INTELLECTUAL PROPERTY INCOME DISTRIBUTION
Net income proceeds from the commercialization of Tulane IP are distributed to stakeholders in accordance with Tulane’s IP Policy.
Inventors
Receive a share of net income based on their contribution to the development of the technology.
Schools, Labs, and Departments
Receive a share of net income based on their support for the research.
Office of Research/OIPM/TUII receives an administrative share of gross revenue to cover costs related to technology licensing and intellectual property management.
Gross Income Breakdown
1) Direct expenditures to protect or exploit the intellectual property are deducted from gross income proceeds.
2) After deducting the direct expenditures, 15% of the remaining gross proceeds from the intellectual property are deducted as an administrative fee to support TUII/OIPM.
3) The remaining amount, after deducting direct expenditures and administrative fees, is distributed as follows:
50% to Inventors
50% to the University (with further distributions to schools, departments, and investigator research accounts subject to the IP Policy and/or agreements)
How is net income distributed?
Upfront payments, option fees, equity holdings, milestones, annual license fees, and royalties are distributed according to Tulane University's IP policy.
Multiple inventors or inventions
Inventors agree on their percentage contributions, documented in a Revenue Sharing Agreement (RSA). Revenue is then allocated accordingly.
Startup Equity
The University holds equity until an exit event and then distributes proceeds according to the IP policy. Ownership interest in a startup does not impact your share of university proceeds.
Tax implications
Inventors are responsible for taxes on their shares and receive a Form 1099-MISC annually.
Consult a tax advisor for specific advice.
Disclaiming or changing your inventor share
Contact OIPM to learn how to adjust your standard share.
Administration fee
Covers costs of technology licensing and IP management, including:
Agreement marketing/negotiations and monitoring license agreement
Post-contract compliance
Support of the Tulane Innovation Institute and the Office of Intellectual Property Management
Administration of Tulane Innovation Institute Provost’s Proof of Concept Seed Fund
For more information
Refer to Section 9 of the Tulane IP Policy
