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IP Policies and Guidelines: Revenue

Overview | Patent Revenue | Copyright Revenue | Revenue Sharing | Project Revenue

Overview

PSU shares any revenue from work related patents and copyrights with inventors and developers.

When PSU licenses intellectual property to an external partner, our primary goal is to promote use and impact of the underlying innovation.  However, PSU also seeks to recover the costs of pursuing intellectual property protection and seeks reasonable royalties or fees from its partners.  After costs are recovered (IMD 6.250), PSU shares a portion of these revenues with the developers of the intellectual property.  The developer’s share is different for patents and copyrights.

Patent Revenue

The OAR (580-43-0011) and the IMD (6.250) state that the “inventor's” portion of patent license revenue will be a maximum of 40% for the first $50,000, 35% for the next $50,000, and 30% of everything after that.  PSU shares the maximum amount allowed with inventors under this policy, and then splits the remaining revenue between IIP and the department or center of the developers.  IIP uses this revenue to further promote PSU innovations, and encourages the receiving departments and centers to use the revenue to promote innovation and impact within the project from which the innovation arose.

PSU therefore distributes post-cost patent license revenue as follows:

 
    Developers
    IIP
    Department

0-$50K
40%    
30%    
30%    

$50-100K
35%    
32.5%    
32.5%    

Over $100K
30%    
35%    
35%    

 

 

 

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Copyright Revenue

For licensed copyright works, the OAR (580-43-0011) and the IMD (6.250) state that the “author’s” portion of copyright license revenue will be a maximum of 50%.  PSU again shares the maximum amount it is allowed with authors, and then splits the remaining revenue between IIP and the department or center of the developers.  IIP uses this revenue to further promote PSU innovations, and encourages the receiving departments and centers to use the revenue to promote innovation and impact within the project from which the innovation arose.

PSU therefore distributes post-cost copyright license revenue as follows:

    Developers
    IIP
    Department

50%    
25%    
25%    

 

 

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Revenue Sharing among developers

The words “inventor” and “author” are in quotes above because it is often the case that some faculty, students, and researchers will have contributed to an innovation without rising to the level of being an official inventor or author (see IP primer).  When research and project teams disclose an innovation, IIP will encourage them to go through the exercise of deciding amongst themselves how their portion of any revenue should be split, and will further encourage them to include such contributors.  This understanding will be recorded and acknowledged by all parties, and used to distribute any revenue that may result from the innovation.  If agreement cannot be reached, IIP may determine an equitable arrangement for all parties involved (OAR 580-43-0007 and 580-43-0016, IMD 6.235, 6.240, 6.250).

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Project Revenue

In some cases, the mission and innovation impact of a project will greatly benefit from being able to retain all the revenue from any intellectual property licenses that share its innovation with external partners.  In this case, IIP may waive its portion of any revenue to an account to be used by the project, and may encourage all related developers, and the department or center, to do the same. Such projects typically involve a team of developers, are in close contact with their external partners, and continually develop and deploy their innovation on an ongoing basis.  This mechanism is not available for projects where a developer has an outside interest in the external partner.

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