**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

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                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  PATENT POLICY                              POLICY:  XV.E.2x  
                                                                   
                                                                   
The policy of the University of Virginia is to consider and, where
appropriate, assist in the patenting and commercial development of
discoveries or inventions which are the product of University
research.  Any person who may be engaged in University research
shall be required to execute a patent agreement with the University
in which the rights and obligations of both parties are defined.

See also Procedure 15-4, "Completing
Patent Policy Agreement."

This policy is intended to:

 Provide an incentive to creative intellectual effort and the
 advancement of knowledge for the welfare of mankind;

 Insure that the respective interests of the researcher (as faculty
 or staff member or student), the University, any supporting
 sponsor, and society are considered and protected through the
 development of fair contracts and procedures;

 Assist the researcher and the University to realize tangible
 benefits from inventions or discoveries; and

 Advance and encourage further research within the University with
 whatever funds accrue to the University from inventions resulting
 from University research.

Definition of University Research and Researcher

For the purpose of this Patent policy and any documents developed
for its implementation, University research is defined as research
and related activities by any person,

 Which are related in any way to duties or responsibilities for
 which he/she has been compensated either by or through the
 University; or

 For which facilities owned, operated, or controlled by the
 University are used.

Products of research eligible for copyright protection are excluded
from this definition.

Definition of University Research and Researcher, Cont'd

Modification of this definition of University research may be
effected by the terms of a contract between the University and
another public or private agency or, in exceptional circumstances,
in the patent agreement with an individual University researcher.
A researcher is any person who may be engaged in University
research.

Administrative Responsibilities

Vice Provost for Research

Responsibility for the administration of the University of Virginia
Patent Policy is assigned to the Vice Provost for Research.

The Vice Provost for Research shall:

 Develop standards and procedures appropriate for the
 implementation of this policy;

 Obtain, maintain, and insure compliance with signed patent
 agreements:

      Between the University and each researcher, and

      Between the researcher and a sponsor agency as required by
      the terms of a grant or contract;

 Judge whether an invention or discovery is the product of
 University research;

 Advise the inventor whether an invention or discovery which is the
 product of University research is patentable;

 Determine whether the University should claim equity in the
 patenting of an invention or discovery which is the product of
 University research, or whether all rights should be waived in
 favor of the inventor.  In the latter case, the inventor should be
 informed in writing by the Vice Provost for Research that the
 University relinquishes all claims to the
     invention or discovery;

 Take appropriate steps in behalf of the University for patenting
 and/or marketing of an invention or discovery in which the
 University has an equity;
        
Administrative Responsibilities

Vice Provost for Research, Cont'd

 Administer the royalties accruing to the University as a result of
 the implementation of this policy;

 Establish guidelines for use of royalties accruing to the
 University as a result of the implementation of this policy.

Decisions regarding the University's rights to an invention shall
be made within a reasonable time so that an inventor's options are
not compromised unnecessarily.

The Office of Sponsored Programs

In implementing the Patent Policy, the Office of Sponsored Programs
shall:

 Inform the Office of the Vice Provost for Research and principal
 investigator of all requirements regarding patents in any grant or
 contract accepted by the University of Virginia;

 With the aid of the principal investigator and in conjunction with
 the Office of the Vice Provost for Research, provide all invention
 reports and other pertinent information regarding patents as
 required by the terms of a grant, contract, or agreement to which
 the University is a party.

The Vice President and Provost

The Vice President and Provost shall:

 Approve the standards and procedures and any amendment thereto
 developed by the Vice Provost for Research for the implementation
 of the Patent Policy;

 Review the actions of the Vice Provost for Research which are
 appealed by researchers and recommend appropriate action.

 Conduct an annual review of the patent program with the Vice
 Provost for Research.

Distribution of Royalties to the Inventor(s)

In general, the inventor(s)*  will receive from any product of
University research fifteen percent of the gross royalties, license
fees, or other income which accrues.  The inventor(s) may elect to
have any part of this amount assigned to the University for support
of research by the inventor(s).  This provision will continue as
long as income is received from the project, and it will be
continued according to law in the event of the death of the
inventor(s).  

* To be shared in accordance with the distribution specified in the
disclosure.

An institutional agreement between the University and an outside
patent management firm, such as the University of Virginia Alumni
Patents Foundation, will specify a distribution of royalties and
other income.  Sums received by the Patents Foundation in excess of
their annual budgeted operating costs will be transferred to the
University for distribution.

