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REVENUE-SHARING Returns earned on the commercialisation of University IP belong to the University. However, the University's policy is to grant a generous share of the returns to those of its employees and students who have created the relevant IP. The University takes the decision (through UMIP) as to how it wishes to commercialise its IP. It does not always go for the best financial return as this may not necessarily be compatible with the University's main objectives. UMIP decides on a case by case basis. The University has established the UMIP Premier Fund to support spin-out companies which it creates and to make proof of principle (PoP) awards to them. It is a real benefit to the University, and to those who have created the IP, to have access to this fund which can be of invaluable help in getting new IP to market. In return for its investments in a University spin-out company, whether direct investments or cash injections through a PoP award, the UMIP Premier Fund is given a shareholding in the company. The University has a very generous IP Policy when it comes to sharing the return from commercialisation of IP created at the University. It can take several years before any returns are received, depending on things like market conditions and how developed the IP is. The University allocates the retained portion of its revenue share to the relevant Faculties where the creators of the IP were based which reflects the wider contribution made by those Faculties and their Schools. 32 Where the involvement of the University is limited 85% of the returns from commercialisation go to the originators of the IP and the University only retains a small 15% share. This covers an initial review of the ownership of the IP and the IP's commercial potential, investigations as to its proof of ownership and advice on the next steps to be taken. If greater involvement by UMIP or the University Contracts Team is required then the University retains a further 15% share for UMIP marketing, management and negotiation services (or an agreed fee instead) where these are used. The University retains an additional 15%-30% for PoP Funding made by it of between £70,000 to £140,000. The PoP Funding is repayable as a loan from the licensing returns or on the success of the spin-out company. If the return to you and your co-creators from any IP which is commercialised is very substantial (over £1million) the University has to take account of its position as a charitable organisation. In this case the basic 15%/85% formula share with the University is adjusted to 50%/50%. The substantial sum ignores any money reinvested by you back into research at the University. Where the IP is commercialised by licensing it, then the originators' share represents their percentage share of the revenue received by the University from such licensing. If, however, the commercialisation is through a spin-out company, then their percentage share will be represented by a percentage of the shares in the spin-out company, which will be owned by the University and the creators of the IP.

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