CU Boulder Royalty Distribution
When the university licenses inventions to partnering companies, the university may receive royalties or other forms of economic consideration. This licensing revenue is distributed according to university policy, as follows:
- 25% to the inventor(s) personally
- 25% to the inventor’s/inventors’ research/lab account(s)
- 25% to the Chancellor (these funds then support research with high technology transfer potential, through the Chancellor’s Innovation Awards)
- 25% to the Research and Innovation Office to support technology transfer operations
More Details on License Revenue Distribution
These agreements are necessary for licensing intellectual property from CU:
- Non-exclusive License—An agreement between a company and the university where the company is receiving non-exclusive licensing rights to our Intellectual Property. Multiple companies may negotiate concurrent non-exclusive licenses with the university to acquire rights to the same Intellectual Property.
- Software License—An agreement between a company and the university where the company is receiving non-exclusive licensing rights to a software product developed at the university on an as-is basis.
- Start-up License—An agreement between a start-up and the university where ownership in the new company is provided as consideration for receiving licensing rights to CU's Intellectual Property.
The IRS has issued a Technical Advice Memorandum (TAM) that may have a significant impact on income tax reporting for royalty payments received by faculty inventors. CU provides a Form 1099 each year to faculty receiving these payments.