Page 41 - Innovator Handbook

Revenue Distribution
How are license revenues distributed at FAU?
Per the FAU Intellectual Property Policy, revenues from license fees, royalties and equity — minus any unreimbursed expenses — are shared with researchers, colleges, departments and the FAU Research Corporation. If you have additional questions about license revenues, contact OTD.
What if I receive equity from a licensee?
If a researcher has received or will receive equity directly from a licensee of an innovation, FAU policy states that the researcher will not receive any of the equity received by FAU in connection with that license. Equity includes stock, stock options or stock warrants.
What are the tax implications of any revenues I receive from FAU?
License revenues paid to researchers are generally taxable and are reported as Form 1099 income. Consult a tax advisor for specific advice.
How are license revenues distributed if multiple researchers contributed to the innovation?
The share of royalties allocated to researchers is divided equally unless all researchers agree in writing to another distribution formula of their collective choice.
How is equity from a license distributed?
Equity received under a license agreement is distributed to researchers that are not receiving equity directly from the licensee, in accordance with the same policy that governs the distribution of cash revenues. The prescribed shares are issued by the company to these researchers
in the researchers’ names.
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