Revenue sharing scheme
Successful licensing of University owned intellectual property usually results in the University receiving licence income. This may be either as a lump sum or as a stream of royalty income over a period of time.
The University has a standard scheme for the apportionment of its licence income which reflects the involvement of the individuals concerned, the host Department and the University centrally. Where any contracts or terms and conditions of funding which contributed to the creation of the IP require a share of licensing income, these obligations will be honoured. Each case is considered according to individual circumstances. However,normally the apportionment of licensing income will be on the following scale.
Income: £0 gross - £4,000 gross
- 100% to the individual(s)
The first call on income is a payment to the individual(s) involved of up to £4,000. This is viewed as an advance allocation of part of the share of the first £15,000 (net of University outgoings) received.
Income: £0 gross - £15,000 net
The next call on income is the recovery of all outgoings by the University; for example patent and legal costs, thus reducing the gross income to a net sum. Further income, received after the initial payment of £4,000 has been made and after the recovery of University outgoings, is apportioned as follows:
- 70% to individual(s)
- 15% to host Department
- 15% to University
[Assuming net income of £15,000 has been received, the individual(s) will receive a total of £10,500 which includes the initial payment of £4,000.]
Income: £15,000 net - £75,000 net
- 50% to individual(s)
- 25% to host Department
- 25% to University
Income: greater than £75,000 net
- 1/3rd to individual(s)
- 1/3rd to host Department
- 1/3rd to University
These notes are for guidance only. Formal details of the scheme are contained within the Standing Orders of Council governing the appointment of academic staff. Please note that any payments made to individuals will be subject to all national insurance deductions and taxes.