WARF’s Royalty Revenue Sharing Program

WARF shares the royalty revenue generated by a licensed technology with the technology’s inventor(s), the inventors’ academic departments, and the UW–Madison Office of the Vice Chancellor for Research and Graduate Education. The following is a general description of how royalties are divided among these entities.

Inventor/Author Share

For licensing income resulting from patents and non-copyrightable technologies, the inventor or inventor group receives 20% of the gross royalty revenue generated.

For licensing income resulting from non-patented copyrightable works, specifically computer software, the author or the author group receives 40% of the gross royalty income generated for the first $100,000 per license; for income over $100,000 per license the author or the author group receives 20% of the gross royalty income generated.

In the case of multiple inventors/authors, the share is split equally among all inventors/authors. Payments are made to the inventors/authors in the month following the receipt of the royalty payment.

WARF’s Annual Grant to the UW–Madison

WARF’s grant to the university is unrestricted, meaning the university can spend the gift as it sees fit. The following is a general description of how different portions of the grant are allocated.

Department Share of the Annual Grant

The inventors’ academic departments receive a grant equaling 15% of the gross royalties generated by the licensed technologies. If applicable, department share can be split among multiple departments.

Office of the Vice Chancellor for Research and Graduate Education Share

After the inventor and department shares have been allocated, the remainder of WARF’s annual grant is distributed by the UW–Madison Office of the Vice Chancellor for Research and Graduate Education to support a variety of projects and programs each year, including:

The Office of the Vice Chancellor for Research and Graduate Education Research Competition
The Romnes Early Career Awards
Kellett Mid-Career Awards
Named professorships
Graduate fellowships
Campus building projects

Read the policy on Royalty Distribution for License Agreements signed before July 1, 2008.

After an assessment of the 10-year practice of allocating a portion of initial royalty revenue to inventors’ laboratories, the WARF Board of Trustees has decided to eliminate “lab share” from the foundation’s income distribution structure. Read the full announcement: Elimination of Lab Share from Royalty Sharing Program (Jun 20, 2008).