Board&of&Regents&Policy:&Commercialization-of-Intellectual-Property-Rights--
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BOARD&OF®ENTS&POLICY:&
Commercialization-of-Intellectual-Property-Rights--
!
SECTION(I.(SCOPE.((
This!policy!governs!patents!and!the!ownership,!commercialization,!and!dissemination!of!intellectual!
property!rights!in!technology!created!at!the!University!of!Minnesota!(University).!!
SECTION(II.(EXCLUSIONS.((
Subd.(1.(Copyright.(
With!the!exception!of!the!commercialization!of!intellectual!property!rights!in!software!owned!by!the!
University,!this!policy!shall!not!apply!to!the!ownership!or!use!of!copyrighted!works!that!are!governed!by!
other!Board!of!Regents!(Board)!or!administrative!policies.!
Subd.(2.(Trademarks.(
With!the!exception!of!intellectual!property!rights!in!University!trademarks!that!identify!University-owned!
plant!varieties!or!that!are!commercialized!in!conjunction!with!other!technology!covered!by!this!policy,!this!
policy!shall!not!apply!to!the!use!of!University-owned!or!licensed!names,!trademarks,!or!service!marks.!
Subd.(3.(Equity(Interests.(
This!policy!shall!not!apply!(a)!to!the!University’s!acquisition!of!equity!securities!in!a!publicly!held!company!
or!appointment!of!a!voting!member!to!the!governing!body!of!a!publicly!held!company!or!(b)!to!the!
acquisition!of!equity!securities!of!a!publicly!held!company!by!a!University!employee.!
Subd.(4.(Student-Created(Technology.(
This!policy!shall!not!apply!to!technology!created!or!reduced!to!practice!by!University!students!to!fulfill!a!
University!course!requirement!unless!(i)!the!development!of!the!technology!was!funded,!in!whole!or!in!
part,!by!an!external!sponsor;!(ii)!the!technology!was!an!improvement!of!an!invention!in!which!the!
University!holds!the!intellectual!property!rights;!(iii)!a!University!faculty!member!or!other!University!
employee!was!a!co-inventor!of!the!technology;!or!(iv)!substantial!University!resources!were!used!to!
develop!or!reduce!the!technology!to!practice.!!This!policy!does!not!prohibit!the!University!from!
conditioning!participation!in!a!University!course!or!other!University-sponsored!activity!on!an!individual’s!
assigning!to!or!licensing!to!the!University!the!rights!in!technology!created!or!reduced!to!practice!in!the!
course!or!activity.!
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SECTION(III.(DEFINITIONS.((
Subd.(1.(Inventor.(
Inventor!shall!mean!a!University!employee,!student,!or!postdoctoral!or!other!fellow!who!invents!
technology.!
Subd.(2.(Technology.(
Technology!shall!mean!the!following!items!and!their!related!intellectual!property!rights:!!
(a) a!discovery!or!invention,!patentable!or!not;!!
(b) software!owned!by!the!University;!and!!
(c) trademarks!owned!by!the!University!that!identify!University-owned!or!University-licensed!plant!
varieties!or!that!are!commercialized!in!conjunction!with!other!technology!covered!by!this!policy.!!
Subd.(3.(University(Official.(
University!official!shall!mean!a!person!defined!as!a!University!official!in!Board!of!Regents!Policy:!
Institutional*Conflict*of*Interest!and!any!person!covered!by!administrative!policies!or!procedures!
implementing!that!policy.!
Subd.(4.(Controlling(Equity(Interest.(
Controlling!equity!interest!shall!mean!the!University’s!ownership!of!equity!securities!of!a!licensee!sufficient!
to!grant!the!University!the!power!to!direct!the!licensee’s!management.!The!University!shall!be!considered!
to!have!a!controlling!equity!interest!in!a!licensee!under!this!policy!if:!!
(a) the!University!owns!a!majority!of!the!voting!equity!interest!in!the!licensee;!or!!
