Frequently Asked Questions: Licensing
Q: Why do we need a license from RCT?
A: Research Corporation Technologies is the owner of the Pichia Expression system. RCT allows companies short-term use of Pichia kits to evaluate the capabilities of the system in expressing proteins of specific interest to their business plans. The goal of this evaluation is to provide data toward a decision to license the system.
Q: We are thinking of working with the Pichia Expression system. How much does a license cost?
A: License classes and fees are listed below:
| Class A | Class B | Class C | Research Only (Valid for 5 years) | |
|---|---|---|---|---|
| License Issue Fee | $75,000 | $40,000 | $20,000 | $50,000 |
| Annual Minimum Royalty | $30,000 | $20,000 | $10,000 | NA |
| Royalty Rate (initial two products) | 3% | 4% | 5% | NA |
| Royalty Rate | 3% | 3% | 3% | NA |
The above terms apply to commercial licenses. If a company wishes to continue working with the Pichia Expression system, for research purposes only, after the evaluation period, a research license is available with a one-time, up-front payment of $50,000. At the end of five years, a renewal research license is available, or the company can sign a commercial license.
Q: RCT has no patents in my country. Do we still need a license from RCT and why?
A: The Pichia Expression system is composed of both patent materials and proprietary know-how materials. All these are owned and controlled by RCT. Therefore, any use of the Pichia Expression system requires a license from RCT.
Q: But we never purchased anything from RCT . . . ?
A: To make this efficient protein production system more accessible to the commercial biotechnology industry, RCT granted Invitrogen Corporation an exclusive license to produce and sell kits for evaluation purposes only. Under the agreement that accompanies each Pichia Expression kit, any commercial or research use of the system is not allowed without a license after the evaluation period.
Q: We worked with the Pichia Expression system in the past. Can we purchase the materials again?
A: Not without a license in place from RCT. Each commercial entity is allowed one yearlong evaluation period. At the end of this period, your company would need to take either a commercial or research license to continue working with the Pichia Expression system or destroy all materials.
Q: We want to work with a third-party contractor during our evaluation period. Is that allowed?
A: No. Invitrogen Corporation has the exclusive right to conduct contract work with non-licensees of the Pichia Expression system. If, however, a company has a license to the Pichia Expression system, it is free to work with any third party, under certain guidelines from RCT.
Q: Do academic institutions require a license agreement from RCT?
A: As long as an academic uses the Pichia Expression system in the laboratory for non-commercial use, no license is required.
Q: Can an academic transfer the Pichia Expression system or materials to another site?
A: The transfer of Pichia materials to a site other than the licensee's laboratory is not permitted without prior written permission from RCT.
Q: I tried to purchase Pichia materials from Invitrogen and was referred to RCT for further discussions. Why am I not able to purchase the materials?
A: Someone else at the company has previously worked with the Pichia Expression system. Each commercial entity is allowed only one evaluation period. At this point, a license agreement would need to be in place in order for the company to work with Pichia Expression again.
