KSU Distribution of License and Royalty Income
KSU Distribution of license and royalty income will be as follows:
- The first $100,000 of gross income should be allocated forty percent (40%) to the inventor(s). Thirty percent (30%) to the Division of Research and Economic Development, and fifteen percent (15%) to the inventor(s) academic unit, and fifteen percent (15%) to the general fund.
- To achieve the objective of covering expenses, on income over $100,000 gross, distribution should be on a net basis, i.e. gross income less patenting, licensing, and marketing expenses. On net income up to one million dollars ($1,000,000), the allocations should remain the same: forty percent (40%) to the inventor(s), thirty percent (30%) to Research and Economic Development, fifteen percent (15%) to research support in the inventor(s) academic unit, and fifteen percent (15%) to the general fund.
- To achieve the objective of supporting the University in general in the case of a successful invention, the Board decided the general fund should receive fifteen percent (15%) of all net proceeds from one to five million dollars ($1,000,000 - $5,000,000), twenty percent (20%) of all proceeds over five million dollars ($5,000,000), and twenty-five percent (25%) of all over ten million dollars ($10,000,000). The inventor's shares would decrease proportionately; from forty percent (40%) to thirty percent (30%) at one million dollars ($1,000,000) in proceeds, to twenty percent (20%) at five million dollars ($5,000,000), and finally to fifteen percent (15%) at ten million dollars ($10,000,000) and over.
- Finally the Board recommends that the formulas developed be used in the absence of litigation such as infringement suits, etc. In the event of litigation the distribution may need to be reassessed.
A summary of the Board's distribution recommendations is below.
Recommended Distribution of Patent Income
| Income | Inventor's Share | Research & Economic Development | Inventor's Academic Unit | University General Fund |
|---|---|---|---|---|
| Gross up to $100,000* | 40% | 30% | 15% | 15% |
| Net income up to $1,000,000 | 40% | 30% | 15% | 15% |
| $1,000,000 - $5,000,000 | 30% | 35% | 20% | 15% |
| $5,000,000 - $10,000,000 | 20% | 40% | 20% | 20% |
| Over $10,000,000 | 15% | 40% | 20% | 25% |
*Income over $100,000 gross shall be distributed on a net basis (gross less licensing and marketing expenses, etc.)
Questions or comments? Email: inventions_OTC@kent.edu