RU Start-up Policy

1. General

1.1. According to Act no 63/2006 a higher education institution is an independent educational institution that pursues teaching, research, the preservation and search for knowledge, and creative activity in
the fields of science, the humanities, technology or the arts. The role of higher education institutions is to contribute to the creation and dissemination of knowledge and skills for the benefit of students and of society in general. The activities of higher education institutions are aimed at strengthening the fabric of Icelandic society and its position in an international context, an endeavor guided by the interest of future generations. Higher education institutions are centers of knowledge and form part of the international education and science community.
1.2. It is the policy of Reykjavik University to support and increase the number of start-up companies created within the University. This policy stipulates Reykjavik University's involvement in start-up companies that are created within the University. Reykjavik University generally does not invest in start-up companies. In exceptional circumstances, the University may protect holdings in companies against dilution if it is probable that the university's holding will be diluted more than normal during an investment (low selling rate) or if it is likely that the value of the company after investment will increase substantially.
1.3. Reykjavik University operates an Intellectual Property Council, which, under mandate, works on the protection and exploitation of intellectual property and the establishment of start-up companies under the authority of the University.

2. Scope

2.1. The Start-up Policy applies to all employees at Reykjavik University, whether full-time or part-time; the same applies to guest employees and students who receive payments in the form of wages or grants from the University (hereinafter referred to as employee/employees). The policy applies equally to start-ups that are co-founded by one or more employees. The Intellectual Property Council of Reykjavik University may, in special cases, approve the University's involvement in student start-up companies, upon request.
2.2. The Start-up Policy does not apply to employees who, on the basis of their knowledge and independently of research or projects carried out at Reykjavik University, decide to establish a start-up company without the involvement of the University.

3. Ownership in a start-up company

3.1. Reykjavik University employees shall notify the University's Intellectual Property Council of the establishment or intention of establishing a start-up company with the objective of exploiting knowledge, research and projects that have been created or generated within the University, or have exploited or will exploit University resources. Reykjavik University's holding shall generally not be lower than 10% in such start-up companies.
3.2. Reykjavik University's contribution for an ownership in a start-up company established on the basis of Article 3.1 is as follows

• Employees, who are also founders of a start-up company, are given flexibility to work on the development of the company in their work, in consultation with the Dean and the Department Chair. It should be assumed that the employees' contribution to a start-up company does not exceed 20% of the employment ratio. Employees shall carry out their work at Reykjavik University with ambition and ensure that work for the start-up company complies with their professional duties at the University. The flexibility applies as long as the university's holding does not fall below 5%.
• The start-up company is allowed to use desk facilities and equipment at Reykjavik University, to which the company's employees and founders have access, to the extent approved by the Dean and the Department Chair. A start-up company does not generally pay rent and facilities fees while Reykjavik University's holding is over 5% for the first three years. Reykjavik University does not guarantee the maintenance of equipment and facilities. The start-up employees must have the necessary training and knowledge to use the equipment. The start-up company must purchase specialized consumables and materials for its operation for its own funds.
• • The start-up company is allowed to exploit knowledge, research and projects that the founders have worked on in their work for the University, which is not covered by the Intellectual Property Policy, in its operations free of charge, provided that this does not conflict with the University's obligations towards grants or third parties.
• The start-up company receives an exclusive license agreement with the right to sublicense, for a reasonable fee, if the Intellectual Property Council has applied for a patent or other intellectual property protection. The company takes over the management of a patent and pays all costs of the patent application and/or patent after the agreement is signed. Reykjavik University has the right to use the intellectual property for teaching and research purposes, provided that such use is not for financial purposes. Revenue from the licensing agreement is divided between employees and Reykjavik University on the basis of the University's intellectual property policy.
• The start-up company gains access to services provided by Reykjavik University at any given time, which may include assistance with legal issues and business development. Reykjavik University does not provide start-up companies with assistance related to information technology, payroll processing and marketing.

3.3. Reykjavik University employees or a collaborator may request the University's involvement in a start-up company not covered by Article 3.1, in which case an agreement shall be concluded on Reykjavik University's fair share of the start-up company in return for a reasonable contribution from the University, cf. Article 3.2 mutatis mutandis.
3.4. The Intellectual Property Council receives notifications about start-up companies and decides whether Reykjavik University's ownership in the company serves the University's objectives and interests. The rector signs agreements on the University's ownership in start-up companies.

4. Conflicts of interest and confidentiality

4.1. The start-up company must take into account the interests of other University employees/students who need to use shared facilities and/or equipment in their work/projects. In the event of conflicts regarding the use of shared facilities, the Dean will decide on the use of facilities and equipment. However, the use of equipment for teaching in BS, MS and doctoral programmes always takes precedence.
4.2. The start-up company and founders, who are also employees of Reykjavik University, shall take the necessary action to prevent conflicts of interest that could affect the ownership rights of inventions of other employees and students. Before a start-up company enters into collaboration with other employees of Reykjavik University or students, the company, the employees concerned and the University shall sign an agreement specifying, among other things, ownership of research results and exploitation rights. Inventions arising out of such collaboration shall be disclosed to the Intellectual Property Council of Reykjavik University, which will, as appropriate, become a contracting party to the company, e.g. on exploitation rights. The start-up company and its founders commit to taking appropriate prevention measures immediately to hinder conflicts. Conflicts of interest shall be reported to the Dean.
4.3. Employees of a start-up company must maintain the confidentiality of research, intellectual property and other knowledge that they acquire from Reykjavik University or collaborating parties, and may in no way make use of such information without consultation and written consent.

5. Responsibility of a start-up company

5.1. The start-up company must operate in accordance with applicable laws and regulations, including the accounting and handling of funds. The finances of the start-up company shall be separate from those of Reykjavik University. The start-up company is solely responsible for the company's operations, including research, employees, students, whether they are recruited or undergoing training, and equipment owned by the company and located at Reykjavik University.

6. Use of name and logo

6.1. It is in the interest of Reykjavik University and a start-up company that their names and/or logos be used in a positive, correct and appropriate manner. Parties may use the name and/or logo of parties to indicate Reykjavik University's ownership in the company. All major press releases shall be submitted for review to the relevant party.

7. Policy review

7.1. The Intellectual Property Council shall review the policy as necessary, but no less frequently than every three years, and submit proposals for amendments to the university's Executive Committee. The policy with approved changes shall be published on the University's website.

The Intellectual Property Rights Policy enters into force after approval of the Executive Committee of Reykjavik University.

Approved by the Executive Committee of Reykjavik University on January 7, 2025