Alternate Distribution Process: Revenue from Potential IP Under Sponsored Research

Under the University of Arizona’s Intellectual Property Policy, the University provides for distribution of revenue related to University Intellectual Property (IP) received under licensing agreements. Occasionally, the University receives revenue under sponsored research projects related to the creation of “potential” IP. If such IP is actually created, then the standard revenue distribution policy would apply. However, in some cases, no IP is created during the sponsored research project or disclosed to Tech Launch Arizona. In these cases, the standard distribution does not apply, as there is no official IP, and therefore no inventor(s); an alternative revenue distribution applies.

Standard Considerations

  1. Tech Launch Arizona (TLA) holds payments related to “future IP” under sponsored research projects. This process describes how such money will be distributed when no IP is disclosed to TLA. 
  2. TLA will hold such funds until the sponsored project terminates. At that time, the money will be distributed per normal IP policy (if IP has been created and disclosed to TLA), or per the process described here.
  3. All PIs on the project, whether initially on the sponsored research project or added later through modifications will be eligible for distribution. Amounts will be distributed equally between PI discretionary accounts, unless agreed to differently by all PIs and approved by the IP Official.
  4. If a PI is no longer an employee of the University at the time of distribution, that share will be distributed among the remaining PIs. If no PIs remain, those amounts will be distributed pro-rata among the remaining accounts below.
  5. Net Income used for distribution is defined as the payments received for “future IP” under sponsored research projects, less: (a) a 15% University administrative fee to fund Tech Launch Arizona operations; and (b) unreimbursed related costs at the discretion and agreement of TLA and the Vice President of Research. 

Revenue Distribution of Net Income Under Sponsored Research Projects

  • 45% - PI(s) discretionary lab account(s)
  • 15% - Department Account
  • 10% - Dean Account
  • 30% - Fund for the Promotion of Research