Lee M. Taylor JD, LL.M, MBA Candidate. The Mahele Method and its (Dis)contents. Education. University of Kansas - 2000 BS in Genetics BA in English Literature University of San Diego - 2004 Juris Doctor (JD) The George Washington School of Law - 2006 Masters of Law (LL.M)
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The Mahele Method
and its (Dis)contents
Lee Taylor, University of Hawai̕i
5% of net sales, 10% if licensing software. If the licensee wishes to have rates below 5% then the TTO requires sales projections for the first four years. If royalties in year 3 are close to $36,000 (+/- 10%) and exceed $48,000 in year four, the lower rate is accepted.
4. Equity “Never more than four”
Equity is something only sought from start-ups.It does not act in lieu of the above but in addition to it. There, the TTO takes 4% or less to allow enough equity left over for later rounds of fundraising. Equity is conveyed after the first round of $2M+ financing or at the fifth anniversary of the license—whichever is first.
Lee M. Taylor
Office of Technology Transfer & Economic Development, University of Hawai̒i