Sub-regulations for the Distribution of Income from Patents

Having been established by the Executive Board of Radboud University Nijmegen and the Board of Directors of UMC St Radboud, this partial scheme is an integral part of the General rules for Knowledge Protection and Exploitation.

This partial scheme concerns the division of returns from the exploitation of patents (partially) resulting from efforts of employees and other academics of Radboud University Nijmegen and UMC St Radboud, and to which these institutions can claim rights as stated in the General Rules for Knowledge protection and Knowledge exploitation. Article 12 of the 1995 Dutch patent law (Octrooiwet 1995), the relevant provisions in the Collective Labour Agreement for Dutch Universities (CAO Nederlandse Universiteiten) and the Collective Labour Agreement for University Medical Centres (CAO Universitair medische centra), and the General rules for Knowledge Protection and Exploitation, serve as the legal framework for this scheme.

1. This scheme applies to employees of Radboud University Nijmegen and UMC St Radboud. In addition, the scheme applies to other academics at Radboud University Nijmegen and UMC St Radboud, such as interns, students and visiting professors, if it has been agreed with the person in question that the General rules for Knowledge Protection and Exploitation apply to him/her. ‘Employees’ in this context refers to those to which the stipulations in the Collective Labour Agreement for Dutch Universities and/or the Collective Labour Agreement for University Medical Centres apply.
2. ‘Returns’ refers to all monies received by Radboud University Nijmegen and/or UMC St Radboud by the selling or licensing, direct or through a third party, of requested or granted patents to which Radboud University Nijmegen and/or UMC St Radboud own the rights by law or according to relevant CAO provisions or the General Rules for Knowledge Protection and Exploitation. If any other party besides Radboud University Nijmegen and/or UMC St Radboud is entitled to a share in the returns such as has been defined in this paragraph, ‘returns’ will refer to the remaining portion of the returns after monetary compensation has been given to the third party by Radboud University Nijmegen and/or UMC St Radboud.
3. Only Net returns are eligible for division. The Net returns are determined at the end of the calendar year by the Executive Board of Radboud University Nijmegen at the request of the dean of the faculty in question and/or by the Board of Directors of UMC St Radboud at the request of the research director. In order to determine the Net returns, the costs mentioned under sub a, b and c are deducted from the returns as defined in article 2:
   a) the costs incurred by Radboud University Nijmegen and/or UMC St Radboud in three phases of the patent process, i.e.: the preparation (including patent scan), the actual application and the conservation of the patent or patents upon which the returns are based;
   b) the costs incurred by Radboud University Nijmegen and/or UMC St Radboud in preparation of the sale of the patent in question (for example market research or conservation of supportive patents) or licensing of the rights connected to the patent in question. In this case, the definition of a patent also includes the right to a patent;
   c) the costs incurred by Radboud University Nijmegen and/or UMC St Radboud for the further development of the invention in order to make the patent request or patent in question suitable for marketing.
4. The division of Net returns as described above in article 3 will be done once per calendar year by the Executive Board of Radboud University Nijmegen at the request of the dean of the faculty in question and/or by the Board of Directors of UMC St Radboud at the request of the research director, on the basis of the following stipulations concerning the division of returns:
   4.1 The (collective) inventor(s) will receive 25% of the Net returns, on the condition that the inventor(s) complies/comply with the General Rules for Knowledge Protection and Exploitation and the inextricably connected and confirmed partial scheme(s). ‘Inventor’ is defined as the person regarded as such by law and jurisprudence. Payout takes the form of a Gross bonus. In cases where the inventor/inventors relinquish(es) the right to a part of the returns, these funds will automatically be sourced to the department(s) involved and/or research group(s) where the finding was done.
   4.2 The (collective) department(s) involved and/or the research group(s) where the finding was done will receive 35% of the Net income. The amount in question can be bound to a maximum by the faculty or cluster management if full application of this provision leads to a departmental reserve for which, in the view of the faculty or cluster management, a sensible spending plan does not exist.
   4.3 The remaining 40% of the Net income will go to the general fund of Radboud University Nijmegen or UMC St Radboud.
   4.4 The Net returns will be paid out on a yearly basis in euros, against the market value of the moment at which the income from the third party/parties is received.
   4.5 Net returns that are not divided according to this scheme will go to the general fund of Radboud University Nijmegen or UMC St Radboud
5. The amount referred to in article 4.1 will be taken by the inventor(s) and by Radboud University Nijmegen and/or UMC St Radboud as the final settlement of all current and future rights the inventor(s) have or may have had in relation to the invention. By receiving this amount, the inventor(s) relinquish(es) all possible current and future rights to the invention, to the benefit of Radboud University Nijmegen and/or UMC St Radboud. The amount previously referred to in article 4.1 is to be seen as a reasonable compensation as stated in article 12 paragraph 6 of the 1995 Dutch patent law (Rijksoctrooiwet 1995), and insofar as it concerns employees of Radboud University Nijmegen as a reasonable compensation as stated in article 1.23 of the Collective Labour Agreement (CAO) for Dutch Universities.
6. This scheme applies to all returns from the exploitation of patents that are applied for by Radboud University Nijmegen and/or UMC St Radboud, and is in effect as of the day when this partial scheme is established by the Executive Board and/or Board of Directors.