How should CIRM Grantees and Collaborators calculate the financial obligation to the state in the event they self-commercialize an invention?
The revenue sharing obligations that arise in the case of commercialization by a Grantee or Collaborator are set forth in Section 100608(b). In such cases the revenue sharing obligation is capped based on CIRM’s contribution and the annual revenues derived from commercialization of the CIRM-Funded Research, Invention or Technology by the Grantee/Collaborator. Thus, where such revenues do not exceed $250 million in any year, the State is owed a multiple of three times the amount of the CIRM Grant. This payment is made at a rate of 3% of annual revenues. The first time revenues exceed $250 million, but less than $500 million, the State is owed another one-time payment of three times the Grant amount. Finally, the first time revenues exceed $500 million in a year, the State is owed a final payment of three times the Grant amount. At this juncture, if a CIRM-Funded Invention or Technology is involved in achievement of said revenues and the CIRM funding exceeds $5 million, then an additiona
