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POLICY NO : 7001
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EFFECTIVE DATE: 03/16/05
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[[Science/Technology Committee]] | [[Division of Net Royalty and Proceeds]]
<br /><br />
Policy No.: '''7001'''<br />
Effective Date: '''03/16/05'''<br />
Revised Date: '''05/03/21'''<br />
Reviewed Date: '''05/03/21'''<br />


Policy for Royalty and Equity Distribution
<big>'''Policy for Division of Net Royalty and Proceeds'''</big>
== Basis for Policy ==
Section 5 of the RP-4.4.2 Regents’ Patent and Technology Transfer Policy includes information on the division of net royalties and proceeds: <br />


As per RP-4.4.2 Board of Regents Patent and Technology Transfer Policy, the University of Nebraska Medical Center (UNMC) is responsible for allocating non-inventor technology transfer proceeds according to its individual campus policy. These non-inventor proceeds consist of two thirds of the royalties and equity received in return for use of University owned intellectual property rights. Furthermore, Regents Policy no longer requires that a share of proceeds be distributed to the academic/administrative units of inventors. In order to best utilize non-inventor proceeds and to serve the objectives of the Regents Policy, UNMC shall allocate non-inventor proceeds on a case by case basis as determined by the Committee for Proceed Distribution. Those academic/administrative units having a connection to proceeds at issue shall participate to provide the Committee with information addressing their support of the underlying technology.
“With respect to any invention subject to this Policy, the University shall first be reimbursed for any and all expenses incurred by it that are associated with evaluation of the technology, obtaining of patent or other intellectual property protection, and licensing or other technology transfer activity, including legal expenses related thereto. In the event of any infringement action or other legal action involving technology disclosed under this Policy, the University shall also be reimbursed for any and all expenses borne by the University associated with such action. After such expenses are reimbursed, royalties and other proceeds from licenses or other technology transfer activities related to an invention, or patent or other intellectual property protection based thereon, shall be distributed as follows: <br />


Membership
:a. One-third to the inventor or inventors; and <br />


Members of the Committee for Proceed Distribution shall be the Vice Chancellor for Business and Finance, the Vice Chancellor for Research, the Vice Chancellor of Academic Affairs, the President of UNeMed, the Patent Administrator and one member at large to be selected annually by a majority vote of the other members. The Committee shall meet at least annually to carry out the function of RP- 4.4.2, Section 5(b).
:b. Two-thirds in accordance with a separate distribution policy to be established and implemented by each University campus, such policy to take effect following approval by the Board of Regents upon recommendation of the relevant campus’ Chancellor.”
== Policy ==
The University of Nebraska Medical Center implements this policy, consistent with RP-4.4.2, which outlines the distribution of royalties and other proceeds from the commercialization of technology. <br />


The Committee’s responsibilities shall include:
1. To assure that the University is reimbursed for all costs associated with protecting and commercialization of the particular technology, the following expenses shall be recouped prior to any further distribution of proceeds from the technology:  
:a. Any funding provided to inventors or creators by UNMC, the University of Nebraska, UNeTech or UNeMed for research and development or for facilitating commercialization of research. <br />


    Expenses and Net Proceeds
:b. All out-of-pocket direct expenses incurred by UNMC or UNeMed in protecting, maintaining, defending and commercialization of the technology. On technologies with guaranteed annual minimum royalties, out-of-pocket expenses may be allocated over several years to facilitate immediate payment of royalties to inventors. <br />
2. After the deductions authorized by paragraph 1, the remaining net proceeds from the commercialization of the technology shall be distributed as follows: <br />


        Reviewing the legal fees and other technology transfer expenses associated with each source of proceeds. Regents’ Policy requires that such expenses be reimbursed before any proceed distributions are made.
:a. One-third will be distributed to the inventors pursuant to RP 4.4.2. Royalties will be distributed among all inventors based on their relative contributions to the development of the invention and should be agreed upon by inventors prior to the distribution. If no agreement exists, royalties and proceeds will be distributed equally among all inventors.<br />


        To meet this requirement 10% of all proceeds received will be set aside for the administration of technology transfer. In addition, patent expenses and other legal and professional expenses will first be reimbursed from gross proceeds.
:b. A technology management fee of 15% of the proceeds will be charged as overhead associated with the technology. Such overhead shall be used to support the administrative costs associated with UNeMed. <br />


