Volume 29 - Number 10 - Thursday, February 13, 1997


News from the Faculty of Graduate Studies and Research

Creation of a spin-off company at McGill

The Executive Committee of the Board of Governors has recently given approval for Professor Don Smith, of the Department of Plant Science, Faculty of Agricultural and Environmental Sciences, to establish his spin-off company (NorAg Agricultural Technologies) on Macdonald Campus.

In this short article, we at the Office of Technology Transfer (OTT) would like to do three things: 1) Explain NorAg's business objective, 2) Give you the main guidelines used for NorAg's setup and 3) Explain the process you must follow if you are interested in establishing a spin-off company on McGill facilities.

1) NorAg's business objective

To develop and exploit biotechnological innovations related to agriculture in the temperate zones of the world. The company's focus is to develop and market microorganism-based seed treatments designed to improve crop yield and quality for agronomically important crop species.

2) Guidelines for setup

  • The first basic principle used was to separate the research missions of the professor's laboratory at the University and of the company's laboratory. While the goal of the University laboratory is to carry out fundamental research in a particular field, the company's goal is to develop the fundamental research to the stage of commercialization. In the present context, fundamental research is defined as research into underlying principles and mechanisms, while developmental research is defined as research whose specific goal is the development of a product. Any research collaboration between the company and the University laboratory will be done under formal research agreements (research contracts or licence agreements).
  • The company can exist on University premises in a location that is physically separate from the University laboratory, can be on University premises no longer than 3 years, and cannot employ University personnel or students. The company cannot employ the professor for a period greater than the time he/she would normally spend consulting (one day per week) without an explicit agreement with the dean and a commensurate reduction in University salary. Finally, the company will keep records that clearly establish its developmental research activities.
  • An Oversight Committee will be established, whose responsibility will be to review, on a confidential basis, the research activities of the company and the University laboratory, to make sure that their respective activities remain separate and distinct.
  • Any use of University facilities by the company will be governed by agreements with the University which will include the payment schedule for the use of those facilities.
  • The University will hold an equity position in the company in accordance with article 5, section vi of the University's Policy on Inventions and Patents.

    3) Establishing a spin-off company

    The University has not yet developed any formal guidelines on the establishment of on-campus spin-off companies, although NorAg is not the first. Nexia was started as an on-campus spin-off by then-professor J. Turner, also at Macdonald Campus. Nexia has turned out to be a commercial success, with positive fallout for McGill.

    Having acquired some experience in this area, the University will proceed to write a set of guidelines. In the meantime, any professor who wishes to start a spin-off company on campus should contact OTT. OTT staff will work closely with the professor to arrive at a satisfactory agreement.




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