Skip to main content
Creative Works

BYU Intellectual Property Policy

A quick introduction to royalty distributions

Intellectual Property Policy in a Nutshell

Official BYU policy overrules anything presented here in a condensed form. Please review the online documents by using the link below.

  • When a project is designated to have used substantial University resources in its development, then the University shares in whatever royalties are generated
  • An instructor who develops materials for a class cannot receive royalties for the sale of those materials except under specific, stringent conditions laid out in BYU's IP policy (conflict of interest)
  • When a project is submitted to Creative Works for commercialization, we set up an exclusive operating unit to handle the project accounting
  • Royalties are deposited to that operating unit
  • Project costs (duplication, advertising, etc) are debited from that operating unit
  • Royalty distributions from that operating unit are made every for quarters 1, 2, and 3 when the balance is $1,000.00 or greater
  • Royalty distributions from that operating unit are made for quarter 4 when the balance is $100.00 or greater
  • Royalties are distributed the month after the quarter ends (1st - April; 2nd - July; 3rd - October, 4th - January)
  • If an operating unit does not qualify for a distribution, no report will be generated
  • Basic royalty percentages are
    • University: 27.5%
    • College: 27.5%
    • Project developers share: 45%
  • Research option on royalties
    • One or more developers can opt to divert some or all of their royalties into a research account
    • Royalties diverted to a research account will be matched by the University and College allotments
    • Royalties deposited into a research account can be used to fund research: travel, supplies, etc., but cannot be spent for personal use
    • These diverted royalties are not taxed whereas royalties paid directly to developers are
    • Example (note developers attributions sum to 45%):
      • University: 17.5%
      • College: 17.5%
      • Developer #1: (15% attributed)
        • Research account: 20% (10% matched)
        • Direct deposit: 5%
      • Developer #2: (30% attributed)
        • Direct deposit: 30%

BYU Intellectual Property Policy