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UMBC’s Royalty Distribution Example

UMBC’s Royalty Distribution Example. Gross Licensing Revenue. $50,000. Creator’s Share*. Project Costs. General Costs. 10% to 70% of Gross Licensing Revenue up to a max. of $10,000. Up to 70% of Gross Licensing Revenue until costs are recovered. 30% of Gross Licensing Revenue. $10,000.

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UMBC’s Royalty Distribution Example

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  1. UMBC’s Royalty Distribution Example Gross Licensing Revenue $50,000 Creator’s Share* Project Costs General Costs 10% to 70% of Gross Licensing Revenue up to a max. of $10,000. Up to 70% of Gross Licensing Revenue until costs are recovered. 30% of Gross Licensing Revenue. $10,000 $8,000 $15,000 Net Licensing Revenue* *Net Licensing Revenue is not distributed until the Creator’s Share of Gross Licensing Revenue reaches the $10K threshold. **The Creator receives a total of $18,500 in royalties in this example ($10,000 + $8,500). All Remaining Gross Licensing Rev. after Inv.’s share is maxed. $17,000 Creator’s Share* University Share 50% of Net Licensing Revenue. 50% of Net Licensing Revenue. $8,500 $8,500 * If the Department Allocation has reached the $100K/yr threshold, the Department receives 15% of the University Share for the remainder of that year. Department Allocation* Remaining Univ. Share 85% of Univ. Share until $100K/yr and 15% thereafter. Remaining portion of University Share after Dept. Allocation. $7,225 $1,275 Creator’s Research Share* * If the Creator’s Research Share has reached the $50K/yr threshold, the Creator’s Research Share is 20% of the Department Allocation for the remainder of that year. Department Share Remaining portion of Dept. Alloc. after Creator’s Research Share. 50% of Dept. Allocation until $50K/yr & 20% thereafter. $3,612.50 $3,612.50

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