(b) the!University!has!the!power!to!appoint!a!majority!of!the!voting!members!of!the!governing!body!
of!the!licensee.!
Subd.(5.(Licensee.(
Licensee!shall!mean!a!for-profit,!privately!held!company!to!which!the!University!licenses!or!assigns!
intellectual!property!rights!in!University-owned!technology.!!
Subd.(6.(Net(Income.(
Net!income!shall!mean!the!gross!monetary!payments!the!University!receives!in!consideration!for!granting!
rights!in!the!technology!less!(a)!the!University’s!out-of-pocket!expenditures!(including!legal!fees)!directly!
attributable!to!protecting,!developing,!and!transferring!that!technology!and!(b)!a!fifteen!percent!
administrative!fee!of!the!gross!monetary!payments!to!help!defray!the!costs!associated!with!operating!the!
Office!of!Technology!Commercialization.!Net!income!includes!the!net!cash!proceeds!received!from!the!sale!
of!securities!acquired!under!Section!V,!Subd.!6!of!this!policy.!Net!income!does!not!include!the!net!cash!
proceeds!received!from!the!sale!of!securities!acquired!under!Section!VII,!Subd.!5!of!this!policy.!Fees,!
charges,!and!other!monetary!payments!made!to!the!University!to!compensate!it!for!administering!
intellectual!property!agreements!or!seeking!and!maintaining!intellectual!property!protection!for!
technology!shall!not!be!considered!monetary!payments!under!this!policy.!!
SECTION(IV.(GUIDING(PRINCIPLES.((
The!following!principles!shall!guide!the!University!in!commercializing!technology:!!
(a) The!primary!mission!of!University!research!is!the!generation!and!dissemination!of!knowledge,!
and!academic!freedom!requires!that!faculty,!staff,!and!students!be!free!to!pursue!areas!of!
research!and!study!without!regard!to!the!potential!for!the!creation!of!inventions.!!
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(b) The!development!and!dissemination!of!new!knowledge,!technology,!or!scientific!procedures!
resulting!in!innovative!products,!practices,!and!ideas!is!a!valued!supplement!to!scholarly!
publications.!!
(c) University!commercialization!activities!shall!not!inhibit!the!ability!of!University!researchers!to!
pursue!research!of!their!choosing,!to!publish!results!of!their!work!in!a!timely!manner,!and!
otherwise!to!exercise!their!rights!of!academic!freedom.!!
(d) Licensing!University-owned!technology!to!private!companies!promotes!the!University’s!
interest!in!successful!commercial!development!of!University-owned!intellectual!property.!In!
some!circumstances,!a!non-commercial!method!of!distribution,!such!as!open!source!sharing!of!
technology!or!licensing!for!humanitarian!needs,!may!be!the!preferred!method!of!providing!
public!access!to,!and!use!of,!University!discoveries.!!
(e) The!University!may!own!a!controlling!equity!interest!and!assert!control!over!the!direction!and!
management!of!a!licensee!only!when!doing!so!(1)!enhances!the!potential!for!the!licensee!to!
successfully!develop!and!make!available!to!the!public!useful!products!and!services!and!(2)!
increases!the!potential!value!of!the!University’s!investment.!!
SECTION(V.(OWNERSHIP(OF(TECHNOLOGY.((
Subd.(1.(Ownership.(
The!University!shall!be!the!sole!owner!of!all!rights,!titles,!and!interests!(including!intellectual!property!
rights)!in!and!to!technology:!!
(a) created!by!University!employees!in!the!course!of!their!employment;!!
(b) created!by!individuals,!including!employees,!students,!or!post-doctoral!or!other!fellows,!using!
substantial!University!resources.!!
Subd.(2.(Assignment(of(Intellectual(Property(Rights.(
Inventors!assign!to!the!University!all!rights,!titles,!and!interests,!if!any,!in!and!to!technology!owned!by!the!
University.!!
Subd.(3.(Ownership(Under(Third(Party(Agreements.(
Ownership!of!and!rights!in!technology!are!subject!to!the!terms!of!written!agreements!between!the!