Sums transferred to the University will be divided between
laboratory support of the research of the inventor(s), for research
in the School(s) in which the inventor(s) have primary faculty
appointment(s), and for scholarly activities based on proposals
from the entire University community.  The distribution formula is
as follows:


                                                        Scholarly
                               Inventor(s)              Activities
                               Research       School      Fund

From           $0 - $ 99,999   100%             0%          0%
From     $100,000 - $299,999    70%            20%         10%
From     $300,000 - $999,999    50%            30%         20%
Above  $1,000,000               30%            40%         30%


Funds to support University scholarly activities will be deposited
in an interest-earning account, both the principal and interest of
which are to be used to support scholarly activity based on
proposals from the entire University community.  A committee of
distinguished faculty from the academic units of the University
will be appointed by the academic vice president to advise them on
the distribution of these resources in accordance with the
guidelines for the Academic Enhancement Program, dated July 20,
1988 (funded by a special appropriation by the Board of Visitors). 
                                                                   
Distribution of Royalties to the Inventor(s), Cont'd

Should an inventor leave the University, his or her share of the
sums transferred to the University will be divided equally between
the appropriate school(s) and the scholarly activities fund used to
support scholarly work in all fields at the University.

This policy should be reviewed at lease once every five years by
the University Research Policy Advisory Committee.

Revised by the University Research Advisory Committee on January 6,
1992.

Inventions and Discoveries Which are not the Result of University
Research

The University normally will relinquish any claim to an invention
or discovery which is judged by the Vice Provost for Research not
to be the product of University research.  However, in such cases
the researcher may request that the invention or discovery be
appraised by and, if appropriate, assigned to the University.  In
such cases, the terms of the agreement will be determined by the
inventor and the University.

Approved by the Rector and Visitors of the University of Virginia
on April 6, 1973; amended May 28, 1976; amended October 7, 1978.

Implementing Guidelines

Purpose

These Guidelines are intended to contribute to the effective
implementation of the "Patent Policy for the University of
Virginia," as approved by the Board of Visitors on April 6, 1973,
and subsequently amended by defining relevant rights and
obligations of the inventor and the University, as represented
primarily by the Vice Provost for Research.

Responsibilities of the Inventor and the University

Responsibility for timely and responsible disclosure of potentially
patentable inventions and discoveries rests with the inventor. 
Disclosure forms are available in the Office of the Vice Provost
for Research.  Guidance is available from the Vice Provost for
Research on responsible steps which should be taken to protect the
interests of the inventor and the University.

Responsibilities of the Inventor and the University, Cont'd

The Vice Provost for Research will provide the inventor a timely
response to the following:

     Is the invention or discovery the product of University
     research as defined in the "Patent Policy for the University
     of Virginia"?  

     If the determination is negative, formal notification will be
     given to the inventor of the absence of any vested interest of
     the University in the invention or discovery.  The
     notification will be initiated, prepared and signed by the
     Vice Provost for Research.

     Will the University refer the invention to an outside
     organization to determine the patentability and marketability
     of the invention?

     To which outside organization is the invention to be referred?

An answer to these questions will normally be expected within sixty
(60) days after the submittal of a fully executed disclosure to the
Vice Provost for Research by the inventor.

The inventor will cooperate in the patenting and licensing of the
invention or discovery, whether requested by the University, the
licensee(s), or an agent or assignee of the University, e.g., the
University of Virginia Alumni Patents Foundation or Research
Corporation.

If, after the initial steps have been taken, no further current
action is judged desirable by the Vice Provost for Research, the
inventor may formally request the right to pursue on his own the
patenting of his invention or discovery.

Appeal of Actions by the Vice Provost for Research

Provision is made for appeal to the Provost or his designee by the
inventor of actions by the Vice Provost for Research.  Grounds for
appeal are alleged failure of the Vice Provost for Research to
fulfill the patent policy for the University of Virginia, follow
these implementing guidelines, or demonstrate due diligence to
avoid compromise of the inventor's equity in his invention or
discovery.  On the grounds that they are without support in fact
and are unreasonable, the inventor may also appeal the decisions of
the Vice Provost for Research in response to the questions about
the product of University research.
                                                                   
IAppeal of Actions by the Vice Provost for Research, Cont'd

The inventor shall submit his appeal to the Provost or his
designee, who shall satisfy himself that the inventor has made a
reasonable effort to resolve his complaint with the Vice Provost
for Research and the substance of appeal is arguably proper.

Proceedings shall be informal but all parties shall have adequate
notice and opportunity to be heard.

After hearing all relevant testimony the Provost or his designee
shall decide the merit of the inventor's grievance and advise the
Vice Provost for Research on appropriate subsequent action.

Approved by the University Research Policy Council on June 6, 1973,
amended on March 5, 1974, May 28, 1976, October 7, 1978, and
January 2, 1992.


ISSUED BY:                                                 06/23/93

Vice Provost 
for Research                   15.5.2.7