IP policy

University of Exeter IP Policy

1. Introduction

The University believes that the outcome of its research should be disseminated for the wider social and economic benefit of society. Intellectual Property registration and commercialisation is a key element of achieving this aim. This document sets out the University’s policy for ownership, management and commercialisation of Intellectual Property arising from activities undertaken within or on behalf of the University.

In addition, this policy also in part covers how the University deals with and uses teaching outcomes, particularly in the context of lecture capture and digital learning resources.

Please note that this policy should be read in conjunction with the University Financial Regulations. https://www.exeter.ac.uk/departments/finance/aboutus/policies/ 

2. Definitions and General Principles

• The term “Intellectual Property” (IP) means all forms of intellectual property, including know-how. For more information on the different types of IP please go to the UK’s Intellectual Property Office website at https://www.gov.uk/government/organisations/intellectual-property-office
• In relation to performers’ rights, in a higher education context, it is expected that the giving of a lecture, and/or actively participating in a tutorial, seminar or other teaching session, may be a ‘performance’, which is defined in law as a dramatic performance, or reading or recitation of a literary work. Equally, sitting in a lecture and being recorded, without actual active participation, will not constitute a ‘performance’ and performers’ rights are unlikely to apply in such a situation.
• The term “Originator” means anyone making an original and creative or inventive contribution to the generation of IP, whether an employee of the University or not.
• The term “Founder” means a person taking an active role in a spin-out company, such as a Director, Consultant, Secondee, or Employee, where the role is undertaken on a full or part-time basis.
• The term “Originators Agreement” means an agreement made between the Originators of IP which specifies the relative contribution each made to the creation of said IP.
• The term “Deep Tech” means any substantial scientific or technological innovation yielding IP capable of formal registration with a national patent office, such as a Patent or Design Right, but excluding Trademarks.

3. Key Roles and Responsibilities

A number of individuals and groups in the University are involved in making decisions about the commercialisation and management of the IP it generates.

The University’s IP Policy is within the portfolio of the Deputy Vice-Chancellor for Business  Engagement and Innovation and the Director of Exeter Innovation, who oversee all University activities that generate and commercialise IP, and lead the strategic development of the IP Policy and its incorporation into the University infrastructure.

Pro-Vice-Chancellors are responsible for the activities of their Faculty and the research groups and Centres within them. Any disputes regarding IP generated by staff or students within a Faculty or the routes to commercialisation will normally be referred to the relevant Pro-Vice-Chancellor for resolution who may delegate decision-making powers regarding IP issues to their respective Associate Pro-Vice-Chancellor for Business Engagement and Innovation and/or Director of Faculty Operations. For further information on dispute resolution procedures, please refer to section 10 of this policy.

Exeter Innovation is the first point of contact for all matters relating to the University's IP commercialisation and impact generation activities.

The IP Solicitor, based in University Corporate Services, and the Head of Commercialisation, based in Exeter Innovation, are the principal contact points for all University IP matters.

4. Obligation to Disclose

Employees must disclose to Exeter Innovation any IP that has been developed or invented during the course of, and arising from their employment at the University, and which can reasonably be considered as having commercial potential. This includes novel devices, materials, products, or processes, and computer code, but may also include literary works, rights in performances, databases, and know-how (secret technical or practical information).

The University's online Innovation disclosure form should be used for disclosures as appropriate; such disclosures will be treated as confidential.

The Innovation Disclosure Form can be used as part of an academic's portfolio of evidence to describe their contribution to impact.

Once IP is generated, it is important to declare those Originators who have made an original and creative/inventive contribution to the generation of the IP. The Originators will be asked to complete an Originators Agreement confirming that each made an inventive/creative contribution to the creation of the IP.

5. Confidentiality

If IP is potentially patentable, registrable as a design, or is unpublished, unpatented technical or practical information or results (know-how) with perceived commercial value, it is vital to consider whether and when disclosure, other than via the Innovation Disclosure Form, is prudent. Examples of such information are project results, chemical formulae, notes from a laboratory notebook, source code, experimental techniques, or procedures. It does not matter how informal a disclosure might seem, written or oral, whether at a conference, by publication of a journal article, or otherwise. Non-confidential disclosures can seriously hamper the ability to file a patent application or registered design application, and know-how will lose its innate quality if it is disclosed or published, meaning IP protection is lost, potentially to the significant detriment of the IP’s commercial value.

