[Pharm-policy] How do institutions share royalties income between inventors, departments, colleges, university, tech. development fund, research foundation, etc.

James Love love@cptech.org
Fri, 06 Oct 2000 15:51:50 -0400


Subject: [techno-l] Royalty sharing policies
   Date: Wed, 06 Sep 2000 11:52:10 -0400
  From: "Richard Cox" <RFCox@gwm.sc.edu>
    To: <techno-l@lists.uventures.com>

Dear Techno-L'ers:

In reviewing our royalty sharing policies, we've gathered information
from 12 other institutions about how they divvy up royalty income
between inventors, departments, colleges, university, tech. development
fund, research foundation, etc.  Only 2 of the 12 have a sliding scale
that changes as the royalties received grows.  

Here's what we've found so far:

Royalty recipient             Average share received   No. of 
                                                       responses

Inventors                     36.9%                    12
Inventors department          20.9%                     9
Inventors college             13%                       2
Inventors research account    16.3%                     2
University/institution        48.1%                     4
Research foundation           33.8%                     8
Tech development fund         16.7%                     3

Note:  The numbers above include the initial royalty sharing percentages
(i.e. - royalty splits at the lowest levels of income) from the 2
schools that have sliding scales.

If any of you are at institutions that have sliding scales based on
gross/net revenues received, would you be willing to share your royalty
distribution scheme with me?  I will summarize results as above.  

Also, how difficult do you find the accounting for a sliding scale
scheme?  

Thanks for your help.

Dick Cox

Richard F. Cox, Jr.
Director, Intellectual Property Management Office
South Carolina Research Institute
901 Sumter Street
Byrnes Building, Ste. 514
Columbia, South Carolina  29208
Phone: (803) 777-4031
Fax: (803) 576-5589
Email: rfcox@gwm.sc.edu