University!and!third!parties!under!which!the!University,!solely!or!in!collaboration,!conducts!research!or!
other!activities.!Under!these!agreements,!the!University!may!claim,!disclaim,!or!otherwise!grant!or!accept!
rights!in!technology!as!appropriate!and!desirable.!!
Subd.(4.(Waiver(of(University(Rights.(
Consistent!with!administrative!policies!and!procedures,!the!president!or!delegate!is!authorized!to!waive!or!
otherwise!assign!to!an!inventor!all!or!part!of!the!University’s!rights,!titles,!or!interests!in!or!to!a!technology!
created!by!the!inventor.!!
Subd.(5.(Rights(to(Publish.(
At!the!University’s!request,!inventors!shall!delay!the!publication!or!public!disclosure!of!any!descriptions!of!
technology!for!a!brief!period!of!time!to!permit!the!registration,!application!for,!and!protection!of!the!
intellectual!property!rights!in!the!technology.!!
Subd.(6.(Rights(to(Third(Parties.(
The!president!or!delegate!may!assign,!license,!or!otherwise!grant!a!third!party!the!right!to!use!technology!
royalty-free!or!in!exchange!for!cash,!stock!or!other!securities,!or!other!tangible!or!intangible!property.!!
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SECTION(VI.(DISTRIBUTION(OF(INCOME(FROM(COMMERCIALIZATION (OF(TE CHNOLOGY.((
The!University!shall!share!with!inventors!the!net!income!from!the!commercialization!of!technology!as!
follows:!!
(a) thirty-three!and!one-third!percent!to!the!inventors;!!
(b) twenty-five!and!one-third!percent!to!the!department,!division,!or!center!that!supported!the!
creation!of!the!technology,!to!be!spent!in!support!of!the!inventor’s!research!or!directly!related!
University!work;!!
(c) eight!percent!to!the!collegiate!unit!that!supported!the!creation!of!the!technology;!and!!
(d) thirty-three!and!one-third!percent!to!the!Office!of!the!Vice!President!for!Research!&!Innovation,!
to!be!spent!in!support!of!the!University’s!technology!commercialization!activities!and!to!fund!
University!research!and!scholarly!activity.!!
The!president!or!delegate!may!change!the!distribution!to!collegiate!units!or!to!departments,!divisions,!or!
centers!if!such!amounts!become!disproportionate!compared!to!their!budgets!or!if!there!have!been!
administrative!organizational!changes,!including!an!inventor’s!movement!among!units!or!departments.!The!
president!or!delegate!also!may!distribute!to!inventors!a!portion!of!the!net!income!from!commercialization!
of!technology!in!the!form!of!a!bonus!or!salary!supplement.!!
SECTION(VII.(EQUITY,(CONTROLLING(INTERESTS,(AND(ASSISTANCE(WITH (COM MERCIALIZATION.((
Subd.(1.(Disposition(of(Equity(Securities.(
The!University!shall!sell!the!equity!securities!acquired!under!Section!V.!Subd.!6.!of!this!policy!as!soon!as!
prudent!and!in!strict!compliance!with!all!applicable!federal!and!state!laws.!!
Subd.(2.(Acquiring(a(Controlling(Equity(Interest(in(the(Commercialization(of(Technology.(
In!acquiring,!as!part!of!a!transaction!to!commercialize!technology,!a!majority!or!other!equity!interest!in!a!
company!that!grants!the!University!the!power!to!direct!the!company’s!management!or!the!power!to!
appoint!a!majority!of!the!voting!members!of!the!governing!body!of!the!company,!the!following!prohibitions!
shall!apply:!!
(a) Except!as!permitted!under!Section!VII.!Subds.!4.!and!5.!of!this!policy!or!any!other!applicable!
Board!policies,!the!University!shall!not!make!a!cash!investment!in,!lend!money!to,!or!guarantee!
the!obligations!of!the!company;!and!!
