Are the license revenue sharing provisions applicable to a Grantee or Collaborator proportional to CIRM’s investment in an invention?
Yes. Where a Grantee or Collaborator elects to license a CIRM-Funded Invention (instead of self-commercializing), it must share 25% of the Grantee’s revenue from the license. Proportionality: Where funding sources additional to CIRM directly contributed to the development of the invention or technology, then the return to the State is reduced, making it proportional to CIRM’s participation. See Section 100608(a)(2). Finally, revenue sharing is not triggered until after $500,000 in revenues (a trigger that is adjusted for inflation). Back to top Example #1: Grantee accepts CIRM Grant and patents a discovery resulting from the CIRM-Funded Research. No funds from other sources were used in the development of the patented invention. Grantee licenses the invention to a third party and receives 1 million dollars in licensing revenue the first year. Result: CIRM receives 25% of the Grantee’s share in excess of $500,000 = $125,000, regardless of whether the license was an Exclusive or Non-Excl
