Intellectual Property Policy at the
University of Notre Dame

Amendments to this Policy
The University reserves the right to amend this policy at any time. Royalty distributions due to University employees with respect to intellectual property matters are established by the policy in effect at the time that the University enters into any license agreement or other contractual arrangement concerning exploitation of the intellectual property.

Waivers
The University may grant a waiver of any provision of this policy on a case-by-case basis. All waivers must be in writing and signed by the Vice President for Graduate Studies and Research. Any decision to grant a waiver will take into account the best interests of the University and the facts of the particular situation involved. This paragraph shall not relieve the University of any of its obligations under this policy. Any waiver granted pursuant to this paragraph will apply only to obligations imposed on the creator, unless otherwise agreed to by the creator.

Royalty Distributions
Any distribution of royalties paid pursuant to this policy represents an employee benefit from the University to the recipient. Creators of intellectual property covered under this policy should understand that the receipt of distributions may have serious income tax ramifications; accordingly, creators are highly recommended to retain their own competent tax advice concerning the tax treatment of any income derived through the implementation of this policy.

Funds or other consideration provided by external sponsors to the University to support the performance of University research are not royalties and do not constitute income to the University on which royalty distributions may be computed.

When royalty income is received by the University from intellectual property covered under this policy, the income shall be distributed as follows:
- Royalty income will first be used to reimburse the University for direct expenses associated with the intellectual property. Such direct expenses may include, but are not limited to, costs for patenting, registering copyrights or trademarks, marketing, licensing, protecting, or administration.

- After deductions for expenses, net royalty income from intellectual property will be distributed as follows:

- Income and expenses will be computed on a cumulative basis. At the end of each fiscal year, the undistributed cumulative net income will be distributed according to the above schedule.

- In the case of multiple University creators, the creator's share will be divided among the co-creators as they mutually agree at the time of formal assignment of the intellectual property to the University. This agreement shall be in writing, signed by all creators involved, and submitted to the University. Should the creators not mutually agree on a division, the University will make the final decision on division after consultation with all parties involved. If several intellectual properties are licensed under a single licensing agreement, the University will determine the share of net income to be assigned to each intellectual property.

- For the purposes of royalty distribution only, all intellectual property, such as disclosures, patents, copyrights, marks, licenses, and similar matters related to a single technology, and improvements and extensions thereon, shall be grouped together. For example, if two license agreements should result from a single technology, the creator would receive 50% of the first $100,000 of net income from both licenses combined rather than 50% of the first $100,000 from each of the licenses. In cases of doubt, the University shall determine which matters shall be grouped into a single technology.

Date last reviewed Sep 2006