As universities seek to provide entrepreneurial experiences to their students, it is important to examine existing policies governing intellectual property developed on campus. Often, policies that served institutions well during a time when investment in student projects (in terms of materials and heavy equipment) was significant may discourage student innovation in the digital environment. Also, existing policies may only contemplate projects developed by students and faculty, creating potential obstacles to working with industry sponsors. As in any legal scenario, whether a policy is sufficient for the activities of a given institution may not be determined until an issue arises. This paper will review some of the major intellectual property issues faced by universities seeking to commercialize student projects, including managing IP ownership when industry sponsors or government funding are involved. It will conclude with common scenarios that arise in this context and ways to address them.