Licensing Income Distribution Procedure
This Licensing Income Distribution Procedure details the distribution of the ULRF portion of Licensing Income under Section 8a of the Intellectual Property Policy. Of the royalties and other income arising from the licensing of Intellectual Property, the University of Louisville Research Foundation (ULRF) may deduct Intellectual Property protection and licensing expenses incurred for that Intellectual Property (Total Net Proceeds). Total Net Proceeds will be distributed as follows:
- Of the first $25K of Total Net Proceeds, 50% is distributed among the Creators and the other 50% is for ULRF to be distributed as outlined below.
- Of Total Net Proceeds above $25K, a 5% overhead fee is applied and then 50% of the remainder goes to the Creators and the other 50% to ULRF for distribution as outlined below. The 5% overhead fee will be utilized by the Commercialization EPI-Center for the support of patent prosecution and marketing efforts.
The distribution of the ULRF portion of Total Net Proceeds will be determined as follows. Each Creator will be responsible for reporting School, approved Center (or approved Institute whichever is applicable), Department and/or Division affiliation along with the source of salary on the Research Disclosure Form (RDF) related to the licensed Intellectual Property. If the source of salary information for a Creator is not provided on the RDF, then the Commercialization EPI-Center staff will request the salary information from an administrative official who is knowledgeable of the Creator’s source of salary at the time of RDF submission. Accordingly, the ULRF portion will be distributed as follows:
- 15% to the Creators’ Schools/Units (or pro rata if the appointment is split);
- 15% to the Creators’ Departments or Divisions (whichever unit pays the Creator’s salary at the time the Research Disclosure is submitted (or pro rata if the salary is split). If the Creator’s salary is not paid by a Department or a Division but is paid 100% by the Creator’s Center, then this 15% share will be added to the Center percentage below;
- If applicable, 15% will go to the Creators’ Centers (if not applicable, this will be equally split between the Department/Division and the School/Unit as determined above);
- 55% to the EVPRI Innovation Fund (to be used for translational research grants, seed and bridge grants for faculty as well as research infrastructure).
For Creators (including students), who are not paid a salary, stipend, or the like by the University and its affiliates, their contribution to the Intellectual Property shall not factor into the distribution of the ULRF portion of Total Net Proceeds.