UAMS ADMINISTRATIVE GUIDE
|AREA:||SPONSORED RESEARCH ADMINISTRATION|
|SUBJECT:||DISTRIBUTION OF ROYALTIES FROM PATENTS, COPYRIGHTS AND LICENSES|
The purpose of this policy is to notify colleges and researchers within the University of Arkansas for Medical Sciences (UAMS) of the procedures that are followed when allocating the costs and the distribution of income resulting from a successful patent, copyright or license.
It is the policy of the University of Arkansas1 to acquire and retain legal title to all inventions created by any person or persons to whom this policy is applicable. This policy is established in furtherance of the commitment of the University to the widest possible distribution of the benefits of University Research, the protection of Inventions resulting from such research, and the development of Inventions for the public good.
This policy shall apply to all persons employed, compensated, or appointed by the University and to anyone using facilities owned, operated, or controlled by the University. It shall also apply to all Inventions financed, in whole or in part, from funds under the control of UAMS.
|For net royalty proceeds for income up to $200,000:||For Income over $200,000|
|50% to the Inventor(s)||35% to Inventor(s)|
|5% to the U of A System||5% to U of A System|
|31.5% to the Appropriate College||42% to Appropriate College|
|13.5% to the Chancellor & Processing Reserve||18% to Chancellor & Processing Reserve|
For example, if a patent is sold for $100,000, and legal costs were $10,000, the net proceeds of $90,000 will be distributed as follow:
Gross Receipt $100,000 Less: Direct Costs 10,000 Available for Distribution 90,000 Distribute to Inventor (50%) 45,000 Distribute to UA System (5%) 4,500 Distribute to Appropriate College (31.5%) 28,350 Distribute to Chancellor (3.5%) 12,150
If a patent sold for $300,000, and legal costs were $10,000 the net proceeds of $290,000 will be distributed as follows:
Gross Receipt $300,000 Less: Direct Costs 10,000 Available for Distribution 290,000 First $200,000 Additional $90,000 Distribute to Inventor (50%) 100,000 (35%) 31,500 Distribute to UA System (5%) 10,000 (5%) 4,500 Distribute to Appropriate College (31.5%) 63,000 (42%) 37,800 Distribute to Chancellor (13.5%) 27,000 (18%) 16,200
1. UofA Board Policy 210.1 - Patent and Copyright Policy