Royalty-Sharing Formulas* Of The Top 10 U.S. Universities

The Scientist 9[12]:11, Jun. 12, 1995 News Royalty-Sharing Formulas* Of The Top 10 U.S. Universities By Lee Katterman ROYALTY-SHARING FORMULAS* OF THE TOP 10 U.S. UNIVERSITIES (ranked by total royalties from FY1993) University of California system (FY1993 royalties received: $45,440,022) Subtract costs of patenting and an administrative fee from gross royalties First $100,000 net royalties: 50% to inventor for personal use 25% to state of California 25% to inventor's campus for academic and research uses Next $400,000 net royalties: 35% to inventor for personal use 25% to state of California 40% to inventor's campus for academic and research uses Over $500,000 net royalties: 20% to inventor for personal use 25% to state of California 55% to inventor's campus for academic and research uses Stanford University (FY1993 royalties received: $31,200,000) Subtract 15% of gross royalties for patent and licensing expenses Net royalties: 33 1/3% to inventor for personal use 33 1/3% to inventor's department for academic and research uses 33 1/3% to inventor's school/college for academic and research uses Columbia University (FY1993 royalties received: $21,088,217) First $100,000 gross royalties: 40% to inventor for personal use 20% to inventor's lab for research use 40% divided among university, department, school, and to pay patent/licensing costs Over $100,000 gross royalties: 20% to inventor for personal use 20% to inventor's lab for research use 60% divided among university, department, school, and to pay any remaining patent/licensing costs University of Wisconsin, Madison [Wisconsin Alumni Research Foundation] (FY1993 royalties received: $15,822,400) $1,500 to inventor for filing the patent Gross royalties: 20% to inventor for personal use 15% to inventor's department for academic and research uses 65% to pay patent/licensing costs and to university University of Washington [Washington Research Foundation] (FY1993 royalties received: $14,755,000) Subtract patent costs and 15% of gross royalties for administrative costs First $10,000 net royalties: 100% to inventor for personal use From $10,000 to $40,000 net royalties: 50% to inventor for personal use 18.75% to inventor's department for academic and research uses 6.25% to inventor's college for academic and research uses 25% to a general university research support fund Over $40,000 net royalties: 30% to inventor for personal use 15% to inventor's department for academic and research uses 5% to inventor's college for academic and research uses 50% to a general university research support fund Michigan State University (FY1993 royalties received: $14,150,029) Subtract patenting costs from gross royalties First $1,000: 100% to inventor for personal use Next $100,000 net royalties: 33 1/3% to inventor for personal use 33 1/3% to inventor's academic unit for academic and research uses 33 1/3% to university for academic and research uses Next $400,000 net royalties: 30% to inventor for personal use 30% to inventor's academic unit for academic and research uses 40% to university for academic and research uses Next $500,000 net royalties: 20% to inventor for personal use 20% to inventor's academic unit for academic and research uses 60% to university for academic and research uses Over $1 million net royalties: 15% to inventor for personal use 15% to inventor's academic unit for academic and research uses 70% to university for academic and research uses Iowa State University (FY1993 royalties received: $11,600,000): Subtract patenting and other expenses from gross royalties Net royalties: 33 1/3% to inventor for personal use 33 1/3% to inventor's college for academic and research uses 33 1/3% to university for academic and research uses Massachusetts Institute of Technology (FY1993 royalties received: $5,808,000) Gross royalties: 28.3% to inventor for personal use 71.7% shared by university and inventor's department, and to pay expenses University of Florida (FY1993 royalties received: $5,666,412) Subtract patenting costs from gross royalties First $100,000 net royalties: 50% to inventor for personal use 50% to university for academic and research uses Next $100,000 net royalties: 40% to inventor for personal use 60% to university for academic and research uses Over $200,000 net royalties: 30% to inventor for personal use 70% to university for academic and research uses Harvard University (FY1993 royalties received: $5,430,000) Subtract patenting and administrative costs from gross royalties First $50,000 net royalties: 35% to inventor for personal use 15% to support inventor's research 15% to inventor's department for academic and research uses 20% to dean for academic and research uses 15% to president for academic and research uses Over $50,000 net royalties: 25% to inventor for personal use 20% to support inventor's research 20% to inventor's department for academic and research uses 20% to dean for academic and research uses 15% to president for academic and research uses * Formulas also apply to more than one inventor. Source: Association of University Technology Managers survey, 10/94, and interviews with administrators at individual schools

Royalty-Sharing Formulas* Of The Top 10 U.S. Universities

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Lee Katterman

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June 1995

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