If a team wins more than $5,000 or an individual receives more than $2,500 from any phase of the Duke Start-Up Challenge competition, the team members agree to incorporate or form a business association (e.g. Corp., Inc., LLC, LLP, etc.) with ownership interests divided according to a capitalization table submitted as part of the registration process in the later phases of the competition. Subsequently, the organizing committee will award winnings payable to this specific business entity; after which it is the responsibility of the business to determine how the prize money is utilized. Team members will be required to appoint one of its members to be the Business Association’s official representative (“Representative”). On behalf of the Business Association, and in the absence of a dispute, the Representative will receive any and all monetary prizes awarded to the team resulting from the competition.

Any teams wishing to have individuals compensated directly rather than through an incorporated legal entity will be subject to the approval of the Duke Start-Up Challenge organizing committee and one or more University administrators. To be paid directly, a student must have a taxpayer identification number, and be a citizen or permanent resident of the United States or have the necessary visa status to join the Duke payroll to receive prize money distributions.

Duke University and the Duke Start-Up Challenge will not receive equity stakes in the participating companies simply as a result of award in the competition. Prize money awards do not create an ownership interest in the companies for either Duke University or the Duke Start-Up Challenge. If a company participating in the competition decides to pursue commercial development of intellectual property rights owned by Duke, however, equity may be a part of the terms of the enabling License Agreement (see the ‘Equity’ section of the Rules for further information).