Research Foundation Royalty Distribution Process

The Research Foundation is responsible for receiving, processing and distributing all royalty income. When the royalty stream begins, all royalty income received is deposited into a Research Foundation bank account. The Research Foundation then distributes this income quarterly. Distributions typically take place within the month following the end of each quarter (e.g. distributions in January will be for royalties received during the preceding October, November, and December).

The Research Foundation cannot distribute funds until an executed Royalty Distribution Agreement (RDA) has been received. This agreement specifies the manner in which the funds will be distributed. If the department/unit does not have an established royalty project with the Research Foundation, one will be created. Once the project setup is complete and the first funds have been transferred into the project, the Dean/Department Chair will be notified of the project number and amount of the funds available.

Royalty distribution checks paid to inventors will include a distribution statement that displays the breakdown of the royalty income (including any legal fees recovered prior to distribution). Taxes are not deducted from the royalties paid to inventors, as this income will be reported on 1099 forms after the end of each calendar year. These forms are mailed out to recipients by January 31st of each year for the preceding calendar year. Individual taxpayers are responsible for reporting all royalty income received on their individual income tax returns.

If you have any questions regarding this process, please contact the Assistant Director of the Research Foundation at 644-8650.