Policy#: OR-0002

Effective Date: April 4, 2019

Last Revision Date: April 4, 2019

Copyright Royalty Income Disposition

(Policy OR-0002)

I. Purpose of the Policy

The creation of copyrighted works is one of the ways the University fulfills its mission of contributing to the body of knowledge for the public good. The University encourages the creation of original works of authorship. 

Each UC campus has the discretion to determine the distribution of income received under Copyright Licenses.  At UCSC, the office of Industry Alliances & Technology Commercialization (IATC) is authorized to manage Copyright Licenses that are determined to be related to Sponsored Works, Institutional Works, or work authored by UCSC Designated Academic Appointees or Employees and assigned to the Regents of the University of California, in accordance with the UC Policy on Copyright Ownership.

The purpose of this Policy is to establish clear and uniform allocation of the royalty income arising from copyrighted works authored by University of California, Santa Cruz (“UCSC” or “University”) Designated Academic Appointees and assigned to the Regents, Sponsored Works, or Institutional Works, owned by the Regents and in accordance with UC Policy on Copyright Ownership or UC Policy on Ownership of Course Materials, respectively.

II. Definitions

For the purposes of this Policy, and in accordance with the UC Policy on Copyright Ownership and/or UC Patent Policy, as applicable, the following terms have the definitions listed below:

Copyright: The intangible property right granted by federal statute for an original work fixed in a tangible form of expression.  Copyright provides the owner with the following exclusive rights in a work: to reproduce, to prepare derivative works, to distribute by sale or otherwise, to perform publicly, and to display publicly.

Copyright License: Legal contract that conveys a commercial right to use intellectual property of copyrightable works arising from one or more specific invention disclosures of UCSC Case(s) in return for consideration in the form of fees and royalties.

Designated Academic Appointee: A University employee who has a general obligation to produce scholarly/aesthetic works, including all appointees in the Professor series, In-Residence series, Professional Research series and appointees in other academic titles may also be designated by the Chancellor as having the obligation to produce scholarly/aesthetic works.

Institutional Work: Works made by University employees in the course and scope of their employment and works made with the use of University resources.

Net Royalties: Gross royalties and fees (total payments received by UCSC for a Copyright License of a particular UCSC Case) received by the Regents, less any administrative costs, un-reimbursed legal fees and costs of registering, preserving, and protecting copyright and related property rights, and such other costs, taxes, or reimbursements as may be deemed necessary or required by law.  Equity is not an acceptable form of consideration for a Copyright License, and therefore Net Royalties will not include equity.  Net Royalties is not derived from research funds, expense reimbursement or from any other consideration of any kind received by the University, including UCSC.

Sponsored Work: A work first produced by or through the University in the performance of a written agreement between the University and a sponsor.

UCSC Case: A disclosure to IATC describing a copyrightable work of authorship that has been reduced to a tangible medium that is not an invention subject to the UC Patent Policy.  For disclosures that are potentially patentable and copyrightable, the UC Patent Policy shall take precedence.

III. Detailed Policy Statement

A. Net Royalties will be distributed as follows, except where they are subject to restrictions arising from overriding sponsor obligations:
  1. Works assigned to the Regents by Designated Academic Employees or Sponsored Works
(i)   33.333% of Net Royalties to the Campus as licensing income;
(ii)   33.333% of Net Royalties to the Designated Academic Appointee or UCSC staff employee who is the author, or to the author’s heirs, successors, or assigns (the “Author Royalty Share”).  When there are two or more authors, each shall share equally in this allocation unless the authors submit a written agreement signed by all the authors for a different distribution, pursuant to Section B below; and
(iii)  33.334% of Net Royalties shall be allocated for research-related purposes at the author’s research lab (the “Research Royalty Share”), subject to the allocation guidelines listed in Section C below.
  1. Institutional Works
(i)   33.333% of Net Royalties to the Campus as licensing income; and
(ii)   33.333% of Net Royalties to the UCSC staff employee who is the author, or to the author’s heirs, successors, or assigns (the “Author Royalty Share”).  When there are two or more authors, each shall share equally in this allocation unless the authors submit a written agreement signed by all the authors for a different distribution, pursuant to Section B below; and
(iii)  33.334% of Net Royalties to the UCSC Division from which the UCSC Case originated (the “Research Royalty Share”), subject to the allocation guidelines listed in Section C below.