Under UK law, employees have a duty of confidentiality to their employer. This means it is generally acceptable to share confidential information with colleagues who are employed by the same employer. Visiting academics, students, secondees, and consultants may not be co-employees, so confidentiality agreements may be required before sharing information.

Disclosures to and from individuals from other institutions, research groups, or commercial organisations are likely to require a confidentiality agreement, which should be put in place before confidential information is shared. Staff and students should be familiar with confidentiality provisions in the research collaboration agreements, studentships, and consultancy agreements they are involved in. If a disclosure is made in breach of confidentiality, the University, and potentially the individual who made the disclosure, may be sued and liable to pay damages. Some parties, particularly commercial sponsors, may require absolute secrecy about the research project they are undertaking with the University, and their permission must be sought prior to any disclosure for marketing purposes or otherwise.

6. Ownership

6.1 University Employees

Under UK law, inventions and other forms of IP generated by an employee belong to the employer if made in the course of the employee's normal or assigned duties. However, in certain cases, the University may not automatically own all rights on creation (see section 6.6 Digital Learning Resources & Lecture Capture) or it may decide not to assert ownership over all types of IP (see section 6.7 Publishing and Teaching Copyright). Alternatively, the IP may, by agreement, vest in a third party (see section 6.4 Third Party IP).

6.2 Honorary Appointments

An honorary appointee is not generally an employee of the University, so IP ownership needs to be considered on a case-by-case basis. In the event that an honorary post holder creates IP during the course of his or her appointment at the University, ownership and rights to commercialisation will depend on how the appointee is otherwise employed, whether the IP has been generated in collaboration with University staff, students and/or third parties, funding sources involved and their terms, the use of University facilities and resources, and any specific contractual terms agreed with the University and/or third party sponsors.

6.3 Students

Research students (e.g. MRES, PhD students) should check the terms and conditions of their student agreement for their project-specific IP ownership and other IP-related contractual arrangements. However, undergraduate and postgraduate students will normally own the IP they generate in the course of their studies. The exceptions to this statement are as follows:

• when a student is also an employee of the University and the IP is generated in the course of his or her normal or assigned employment duties; this includes, for example, where a student undertakes either temporary paid employment, or paid or unpaid internships, or University placements, alongside their studies;
• where, in relation to an ongoing research programme or taught programme module, there are sponsors who claim ownership of any IP that arises from their studentship, research, or taught programme module; or
• where the University has directly funded a project or initiative that the student has undertaken or been involved in, which falls outside the scope of a specific studentship agreement and from which IP has arisen (University funding in this context does not include fee waivers; travel & subsistence allowances and other similar payments, unless otherwise agreed on a case by case basis); or
• where a student is working with employees of the University (for example, their supervisor), and it is impossible to decipher separate contributions. Unless one of the other exceptions above applies (in which case it will take precedence), in these cases, the IP is jointly owned, but the University would be free to use it for academic research, teaching purposes, and commercialisation, with the student participating under revenue-sharing arrangements. The student would also have the option to assign his or her interest in the jointly owned IP to the University in order to benefit from the resources we can bring to bear on exploitation, as well as participate in the revenue sharing arrangements; 
• where a student undertakes either paid employment, an internship, or a placement with the University, alongside their studies.

In all of these circumstances, except as stated above, any such IP is to vest in the University (and/or sponsors). Students will be asked to execute assignments and other agreements to vest title to the IP in the relevant party, and if any revenues arise and are received by the University, the student would be able to participate in the revenue-sharing arrangements (see section on Commercial Exploitation below).

