IP Framework Tiers
Sponsors select IP terms before challenge launch
Commercialization Tier
In exchange for the cash prize, the Winning Creator assigns 100% ownership of the IP to the Sponsor.
Best for: Production-ready components, CAD files, software modules intended for manufacturing and sale
Sponsor Benefits
- Full Freedom to Operate (FTO)
- Can file patents in sponsor's name
- Modify designs without restriction
- Submit to FDA without further permission
- Exclusive commercial rights worldwide
Creator Benefits
- Premium cash prize (2x base rate)
- Background IP Exception preserved
- Portfolio credit for work
- Potential for follow-on contracts
Key Clause: Background IP Exception: If the creator uses pre-existing tools (e.g., proprietary AI models, custom libraries) to generate the result, they retain ownership of the tool but grant the Sponsor a perpetual, irrevocable, royalty-free license to use the output.
Ideation Tier
The Creator retains ownership of the IP. The Sponsor receives a broad, royalty-free, non-exclusive license.
Best for: Early-stage concepts, blue sky problem solving, new clinical indications for existing technology
Sponsor Benefits
- Lower prize cost
- Access to diverse ideas
- No legal burden of ownership
- Can use for internal R&D
- Field-of-use restrictions available
Creator Benefits
- Retain full IP ownership
- Can license to other industries
- Build portfolio value
- Publish after embargo period
- Multiple revenue streams possible
Key Clause: Non-Exclusive Terms: Sponsor cannot prevent creator from licensing to non-competing entities. Standard 6-month publication embargo applies.
Startup Tier
The Prize buys the Sponsor an Exclusive Option Period (6 months) to negotiate a purchase or royalty license.
Best for: Complex systems, novel therapies, solutions with standalone startup potential
Sponsor Benefits
- First look without full commitment
- Evaluate regulatory pathway first
- Reduced upfront capital risk
- Option to negotiate equity stake
- Extendable option period available
Creator Benefits
- Potential for royalties/equity
- Larger payout if idea succeeds
- Retain rights if option lapses
- Startup pathway preserved
- Negotiate from position of strength
Key Clause: Option Terms: 6-month exclusive option (extendable to 12 months at 25% additional fee). During Option Period, creator cannot license to competing entities. If option lapses, creator has full rights.
Legal Framework & Investor Protections
Comprehensive legal safeguards for all stakeholders
Creators warrant originality and clean title. Sponsors are indemnified against third-party IP claims arising from creator misrepresentation.
- Creator certifies no prior encumbrances
- Warranty of non-infringement
- Hold harmless provisions
- Insurance-backed guarantees available
Prize funds are held in escrow until IP transfer documentation is complete and verified.
- Third-party escrow agent
- Release upon signed IP assignment
- Dispute hold provisions
- 30-day verification window
All disputes resolved through binding arbitration under established commercial rules.
- JAMS or AAA arbitration
- Delaware law governs
- Confidential proceedings
- Expedited process for IP disputes
Platform maintains comprehensive insurance covering E&O and IP infringement claims.
- Errors & Omissions coverage
- IP infringement defense
- $5M aggregate coverage
- Named insured options for sponsors
Risk Mitigation
Proactive measures to prevent IP issues
Background IP Disclosure
Before submission, creators must declare any third-party IP, university patents, open source code, or former employer proprietary information.
AI Provenance Requirements
Mandatory disclosure of generative AI usage. Solutions flagged as 'AI-Generated' receive adjusted IP strength assessment for patentability.
Black Box Submission Phase
During competition, submissions visible only to Sponsor and Judges. Prevents IP contamination between creators.
Third-Party IP Screening
Automated scanning for known patent citations, open source license conflicts, and academic paper references.
Export Control Compliance
ITAR/EAR screening for medical device technologies. Jurisdiction restrictions enforced at submission.
Investor Assurances
Protections designed for investment confidence
Platform Liability Position
Rockrun operates as a facilitator, not an IP owner or guarantor. Pass-through liability structure limits platform exposure.
Terms of Service clearly establish facilitator status with no IP ownership claims.
IP Chain of Title
Complete documentation trail from creator submission through sponsor assignment. Title insurance available for high-value transfers.
Every transfer includes signed assignment, representations, and recorded chain of title.
FDA Pathway Considerations
IP structure designed to support 510(k), PMA, and De Novo pathways. Clean ownership enables regulatory submission without encumbrances.
Mode A transfers specifically structured for FDA submission requirements.
Exit & Acquisition Protections
IP rights survive sponsor M&A. Successor entities inherit all rights and obligations under original terms.
Assignment provisions include standard successor and assigns language.
Freedom to Operate Analysis
Optional FTO analysis package available for sponsors. Includes prior art search, patent landscape review, and clearance opinion.
Partner law firms provide discounted FTO opinions for platform transactions.
Stakeholder Protection Summary
| Stakeholder | Primary Concern | Protection Mechanism |
|---|---|---|
| Sponsor | IP ownership clarity | Total Transfer mode, indemnification, escrow |
| Creator | Fair compensation | Tiered prize options, background IP retention |
| Investor | Legal exposure | Pass-through liability, insurance, arbitration |
| Platform | Dispute involvement | Facilitator status, arbitration clause |