All license payments are collected by Baylor Licensing Group. Payments received are distributed according to the Policy on Patents & Other Intellectual Property. The distribution formula work as follows:
Fifteen percent of gross license income is deducted to support BLG's operations. Any direct expenses, such as patent costs that are not reimbursed by the licensees, are also deducted to yield net income.
Net Income Distribution
If the technology is 100% funded by federal or Baylor funding, the Net Income is then distributed as follows (as shown in the figure):
BLG: 15 percent and Patent costs, if any.
Net Income* is distributed as follows:
Developers - 40 percent Distributed as per the percentages listed on the disclosure form.
Department - 30 percent One or more departments represented by the developers.
BCM General Fund - 30 percent
Funding from Non-Profit Foundation
Net Income may be different in circumstances where the invention resulted from research funded by a non-profit foundation. Each foundation has different policies which we negotiate to try to minimize the income-sharing impact on the developers. This is also the case with joint disclosures with other academic institutions discussed above.
Collaboration with Another Institution
If the technology results from a collaboration with another academic institution, such that the technology is co-owned with that institution, the license revenue will usually be shared with the other collaborating institution, and BLG will negotiate a revenue sharing arrangement with the other institution, normally in the form of an inter-institutional agreement (IIA). The same principle applies if the technology is owned by multiple (more than two) academic institutions – typically the institution with the largest percentage ownership of the technology will take the lead commercialization role.
The BLG may, at times, accept equity in lieu of cash as part of the license fee. Generally, this equity is distributed in the same fashion as if it were cash license revenue, but Section V of the Baylor Policy on Patents and Other Intellectual Property (Baylor login required) does allow for alternative distribution mechanisms in certain cases, at the discretion of the College.