Students are advised to seek assistance from their academic supervisors and Exeter Innovation (supported by Legal Services if required) to check the IP ownership position, if they are keen to commercialise outputs arising from their studies. Once ownership is established, students who own IP generated in the course of their studies may take advantage of the University’s IP and Innovation disclosure process (described below) and may discuss their innovation with a view to engaging with the IP management and commercialisation services provided by Exeter Innovation. Any IP disclosures made by students will be treated as confidential, and Exeter Innovation may explore the commercial potential of their innovation with the student. If Exeter Innovation decides to initiate next steps to commercialisation and agrees with the student that the best option is for the IP to be assigned to the University (and it is in the absolute discretion of the student, in such circumstances, on whether they assign the IP to the University), the University will take on legal responsibilities for registering and maintaining the IP, if appropriate. In the event that the student prefers to retain or share ownership of their IP, support for commercialisation from Exeter Innovation will be negotiable on a case-by-case basis.

If the University successfully commercialises IP generated by students and any revenues arise, the relevant student(s) will be eligible to participate in the revenue share reward scheme (see section on Commercial Exploitation below).

6.4 Third Party IP

New staff or students, honorary appointments, secondees, visiting academics, and other third party individuals and organisations may come to the University with IP rights of commercial value generated outside the University. The University requires notification of these rights if the IP brought into the University is to be further developed using University resources (money, facilities, and expertise). Conversely, the same situation applies to IP created at the University being developed at other institutions. It is important that the respective parties agree on IP ownership and exploitation before appointments are made.

It should also be noted that in particular, certainly in relation to copyright and design rights subsisting in deliverables that have been commissioned from third parties (e.g. web design, translations, photographs, art work, software), ownership of the IP will by default vest in the creator, regardless of the fact that the commissioner has paid for the services to create such IP, unless the contract states otherwise. Terms and conditions for commissioned works should therefore be carefully checked. Specifically, in relation to the commissioning of photographic and videographic services, the University has a procured panel of providers, the contract for which covers this point. Contact designenquiry@exeter.ac.uk.

6.5 Funding Sources

The nature of the funding source that sponsored the activities resulting in the creation of IP has implications for its ownership. The exploitation of any IP generated by a project is normally subject to an agreement between the University and the sponsoring body, and different funding streams can contribute to the same project. In addition, since a student is not normally an employee of the University, it is important that the student should be a party to a contract which includes provision for the protection, publication, and exploitation of the research results.

External funding may not be cash: it can be ‘in kind’ (e.g. goods or services), and may still carry implications as to ownership of IP rights. For example, if significant University resources have been used without payment at standard rates, then the University has a legitimate claim to a stake in any resulting IP.

It is important that ownership of IP is determined before contracts are signed. Prior to agreeing to any external funding contract, Exeter Innovation must be consulted. Likewise, Exeter Innovation must be notified prior to any commercial exploitation discussions with funding bodies or interested parties.

6.6 Digital Learning Resources and Lecture Capture

The Digital Learning Resources policy sets out the University’s approach to the creation and use of digital learning material by staff and students. It is divided into three parts: Part A covers asynchronous learning resources which comprise digital learning material created to support asynchronous learning on predominantly on-campus blended programmes (including audio-visual pre-recording of educators outside of the live teaching environment) (or “ALRs - Type A”), Part B covers asynchronous learning resources created as core material for asynchronous learning in predominantly or fully online programmes (or “ALRs - Type B”), and Part C covers synchronous recording facilities for capturing live teaching.  The policy will be regularly reviewed and monitored by the Education Executive. Staff and students should read both the Digital Learning Resources policy and this policy together for clarity. They should also be read in conjunction with the University Information Security Policy, the Regulations relating to the Use of IT Facilities and Data Protection Policy, and relevant HR policies.

Unless separate contract terms apply, the University owns the copyright in recordings made by its employees in the course of their employment (or duties assigned to them) or where a recording is made automatically and the University has made the arrangements for that to happen. Ownership of copyright in recordings made by students using their personal devices, for example, will vest in the student. However, students must, in advance of recording, seek the consent of the performers (e.g. the lecturer and any other performing participant) and must be granted such consent by the performer(s), and must only use such recordings for their personal educational use and nothing else. To protect staff and the University, the recommendation is that University recordings are made and used wherever possible to avoid any need for student recordings.

