Sharing the Revenue

A successful innovation will generate revenue for you, us, and the University. Although exorbitant royalty payments are rare, it is only fair that the licensee share the income it receives from a profitable innovation. Our licenses may result in any combination of:

  • A cash payment upfront
  • Milestone payments as the innovation is developed
  • Royalties as products are sold
  • Equity cash-out once the company has matured.

Some of this revenue may be realized right away and some may take years.

We share any revenue that we receive from a license according to University policy. Once we recoup our direct expenses, all proceeds from a license are distributed according to Section J of the CSU Faculty Handbook, as follows:

  • 35% to the CSU inventors (you),
  • 40% to CSU Ventures,
  • 15% to the office of the CSU Vice President for Research, and
  • 10% to the college of the CSU inventors.

We pay your share to you personally, wherever you are, for as long as we receive revenue. The 35% of revenues that we pay to the entire pool of CSU inventors is split according to what is agreed upon by the inventors. The money is paid to you personally (not your lab) and may be used for any purpose. You will receive your share for as long as income under the license is being collected, regardless of whether you work for CSU or move away (be sure to notify us of any address changes). If something happens to you, the money will go to the heirs of your estate.

Why are revenues split the way they are? CSU policy, which is similar to that of most other research universities, is meant to encourage and reward the vast number of people and resources that are needed to support academic innovation and its transfer to the private sector.