In any instance in which MnSCU and/or its colleges or universities execute an agreement with an individual, corporation or other entity for economic gain using intellectual property owned by the colleges or university, the colleges or university is entitled to receive an equity distribution. The proceeds of the equity distribution shall be shared among the creators of the work as determined by this policy. (Board Policy 3.26, Part 4, Subpart B.3)

For example, if an agricultural college develops and patents a new and improved method of poultry processing, the college may agree to license the use of that processing method to one commercial food processing company (an "exclusive" license) or to any number of such companies. In exchange for allowing companies to use the processing method, the companies would pay the college licensing fees or royalties. The college may impose other restrictions as well, such as limiting the length of time companies may use the process. The main thing is that the parties (the university and any interested company) negotiate terms up front and formalize their agreement in a written contract.