Summary of Policy Differences


This page offers a summary of the differences between the policies. The full text of both policies can be viewed by following the link. You can read an in-depth explanation of the differences in the FAQ section. Sample calculations of income under each policy are also provided.

 

 

OLD (1963/85) POLICY

CURRENT (1997) POLICY

RESEARCH
SHARE

None.

15% of net income as defined under the Current Policy.
ROYALTIES 50% of net income as defined under the Old Policy. 35% of net income as defined under the Current Policy.
NET INCOME Total income, less 15%, less direct case expenses for each invention. Total income, less direct case expenses for each invention.
GENERAL POOL 15% of total income + 50% of net income. 50% of net income.

Definitions

Net Income: The changed definition of net income is crucial to understanding the differences in the policies. In the old policy, 15% was taken off the top as an "administrative fee" to go to the general pool. Then expenses were deducted from the remaining 85% and the balance was divided equally between inventor and pool.

In the current policy, only expenses are taken out before dividing. The division is three way this time: between inventor, research share, and general pool.

Total Income: All income received from royalties, fees and equity cashouts.

Research Share: Designated for research-related purposes at the inventor's campus and allocated based on plans developed at each UC campus and UC-managed DOE Laboratory. The research share only exists under the Current Policy.

General Pool: This income accrues to individual campuses or UC-managed DOE Laboratories based upon income for all inventions made by inventors at that location. The Pool is used to cover:

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