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May 19, 1997

Attention: All academic and staff employees

The Office of the President is circulating a draft policy for your review and comment. For a copy of the policy, contact your academic division, Academic Human Resources at ext. 4300, Staff Human Resources at ext. 2009, or access the Office of Technology Transfer Web site.

University of California Patent Policy regarding proposed revisions to the Royalty Distribution Formula.

Comments can be sent to Lori Castro at ext. 4779 or at lhcastro@cats.ucsc.edu no later than Monday, June 2.

The proposed revisions would:

  1. Rescind the current policy and revert all inventions reported before the new policyÕs effective date to the pre-1990 policy. For inventions converted from current policy to the pre-1990 policy that have reached the $100,000 threshold, one-time payments would need to be made to inventors to increase their shares to 50% of all net income. This would prevent the need to administer three separate formulas over many years and would eliminate a formula that is unpopular with many faculty members.

  2. Remove the 15% administrative assessment (used in the pre-1990 and current formulas) from the new formula and define net income as total income less direct case expenses. This would simplify the royalty distribution formula by consolidating the portion of income available to cover program cost (currently the 15% assessment against gross income plus the universityÕs share of net income) into one general pool of net income, further described below.

For inventions reported on or after the effective date of the new policy, distribute net income by invention as follows:

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