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):
• 40 percent to the developer(s) of the technology
• 30 percent to the developer's department
• 30 percent to the Baylor General Fund
• If the technology is partially funded by a non-profit or private foundation, BLG may be required to share the license revenue with the foundation per the funding agreement.
• 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.
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 (BCM Intranet login required) does allow for alternative distribution mechanisms in certain cases, at the discretion of the College.