When income is received by the University as a result of a
patent, invention or discovery (hereinafter "Invention"), all
out-of-pocket expenses and obligations incurred by the University
which are attributable to the patenting, marketing, licensing,
protection, maintenance and/or administering of the invention shall
be recovered from such income. For purposes of this policy, any
income which remains after payment of such out-of-pocket expenses
shall be defined as "Net Income."
In calculating Net Income, generally-speaking, "out-of-pocket
expenses and obligations" shall be considered those expenses which
are incurred when outside sources (e.g., patent attorneys or
consultants) must be engaged to assure the proper and timely
exploitation of the Invention. Out-of-pocket expenses would not
ordinarily include any portion of salaries or effort of regular
administrative employees of the University, such as staff in the
Office of Grants and Sponsored Research or staff in the Office of
University Counsel.
Following recovery of appropriate out-of-pocket expenses, Net
Income from royalties shall be distributed according to the
following formula:
| Total Net
Income | Investor(s)
as Personal Income | St. John's
Research Account for Investor(s) | Inventor's
College Dean | Central
Administrationfor Res. & Ed. |
| $0 - 10,000 | 50% | 25% | 25% | 0% |
| $10,001 - 100,000 | 40% | 20% | 20% | 20% |
| $100,001 - 300,000 | 30% | 20% | 20% | 30% |
| $300,001 - 500,000 | 25% | 20% | 20% | 35% |
| $500,001 - greater | 20% | 15% | 15% | 50% |
University officials who are responsible for Royalty Income
Accounts (i.e., that money which is not paid to the Inventor as
personal income) shall use their Royalty Income Account for
purposes which further the education and/or research missions of
the University. Similarly, when a Royalty Income Account is
established in the name of an Inventor, it is expected that that
person shall use available Account funds solely for the advancement
of her/his research or for the education and research activities
s/he authorizes within the University (e.g., for purchase of shared
instrumentation or to support student travel to professional
meetings).
In cases where a Invention results from the contributions of
multiple persons, the Personal Income share which has been set
aside for the Inventor share shall, in fact, be divided among the
Co-Inventors as they shall mutually agree at the time of formal
assignment of the Invention to the University. Should the Inventors
fail to agree mutually on a division, the University shall
determine the division. In cases where several Inventions are
licensed under a single licensing agreement, the University shall
determine and designate the share of Net Income to be assigned to
each invention.
If an Inventor shall leave the employment of the University,
her/his share of personal income shall continue; however, income
that would normally be deposited into a University Income Account
for the Inventor shall, instead, be distributed equally to those
Accounts which were established for the School/College Dean and
Central Administration. In the event of an Inventor's death, the
Inventor's share of personal income shall be paid to the Inventor's
estate.
Responsibility for implementation of this policy will rest with
the Office of the Vice President and Secretary of the University as
overseer of the activities of Office of Grants and Sponsored
Research, whose responsibility it is to assist the University
community in the protection of intellectual properties, the
transfer of University-owned technologies, and the management of
funds received in support of sponsored research.
The Office of Grants and Sponsored Research will prepare a
Report on Royalty Income at least twice annually, in July and
January of each fiscal year, for each Invention. A copy of each
Report will be forwarded to the Inventor, her/his Dean, and the
Vice President and Secretary of the University.