Common use of Option Rights Clause in Contracts

Option Rights. WSU hereby grants to Sponsor an option to negotiate a license to WSU’s ownership interest in Project Intellectual Property (Option Rights). WSU shall notify Sponsor of such Intellectual Property within thirty (30) days of WSU Office of Commercialization’s receipt of WSU Invention Disclosure forms from WSU inventors. Sponsor shall, within ninety (90) days of receipt of such notification from WSU (the Option Period), inform WSU in writing its intent to negotiate a license. Any such license shall be negotiated in good faith and shall contain terms standard for agreements between universities and industry including, without limitation, clauses providing for payment of reasonable royalties and reimbursement of all past, present, and future expenses incurred in the preparation, filing, prosecution, issuance, and maintenance of Intellectual Property rights. In the event that WSU and Sponsor do not execute a written license agreement within sixty (60) days following Sponsor’s exercise of the option (the “Negotiation Period”), WSU shall be free to negotiate with and to enter into license agreements, including exclusive license agreements, with third parties.

Option Rights. Subject to any existing third-party rights, WSU hereby grants to Sponsor an option to negotiate a license to WSU’s ownership interest in Project Intellectual Property (Option Rights)Property. WSU shall notify Sponsor of such Intellectual Property within thirty (30) days of WSU Office of Commercialization’s receipt of WSU Invention Disclosure forms from WSU inventors. Sponsor shall, within ninety (90) days of receipt of such notification from WSU (the Option Period)WSU, inform WSU in writing its intent to negotiate a license. Any such license shall be negotiated in good faith and shall contain terms standard for agreements between universities and industry including, without limitation, clauses providing for payment of reasonable royalties and reimbursement of all past, present, and future expenses incurred in the preparation, filing, prosecution, issuance, and maintenance of Intellectual Property rights. In the event that WSU and Sponsor do not execute a written license agreement within sixty (60) days following Sponsor’s exercise of the option (the “Negotiation Period”)option, WSU shall be free to negotiate with and to enter into license agreements, including exclusive license agreements, with third parties.