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Royalty Distribution Policy

Net income from the commercialization of UA intellectual property is shared with the inventors or authors who created that IP.

The Arizona Board of Regents Policy defines "net income" from the license of ABOR-owned intellectual property as "gross revenues resulting from any given intellectual property, less a university administrative fee not to exceed 15%, then less all unreimbursed costs incurred by the university or its nominee in protecting, licensing, and maintaining the intellectual property."

ABOR policy specifies that the UA employees who create intellectual property will receive at least 50% of the first $10,000 of net income, and at least 25% of net income over $10,000. Income from this revenue sharing is separate from regular salary.

The University of Arizona implements ABOR policy by distributing net income from the license of any particular intellectual property according to the following table, current as of August, 2002. For more details, see the relevant policies.
 

UA Lifetime Net income UA Creator Creator Discretionary Account Fund for Promotion of Research Department Account Dean's Account
First $10,000 100%        
Next $40,000
(to $50,000)		 50% 30% 20%    
Next $450K
(to $500K)		 40% 25% 25% 5% 5%
Next $500K
(to $1M)		 35% 20% 30% 10% 5%
Above $1M 25% 20% 40% 10% 5%
Examples          
$3,000 $3,000        
$30,000 $20,000 $6,000 $4,000    
$300,000 $130,000 $74,500 $70,500 $12,500 $12,500
$3,000,000 $885,000 $624,500 $1,070,500 $272,500 $147,500

Notes:

  1. The Fund for Promotion of Research is a University of Arizona account administered by the Vice President for Research to promote research, develop intellectual property, and manage technology transfer.
  2. Under UA IP Policy §E(7), employees would not receive a personal share of Net Income when UA licenses their technologies to a company in which those employees hold a financial interest.