California Code of Regulations › Title 17 - Public Health › Division 4 - California Institute for Regenerative Medicine › Chapter 6 - Intellectual Property and Revenue Sharing Requirements for Non-Profit and for-Profit Grantees › Section 100608 - Revenue Sharing

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				Licensing Revenue. A Grantee and Collaborator must share with the State of
				California a fraction of Licensing Revenue arising in whole or in part from a
				CIRM-Funded Invention, CIRM-Funded Technology, or results of CIRM-Funded
				Research, as follows:
In the event that CIRM funds at least one-half of the total
				  cost of the CIRM-Funded Project resulting in the licensed or transferred
				  CIRM-Funded Invention, CIRM-Funded Technology or results of CIRM-Funded
				  Research, then the amount owed is 25 percent of Licensing Revenue received in
				  excess of $500,000 and shall be payable to the State of California for deposit
				  into the State's General Fund (such payments to be used by the State of
				  California in a manner consistent with Title
				  35 United States Code,
				  Section 202, subdivision (c)(7)). The
				  threshold amount of $500,000 (in the aggregate) shall be adjusted annually by a
				  multiple of a fraction, the denominator of which is the Consumer Price Index,
				  All Urban Consumers, All Items (San Francisco-Oakland-San Jose; 1982-84=100) as
				  prepared by the Bureau of Labor Statistics of the United States Department of
				  Labor and published for the month of October 2009, and the numerator of which
				  is such Index published for the month in which the Grantee accepts the Grant.
				  In the event that CIRM funds less than one-half of the total cost of the
				  CIRM-Funded Project resulting in the licensed or transferred CIRM-Funded
				  Invention, CIRM-Funded Technology or results of CIRM-Funded Research, then the
				  amount owed is 15 percent of Licensing Revenue in excess of the threshold
				  amount described above.
(b)
				Net Commercial Revenue. A Commercializing Entity must share with the State of
				California for deposit in the State's General Fund a fraction of Net Commercial
				Revenue as follows:
(1) A royalty on Net
				Commercial Revenue at a rate of 0.1% per $1 million of CIRM Grant(s) for the
				earlier of Ten (10) years from the date of First Commercial Sale of the
				applicable Drug, product or service, or until such royalty equals nine times
				the amount of the Grant(s). (By way of example, Grants totaling $15 million
				will result in royalty payments of 1.5% of Net Commercial Revenues.)
(2) In addition, upon satisfaction of the
				obligation in subsection (b)(1) above, a 1% royalty shall be owed on Net
				Commercial Revenues in excess of $500 million per year until the last-to-expire
				patent covering a CIRM-Funded Invention, if any, that generates or plays a role
				in the generation of, in whole or in part, said Net Commercial Revenue;
				provided at least $5 million in CIRM Grant or Grants were made in support of
				such CIRM-Funded Research, CIRM-Funded Technology or CIRM-Funded
				Inventions.
(3) For purposes of
				subdivision (b) of this section, the royalty rate calculation shall apply only
				to Grants made to For-Profit Grantees and which were awarded subsequent to the
				effective date of this section, as amended, effective January 27,
				2014.
(4) Royalty payments owed
				pursuant to this section shall be paid within 60 days following the end of each
				calendar quarter.