How Does OCR Manage The Equity Granted As Part Of A License Agreement?

The distribution of equity follows the same sharing formula as distribution of cash royalties. Unlike cash, however, Yale typically waits until equity can be sold for cash before distributing to inventors, sparing inventors the need to pay income tax prior to any liquidity event.

The University generally liquidates equity as soon as a public market exists. If Yale holds equity in a company that conducts a clinical trial at Yale, the University may need to divest itself of the equity for institutional conflict of interest reasons.

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