In its normal course of business to commercialize UNM inventions, UNM Rainforest Innovations licenses technologies to established companies and entrepreneurs. The license agreements stipulate the initial license fees due to UNM Rainforest Innovations, either in cash or in number of shares of the licensees’ stock. License agreements typically require annual royalty payments based on percentage of sales with an annual minimum payment due to UNM Rainforest Innovations, as well as milestone payments. Under the MOA with UNM, UNM Rainforest Innovations’ share of the net license and royalty revenue (less patent and related expenses) is 40%. The inventors receive 40% of the revenue as royalty sharing. UNM receives 20% as royalty sharing.
1700.30 Amounts Due to UNM and Due to Inventors and Applicable Royalty Sharing Payments
Amounts due to UNM and due to inventors carry over from year to year and UNM Rainforest Innovations has created a document tracking licensing revenue for all agreements with allocable amounts owed to UNM and inventors per the UNM IP policy.
The document will be maintained on an ongoing basis and will be reconciled by the Controller on a quarterly basis. Reconciliation of accounts shall be completed no later than the last day of each January, April, July, and October for the preceding December, March, June, and September, respectively.
The Controller and President & CEO will each approve the reconciliation.
Royalty sharing payments to inventors shall be completed every six months by March 31st and September 30th for the semi-annual period ending December 31st and June 30th, respectively.
Royalty sharing payments to UNM shall be completed by September 30th of each year for the prior fiscal year’s activity.
Royalty sharing payments to both UNM and inventors will be processed by the Controller and approved by the President & CEO.