4 See also otl.stanford.edu/about/documents/Memo_to_Outside_Counsel.doc. Patentability is an essential activity that is handled, if necessary, by external patent experts. The main questions here are whether the invention can be granted as material property of the research, whether it can be licensed as copyright, whether it is both patentable and enforceable, and whether the invention is already publicly available. There is no solid way to deal with this process; Mr Wiesendanger said: „This can happen at any time – and this decision belongs to the licensing partner involved. But we have to be careful; it is expensive and represents an ongoing commitment. Some universities patent everything, but we are under pressure not to do so. Normally, we sign licenses before we have the patents, and we often enter into negotiations before we have even filed them. Often, we look at the ultimate licensees to cover the registration fee in exchange for a six-month option on technology. This can be very attractive, because this six-month period is often a very important competitive advantage. Any forfeiture that goes beyond legal costs is shared with STANFORD, as agreed by mutual agreement before a dispute is opened. LICENSEE and STANFORD agree to negotiate in good faith appropriate compensation to STANFORD for any scriptural billing or cross-cash license. As soon as the royalties are paid, there is a fixed distribution in the operating mode.
Fifteen percent are levied by the OTL to cover its own management costs, even if, as Wiesendanger pointed out, all is not exhausted – the rest will go to a series of funds created by Stanford, including the Bird Seed Fund and the OTL Gap Fund. The first provides small amounts of money (usually up to $25,000) to fund the development of prototypes or modest practical reduction experiments for un conceded technologies; It supports development efforts of up to $250,000 for non-conceded technologies with commercial potential. The remaining 85% of the licence fee is shared between the inventor, the inventor`s department and the inventor`s school/faculty.