Linking Utah's Innovation Community
The 4th Quarter round (noon MT, Monday, January 3rd) is now closed. Should we resume the program in the future, we will announce it on this website, and through our e-Connections newsletter.
BACKGROUND: The Utah Science Technology and Research (USTAR) initiative has allocated funds from the federal government's American Recovery and Reinvestment Act (ARRA) of 2009 stimulus money to create the Technology Commercialization Grant (TCG) program. The purpose of the program is to accelerate the movement of innovative ideas and technologies out of a college, university, or company's lab and into commercial markets in order to create high paying jobs in the state of Utah. TCG awards will typically be $30,000 but may vary based on the requirements of each proposal.
For the purposes of these terms and conditions, we use language from Section 1512 of the American Recovery and Reinvestment Act (ARRA):
USTAR is the grantee for these ARRA funds and shall be considered the prime recipient.
The public higher education institution shall be considered the sub-recipient.
The higher education faculty or staff member participant shall be considered the applicant.
The industry co-applicant, if any, shall be considered the vendor.
The party that successfully brings the Product, Service or Process to market shall be deemed the commercializing entity. The commercializing entity may be the faculty or staff member, the vendor, or a subsequent industry partner. A subsequent industry partner is any business or individual that licenses, purchases, receives, or otherwise obtains the rights to commercialize or manufacture the Product, Service or Process.
ELIGIBILITY: TCG applications will be limited to: 1) faculty or administrative staff at Utah's regional public institutions of higher learning with commercializable technologies and 2) companies, independent entrepreneurs or inventors, or private institutions of higher learning willing to sponsor technology development work at regional public institutions of higher learning. (To be considered, vendors must jointly apply with a faculty member from a Utah regional public institution of higher learning.) USTAR will only transfer TCG funds directly to public institutions of higher learning including: Applied Technology Colleges, Dixie College, Salt Lake Community College, Snow College, Southern Utah University, Utah Valley University, and Weber State University.
TO ENTER: All TCG applications for the current award cycle are due by 12:00 noon MT time on January 3, 2011 and are subject to these official terms and conditions of the program. Applicants must completely fill out the online application form. Applicants should receive an email confirming USTAR's receipt of a completed application within three (3) business days. If a confirmatory email is not received within this time period, please send an email to ustarinfo@utah.gov for assistance.
SELECTION PROCESS: USTAR's Director team will evaluate TCG applications in a reproducible and equitable manner using a standard form and process. Incomplete applications or applications containing offensive or deceptive information will be immediately rejected. Final granting authority rests with USTAR's Governing Authority. You may be called upon to make a formal presentation to USTAR's director team and provide additional information upon request. Notification of award or rejection will generally follow 70 days after the due date listed above.
ADDITIONAL APPLICATION REQUIREMENTS AND PROVISIONS: Entries must be the original work of the applicant(s) and must not infringe any third-party rights. Please ensure application responses are written in English, containing informative yet non-confidential information. TCG awards are paid with ARRA money and carry certain federal government reporting requirements. USTAR, as the primary recipient of the ARRA funds is ultimately responsible for federal reporting requirements. Sub-recipients agree to assist USTAR on a monthly basis in tracking the number of jobs created and retained and will properly account for all expenses reimbursed with TCG funds. Failure to do so may impact future funding and commercialization support decisions.
The vendor is an independent contractor and not a partner with the State of Utah; the vendor cannot bind the State under the TCG program. This agreement and the Statement of Work are subject to the Government Records Access & Management Act; other documents may be also subject to the Act.
Any capital equipment purchased through the grant becomes the property of the public institution of higher learning, in accordance with appropriate federal guidelines.
Prior to disbursing funds, USTAR, the applicant and vendor (if applicable) will execute a written Statement of Work, describing the mutually agreed timeline and deliverables of the project.
USTAR reserves the right to offer commercialization guidance and to publish non-confidential TCG program success stories in the media with appropriate applicant review. Sub-recipients, applicants, vendors, and commercializing entities agree to notify USTAR prior to publicizing their projects and prior to using the USTAR logo in print, online or other media.
REPAYMENT: Successful commercialization is defined as the generation of $1 million in annual Adjusted Gross Sales Revenues or $100,000 in annual net income, whichever comes first. If the grant leads to successful commercialization, the commercializing entity shall repay the original grant amount in full to the public institution of higher learning (sub-recipient). The sub-recipient shall have full control over the use of repaid grant monies. The intent is to have these repayment funds deployed for further institution-based technology commercialization efforts.
The commercializing entity shall reimburse the sub-recipient institution by the end of the following fiscal year after successful commercialization.
If the commercializing entity does not repay the full amount of the award by the end of the following fiscal year after successful commercialization, the commercializing entity shall instead pay the sub-recipient any unpaid balance of the award, plus an additional amount equal to 30 percent of the unpaid award balance.
If the applicant and/or vendor and USTAR agree in writing that no Product, Service or Process can be commercialized from the Technology or related Intellectual Property developed under the Project, no repayment of the award shall be required.
If the commercializing entity successfully commercializes a Product, Service or Process from the Technology or related Intellectual Property developed under the Project, and fails to notify USTAR, or if the applicant or vendor licenses, sells, donates, or otherwise transfers the rights to commercialize or manufacture the Product, Service or Process to any individual or company and fails to notify USTAR of such transfer, the applicant or vendor shall pay the sub-recipient an amount equivalent to two times the award funds received by the sub-recipient under this Agreement within 90 days of the transfer.
INDEMNIFICATION: The applicant, vendor, and commercializing entity hereby release, discharge, hold harmless and agree to indemnify USTAR, USTAR's affiliates, the State of Utah, and third party information providers from any claim or liability, whether now existing or arising in the future, arising from or related to any applications or USTAR's, the State’s, or any third parties’, use thereof, or arising from or related to the TCG program, or the applicant or vendor’s participation therein. The applicant, vendor, and commercializing entity agree to indemnify, defend and hold harmless USTAR, USTAR's affiliates, the State of Utah, and third party information providers from and against all claims, suits, actions, losses, expenses, damages, penalties, and costs, including reasonable attorneys’ fees resulting from any actual or alleged conduct as a result of their participation with a TCG project.
LIMITATION OF LIABILITY: USTAR will not use, and does not have any rights in, any applications, except for the purposes of conducting and promoting the TCG program. USTAR cannot guarantee the confidentiality or security of the intellectual property rights and cannot control the use of the ideas or concepts within any applications by third parties.
FAILURE TO PERFORM – SUSPENSION OR TERMINATION: USTAR, in its sole discretion, may require the applicant, vendor, or commercializing entity to repay all funds disbursed by USTAR under this Agreement in the event of gross misconduct. Such repayment is to be made to the sub-recipient within 90 days of a determination by USTAR of gross misconduct.
LITIGATION: In the case of any litigation arising from the TCG program, Utah will be the jurisdiction for any related legal proceedings.
Revised: Jan. 3, 2011