Royalty Sharing

The University of Kentucky licenses its intellectual property for use by business and industry (the university never "sells" the intellectual property). Licensing can happen at the same time as patenting; the university does not need an issued patent to license its IP. UK usually takes one of the following approaches to structuring an IP license agreement; royalties, license initiation fee, milestone payments, or equity in the company.

The Office for Commercialization & Economic Development works with faculty, staff and student inventors to identify potential licensees. Often UK inventors will license their own IP and develop the technology in a start-up company.

After patent costs are recovered, UK returns royalties according to the following formula:

• 40% to the inventors
• 20% to the department
• 20% to the college
• 20% reinvested in the commercial development of university-based technologies and technology-based businesses through the Office for Commercialization & Economic Development