6.10 Policy on Commissions, Royalties, and Patents
The following policy is for research, scholarship, and artistic projects that have either partial or full financial support from the college. The policy is introduced to clarify financial arrangements that follow college support for the project.
6.10.1 Guidelines for Support of Scholarship
6.10.1.1 Non-Reimbursed Expenses
The college will support reasonable, non-reimbursed expenses in doing research and scholarship. This includes secretarial service, copying, computer use, interlibrary loan services, office supplies, and others that are expected as a faculty member. While these are normal expectations of faculty members, they too can be used unreasonably, and the college may need to establish guidelines for reasonable support when there is evidence of abuse of the privilege or when the college resources are limited. Prudent use of these resources is expected and should not interfere with providing these services to faculty in their teaching.
6.10.1.2 Application for Support
Support for scholarship and research beyond that which is expected by being a faculty member can take quite different forms depending on the nature of the research. In general, whenever possible, faculty members should seek outside support for scholarship that has requirements for support beyond that which is normally supplied for a faculty member. Student assistants, special equipment and supplies, publication expenses, computer software or computer intensive projects, rare books, translation needs, travel to sources, survey expertise, etc. may be funded by the college on occasion, but in all cases, application for support is necessary. Application for support should be made to the Academic Dean or the Dean for Research and Scholarship.
6.10.1.3 Salary Support
Salary support for scholarship and research comes with faculty appointment since there are scholarship expectations of each faculty member. These costs are part of the salary budget of academic departments. However, salaries for study leaves granted as part of a scholarship or faculty development program are allocated to the budgets of those programs (sabbatical, interim, Calvin Research Fellowship, CCCS Fellowship or summer stipend). These study leaves are available according to established policy and availability of funds. When included as part of the expense of scholarship, the cost of fringe benefits as well as salaries are included as an expense of the program.
6.10.1.4 Special Support
In this policy, regular college support is distinguished from special support. In regard to inventions and patents, special support means financial support for pursuit of a patent as defined in the policy below. For all other scholarship projects, special support means financial support for projects in response to written application. This includes support for services and supplies and salary (as stated above). The application process for special support will include agreement to share the revenue when income is received from the product of the research and scholarship according to the policy stated in this document.
6.10.2 Policy Regarding Inventions and Patents
6.10.2.1 Discovery or Creation
A member of the faculty is expected to notify the Provost or designee of the conception of discoveries or creations which could be useful and/or which are potentially patentable. Those discoveries or creations conceived or reduced to practice within the course and scope of the faculty member's employment by the college are considered to be owned by the college. Those discoveries or creations not conceived nor reduced to practice within the course and scope of the faculty member's employment by the college, are considered to be owned by the faculty member, but the college shall have an unencumbered right to use the discoveries or creations for its own purposes. In either case, after notification, the Provost or designee, on behalf of the college, can choose to further develop the discovery or creation including obtaining or assisting in obtaining a patent, or waive its rights to the discovery or creation. For those discoveries or creations owned by the college, the faculty member is expected to assist the college in such developments, including any patent application. If the college joins with the scholar or inventor in application for a patent on a discovery or creation owned by the faculty member, it will provide special support for the process of patent application.
When the college waives its rights to the discovery or creation, the faculty member provides the financial resources for pursuit of a patent.
6.10.2.2 Outside Sponsor
When the research involves an outside sponsor, there should be an agreement which specifies and protects the interests of the faculty member, the college, and the outside sponsor in regard to ownership of any patents that result from the work.
Agreements with outside sponsors must be approved by the Provost or designee and will include, at a minimum, clarification of ownership; identification of licensable rights, if any; and an indemnity of the college and the faculty member against damages arising from anything placed into the stream of commerce through the sponsor's efforts.
6.10.2.3 Revenue
6.10.2.3.1
Income from discoveries or creations, as defined above, that is legally protected and for which the college has waived its interests shall belong solely to the faculty member.
