Declining Party Alternatives
There is a wide divergence of opinions among research institutions on the appropriate consequences of an institution withdrawing from paying, or defaulting in payment of, patent expenses. The Declining Party Alternatives table provides a discussion of the pros and cons of different consequences.
Revisions to Final Model IIA templates
What is a PPMA?
In the course of developing the Model IIA, the participating institutions identified a need for a streamlined process to reach agreement on the sharing of patent costs to enable the parties to proceed with patent prosecution even before the full IIA is signed. The model Preliminary Patent Management Agreement (Model PPMA) was developed for this reason. It creates a binding obligation to share patent costs, but it does not give either party the right to enter into a license while the PPMA is in effect. In the spirit of keeping the process simple, either party may terminate the PPMA on 90 days’ notice and the non-lead is not required to pay for any particular patent expenses that it objects to on a timely basis.