Features of the Option NERF License:

• Upon project approval, a sponsor may elect to negotiate a research agreement which provides the sponsor with commercial, non-exclusive, royalty-free license in a defined field of use for any invention that is conceived or reduced to practice in the performance of the research.     
• Project approval is required by the researchers that will be involved in the project; their college; and the Vice President of Research.
• The Option NERF will allow sponsor the option of converting the Option NERF to an exclusive, royalty-bearing license.  Notice of sponsor’s intention to negotiate an exclusive, royalty bearing license must be provided to NDSU within six months from its receipt of the initial invention disclosure.
• Sponsor is required to pay a non-refundable, issue fee equal to 5% of total project costs (direct and indirect expenses) prior to the start of the research.  The minimum issue fee is $7,500.
• The funding provided by sponsor for the research project must include all personnel and other expenses reasonably associated with the performance of the research, including an assessment of indirect costs based upon NDSU’s Federally Negotiated Rate.  Research expenses will also include lab/facility rent if the researcher’s regular lab is located in a bond-financed building.
• NDSU background IP is not included in Option NERF, but may be otherwise available on commercially reasonable terms.
• No sublicensing rights are granted to sponsor under the Option NERF.  Sublicensing rights will be granted to sponsor in any exclusive license.
• The Option NERF is contingent upon sponsor’s continued payment of all patent expenses for the invention and full payment of the research expenses.
• The license territory is limited to those countries in which sponsor elects to patent invention.
• These standard terms are not negotiable.  If sponsor desires alternative terms a different invention rights option should be selected.