Create a Spinoff
This information was developed to assist you in creating a research-driven spinoff. This information will also be helpful when creating a non-research-driven startup too.
This guide provides information only, not advice. It seeks to interpret, but does not supersede university policies and/or procedures. The resources are not-exhaustive and not a substitute for inventors’ personal research. The university does not expressly validate the content of outside sources.
This is intended for University of Alberta researchers, postdocs, graduate students, undergraduate students, and staff considering commercializing an invention developed at the university and interested in exploring spinoff creation.
What is a Spinoff Company?
A U of A spinoff company is a legal entity, distinct from the university, which meets the following criteria:
- derives a considerable portion of its commercial activities from the application or use of a technology originating from research activities conducted at UAlberta;
- is not controlled by the university, but in which the university may have a non-controlling equity stake and/or a royalty stake; and
- which has signed, in addition to all appropriate commercial documentation, a relationship agreement with the university to address conflict of interest arising from the involvement of U of A personnel in the new spinoff.
Creating a Spinoff
Building, launching, and growing a spinoff company takes a tremendous amount of work, commitment, and capital. Most new businesses fail, but the ones that succeed bring tremendous value to their creators and communities. Before deciding to go on this journey, seek advice from seasoned entrepreneurs, discuss with family and friends, and consider your personal and professional commitments.
Every spinoff’s journey is different, and milestones of early companies vary by industry. However, the stages and resources outlined in the toolkit are common to new ventures. The steps presented are not necessarily sequential but are intended as a reference. The university has policies, procedures and agreements that have been created to manage this process and Technology Transfer Services (TTS) can help navigate the commercialization journey.
Spinoff Journey
Reporting an invention
This is an important first step that applies to all students, staff, and faculty of the university. If your research has resulted in an invention, the first step in protecting that invention is to confidentially disclose (report) it to the university before publishing or sharing at a conference, lecture or poster as this could result in a loss of some patent rights.
Assign IP to university
TTS team assesses commercial and patent potential
TTS team initiates patent filing if applicable at university’s cost
Enter standardized spinoff agreement to license IP to your spin off
Select standardized deal structure:
Blended
(Royalty & Equity)
Keep IP ownership
Inventor arranges IP assessment and protection at inventor’s cost
Inventor initiates patent filing at inventor’s cost
Enter standardized spinoff agreement to license IP to your spinoff
Select standardized deal structure:
Blended
(Royalty & Equity)
Licensing Frequently Asked Questions
I want a company to license my innovation
Commercializing via the university involves transferring IP ownership to the university in exchange for the university assuming responsibility for managing commercialization. Versus commercialize independently (where you own the IP and assume responsibility for commercialization and associated costs).
When assigning to the university, the TTS team will assess patentability and cover initial patent costs (subject to limits). The university will also prepare and sign the legal agreements required to grant the spinoff use rights to the technology through a license agreement.