Commercialisation of public research and SATTs

The commercialisation of public research refers to all the actions by which universities and research organisations protect and exploit the results of their work, through patent filings, licensing, research contracts with companies and the creation of start-ups. The French Research Code makes it one of the missions of public research. Technology transfer acceleration companies (sociétés d’accélération du transfert de technologies, or SATTs), set up from 2012 under the Investments for the Future Programme, are simplified joint-stock companies owned by research institutions and the State, responsible for identifying, protecting and transferring inventions from laboratories.

Ownership of public sector inventions

Inventions made by public employees essentially follow the regime for employee inventions: inventions made in the course of duties belong to the employing institution, and the inventor receives a bonus as well as a share in the income from exploitation. Since laboratories are often joint units under several supervising bodies, inventions are frequently held in co-ownership, and the Research Code provides for the appointment of a single representative (mandataire unique) responsible for managing and commercialising them on behalf of the public co-owners.

Licensing and transfer

A licence granted by a public institution or a SATT is governed by the ordinary law of licence agreements. It is often exclusive where it benefits a start-up spun out of the laboratory, which sometimes first obtains a licence option, and may be remunerated in part by an equity stake. The financial terms must reflect market conditions, since the EU framework for State aid for research, development and innovation treats a transfer on favourable terms as aid. The contract usually provides for an obligation to exploit, development milestones and a right to terminate if the licensee fails to act.

Points to watch

Due diligence on the chain of title is decisive: an investor will check that all the inventors, including those employed by foreign institutions or industrial partners, have transferred their rights. Scientific publications prior to filing destroy novelty and must be coordinated with the protection strategy. Rights reserved to partners in earlier research agreements, in particular access or preference rights, may restrict the freedom to grant an exclusive licence.

Key points

The commercialisation of public research relies on institutions that are often co-owners, on SATTs or technology transfer offices and on licences that must comply with market conditions. Ownership of inventions is frequently shared and the chain of title complex. Before any licence or fundraising, the position of each inventor, the identity of the single representative, the existence of competing partner rights and the chronology of publications should be checked.

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This glossary entry is general in scope and does not constitute legal advice.

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