Background

The Office of the Vice President for Research and Innovation (OVPRI), as part of its responsibilities for the management of university intellectual property (ORS 351.220-250, and OARs 580-043-0006-0007,-0011,-0016) and technology transfer practice (IMD 6.205 et. seq., and UO Policy II.07.01), provides a resource to the university community in intellectual asset creation, management, and deployment. All research and outreach units depend on Industry, Innovation, and Translation (IIT) support for the innovation-related technology transfer services that are vital to bring the tools, platforms, and their related services generated by projects into the marketplace.

In advance of any possibility for actual revenue generation, IIT personnel assess technology and information assets; organize them for dissemination; acquire rights in them as needed; define strategies to promote their use as well as the reputation of University of Oregon researchers and the institution itself; and implement the strategies, partnerships, and relationships that generate revenue to support the project. 

Because of the uniqueness of the copyright and other spaces in which these activities occur, specialized expertise in IIT is needed to accomplish these activities, which warrants a stable revenue source be determined.

The intent of this document is to clearly articulate the innovation services fee structure to ensure predictability and fairness as faculty and staff continue ongoing, approved innovation-related projects; develop new technologies; and expand existing products, technology, and services through IIT at the University of Oregon. 

What is the Innovation Services Fee?  

The innovation services fee on project revenue for specific research and innovation-approved projects represents a partial cost recovery mechanism designed to offset some costs of university resources (e.g., IIT personnel time, legal fees, and outside expert consultation as needed) used to support a portfolio of activities in which some projects may be revenue generating, some not; some projects may underperform while others excel. 

OVPRI approves certain projects to retain and manage revenue from license agreements, as well as managing all associated financial transactions therein (invoicing, accounts, and so on consistent with University of Oregon policies). These projects have been approved by the vice president for research and innovation based on the understanding that they were created by many individuals working in their capacity as university employees who have either waived any personal share in royalty or where the Vice President for Research and Innovation (VPRI) has determined that given the circumstances, the most equitable solution is to recover all costs associated with the activity and reinvest the remainder in the project.

The innovation services fee does not apply when faculty and staff have entered, through IIT, into a standard royalty sharing agreement based on the royalty sharing provisions in the Oregon University System Internal Management Directive (OUS IMD) 6.250(2), which provides that: “in determining disposition of income, due consideration shall be given to the equity of all parties in the light of all circumstances surrounding the development of the invention or material.” OUS IMD Directive 6.250(3) provides for the recovery and support of technology transfer expenses and costs (OVPRI or the project itself) prior to distribution of net income. Because OVPRI receives a portion of revenue, the innovation services fee is contained within that portion. A project must have disclosed the relevant works to IIT and undertaken management of the intellectual property rights by the UO to participate in the innovation services fee program. 

There are two separate components that comprise the innovation services fee (FY2023 rate: 13.4%). 

• Royalty: A percentage of royalty revenue received from license agreements by approved UO projects. This component of the innovation services fee is akin to the percentage of royalty that is returned to OVPRI as mandated by OUS IMDs, which currently funds traditional IIT activities. The innovation services fee component for this activity for FY23 is 8%. 
• Financial administration: A percentage of revenue received from license agreements by IIT for approved UO projects for OVPRI to manage associated financial transactions and accounts, additional risk elements (e.g., a reserve for legal liability associated with contracts or assets under IIT management), and any other innovation project administrative needs. The innovation services fee component for this activity for FY23 is 5.4%. 

Waiver of Financial Administrative Component

Units may petition the VPRI, on a project basis, for permission for the unit to manage the financial transactions and accounts and to assume all financial and legal risks and costs for the approved project. Prior to petition, the cognizant dean, director, or other authorized official must approve the request. The petition will consider history, unit capacity, and institutional risk. With VPRI approval, the administrative component of the fee is waived (FY15 = 5.4%) and the unit/organization structure assumes all financial and legal risks and costs for the approved project. IIT will review these projects annually before the fiscal year's close to assure the conditions under which the waiver was granted have not changed and reconsideration is not warranted. Projects with IIT-vetted licensing agreements and respective innovation services fee structure initiated and approved by the VPRI prior to July 1, 2012 are “grand-fathered” and do not need VPRI permission. 

(Updated June 2024)