Royalty income

Even though the study I have concluded does not show such agreements, employment contracts which provide that the employee will receive a specified percentage of any royalty income derived from licensing the invention do exist. This provision is fairly common in the aerospace industry but generally nowhere else. Should the invention have substantial value and be widely licensed, the inventor could derive substantially more than the usual payment of 100 to 200. In my first survey of California inventors, only 3% of the inventors received between 500 and 5000 for the invention, and not one received more than 5000. As previously indicated, 54% received 1 or nothing. 

Straight-line method is used for calculating depreciation cost ( 27,000/yr). Calculation of costs per year gives a total of 758,000/yr with this including all costs except those for royalty, income taxes, and startup in the first year of operation. This 758,000 includes the annual depreciation cost of... 

Royalty income to PHS agencies from licenses is a small fraction of the total PHS intramural budget. In 1988, the total NIH royalty income was just 0.03 percent of total NIH intramural spending. NIH takes the position that the purpose of royalties is to stimulate technology transfer by offering an attractive incentive to encourage [PHS] scientists to participate in collaborations... 

Ireland Tax exemption for royalty income from patent R D done in Ireland... 

Figure 9-7-NIH/ADAMHA License Royalty Income, Fiscal Years 1987-90...

PHS policy directs inventing employees (0 get 25 percent of the first 50,000 of royalty income, 20 percent of the next 50,000, and 15 percent of the remainder up to 100,000 per employee per year from all patents for which they are inventors. NIH policy also allows some awards to go to noninventing employees that nonetheless contributed to the invention. After other expenses, the remainder is returned to the budget of the organizational unit responsible for the award (486). 

To be fair, these scientists have proven to be enormously generous, funneling large amounts of royalty income back into their institutions to further research. Eor one such example see Silverman, E. The trouble with tech transfer. The Scientist 2007, 21, 40. Available at www.the-scientist.com/article/home/ 393191. 

Emerald People s Utility District (EPUD) worked with Lane Country, Oregon and a private investment company to develop a 3.4 MW plant at the Short Mountain landfill. The plant operates at over 97% capacity and provides a profit to EPUD as well as royalty income to the County. Bonneville Power Administration, in turn, credits EPUD s bill for the power generated by the landfill project [12],... 

The fiscal system set by the host government determines the method by which the host nation claims its entitlement to income from the production and sale of hydrocarbons. The simplest fiscal system is the tax and royalty scheme, such as that applied to income from production in the UKCS (United Kingdom Continental Shelf). 

Royalty is charged from the start of production, but tax is only payable once there is a positive taxable income. At the beginning of a new project the fiscal costs may exceed the revenues, giving rise to a negative taxable income. Whether the project can take advantage of this depends upon the fiscal status of the company and the project. 

Sum of future incomes and expenditures discounted to the present day. Royalty... 

Royalty rates for compulsory licenses should be modest when the intended recipients are very poor. Canada has proposed royalty rates ranging from 4 per cent down to 0.02 per cent depending upon the importing country s level of poverty. While Canada s law raises many questions (Outterson 2005a), it is clearly a step in the direction of fair following. Canada recognizes that pharmaceutical patent rent extraction is largely inappropriate from low-income populations. 

Fixed-capital investment 2. Working capital 3. Total capital investment (1 + 2) 4. Annual income (sales) 5. Annual manufacturing cost (a) Raw materials (b) Labor (c) Utilities (d) Maintenance and repairs (e) Operating supplies (f) Laboratory charges (g) Patents and royalties (h) Local taxes and insurance (i) Plant overhead (j) Other (explain in Notes) 5-T. Total of line 5 ... 

So he and Ava Helen moved again, this time to Stanford University, where he was able to arrange a position as a consulting professor of chemistry only by agreeing to use his book royalties and investment income to pay half his own salary and all his expenses. Stanford was a great improvement over San Diego, in several ways. For one, the Stanford chemistry faculty and school administrators seemed happy to have Pauling there. For another, there... 

When the university owns the IP, the company then has to pay for an exclusive license, pay for an nonexclusive license, or get a royalty-free, nonexclusive license (see Box 5.13). And again, you go through the same benefits on the sharing of royalty and licensing income from the third parties. 

Notes NM = not meaningful DBF = deficit. Revenues include product sales, contract research, royalty, and interest income. Profit margin represents after-tax income as percentage of revenues. 

In recent years (including 1988 as shown in figure 9-9), the amount of income to inventors for NCI s HIV-antibody test kit patents was calculated on the basis of gross revenues prior to the 3.4 million distribution to the French-American AIDS Foundation. Hence, final inventor awards in fiscal year 1988 totaled 32 percent of royalties actually turned over to the NIH. 

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