Royalty sharing procedure

Where a UNC invention or copyright has been licensed and income is received, a portion of that income will be distributed to the individual inventors/authors and their departments/units as follows:

	Inventions¹	Copyright (University)²	Copyright (Inventor)²
After expenses:
Inventors/authors	40%	40%	70%
Department/Unit	40%	40%	20%
OTC	20%	20%	10%

¹UNC Patent and Invention Policy ²UNC Copyright Policy

Frequently Asked Questions

Individuals named as inventors on UNC inventions (all employees) or authors on UNC copyright ( EHRA employees only)
For patentable inventions, inventors are assigned in accordance with U.S. patent law.
For non-patentable inventions covered by the UNC Patent and Invention Policy (software, complex multimedia works, tangible materials, etc.) inventors will be assigned as if the invention were patented.
For copyright not included in the UNC Patent and Invention Policy, authors are assigned in accordance with U.S. copyright law.

Distributions will not be made to UNC employees who are not inventors/authors except where approved by OTC and the UNC Provost
Distributions will only be made to inventors/authors who are (or were) UNC employees except where authorized in a contractual agreement approved by OTC
Distributions are allocated equally between inventors/authors unless written authorization for an unequal allocation is provided from all inventors
SHRA employees are not eligible for distributions as authors under the UNC Copyright Policy

Yes but you must waive all income, you cannot waive partial amounts. Send a signed letter to otcroyalty@unc.edu indicating for which invention(s) you want to waive royalty income and indicate which UNC unit/account is to receive the funds

Distributions are made pro rata per invention/copyright, and then per UNC inventor/author
Distributions are allocated equally between inventors/authors unless OTC receives written authorization for an unequal allocation signed by all inventors

Distributions are made pro rata per invention/copyright, and then per UNC inventor/author, and then equally to each person’s department in the same manner as to the individuals
Where the inventor/authors have agreed to an unequal distribution – their department allocations are made equally or as directed by the department (not according to the unequal percentages used for personal distributions)

Distributions are made to centers and institutes
- where an individual has no primary appointment in a department (e.g. research staff)
- where the department directs the revenue to be allocated to the center or institute (in whole or part)
- where a policy exception has been approved by the UNC Provost

Where an individual has an appointment in more than one department, revenue will be allocated as instructed and approved by all of the departments. If there is a dispute OTC will hold the income until the matter is resolved by the units involved.
Once a multi-department allocation is approved for an individual, that same allocation will be applied to all subsequent distributions for that individual

Only the lead inventor/author will be kept informed of the license and income status – all others will be notified only during distribution periods if they are receiving a distribution
If income has been received and is being held only the lead inventor/author will be kept informed of the reason for, and expected duration of the hold
Income is often tied to specific events – we cannot predict when income is expected or when it will be paid to the UNC

Please wait at least 20 business days before sending an inquiry
Email otcroyalty@unc.edu after 20 business days if you received a distribution notification but have not received payment

Distribution Procedures

General Information:

Distributions are made twice a year – January and July
Funds may be held where there are outstanding expenses or incomplete information
Funds owed to external partners are allocated before calculating UNC distribution plans
Email inquiries to otcroyalty@unc.edu (emails are not reviewed on a daily basis except during distribution periods)

Information for Departments/Units:

The first distribution for each invention/copyright must be reviewed and approved by the department/unit(s) involved, all subsequent distributions will be allocated as previously approved
A chartfield string must be provided to OTC in order for distributions to be processed
Funds are transferred by ConnectCarolina journal entry – A detailed royalty report will be attached to the journal entry identifying the source of the income, and the lead PI
Departments/units must approve the journal entry within 30 days of notice or the system will automatically delete the entry (reentry will wait until the next distribution period)

Information for Inventors/Authors:

An email summarizing all pending distributions will be provided to individuals upon completion of distribution payout request in Connect Carolina by OTC – retain this email for recordkeeping
If you are currently employed by UNC:
- Payments are made by direct deposit using Payroll information
- Send address and email updates by email to otcroyalty@unc.edu
- Maintain current address in ConnectCarolina (update address via ConnectCarolina self-service)
- Maintain up to date banking information with Payroll (payroll@unc.edu)
If you are no longer employed by UNC:
- Payments are made by check
- Send address and email updates by email to otcroyalty@unc.edu
- U.S. Citizen/Resident Alien: email to otcroyalty@unc.edu a completed W-9 (leaving Social Security number blank), and ACH form (optional). Please call our office at 919-966-3929 to provide your SS#.
- Non-Resident Alien – email to otcroyalty@unc.edu a copy of your Visa/Passport, and a completed tax form W-8BEN
Payments to the estate or heirs of deceased individuals
- A deceased individual’s share of royalty income will be paid to their estate
- Executor must send a death certificate, and a W-9 in the name of the estate to OTC at otcroyalty@unc.edu
Undeliverable checks are considered unclaimed property
- If a royalty check is returned as undeliverable to an invalid address, then after a prescribed amount of time, funds will be sent to the Office of State Treasurer
- Individuals may claim payment directly at nctreasurer.com
Tax questions
- UNC Disbursement Services issues 1099-MISC tax form reporting any royalty income you have received for the calendar year (you will need your distribution email to determine how much is attributable to royalty income rather than other miscellaneous income)
- Please contact finance directly with any tax reporting questions at finance.unc.edu and/or review the 1099 guidance provided by finance

Frequently Asked Questions

Who is personally eligible for a distribution?

What adjustments can be made to personal distributions?

Can my individual distribution be made to my UNC unit/laboratory rather than to me personally?

Are distributions made equally to all UNC inventors/authors?

Are distributions made equally to all UNC departments?

Are distribution made to UNC centers and institutes?

How are departmental distributions allocated where an individual is appointed to more than one department?

How will I know if income has been received?

Who do I contact if I received an email notification of a pending payment but my check has not arrived?

Distribution Procedures

General Information:

Information for Departments/Units:

Information for Inventors/Authors: