How the program works
Project funding
Generally projects are funded on a 50:50 basis between the partner and MLA (the maximum contribution from MLA is 50%). Partner contributions must be in real dollars and must be deposited with MLA to qualify for the matching funds.
An appropriate cash flow for partner contributions is agreed for the life of the project. In kind contributions or prior expenditure generally do not qualify for matching funds.
Project budget items
The following project budget items may be approved for joint funding:
- Fees to external consultants, researchers, etc
- Partner costs: where internal resources are exclusively dedicated to the project and are additional to normal operational costs. Generally this would not include CEO/owner salaries
- Operating costs: consumables, travel, components for prototype assembly, etc
- Capital items: generally these should not form a substantial proportion of the overall project budget. To be eligible, it must be demonstrated that the capital item is essential for the project and will be used primarily for the purposes of the project. When no longer required for the project, capital items are to be disposed of either to the partner at written down value (after deducting a normal rate of depreciation) or otherwise sold on an arm’s length basis. Net proceeds of disposal are credited to the project and shared between the partner and MLA in proportion to their overall contribution
- Project dissemination and commercialisation: in some instances, dissemination and commercialisation costs may be included in the project budget
- MLA project fee: MLA charges an 8–10% project fee. Where additional technical services are to be provided by MLA (as agreed by the partner) these are charged at cost. The MLA charges are shared between the partner and MLA
All of the above budget items must be agreed by the partner and MLA prior to commencement of the project and may only be varied by mutual agreement.
Intellectual property
As a general principle, Intellectual Property (IP - such as patents, copyright material, trademarks etc) developed within the jointly funded project will be jointly owned by MLA and the partner in the same proportion as their respective contributions (ie generally 50:50). However, where there has been substantial background IP developed prior to commencement of the project, or where there is prior ownership of IP, these proportions will be varied and agreed prior to commencement.
Subcontracting
In many instances, some of or even the entire project may be undertaken by third parties (research or consulting organisations). These arrangements will be formalised via a sub-contractor agreement. Generally, the principal contractor will be MLA although this will be mutually agreed prior to commencement of the project.
Terms and Conditions
All projects will be governed by MLA’s terms and conditions under formal contractual arrangements.
Confidentiality
MLA recognises that in many instances, strict observance of confidentiality will be essential to protect the commercial interests of the partner. Appropriate systems are in place within MLA and these arrangements are normally embodied in signed confidentiality agreements (which can be stand alone or a subset of research agreements).
Exclusivity
Where appropriate, MLA negotiates exclusivity arrangements to ensure partners realise commercial benefit from their investment in the project. Exclusivity varies from project to project but may include:
- One to two years strict confidentiality prior to release and dissemination of project details and outcomes to the wider industry
- Exclusive licences to the commercialising partner (subject to achievement of agreed performance parameters) for the life of a patent
Project management
MLA and the partner manage projects collaboratively. The partner retains a high degree of control and ownership of their initiative throughout the life of the project.
A Project Management Group may be established with representation from the processor and MLA, the role of which includes: monitoring project progress and outcomes; agreeing variations in project milestones, expenditure etc; agreeing continuation beyond go/no go points; and agreeing on selection and appointment of subcontractors.
Commercialisation strategy
Where the project outcomes include commercially valuable intellectual property, MLA and the partner will agree on a commercialisation plan. MLA’s commercialisation policy and guiding principles will form an integral part of any agreement that MLA enters into, the details of which are available on request and will also be provided on receipt of a project application.
Project evaluation
Projects are evaluated on the basis of:
- Proposed methodology
- Links with industry strategy
- Technical feasibility and risk assessment
- Commercial potential
- Degree of innovation
- Industry benefit
In straightforward cases, the project approval process normally takes 6–8 weeks. However, the process timeline may be extended where the project concept is not yet well developed; where external review is required; or where contractual negotiations are complex.