        Reviewing general proceed allocations with other organizations and non-inventor proceed allocations between campuses.
:c. Ten percent of the net royalties up to the first $2 million of cumulative annual UNMC royalties will be transferred to a fund that will be distributed to the College(s) or Institute(s) to support and enhance research. The royalties will be distributed to the Colleges based on their proportional contribution to the fund. College(s) or Institute(s) share will increase to 20% of net cumulative annual UNMC royalties over $2 million. <br />
       


    Distribution of Net Proceeds to Inventors
:d. The remaining proceeds will be distributed to the UNMC Chancellor’s office to enhance the services of the technology development office to support services to faculty in the filing of disclosure, protection of intellectual property and the marketing, licensing and commercialization of technologies. A portion of these funds may be used for grants to develop prototypes and conduct additional research to facilitate commercialization of technologies. <br />


        Ensuring that with respect to proceeds covered by Regents’ Policies, one third of all net proceeds received by the University is distributed to University of Nebraska inventors.
3. The UNMC Chancellor’s office may enter into agreements with third parties which modify the distribution of non-inventor net proceeds described in paragraph 2 subparts b, c and d. Any such modification shall be presented to the UNMC Research Resources Board or its functional equivalent. <br />


        When a single source of proceeds involves multiple University of Nebraska inventors, inventors should coordinate with UNeMed to file a written agreement delineating the division of proceeds between all inventors. Multiple inventor proceeds received but not adequately covered by a written inventor agreement will be distributed equally between all University of Nebraska inventors.
4. For inventions with inventors from multiple colleges/institutes, the individual college/institute portion will be proportional to the contribution of faculty agreed upon in section 2.a. above. <br />
       
        In some highly meritorious cases a given inventor may be found to have earned a share of the proceeds that exceeds the general recommendation of one-third; however in no case will a distribution be made to an inventor that exceeds the recommended one-third until the university has recovered 100 percent of its costs, and an appropriate continuing share has been determined for the university. Such decisions are to be considered highly exceptional and will require the approval of the President upon recommendation of the Chancellor. The President shall report such exceptions to the Board of Regents.


    Distribution of Net Proceeds to Non-inventors
5. For intercampus collaborative projects, intellectual property protection/prosecution efforts will be led by the campus with the majority interest in the invention. Net royalties will be divided between campuses based on their equity share in the intellectual property and distribution of net royalties within each campus will be dictated by the relevant campus policy. <br />


        Examining sources of net non-inventor proceeds covered by the Regents’ intellectual property policies and determining what proportion, if any, should be distributed to inventors’ academic/administrative units. This determination shall be in keeping with each unit’s level of support and commitment to technology development. Academic/administrative units found to be without significant contribution to technology development may be excluded from receiving proceeds.
6. If equity is taken in lieu of royalties that otherwise would be distributed under this policy, the equity will be held by UNeMed. Any dividends or proceeds from liquidation of the equity interest shall be distributed in accordance with this policy as though they were royalties.  
 
==Additional Information==
        Deans or Directors of the academic/administrative units employing faculty or other persons responsible for creating intellectual property from which net proceeds are generated shall be given notice of Committee meetings and provided the opportunity to present information representing significant support of UNMC technology development. Ordinary support consisting of only the usual salary, space, and equipment afforded to faculty shall not be considered significant.  Information intended to be representative of significant support to technology development shall be substantiated through documentation, interviews with inventors, or other appropriate means. The Committee shall refrain from deciding non-inventor proceed allocations until all interested principals have been given reasonable opportunity to participate.
*Contact UNeMed or the [mailto:jnickla@unmc.edu Director, UNeMed]
        Earmarking net proceeds as may be distributed to academic/administrative units to be used for research beneficial to technology development.
*University of Nebraska Board of Regents [https://nebraska.edu/-/media/unca/docs/offices-and-policies/policies/board-governing-documents/board-of-regents-bylaws.pdf?la=en Bylaws]
       
*University of Nebraska Board of Regents [https://nebraska.edu/-/media/unca/docs/offices-and-policies/policies/board-governing-documents/board-of-regents-policies.pdf?la=en Policies] 
        Allocating any net non-inventor proceeds to UNMC accounts for use in furthering translational research or otherwise furthering the objectives of technology and economic development. This includes those net non-inventor proceeds not distributed to academic/administrative units.
<br />
       
This page maintained by [mailto:mhurlocker@unmc.edu mh].
        The allocation and/or earmarking of net non-inventor proceeds not to be distributed to any academic/administrative units shall take the form of a recommendation made to the UNMC Research Resources Board or its functional equivalent. The Research Resources Board shall then confirm or redirect the nonunit distribution and report the final recommendation to UNMC’s Chancellor before such proceeds are made available.
       
