CAMPUS POLICY

UNIVERSITY OF COLORADO at COLORADO SPRINGS

SUBJECT: Policy on Distribution of Income Generated from Intellectual Property

Reference:

University of Colorado Administrative Policy Statement on “Intellectual Property Policy             on Discoveries and Patents For Their Protection and Commercialization.” The         reference is found at (as of January 16, 2003):             http://www.cusys.edu/policies/Academic/IP_discoveries.html.

Purpose and Responsibility:

A. Purpose

Per the CU System policy, the net receipts from technology transfer will be distributed 25% to the discoverer(s), 25% to the University to support the discoverer’s research, 25% to the University (System) and 25% to the campus Chancellor. The CU Policy provides that the Chancellor establish the individual campus policy for any allocation of the 25% designated for the campus. This document addresses the distribution formula by which the 25% allocated to the campus will be handled for UCCS.

B. Responsibility

It is the responsibility of the CU System Technology Transfer Office to work with the UCCS Technology Transfer Office to make distributions of the Chancellor’s portion of intellectual property income consistent with this distribution formula.

Applicability and Definitions:

A. Applicability

This policy applies to the distribution of the UCCS Chancellor’s portion of net receipts from intellectual property.

B. Definition -Net receipts as defined by System Policy means all financial consideration received by the University or its agent from the transfer, license, development, or commercial exploitation of the intellectual property, less all unreimbursed legal expenses.

Distribution Formula for Chancellor’s Percentage:

Sixty percent of the Chancellor’s distribution, which is 15 percent of the total net receipts, will be distributed to the inventor’s college or other Primary Support Unit, according to the formula below. These funds must be invested in faculty seed grants supporting research with IP and/or external funding potential.

·        Definition of Primary Support Unit: College, Department, or Center that primarily provided resources for the research leading to the royalties.

·        Formula: First $25K of royalty return each year to Primary Support Unit. Beyond first $25K, 50% to Primary Support Unit, 50% to College (or Colleges, in the case of multi-college centers, for example).

·        Seed grant awards are to be approved by a College faculty committee formed by the dean (or center director), and reported to Campus Faculty Research Council.

Forty percent of the Chancellor’s distribution, which is 10 percent of the total net receipt, will be distributed to the Campus Faculty Research Council, with investment guided by the formula below. These funds must be invested in faculty research seed grants.

·        Formula: First $50K of campus’s royalty return each year to be directed to faculty seed grants for research with IP and/or funding potential. Beyond the first $50K, 75% directed to Seed Grants with IP/funding potential, 25% directed to research grants in any area.

·        An Award Report covering all awards (campus- and college-level) will be provided to the office of the VCAA and to the Campus be prepared each year during which a royalty distribution occurs.

Review of Formula:

            This investment process would be reviewed by the Chancellor every three to five years, or in the case of System policy changes.