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University of Louisville
 OFFICIAL
UNIVERSITY
ADMINISTRATIVE
 POLICY
 
 
University Community (administrators, faculty, staff and students)
 
POLICY NAME
ROYALTY DISTRIBUTION
EFFECTIVE DATE
August 1, 2013
 
POLICY NUMBER
 
POLICY STATEMENT
This is an appendix to the University of Louisville Intellectual Property Policy. It provides specific Royalty Distribution Policy and Procedures pursuant to Article 8 of the policy. The distribution schedule, with annotation [1] is provided below, and applies to revenue derived from ULRF intellectual property that is licensed, optioned or otherwise administered by the University [2].

First, all University expenses for patent expenses, market analysis, regulatory consult and the like shall be paid [3].
 
Of the next $50,000 of gross revenue:
50% to Inventor(s) [4]
10% to Center/Institute, Core laboratory and / or designated research service center
[5] (if relevant)
10% to Academic Department(s) of Inventor(s) [6]
10% to Academic or Administrative Unit(s) [6]
20% to EVPRI (30% if Center/Institute etc. not relevant)
 
After expenses and up to $1,000,000 of revenue:
50% to Inventors [4]
10% to Center/Institute, Core laboratory and / or designated research service center
(if relevant) ($100,000/year cap) [5]
10% to Academic Department(s) of Inventor(s) ($100,000/year cap) [6]
10% to Academic or Administrative Unit(s) ($100,000/year cap) [6]
20% to EVPRI (30% if Center/Institute etc. not relevant)
 
After expenses and the first $1,000,000 M of revenue:
50% to Inventors
25% to Cognizant EVP (EVPRI, EVPHA, and/or EVPUP) [7]
25% to ULRF [8]
 
RELATED INFORMATION
[1] General annotation is provided below for clarification of procedural detail.
[2] As described in the IP Policy, royalties are owned by the ULRF and administered by the EVPRI as described in Article 8.a
[3] Expenses shall include expenses incurred for prosecution and commercialization of the particular technology in question, but not to general administration expenses.
[4] As described in Article 8.a.i, Creators shall agree to distribution of creative credit at the time of disclosure, with other procedures for conflict resolution.
[5] In addition to departments, schools and the like, research centers, institutes, core laboratories (e.g. an imaging center, prototyping center, clean facility, etc. may have provided substantial and key enabling technology (although not rising to the level of intellectual creator status.) Such contribution may be recognized by the appropriate Executive Vice President(s) as meriting sharing of equity. It is expected that such contributions and sharing arrangements will be agreed to and memorialized in writing beforehand, for example at the time of license execution.
[6] Departments and units, may have provided substantial and key support (although not rising to the level of intellectual creator status.) Such contribution may be recognized by the appropriate Executive Vice President(s) as meriting sharing of equity. It is expected that such contributions and sharing arrangements will be agreed to and memorialized in writing beforehand, for example at the time of license execution.
[7] After crossing the $1M threshold, the distribution of this 25% of the equities shall be determined jointly by the Executive Vice Presidents who oversee the involved departments, units, research centers, institutes, core laboratories, research facilities and the like.
[8] After crossing the $1M threshold, the distribution of this 25% of the equities shall be determined on behalf of the ULRF by the Office of the President (the President of the University and the Executive Vice Presidents).
 
HISTORY
 
Revision Date(s):  1/31/2006; 10/06/13; 7/27/2016-due to format change
Reviewed Date(s):
 
ADMINISTRATIVE AUTHORITY
Executive Vice President for Research and Innovation
 
RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION

Office of Technology Transfer
J.D. Nichols Campus for Innovation and Entrepreneurship
Louisville, KY  40292
Phone:  1-502-852-2965
Email:  thinker@exchange.louisville.edu

The University Policy and Procedure Library is updated regularly.  In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.