The April 16, 1990 policy has been rescinded and all inventions reported before October 1, 1997 will be governed by the November 18, 1985 policy. This avoids the need to administer three separate income distribution formulas over many years. It also eliminates a formula that was perceived to be less favorable to inventors.

The 15% administrative assessment (used in previous formulas) has been removed from the new formula so that net income is now defined as total income less unreimbursed direct case expenses. This simplifies the calculation of royalty income to be distributed to inventors.

For each invention reported on or after October 1, 1997, net income will be allocated as follows:

15% to research at the inventor's campus or Laboratory. This new element of the royalty distribution formula requires that a minimum 15% of net income from each invention be designated for research-related purposes and allocated in accordance with plans to be developed at each campus and Laboratory.

Under current practice, after the two allocations set forth in the policy, 50% of cumulative net income will be allocated to the general pool at the campus or Laboratory of the inventors. This pool will continue to support program costs, including the State share, operating expenses, and direct expenses of inventions not earning income. Residual income, if any, will be available to chancellors and Laboratory directors for educational and research purposes consistent with provisions of the Bayh-Dole Act.