Royalty Generation and Distribution

Next: Research ->

Royalty Distribution Policy

The royalty paid to OSU is usually a percentage of gross or net sales of products or services resulting from the licensed patents and/or trade secrets. The royalty percentage is based on a number of factors that include the type of patent, the markets in which the products will be sold, and the margins expected from product sales.

Royalty income generated from licenses or other marketing arrangements concerning University Intellectual Property is distributed according to the following guidelines as per the university IP policy OSU Policy and Procedures No. 1-0202 (Distribution of Income):

  1. All direct costs incurred by the university in obtaining, maintaining, and protecting the patent or other protection for the property, licensing, and /or marketing of the property shall first be recaptured from any royalties received by the university.
  2. After recovery of the above costs, the remainder of the royalty income shall be distributed as follows:
  • 50% to the inventor(s),
  • 30% to Technology Development Center, and
  • 20% to the college or division of the inventor(s) with the expectation that the money will go to the PIs lab.