Revenue distribution
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 income for revenue distribution purposes is the net amount the University receives after deducting any proportion of royalties owed to other parties. For example, some funding bodies require a proportion of the royalties from any commercialisation of the work they fund.
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. Each case is considered according to individual circumstances. However, normally the apportionment of licence 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.
In the event of a dispute regarding revenue distribution the first course of action is to work with the Research Commercialisation team to see if it can be resolved. If the process is not satisfactory the Director of Enterprise will consider any appeal and resolve it with the Registrar if required.