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  Vecta on University Spinouts
  Academics are often encouraged to work as consultants to industry but can become disillusioned when their ideas are buried as sponsors move on to other projects or leave the client company.

Worse, their ideas may be taken forward commercially by others who may reap significant financial rewards.

Spinouts are sometimes seen as a way to generate additional income for the host University either through early royalties or later equity disposals. In the US, where Universities have always had a mandate to transfer technology arising from government-funded research for the public good, licensing of IP is more frequent.

Conflicts between protection, necessary for commercial exploitation, and publication, so necessary to develop and maintain delicate academic status, have been resolved by careful attention to timing.

University Spinouts always have capital and management needs that are significantly different from the University and such spinouts are usually given sufficient control of their own destiny and are operationally independent.

However there are frequently conflicts of interest between the long-term interests of the University that may claim ownership of some key IP, the source research group that may have developed some pre-cursor technology, the founders who may wish to retain both academic and commercial interests and those of the company itself whose objects are more clearly focused on shareholder interests.

A clear "unity of purpose" between contributors has to be established at the outset if University Spinouts are to overcome even the earliest of barriers they will face.

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