Royalty Distribution Policy

This Royalty Distribution Policy applies to all New Technology Disclosures filed on or after the effective date of July 1, 2001. The Intellectual Property Division Office (IPD) may update this memo in response to requests for further clarity or if the official allocation rules change.

New Technology Disclosures filed prior to July 1, 2001, are subject to the Royalty Distribution Policy in effect at the time of the disclosure. Copies of that policy can be obtained by contacting the IPD office.

The University at Buffalo royalty distribution schedule effective July 1, 2001, is as follows:

*Department chair approves use with approval of dean.

INVENTORS’ SHARE:

Under the SUNY Patents and Inventions Policy, 40% of gross royalty income is shared with the inventors:

• INVENTOR for the purpose of the Royalty Distribution Policy means an individual who is an inventor under United States patent law (participated in the conception of the invention) and who because of the SUNY Patents and Inventions Policy must assign the invention to SUNY. It does not include, e.g., a co-inventor employed by a company and whose’ participation did not involve the use of facilities owned or controlled by SUNY.
• In the case where there is more than one inventor, each inventor’s share of revenues derived from the commercialization of their technology is decided among the inventors and concurrence is documented in an Inventors’ Agreement prepared by IPD. IPD does not decide how the inventors will share, but can offer advice if asked. All of the respective inventors MUST sign the Inventors' Agreement.
• The inventor’s share is NON-ASSIGNABLE. Checks will be made payable to the inventor and mailed to the inventor’s residence. There are some implications to this rule:
  1. You cannot share directly with a non-inventor. If you wish to share royalties, you must do so personally after receiving the check.
  2. You cannot have the money deposited directly in, e.g., a trust fund or to a charity.
  3. You must always inform IPD of current residence address.

• Receiving Inventor’s share of royalties does not depend on continued employment at UB. Royalties will follow you and if you die, will go to your estate.
• This 40% share is unlikely to change. The SUNY Patent Policy has the effect of New York State Law.

INVENTOR’S DEPARTMENT SHARE:

• The Inventor’s Department share is dependent on continued association with UB and reverts to University Support of Research on departure of all inventors from UB.
• In the case of multiple inventors, the division among different departments will follow the inventors’ share documented in the signed Inventors’ Agreement.
• If the inventors and department chairs agree to department share division different than the one documented in the Inventors’ Agreement, then ANY REVISION TO THE DIVISION FROM THE ORIGINAL INVENTORS’ AGREEMENT MUST BE ON FILE WITH IPD. If no revision is on file, IPD will distribute the Inventor’s Department share according to the signed Inventors’ Agreement.
• The department share derived from an invention made at a CENTER will be divided according to agreement between the center director and the department head. A SIGNED COPY OF THIS AGREEMENT must be on file at IPD.