ÐÇ¿ÕÓéÀÖ¹ÙÍø

Overview

Royalty payments represent the inventor´s share of royalty payments from licensee(s) to ÐÇ¿ÕÓéÀÖ¹ÙÍø during the fiscal year for the particular technology involved.

Royalty payments to inventors are processed two times in the calendar year and cover the fiscal year the technology was used. For example, the first inventor payment is based on money received by ÐÇ¿ÕÓéÀÖ¹ÙÍø for the six-month period of October 1 through March 31. The second inventor payment is based on money received by ÐÇ¿ÕÓéÀÖ¹ÙÍø for the six-month period of April 1 through September 30.

The first payment is generally made between late May to late June. The second payment is generally made between late October to late November. Payments cannot be distributed to inventors until the royalty information is completely reconciled to ensure accurate payouts.

How royalties are calculated and deposited

Inventors receive the first $2,000 collected from a licensee. Next, they receive 15 percent of royalties above $2,000 and up to $50,000. Finally, they receive 25 percent of royalties in excess of the first $50,000 collected each year. Each inventor cannot receive more than $150,000 in royalty payments for a calendar year.

The payments are made by direct deposit to the inventor´s financial institution. Royalty payment transactions sent from ÐÇ¿ÕÓéÀÖ¹ÙÍø to the U.S. Treasury include the words ROYALTY PAYMENT. When the Treasury sends this information to the financial institution, the ROYALTY PAYMENT identification is included with the direct deposit transaction. Most institutions include this information on the monthly account statement. However, some institutions do not interpret or provide the payment description. If the deposit identification does not appear on the statement, the inventor should discuss this matter with the financial institution.

Tax information

Taxes are not withheld from royalty payments. If the inventor receives royalty payments of $10.00 or more in the calendar year, the inventor will receive Form 1099-MISC Miscellaneous Income. Payments for less than $10.00 are taxable, but Form 1099-MISC will not be issued. Historically, the Form 1099-MISC is sent to the inventor by the end of January.

If Form 1099-MISC does not arrive or contains an error, send an inquiry to OFR by email to: ÐÇ¿ÕÓéÀÖ¹ÙÍø[email protected]

Lost checks

In instances where an inventor receives a check and it becomes lost or uncashed, the U.S. Treasury automatically cancels uncashed checks after one year from issuance. When this occurs, funds are returned to the issuing agency. Once returned, ÐÇ¿ÕÓéÀÖ¹ÙÍø has less than four years to reissue these amounts.

Designated beneficiaries

If the inventor is deceased, royalty funds can be bequeathed to the inventor’s beneficiaries or estate provided proper documentation (designation of beneficiary form, will, etc.) has been put in place by the inventor. In the absence of documentation, benefits are paid following the “Order of Precedence” (spouse, child/children, and descendants, surviving parent, executor or administrator of the estate, next of kin). The designee should contact ÐÇ¿ÕÓéÀÖ¹ÙÍø Human Resources for assistance regarding the disposition of future royalty payments. When a designee has been established, payments will be directed to an account in the name of said designee via ACH/Direct Deposit.

Submitting the ACH Royalty Payment Enrollment Form

In order to ensure that inventor royalty income is deposited into the correct account, inventors must complete the Automated Clearing House (ACH) Royalty Payment Enrollment Form.

Current ÐÇ¿ÕÓéÀÖ¹ÙÍø employees should complete the ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by fax to 404-638-5342 or email to [email protected] at OFR from their ÐÇ¿ÕÓéÀÖ¹ÙÍø account. Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

Inventors who no longer work at ÐÇ¿ÕÓéÀÖ¹ÙÍø or who want to send information from a personal email account should complete the form and return it by fax to 404-638-5342 or encrypted email to [email protected] at OFR.

The inventor will receive an email notification, from the Automated Royalty Tracking System (ARTS), that a payment is being processed. This will allow the inventor an opportunity to update banking information beforehand if needed.

Please Note: Inventors should provide personal contact information (including a personal email address), because that typically does not change upon retirement, job/position changes, or relocation. Each inventor must ensure that OFR has a current email address. Any personally identifiable information should be sent securely and confidentially via SSL or encrypted connection.

Updating the ACH Royalty Payment Enrollment Form

Inventors should update their ACH Royalty Payment Enrollment Form if they:

• Move or need to update their contact information.
• Change financial institutions or bank accounts.

Return the updated form by secure fax to 404-638-5342 or encrypted email to [email protected] at OFR. Please also provide a copy to the Division PRM or Budget Analyst.

Information for ÐÇ¿ÕÓéÀÖ¹ÙÍø Licensees

To submit a royalty payment, ÐÇ¿ÕÓéÀÖ¹ÙÍø encourages its licensees to submit electronic funds transfer payments through .

• Bank Account (ACH only)
• Credit/Debit Cards

Credit card transactions are limited to $24,999/day. There is no fee to use .

Who to contact

Payments: For a question about a royalty payment received, contact ÐÇ¿ÕÓéÀÖ¹ÙÍø TTO at [email protected].

Estate or Probate Issues: If the inventor is the Personal Representative of an Inventor's Estate contact ÐÇ¿ÕÓéÀÖ¹ÙÍø TTO at [email protected].

Technology Transfer Matters: For questions concerning technology transfer matters, inventors should contact ÐÇ¿ÕÓéÀÖ¹ÙÍø TTO at [email protected].