The Technology Licensing Office follows university policy 7-002 to determine and distribute royalties from each IP license or related transaction.
The inventors' share of income is based on a percentage of the income or revenue remaining after reimbursement of the university for all direct costs of patent prosecution or maintenance payments to other institutions required by university agreement, including inter-institutional agreements and more.
The inventors' share (which, in the case of co-creators, is divided between them equally or as they agree in their sole discretion) is normally 40% of the first $100,000 of net revenue, 35% of the next $200,000 of net revenue, and 33% percent of any additional net revenue received by the university.
The university also distributes royalties to the inventors’ departments. The pool of money available for the departments is 15% of the Technology Licensing Office’s annual revenue. We then calculate each department’s payment by taking the revenue attributable to a certain department, dividing it by the Technology Licensing Office’s total revenue and then multiplying this resulting percentage by the total distribution pool to get that department’s amount.
These payments are made each September.
Have any more questions about royalties? Contact our finance team!
