiation of such license will encourage these University scientists to further develop the new company and will set an example for other entrepreneurs from the University looking for opportunities for commercialization of innovations and creations. The University will incur no cost for this agreement and the license may provide for a revenue to the University to further other research with commercial potential.
ATTACHMENTS: Joint Venture Submission Form
Model License Agreement