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Income Distribution

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Distribution of License Income


 Excerpt from East Carolina University Patent Policy

 POL10.40.01 Version 2

 4. Revenue Sharing 

 4.1. The University shall share revenue earned from technology transfer activities with the Inventor(s) as
specified in this section. Specific provisions of grants or contracts may govern rights and revenue distribution
regarding inventions made in connection with sponsored research; consequently, revenues the University
receives from such inventions may be exclusive of payments of royalty shares to sponsors or contractors.
Moreover, the University may contract with outside persons or organizations for the obtaining, managing, and
defending of patents. Any expenses incurred for the services of such persons or organizations, as well as any
and all incremental expenses incurred by the University in obtaining and maintaining patents and/or in marketing,
developing, and licensing and defending patents or licensable inventions, shall be deducted before the University
distributes revenues as provided in Section 4.2 below. 

 4.2. The revenues that the University receives from a patent or invention shall be distributed as follows:  


                                                           1st  $1,000             Next $100,000          Greater than $101,000


Inventor(s)                                               100%                           50%                             40%       

Department(s)                                            n/a                             15%                             15%       

School / College(s)                                     n/a                               5%                               5%       

Invention Management Fund                       n/a                             25%                             30%       

Research & Graduate Studies                      n/a                              5%                              10%  


4.3. Applicable laws, regulations or provisions of grants or contracts may, however, require that a lesser
share be paid to the Inventor(s). In the case of co-Inventors, each percentage share described in Section 4
as due a sole inventor shall be subdivided equally among the co-Inventors unless all the co-Inventors
provide the University a written instrument signed by each of them allocating ownership among them other
than in equal shares. In no event shall the share payable to the Inventor(s) in the aggregate by the
University, pursuant to Section 4.2, be less than 15% of gross royalties received by the University. 

4.4. To the extent practicable and consistent with State and University budget policies, amounts allocated to
the University pursuant to the above chart will be dedicated to support University scientific research,
development, commercialization and education activities.  

4.5. In the event that the Inventor(s) leaves the University, either voluntarily or involuntarily, and the
Inventor(s) is entitled to receive compensation in accordance with this Policy, then the Inventor(s) shall
continue to be entitled to receive payments during the remaining term of the applicable license agreement.
In the event of death of an Inventor(s) who is entitled to receive compensation in accordance with this policy,
then such payments will be paid to the Inventor's/Inventors' estate or as directed in accordance with a court
approved action.