(b) University!officials!shall!not!purchase!or!invest,!directly!or!indirectly,!in!the!equity!securities!of!a!
licensee!as!long!as!the!licensee!is!privately!held,!except!that!University!employees!who!are!not!
University!officials!may!purchase!or!invest,!directly!or!indirectly,!in!such!equity!securities!if!
permitted!under!Board!of!Regents!Policy:!Individual*Business*or*Financial*Conflict*of*Interest!and!
other!applicable!Board!policies.!!
Subd.(3.(Appointment(of(Voting(Members(to(Governing(Bodies(as(Part(of(the(Commercialization(of(
Technology.(
The!president!or!delegate!may!authorize!the!appointment!of!voting!members!to!the!governing!bodies!of!
privately!held!companies!commercializing!technology.!The!member!shall:!!
(a) be!an!individual!with!demonstrated!experience!and!competence!in!technology!commercialization!
and!in!the!creation,!management,!and!capitalization!of!privately!held!companies;!and!!
(b) be!reasonably!insured!against!liability!arising!from!service!on!the!governing!bodies!of!such!
companies.!!
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The!member:!!
(a) shall!not!accept!compensation!for!service!as!a!member!of!the!governing!body!of!the!company,!but!
may!accept!reasonable!reimbursement!for!service-related!expenses;!!
(b) shall!comply!with!applicable!University!policies!and!procedures;!!
(c) shall!discharge!fiduciary!and!contractual!responsibilities!to!the!company,!subject!to!the!
performance!of!University!duties!as!provided!in!Board!and!other!University!policy!and!
procedures!if!the!individual!is!an!employee!of!the!University;!and!!
(d) shall!resign!as!a!voting!member!of!the!governing!body!of!the!company!prior!to!the!company’s!
becoming!publicly!held,!unless!the!president!or!delegate!approves!an!extension!of!the!
appointment.!!
Subd.(4.(Use(of(Technology(Commercialization(Income(to(Assist(Commercialization(by(Non-
University(Entities.(
The!president!or!delegate!may!authorize!non-University!entities!to!use!income!the!University!earns!from!
technology!commercialization!to!directly!encourage,!promote,!or!assist!with!the!commercialization!and!
development!of!University!intellectual!property.!The!commitment!of!financial!support!for!particular!
projects!shall!not!exceed!$250,000,!consistent!with!Board!of!Regents!Policy:!Reservation*and*Delegation*of*
Authority.!!
Subd.(5.(Equity(Investment(to(Support(Commercialization(by(Non-University(Entities.(
The!president!or!delegate!may!authorize!an!investment!in!the!equity!securities!(including!securities!that!
are!convertible!to!equity!securities)!of!a!company!formed!for!the!purpose!of!commercializing!and!
developing!University-owned!technology.!No!such!investment!may!exceed!$1,050,000.!
SECTION(VIII.(REPORTING.(
The!president!or!delegate!shall!report!annually!to!the!Board!on!University!activities!under!this!policy!as!a!
component!of!the!annual!report!on!the!state!of!the!University!research!enterprise.!!
SECTION(IX.(IMPLEMENTATION.((
The!president!or!delegate!shall!implement!this!policy!and!maintain!appropriate!policies!and!procedures!to!
administer!it.!
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REVISION(HISTORY(
!
Adopted:!December!14,!2007!
Amended:!December!10,!2010;!February!14,!2014;!June!12,!2015;!February!11,!2022!
Technical(Correction:!December!18,!2023!
Last(Comprehensive(Review:(2022!
Supersedes:!Educational!Materials!dated!April!14,!1967;!Patent!and!Technology!Transfer!dated!October!
10,!1986;!Intellectual!Property!adopted!October!8,!1999;!Use!of!Royalty!Income!to!Support!Technology!
Commercialization!adopted!March!12,!2004;!and!Acquiring!Controlling!Equity!Interests!in!Technology!
Licensees!adopted!December!8,!2006.!
