1. Commercialization Snapshot and Revisions Proposed to Faculty Manual Royalty Distributions

2. Concerns from last senate discussion Concern By SenateProposed revision IP Committee Roster, CommunicationOC Website, Faculty Senate website Many technologies produce $10K or under Preserving Tier 1 structure (Upto $10K: Faculty 100%) Enforcement FundCapped at $100k Royalty Waiver in favor of ProgramGift back to Program; Short term (5 year, renewable) waivers signed by all heirs Definition of Adjusted Income under equity (8d) Revised to be in line with the rest of the sections

3. IP Committee Membership Roster Don Bender, VCEA - ChairGary Pollack, Pharmacy, WSUS Katrina Mealey, CVMMichael Trevisan, Education Rick Knowles, CAHNRSEx-Officio Greg Yasinitsky, CASAnson Fatland, AVP, EcoDevo Sue Clark, CASDan Nordquist, Director, OGRD Hakan Gurocak, VCEA, WSUVSita Pappu, Director, OC

4. Commercialization Statistics  Technologies Disclosed: >1500  Number of Patents/Patent Applications: ~2000  Typical Cost to file and get a US patent issued: ~$25-$30 K  Cost similar for each additional country  Legal Expenses for past 5 fiscal years: >$3 million  University investment (unreimbursed legal expenses): >$1.91 million  Number technologies that generated:  >$10K: 92  $5K-$10K: 30  $1K-$5K: 51  <$1K: 33

5. Revisions Proposed  Simplify royalty distribution table from 3 tiers to two tiers –  eliminate the third tier that reduces faculty portion to 25% from 50%  Only two tiers: $1-$10K: 100% to faculty; >$10K: 50-50 split  Allow for marketing and promotion expenses to increase the success for licensing and revenue generation  Allow for university portion to fund research projects on commercialization proof of concept  Allow for university portion to be used for enforcement of patent  Patent troll law suits  Protecting our patents in light of new case law (gene markers and method patents)  Plant varietal infringement matters

6. Royalty Comparison current vs. proposed distributions Tier $ 1-10K ( eg.,$10K ) $ 10K-200K ( eg., $200K ) $ 200,001- Up ( eg., $500K) Current $10K $100K $125K Proposed $10K $100K $250K