6.10.2.3.2
Income from discoveries or creations resulting from work accomplished with the support of an outside sponsor will be divided according to the agreement between the college and the outside sponsor.
6.10.2.3.3
Income resulting from discoveries or creations for which the college has provided resources and for which the college has NOT waived its interests will be apportioned as follows:
- The first $2,500 goes directly to the creative professional(s).
- Income beyond $2,500 will be used to reimburse the college for two times any actual expenses* in developing the discovery or creation. During this repayment period, the income will be divided between the creative professional(s) (thirty percent) and repaying the college (seventy percent). [*College expenses do not include faculty salary or monies coming from regular internal grant programs that support faculty scholarship except for Calvin Research Fellowships. The CRF actual expenses will be repaid at only one times the expense.]
- After repaying twice the college’s actual expenses, the creative professional(s) will receive the next $20,000 in income. This sum will be increased every five years from the date of policy approval based on the CPI.
- Any additional income will be divided between creative professional(s) (sixty percent) and the college (forty percent).
Income is defined as revenues minus expenses. Expenses are all costs needed to maintain the value of the IP required in the year the revenues are obtained.
These thresholds ($2,500 and $20,000) apply individually to each separate project for which intellectual property protection has been obtained.
When more than one creative professional is involved in a single project, the distribution among the creative professionals will be determined on a case by case basis.
6.10.2.4 Funds
Funds the college receives from the income from inventions and royalties shall be placed in a fund restricted for further support of research and scholarship. The Provost will authorize the distribution of the funds among the investigator, department, and the college.
6.10.2.5 Board of Trustees Approval
This policy shall take effect upon approval by the Board of Trustees and will apply to those projects for which financial support is received subsequent to that date.
6.10.3 Policy Regarding Copyrights
6.10.3.1 Copyrights
Copyrights on publications (defined as the product of research and creative activity; e.g., books, artwork, and software) shall be owned by the faculty member who is the author or artist unless the author(s) or artist(s) sign away such rights to the college as a condition of a grant. Unless stated to the contrary by separate agreement, the college waives its rights to ownership under the work-made-for-hire provisions of the Copyright Act, it being the intention of the college that the faculty member shall own all copyrights to works created by the faculty member.
6.10.3.2 Royalties, Commissions and Income
If publication by a faculty member does not involve any special college support, all royalties, commissions, and income from artwork, software, films, or tapes resulting from it belong to the author.
6.10.3.3 In-House Publishing or College Ownership
When the college produces and/or publishes the work in-house or the college owns the copyright, the revenue from the sale is first used to repay the direct and indirect expenses incurred by the college. Subsequent to that the author will receive a royalty on all sales. The amount of the royalty will depend on the nature of the publications but will not exceed eight percent of sales.
6.10.3.4 College Support
For purposes of determining the sharing of revenue from publication of scholarship, college support will mean special support as defined in 6.10.1.4 above. Publication refers to printed material, artwork of all types, and software.
6.10.3.5 Revenue from Research and Scholarship Supported by the College
Revenue from publications which result from research and scholarship supported by the college (as defined above) will be shared between author(s) and college until twice the amount of special support provided by the college is paid by the scholar to the college. This maximum payment will apply unless the author(s) assign the rights to the college. The schedule for such payment is as follows:
- The first revenue received from the publication is used to repay personal expenses incurred by the author(s) in doing the research and publication.
- After repayment of personal expenses, the next revenue in the amount of one-fourth of base salary (for the year of the grant) is not shared with the college.
- From the revenue received that exceeds the amount in 1 and 2 above, the scholar should pay the college fifty percent (50%) until the maximum payment is reached.
After the threshold for payment has been reached, the scholar/artist shall report annually on income received from the products of the work done with college support until the obligation for payment is fulfilled.
Funds the college receives from royalties, commissions, artworks, and software shall be placed in a fund restricted for further support of research and scholarship. The provost will authorize the distribution of the funds received.
