HERC IP Framework – Standard Form IP Contracts for Universities?

The federal government is seeking feedback on a plan to introduce mandatory, standard-form IP contracts to the university sector. The proposed Higher Education Research Commercialisation (HERC) IP Framework will include collaborative research, licence agreements, material transfer, copyright licences and non-disclosure agreements between universities and businesses.  The government’s discussion paper states that IP issues, and the complexity of IP-related contracts, are seen as impediments to effective commercialisation of university research outcomes.  The paper proposes mandating the use of standard form contracts as a condition of research funding, to simply the transaction process and promote best practices. There would be a “fast track” tier with “little room for negotiation” for contracts worth less than $100K, but a “more flexible” approach would be allowed for higher value contracts.  It’s an extraordinary proposal.  There is no doubt that research commercialisation contracts can be complex, but mandating the use of non-negotiable contracts and standard templates is hardly consistent with the sort of free-market entrepreneurship that fosters successful commercialisation outcomes.  And if the framework’s standard terms are not attractive to businesses, they might well discourage research commercialisation.  Feedback is sought by 18 October 2021.