Most universities lose money on patents

Tuesday, November 26, 2013

A report by the Brookings Institution states that the business model used by most universities to license patents on the technology they’ve developed has been a disaster.

According to the report, a review showed that 130 universities did not generate enough licensing income in 2012 to cover the wages of their technology transfer staff and the legal costs for the patents they filed.

And 2012 was a good year. According to the report, while 84 percent of the universities showed they were in the red in regards to technology transfer agreements last year; over the last 20 years, on average, 87 percent didn’t break even.

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