    Other Responsibilities
 
        Performing other responsibilities within the scope of RP- 4.4.2, Section 5(b).
 
For additional information, please contact UNeMed or the UNMC Patent Administrator.
 
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Latest revision as of 14:41, August 19, 2024

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Science/Technology Committee | Division of Net Royalty and Proceeds

Policy No.: 7001
Effective Date: 03/16/05
Revised Date: 05/03/21
Reviewed Date: 05/03/21

Policy for Division of Net Royalty and Proceeds

Basis for Policy

Section 5 of the RP-4.4.2 Regents’ Patent and Technology Transfer Policy includes information on the division of net royalties and proceeds:

“With respect to any invention subject to this Policy, the University shall first be reimbursed for any and all expenses incurred by it that are associated with evaluation of the technology, obtaining of patent or other intellectual property protection, and licensing or other technology transfer activity, including legal expenses related thereto. In the event of any infringement action or other legal action involving technology disclosed under this Policy, the University shall also be reimbursed for any and all expenses borne by the University associated with such action. After such expenses are reimbursed, royalties and other proceeds from licenses or other technology transfer activities related to an invention, or patent or other intellectual property protection based thereon, shall be distributed as follows:

a. One-third to the inventor or inventors; and
b. Two-thirds in accordance with a separate distribution policy to be established and implemented by each University campus, such policy to take effect following approval by the Board of Regents upon recommendation of the relevant campus’ Chancellor.”

Policy

The University of Nebraska Medical Center implements this policy, consistent with RP-4.4.2, which outlines the distribution of royalties and other proceeds from the commercialization of technology.

1. To assure that the University is reimbursed for all costs associated with protecting and commercialization of the particular technology, the following expenses shall be recouped prior to any further distribution of proceeds from the technology:

a. Any funding provided to inventors or creators by UNMC, the University of Nebraska, UNeTech or UNeMed for research and development or for facilitating commercialization of research.
b. All out-of-pocket direct expenses incurred by UNMC or UNeMed in protecting, maintaining, defending and commercialization of the technology. On technologies with guaranteed annual minimum royalties, out-of-pocket expenses may be allocated over several years to facilitate immediate payment of royalties to inventors.

2. After the deductions authorized by paragraph 1, the remaining net proceeds from the commercialization of the technology shall be distributed as follows:

a. One-third will be distributed to the inventors pursuant to RP 4.4.2. Royalties will be distributed among all inventors based on their relative contributions to the development of the invention and should be agreed upon by inventors prior to the distribution. If no agreement exists, royalties and proceeds will be distributed equally among all inventors.
b. A technology management fee of 15% of the proceeds will be charged as overhead associated with the technology. Such overhead shall be used to support the administrative costs associated with UNeMed.
c. Ten percent of the net royalties up to the first $2 million of cumulative annual UNMC royalties will be transferred to a fund that will be distributed to the College(s) or Institute(s) to support and enhance research. The royalties will be distributed to the Colleges based on their proportional contribution to the fund. College(s) or Institute(s) share will increase to 20% of net cumulative annual UNMC royalties over $2 million.
d. The remaining proceeds will be distributed to the UNMC Chancellor’s office to enhance the services of the technology development office to support services to faculty in the filing of disclosure, protection of intellectual property and the marketing, licensing and commercialization of technologies. A portion of these funds may be used for grants to develop prototypes and conduct additional research to facilitate commercialization of technologies.

3. The UNMC Chancellor’s office may enter into agreements with third parties which modify the distribution of non-inventor net proceeds described in paragraph 2 subparts b, c and d. Any such modification shall be presented to the UNMC Research Resources Board or its functional equivalent.

4. For inventions with inventors from multiple colleges/institutes, the individual college/institute portion will be proportional to the contribution of faculty agreed upon in section 2.a. above.

5. For intercampus collaborative projects, intellectual property protection/prosecution efforts will be led by the campus with the majority interest in the invention. Net royalties will be divided between campuses based on their equity share in the intellectual property and distribution of net royalties within each campus will be dictated by the relevant campus policy.

6. If equity is taken in lieu of royalties that otherwise would be distributed under this policy, the equity will be held by UNeMed. Any dividends or proceeds from liquidation of the equity interest shall be distributed in accordance with this policy as though they were royalties.

Additional Information


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