Royalty Sharing under NCSU's Patent Policy And Procedures
REG 10.00.3
Authority: Issued by the Chancellor. Changes or exceptions to administrative regulations issued by the Chancellor may only be made by the Chancellor.
History: First Issued: December 18, 2002. Endorsed by the University Council, April 14, 2003.
Related Policies:
NCSU POL10.00.1 -
Patent Policy and Procedures
UNC Patent and Copyright Policies
UNC Administrative Manual, Chapter V. B.
Contact Info:
1. Introduction
NC State University encourages innovation by its faculty, staff and students.
When those innovations are licensed and generate income for the university,
that income is shared with those who made the innovation according to the
following Administrative Regulation.
2. Revenue Sharing Formula and Regulations
2.1 Gross Revenue means all income actually received by the University as consideration
for the licensing, optioning, or other transfer of rights to inventions that
are subject to the University's Patent Policy and Procedures. Gross Revenue
includes, but is not limited to, such things as royalties, license issue fees
and milestone payments that are generated through the licensing of an invention.
Gross Revenues actually received by the University is the basis on which the
inventor's share of revenue is calculated.
2.2 If there is a specific agreement in a grant or contract with a sponsor or
licensee that requires the University to share revenues with the sponsor or
to deduct relevant costs and expenses, then the inventor's share of the revenue
will be calculated after deducting the amount that must be shared with the
sponsor. Similarly, if the University is required to share revenues under
an inter-institutional agreement with another entity, such as when there is
a co-inventor at the other entity, then the inventor's share of the revenue
will be calculated after deducting the amount that must be shared with the
other entity.
2.3 Any income from licensing activity that is received in the form of support
(in cash or in kind or otherwise) for research or any other form of sponsored
research is not part of the Gross Revenue.
2.4 For distributions of any Gross Revenue that is generated as a result of
sales by licensees or any "trigger event" in a license or option
agreement (such as up front fees, milestone payments, minimum royalty payments,
and the like) where the sales or the trigger event occurred on or after July
1, 2002, the inventors' share of Gross Revenue is 40%, unless otherwise agreed
in writing between the University and the inventor(s).
2.5 For all distributions of Gross Revenue that relate to sales or trigger events
prior to those described in D., above, distributions will be in accordance
with University's distribution policies (as approved by the Intellectual Property
Committee) existing as of the date that the applicable sales or trigger event
occurred.
2.6 Where there two or more co-inventors, the applicable percentage of Gross
Revenue is divided equally among all co-inventors, unless all co-inventors,
with the concurrence of the Intellectual Property Committee, establish in
writing a different share to be appropriate.
2.7 Applicable laws, regulations or provisions of grants or contracts may require
that a lesser share be paid to the inventor, and in such cases the University
must comply with the provisions of those laws, regulations, grants and contracts.
2.8 In no event may the amount payable by the University to the inventor or
inventors in the aggregate be less than 15% of Gross Revenue.
2.9 Once Gross Revenues are received, the Office of Technology Transfer will
initiate distribution of inventors' share of the revenue as promptly as is
reasonably practical. The Director will inform inventors of any exceptional
circumstances that may cause a delay of distribution.
