SUBJECT:

New UC Patent Policy and Patent Acknowledgement

President Atkinson has issued a new University of California Patent Policy
effective on October 1, 1997. Effective on the same date, a new Patent
Acknowledgement form was also issued, to replace the present Patent
Agreement form.

With respect to the Patent Policy, in addition to changes which more
acccurately reflect current University of California organization and
practices, the following major changes have been made:

1. The April, 16, 1990 UC Patent Policy has been rescinded and all
  inventions reported before October 1, 1997 will be governed by
  the November 18, 1985 Patent Policy. In essence, the 1985
  policy had no tiers and all inventors received 50% of Net
  Income (Net Income = Gross Income less 15% for administrative
  costs and less unreimbursed legal expenses).

2. The royalty distribution in the new Patent Policy has been
  substantially changed:

   - The 15% administrative assessment used in the calculation of
   inventor shares has been eliminated.
   - The inventors will receive 35% of Net Income.
   - 15% of Net Income from each invention will be sent to the campus
   and designated for research-related purposes.
   - The change of the distribution time of income to inventors to
   November for the preceding fiscal year had been approved a year
   ago and is now memorialized in the new policy.

The Patent Acknowledgement form replaces the Patent Agreement and must
be signed by all new employees, by persons not employed by the University
but who use University research facilities, and by those who receive gift,
grant, or contract funds through the University. It has been changed to an
"acknowledgement" to reflect recent decisions in the the courts that the
UC Patent Policy has the force of law, and is the equivalent of a statute
(it does not require a formal agreement to be effective). Only new
employees or those required to sign an Agreeement but who had not yet done
so will be asked to sign the Patent Acknowledgement. All of those who have
already signed the Patent Agreement need not sign the new
Patent Acknowledgement unless there has been a break in service or
use of UCSD facilities. The new Patent Acknowledgement forms are
available in the Storehouse.

Detailed information on the policy, the acknowledgement, comparisons of our
distribution policy with other institutions, as well as answers to the most
frequently asked questions can be found at:

   http://www.ucop.edu/ott/patentpolicy/first.html

If there are questions about the new policy and its implementation,
please contact the Technology Transfer Office at: ph: 4 5815;
fax: 47345; email: mrachmeler@ucsd.edu

John Woods Vice Chancellor