How proceeds are distributed to inventors


Eighty percent of the proceeds from a license are shared equally among the inventors (for patent rights) and authors (for copyrights) of the technology (26.67%), their departments and schools (26.67%), and the Provost (26.67%). The Provost, schools, and departments invest in research programs. The remaining 20% goes to fund CoMotion’s patent budget and the commercialization services that provide world-class assistance to UW researchers.

If there are direct costs for the commercialization of this technology, these are reimbursed before any proceeds are distributed. Typical examples of these direct costs are the costs for patent prosecution, for product prototyping, and for consulting services specific to this project.

The inventors and authors together receive 26.67% of the proceeds. As a default, all inventors and authors receive an equal share. Often this default allocation among the team is modified by an agreement, to reflect significant differences in the levels of contributions across the team.

Project budgets

The above distribution may be modified by creating a Project Budget to support research that advances this technology. If the team forgoes part of its share in the proceeds, directing this instead to a qualified Project Budget, then the departments and schools match this, as does the Provost.

Proceeds from equity

For proceeds from equity received as part of the license consideration, if any of the inventors or authors hold equity personally in this company, then these inventors and authors are excluded from the division of the team allocation of such equity upon liquidation of the UW’s equity position. The remaining inventors and authors receive the 26.67% allocated to the team from the proceeds from the UW equity position. For clarity, the inventors or authors with a personal equity stake are still eligible to partake in proceeds related to royalties and other cash consideration.

Departments, schools and the provost

The departments and schools listed as affiliations by one or more inventors and authors together receive 26.67% of the proceeds, of which 75% goes to the departments and 25% to the schools. The division across departments and across schools reflects the division across the team of inventors and authors.

The Provost receives 26.67% of the proceeds, which is applied toward research programs. The Royalty Research Fund (RRF) is supported in part by these funds. CoMotion receives 20% of the proceeds and invests these in its resources and programs, to provide unparalleled commercialization support for UW researchers.

The distribution policy is part of Administrative Policy Statement 59.4 “Technology Transfer“.

NOTE: Technologies disclosed before 2003 are subject to an earlier distribution policy.