Acquiring and Working with University IP

April 01, 2025

by a searcher from Carnegie Mellon University in Atlanta, GA, USA

Hi Everyone - I am working with a university professor who developed patented IP through his research in the transportation engineering sphere. I have seen the IP and have background industry knowledge to verify a product market fit for the tech.

The professor is trying to spin it off into a business and is getting decent traction (two small contracts, one with a government agency to test the tech). I have provided some marketing/sales support and believe the two of us could work together to turn this tech from a research project into a business. The main constraint with the current strategy is that the professor is going to remain teaching and researching, not enabling his time to be fully dedicated to the business (reasonably) whereas I could dedicate full-time to the business. I believe in the tech providing value to the market and that we can work together to implement it successfully.

Has anyone had similar experience with this situation and willing to offer advice moving forward?

The possible routes I see moving forward are:
- Slowly with the professor owning the whole process, hoping to get a chance eventually
- Offering to acquire the IP, rolling over equity to the professor and making him an "active" board member

Reply by a searcher
from Carnegie Mellon University in Denver, CO, USA

Commercializing IP is a very challenging task and I think most people here are looking for companies that already have a product market fit. What you are asking is more in the start-up relm, but even more difficult because you are trying to fit a technology to a problem vs starting with a problem first and building a tech on it. Make sure you are the right person for the project. What I would be looking for is a person with a domain knowledge in the problem space to vet that this IP is the best solution for the problem and that the business model will work 0 evaluating cost, operations, etc. I would also make sure you have plenty of skills in raising capital and sales as well. I wouldn't personally take on this huge task, but if I were to, I would do a 50/50 equity, similar to how in the tech start-up world operates with CEO and CTO. But this would be considering the CTO works similar hours as you. In your specific case, I would take more equity, or like you say, buy the IP, but IP is really worthless unless there is revenue and profit.

Reply by a searcher
from University of Virginia in Simi Valley, CA, USA

You need to start working with the university's technology transfer office to ensure that IP is clean and has no other claims. The professor contributes IP and some $ and you contribute your labor and some $ to start a business together. Ownership share can be based on milestones and contribution (vested). Following a typical startup VC fundraising path, you raise capital and start executing. You have to have a very strong conviction that the IP developed is very strong and commercially viable with a very fast path forward commercial success. The fundraising environment for new ventures and greenfield projects is tough now, so good luck.

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