MSU TTO Royalty Donation Policy

The Technology Transfer Office is the office designated to license technologies resulting from MSU research and distributing the revenues that accrue to those licenses.

On occasion, inventors wish to donate the inventor’s share of licensing revenues to MSU.  This policy sets out the conditions under which such donations are accepted.  Inventors are encouraged to consult with tax experts to determine if such donations will have personal tax consequences.

An inventor may redirect some or all of his or her inventor's share of agreement revenues without receiving a Form 1099 income statement for the donated revenues if both of the following are met:

• The redirection of the revenue is irrevocable and includes both current and future revenues.
• The revenues are not designated to be transferred to an account that directly benefits the inventor, is under the control of that inventor, or supports the activities of that inventor (even though the account is not directly under his or her control), and instead are designated to an MSU general fund, an MSU Unit that the inventor is not part of (e.g. another department), another MSU researcher, or an MSU index benefitting students (e.g. a scholarship fund or an MSU student organization).

Aside from the original designation, the inventor has no control over future use of the revenues, so the inventor may not change the redirection (e.g. to a different unit). There will be no further transactions with the inventor, and the inventor will only receive annual documentation from the University that details the revenues accruing to the University and the amount thus directed under the donation.

Other possibilities for redirection of inventor revenues become complicated for the University to manage and can create undesirable tax consequences for the inventor e.g. the IRS requiring the inventor to pay income tax on funds that were donated to the University.  Therefore, if some other arrangement is desired, inventors may receive their share of licensing revenue as usual, and thereafter are free to donate through the MSU Alumni Foundation.

The University does not advise on personal income tax requirements or issues.  Information contained in this policy is for general information only and does not represent personal tax advice.  Donors who have questions about the tax implications of any charitable donations are encouraged to consult a qualified tax professional.

INVENTOR/CREATOR

DONATION OF LICENSING REVENUE AGREEMENT

In consideration of his/her efforts in development/creation and/or commercialization of the technology listed in the table below, which is the subject of the “ASSIGNMENT AGREEMENT” entered into between Inventor/Creator and Montana State University, effective _______________, the undersigned hereby agrees that any and all revenue payable to the “INVENTOR/CREATOR” thereunder shall be donated irrevocably and in perpetuity as follows:

The parties further agree that Montana State University shall have the right to rely hereon for purposes of distributing any such revenue.  It is understood that, per policy entitled “Donation of Licensing Revenues,” such donations must not fall under the control of Donor.

This agreement shall be binding upon and inure to the benefit of the parties, their heirs and assignees.

In witness whereof, the parties have executed this agreement on

Date