B.  Distribution of the Author Royalty Share shall be made annually each July from the amounts received during the previous fiscal year ending June 30th. In the event of any litigation, actual or imminent, or any other action to protect copyright, the University may withhold distribution and impound Net Royalties until the matter is resolved.

C. To establish a clear and uniform allocation of the Research Royalty Share across UCSC, and in recognition of the importance of providing financial support to the authors and their research labs, the Research Royalty Share will be allocated to the UCSC research lab to which the author belonged at the time of invention, irrespective of the author’s UCSC employment status or research lab membership at the time of revenue distribution. Additionally, the following special allocation guidelines apply for their respective circumstances:
  1. In the case of income arising from copyrighted works created by multiple authors, the Research Royalty Share will be allocated in equal amounts to each of the authors’ respective UCSC research labs to which each belonged at the time of authorship.
  2. In the case where the author’s research lab at the time of authorship is no longer at UCSC at the time of revenue distribution, the Research Royalty Share will be allocated as follows:
    • If the author holds an active research position at UCSC at the time of revenue distribution, to the then current inventor’s UCSC research lab, or
    • If the author no longer holds an active research position at UCSC at the time of revenue distribution, to the UCSC Division to which the author’s research lab at the time of authorship reported into.
  3. In the case where the author did not belong to a UCSC research lab at the time of authorship, the Research Royalty Share will be allocated to the UCSC Division in which the inventor was employed at the time of authorship.
D. This Policy may be extended on a case-by-case basis to other copyrightable works owned by the Regents of the University of California and licensed by UCSC in accordance with the UC Copyright Policy. Such determination shall be made by the Vice Chancellor for Research, the Assistant Vice Chancellor for Research (IATC), or their authorized designee, all of whom shall also have the authority to grant exemptions to this Policy, as they may deem appropriate.

IV. Getting Help

IATC provides training and assistance to campus units (including help with completing forms, carrying out procedures, or interpreting policy).  Contact IATC at innovation@ucsc.edu or (831) 459-5415 with questions or for help pertaining to disclosing inventions (patentable, copyrightable, or other tangible research products), copyright policies, patent policies, or other intellectual property management matters.

V. Applicability and Authority

This Policy applies to copyrightable works of authorship that are owned by the Regents of the University of California and prescribes the distribution of related royalties and other licensing income.

This Policy does not apply to the following copyrighted works:

  1. Student-produced works that have been created without the use of University funds;
  2. Student-produced works that are created outside of University employment;
  3. Scholarly/aesthetic works created by Designated Academic Appointees; and
  4. Personal works, as defined by the UC Policy of Copyright Ownership

For any copyrightable work that is also potentially patentable, such as, including but not limited to, software or algorithms, the terms of the UC Patent Policy shall apply, even if the Copyright License does not grant any patent rights.  In a case where the application of the patent and copyright policies conflict, the ownership principles of the UC Patent Policy shall govern.

This policy on Copyright Royalty Income Disposition applies to all UCSC departments.  It is a new policy and thus supersedes any campus practices in existence prior to its effective date.  In particular, as of the date of this Policy, the use of Copyright Ownership and Disposition Agreements (“CODA”) is no longer required or permitted except in the following special circumstances as duly approved by the campus authority for copyright matters:

  1. In a case where the application of this Policy conflicts with the terms of a University gift, grant, funding or otherwise under an institutional contract associated with the copyrighted works, a CODA will be used to specify the allocation of the associated royalty income in accordance with such contractual terms.
  2. Royalty income arising from a Copyright License granted in conjunction with a specific Copyright Ownership and Disposition Agreement (“CODA”) prior to the date of this Policy will be distributed in accordance with that CODA until the expiry or termination of such a License.

The Vice Chancellor for Research is the campus authority for the Copyright Royalty Income Disposition policy, with implementation authority delegated to the Assistant Vice Chancellor for Research - IATC.

This policy was reviewed and approved by the Campus Provost and Executive Vice Chancellor, Marlene Tromp on [_______]. This policy will be reviewed every five years.

VI. Related Policies/References for More Information

University of California Academic Personnel Manual (APM)-020.II.7., APM-028-10. II. E., APM-670-19 b.3., and APM-671.10 b.2.

University of California policy on International Activities (6/23/17)

University of California policy on Copyright Ownership (8/19/92)

University of California policy on Ownership of Course Materials (9/25/03)

University of California Patent Policy (10/1/97)

VII. Revision History

April 9, 2019: New policy