Intellectual Property and Senior Design Projects

Patents Patents may be pursued for the use of algorithms in software Patents are allowed only for inventions that are novel, useful and not obvious If the invention was done before, it is not patentable Inventors of patented technologies are determined according to patent law

Patent Ownership Drexel has an ownership interest in all inventions made by faculty, staff and graduate students Drexel undergraduates have the right to own patents for inventions made in fulfillment of a degree (e.g. in senior design)

Patent Ownership If undergrads only are inventors, each undergrad inventor has an ownership right in invention If faculty, staff or grad students are also inventors, Drexel and each undergrad student has an ownership right If only faculty, staff or grad students are inventors, Drexel solely owns invention

Copyright Copyright protection covers code that is written Generally, whoever writes a particular piece of code is the “author” of that piece Complete software packages typically have multiple authors

Copyright Ownership Under Drexel policy, if anyone makes “substantial use of University resources” (including computing facilities and infrastructure, and faculty advice), Drexel has the right to own the copyright –Applies to all students, faculty and staff –Each author is entitled to receive a share of income from any copyright license done by Drexel for that software

The Paradox Undergrads have the right to own patents on inventions Drexel has the right to own all copyrights underlying the code of the software with the patentable invention

The Solution Drexel is willing to waive its right to the undergrad students’ copyrights, in order to facilitate their commercial pursuit of the technology they developed But….please contact Dr. Robert McGrath in Drexel’s Office of Technology Commercialization to ensure that none of the exceptions that follow

Exceptions to the Rule IF: The project is being performed in collaboration with companies or individuals outside Drexel, it will be covered by a contract between Drexel and the company/individual, or The project is supported with government funding THEN: All students must sign over their patent ownership rights to Drexel and Drexel retains ownership in the copyright

The Rules Still Apply Drexel will negotiate a license agreement with the sponsor or another third party Each student is entitled to be treated as an inventor/author under Drexel’s policies, and receives a proportional share of licensing income received by the University

Policies Patent Policy ent_policy.asp ent_policy.asp Copyright Policy yright.asp yright.asp

Royalty Distribution Comparison Comparison of cash royalty distributions to inventors at three US universities: MIT –1/3 of Adjusted Royalty Income to the inventors Adjusted Royalty Income = Gross Royalty Income – 15% Administrative Fee – patent fees Stanford –1/3 of Royalty Income to the inventors Royalty Income = Gross Royalty Income – 15% Administrative Fee – patent fees Drexel Patent Policy* –First $10,000 of net income: 100% to the inventor. –Next $500,000 in cumulative net income: 50% to the inventors –Next $1,000,000 in cumulative net income: 40% to the inventors –For cumulative net income in excess of $1,510,000: 25% to the inventors –Net Income: gross royalties received by the University minus out-of-pocket expenses paid by the University for patenting, marketing and licensing expenses for the invention –*copyright policy has similar structure: 5K / 100%, 500K / 60%, 1MM / 40%, 1.5MM / 25% Example: If 1MM in gross royalty revenue is received, inventor distribution is: –MIT: ~$283, patent expenses –Stanford: ~$283, patent expenses –Drexel: ~$456,000 - patenting, marketing and licensing expenses