Consequences of Other Institution Withdrawing from Paying or Defaulting on Payment of Patent Expenses. If an Other Institution becomes a Withdrawing Party, then the other Party(ies) may elect to either terminate this Agreement by providing 30 days’ prior written notice, or to pay the Withdrawing Party’s Share of Patent Expenses (the “Covered Expenses”). If the other Party(ies) elect to pay the Covered Expenses, the “Consequences of Withdrawal” indicated in the Transaction Terms will apply, subject to the following:
Consequences of Other Institution Withdrawing from Paying or Defaulting on Payment of Patent Expenses. 9 If an Other Institution becomes a Withdrawing Party, then the other Party(ies) may elect to either terminate this Agreement by providing 30 days’ prior written notice, or to pay the Withdrawing Party’s Share of Patent Expenses (the “Covered Expenses”). If the other Party(ies) elect to pay the Covered Expenses, the “Consequences of Withdrawal” indicated in the Transaction Terms will apply, subject to the following: 8 The Model IIA gives the Lead Institution sole control over patent prosecution, subject to the requirement to work with the Other Institutions to make decisions and to give due consideration to any recommendations by the Other Institutions. The Lead Institution also has authority to select patent counsel. If an Other Institution requires approval rights over selection of counsel or prosecution decisions, Section 2.1 should be amended accordingly. 9 There is a wide divergence of opinions on the appropriate consequences of an Other Institution withdrawing from paying, or defaulting in payment of, patent expenses. The Model IIA allows the parties to choose between several alternative approaches. A discussion of the pros and cons of different approaches, as well as operational and other issues resulting from the different approaches, can be found at xxx.xxxxxxxx.xxx.
