COMPARISON OF ROYALTY DISTRIBUTION FORMULAS
| Pre-1990 Policy (now to 9/30/97) | 1990 Policy (RESCINDED) | New Policy (as of 10/1/97) | |
| Calculation of Net Income | Gross Income Less: 15% for Admin Costs Less: Direct Case Expenses = Net Income |
Gross Income Less: 15% for Admin Costs Less: Direct Case Expenses = Net Income |
Gross Income Less: Direct Case Expenses = Net income |
| Allocation of Net Income Inventor's Personal Share Research Allocation General Campus/Lab Pool |
Based on annual net income 50% of net income n/a 50% of net income Plus: 15% of gross income |
Based on cumulative net income (CNI) over
an invention's lifetime 50% of first $100k in CNI, 35% of next $400k in CNI, and 20% of all additional CNI. n/a 50% of rist $100k in CNI, 65% of next $400k in CNI, and 80% of all additional CNI. Plus: 15% of gross income |
Based on annual net income 35% of net income 15% of net income 50% of net income |
For comparison purposes, a simplifying assumption can be made to exclude direct expenses from the formulas and calculate
For example, inventors who disclosed under the old policies received a maximum 42.5% of total income [(100% - 15%) x 50%].
| Pre-1990 Policy (now to 9/30/97) | 1990 Policy (RESCINDED) | New Policy (as of 10/1/97) | |
| Inventor's Personal Share $0 - 100,000 $100,001 - 500,000 >$500,000 Research Allocation General Campus/Lab Pool $0 - 100,000 $100,001 - 500,000 >$500,000 |
42.5% 42.5% 42.5% n/a 57.5% 57.5% 57.5% |
42.5% 29.8% 17.0% n/a 57.5% 70.2% 83.0% |
G 35.0% 35.0% 35.0% 15.0% 50.0% 50.0% 50.0% |