A TOP-FLIGHT company has struck a 25-year deal with the University of York to commercially exploit the results of its research.

Intellectual property firm, IP2IPO Group plc, has built on its partnership with the University's Centre For Novel Agricultural Products, a flagship research centre that specialises in plant and microbial gene discovery.

The partnership will add an important dimension to the university's exploitation process, building further on the success of its new Enterprise And Innovation Office in identifying and mobilising intellectual property arising from the university's world class research base.

It will also play an important strategic role in strengthening the university's ability to interact with business for the benefit of the university and the economy.

IP2IPO will identify and help the formation of spin-out companies from across the institution and also invest an initial fund of £5 million in them in return for equity stakes.

IP2IPO will also receive ten per cent of any income which the university receives from licensing during the 25-year lifetime of the partnership.

Alan Aubrey, chief executive of the company, said: "We have developed an excellent working relationship at all levels within the university over the last two- and-a-half years and we believe that the quality of research together with the entrepreneurial spirit at York provide the potential for us to create an exciting portfolio of spin-out companies and to generate further value through licensing."

Professor Brian Cantor, Vice-Chancellor of the university, said: "I welcome this broadening of the university relationship with IP2IPO. It will complement our world-class research and enable us to create new knowledge-based businesses for the benefit of the university and the economy, locally, regionally and nationally."

Updated: 09:42 Thursday, March 16, 2006