The current royalty distribution formula for University of California inventions was adopted in an April 1990 revision to the patent policy. Since that time, there has been ongoing discussion regarding alternatives for the allocation of patent income.
Inventions are subject to the royalty distribution formula in effect when they are reported.
Under the pre-1990 policy, inventors received a more generous share than that provided by most other major universities. The primary rationale for the 1990 policy change was that individual inventors should not become unfairly enriched as a result of performing publicly funded research. However, concern has been raised in various forums that the current formula is perceived by faculty as a disincentive for participation in the technology transfer program. The current proposal, which addresses the above concerns and also supports other administrative objectives, is the result of several years of discussion and review involving the Technology Transfer Advisory Committee, the Academic Senate, and the Council of Chancellors. This would prevent the need to administer three separate formulas over many years and would eliminate a formula that is unpopular with many faculty members.