Rules and regulations for calculating remuneration
In the event of any inconsistency between the Danish and English language versions of the document, the Danish version prevails
Rules and regulations for calculating remuneration in connection with commercial exploitation of inventions made, produced or developed during employment at Aarhus University.
Remuneration to the inventor when Aarhus University acquires intellectual property rights
- When the rights to a discovery are assigned to Aarhus University for commercial exploitation that subsequently results in net income, Aarhus University shall pay the inventor a reasonable remuneration.
- However, a one-off payment of DKK 30,000 shall be made to the inventor if a patent application is submitted as an international Patent Cooperation Treaty (PCT) application at the end of the priority year. This is because Aarhus University solely submits the PCT application when – based on a commercial assessment – the commercial exploitation of the invention is expected to produce a net income. This one-off payment shall subsequently be deducted from the remuneration to the inventor in accordance with item 11.
- When Aarhus University acquires intellectual property for commercial purposes, any net income shall be shared in three equal parts (i.e. one third each) between the inventor, the department where the inventor was employed at the time the invention was reported, and the Technology Transfer and Innovation Services at Aarhus University.
- In those circumstances where Aarhus University transfers or licenses an invention to a third party against payment in the form of shares or share options, the inventor can choose to receive remuneration in the form of either: (1) a percentage of the shares/share options after deducting accumulated direct external expenses, cf. item 11, or (2) cash payment when Aarhus University sells/receives returns on its shares after deducting accumulated external expenses, cf. item 11, or (3) other means by mutual agreement.
- For projects carried out in collaboration with – or entirely or partly financed by – a party not covered by the Act, Aarhus University can, on behalf of itself or its employees, sign prior agreements with such a working partner entirely or partially waiving its right to inventions arising from such collaboration. Net income from such a waiver shall be shared in three equal parts (i.e. one third each) between the inventor, the department(s) where the inventor was employed, and the Technology Transfer and Innovation Services at Aarhus University.
Remuneration to Aarhus University when the inventor acquires intellectual property rights
- If Aarhus University chooses not to acquire the rights to a discovery, the intellectual property rights shall be transferred to the inventor in return for a reasonable remuneration paid by the inventor to Aarhus University, provided the inventor exploits the invention commercially, resulting in net income.
- If, after acquiring the rights, Aarhus University decides not to commercialise the invention and subsequently gives the intellectual property rights back to the inventor, payment for such rights shall be agreed on, based on an assessment of the market price and the expenses incurred by the institution. The inventor can choose to defer payment to the university until such time as he/she receives a net income from exploiting the invention.
- If the inventor receives a cash payment in return for selling the invention, grants licences for the use of the invention or similar, the remuneration to Aarhus University shall be calculated as one third of the inventor’s net income, cf. item 11. This amount shall be shared in two equal parts (i.e. one sixth each) between the department(s) where the inventor was employed at the time the invention was reported, and the Technology Transfer and Innovation Services at Aarhus University.
- In those circumstances where the inventor transfers or licenses an invention to a third party against payment in the form of shares or share options, Aarhus University can choose to receive remuneration in the form of either: (1) a percentage of the shares/share options after deducting accumulated direct external expenses, or (2) cash payment when the inventor sells/receives returns on his/her shares after deducting accumulated external expenses, or (3) other means by mutual agreement.
Calculating net income
- Net income is defined as income acquired by means of selling or licensing an invention after deducting direct external expenses for patents and commercialisation. Examples of expenses that can be included in such calculations are:
- Expenses incurred in assessing the patentability and commercialisation potential of the inventio
- Expenses incurred in submitting and processing a patent application.
- Expenses incurred in defending and maintaining the patent.
- Expenses incurred in drawing up material with a view to exploiting the results achieved.
- Travelling expenses and board/lodging for both the university’s administrative staff and inventors and consultants in connection with negotiations regarding exploitation of the invention or other forms of commercialisation of the project.
- Expenses to external consultants and advisers.
- Expenses incurred in connection with expert assistance, including laboratory costs, for the further development of the invention, provided the university and the inventor agree to initiate such further development.
- Expenses incurred in connection with the insurance and dispatch of experimental material, provided this is necessary as part of the patenting process or discussions regarding exploitation
- An inventor as referred to in the above shall mean an individual inventor or a group of inventors. If there are several inventors, the amounts mentioned in these remuneration rules and regulations shall be divided between them according to their share of the invention.
- Aarhus University shall not be liable for any tax implications resulting from the remuneration calculations and payments. Aarhus University encourages inventors to consult their solicitors or accountants for professional advice prior to deciding which model they wish to agree on with Aarhus University, cf. item 4.
Using remuneration proceeds at departments
- As a rule, the proceeds transferred to a department shall be used for research in the area where the invention was made, produced or developed. Decisions regarding the use of proceeds transferred to the Technology Transfer and Innovation Services shall be made by the management of the university.
- If special conditions exist, the principles described above for calculating remuneration can be deviated from by mutual agreement.
- In accordance with Danish Act no. 347 of 2 June 1999, these rules and regulations cover all those with a letter of employment at Aarhus University who report an invention from 16 April 2008 onwards.
- The above remuneration rules and regulations are expected to be reviewed before the end of 2009.