D.4. Gifts of Intangible Properties
     January 1989

Development Policy and Administration Manual 
Chapter IV. Gift Administration Procedures 
Section D. Special Procedures for Various Types of 
           Noncash Gifts 
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                       GIFTS OF INTANGIBLE PROPERTY


Intangible property includes copyrights, patents, contract
rights, royalties, etc.  Gifts of intangible property should be
reported for at their fair market value if this can be estab-
lished; if not, they should be valued at $1 equity, because their
potential benefit to the University cannot be estimated.  When a
gift of intangible property results in royalties or other pay-
ments, such payments are treated as income and not reported as
gifts.

For accounting purposes the gift will be recorded on the Univer-
sity's books at a value of $1 equity.

In the case of gifts of works of art, it is important that both
the donor and the affected University department understand that
a transfer of ownership of the physical work of art does not
automatically transfer related intangible property rights such as
copyright, which include the right to reproduce or distribute
copies of the work.  Accordingly, it should be determined whether
the donor does in fact also own the intangible rights and whether
the gift is intended to include them.  If so, the instrument of
gift must expressly state that the transfer includes the related
intangible property rights, including the copyright and rights of
reproduction of the work.

Before acceptance, all offers of patents and patent applications
must be referred to the Director--Patent, Trademark, and Copy-
right Office, accompanied by a copy of the patent or application.