Additionally, under the Copyright, Designs and Patents Act 1988, those staff and students who actively participate in a session which is recorded may have certain performers’ rights in their ‘performance’ (see ‘definitions’ section 2 of this policy).

The University agrees and acknowledges that all performers’ rights that they may have in such performances are owned by the relevant employee or student. By the incorporation of the Digital Learning Resources policy and this IP policy into (a) staff terms and conditions of employment, as amended from time to time, and (b) the student terms, as amended from time to time, which apply whilst a registered student of the University, each employee and student of the University gives to the University and its subsidiaries:

• consent for recordings to take place, whether as part of the creation and re-use of asynchronous learning resources, Type A or Type B, or of synchronous (live) teaching and educational sessions, all with the option to opt out as detailed in the Digital Learning Resources policy; and
• a royalty-free, non-exclusive licence for their performers’ rights in those recordings to be uploaded to and used on the VLE for educational, administrative or operational (including commercial purposes in respect of asynchronous learning resources Type A or Type B only). The licence period is 5 years following the end of the academic year the asynchronous recording is created and 5 years following the end of the academic year the synchronous recording is captured in, subject to opt out and/or staff take-down requests (for example, when they leave the employment of the University), as detailed in the Lecture Capture Policy.

For non-University staff or non-University students partaking in a ‘live’ or pre-recorded teaching session, separate express consent will be required.

In addition, each student also grants the University a royalty-free, non-exclusive licence to use any intellectual property owned by him or her which is used in such recorded sessions for the same purposes. Again, the licence period is 5 years following the end of the academic year in which the student’s IP is captured, subject to opt-out by the student.

Similarly, under the Copyright, Designs and Patents Act 1988, staff and students have certain personal, moral rights in their performance (the right to be identified as the performer and the right to object to derogatory treatment of their performance). Generally speaking, employers are released from the burden of its employees’ moral rights, if any, under exemptions in ss. 79 and 82 CDPA. However, performers have moral rights in their performance in any audio recording (under s. 205C of the CDPA), and it is the usual practice of the University to acknowledge authorship/performance and credit members of staff on reproduction of those recordings. It is possible that staff or students may be asked to waive their moral rights in their performance in an audio recording, but this waiver must be expressly agreed in writing by the performer, so it will need to be done on a case-by-case basis, if at all required.

Staff and students are encouraged to remain aware of their responsibilities to ensure any confidential information they know, whether pertaining to the University or a third party, is not disclosed without permission from the proprietor; this includes any unauthorized disclosure of unpublished patentable results of new research, which could be the subject of a new patent application, which will jeopardize the novelty, and therefore the granting of such a patent.

Academics are also asked to inform students when lectures are being recorded, and are encouraged to ensure that third party intellectual property or copyright content in their lecture/presentation materials is legally obtained and appropriately licensed and acknowledged. Under the Copyright, Designs and Patents Act 1988, there are certain exemptions, which allow for the use of copyright works in certain situations for example for the sole purpose of illustration of instruction (section 32) or the copying and use of extracts of copyright works by educational establishments (section 36), subject to certain restrictions and conditions. Third party IP which is subject to Creative Commons’ licences for example, may also be useful, but users should again be clearly aware of the uses permitted by such licence terms. For more on this, including tips on finding third party content which the University has licensed for use,  please go to the University Copyright Toolkit at https://universityofexeteruk.sharepoint.com/sites/CopyrightToolkit and also   http://creativecommons.org/

The University reserves the right, as it deems necessary, to take down any material from the VLE which is or may infringe third party intellectual property or other legal rights or which may cause reputational harm to the University or its partners.

For non-University staff or non-University students partaking in a ‘live’ or pre-recorded teaching session, separate express consent will be required. Please see the guidance note at: https://www.exeter.ac.uk/media/universityofexeter/humanresources/documents/staffinacademicroles/FAQ_on_Digital_Learning_Resources_Policy.pdf

If it is intended that live teaching recordings, or any asynchronous learning resources are to be created and/or delivered by third party contractors, please note that separate contractual terms will need to be agreed in advance. The University does use bespoke contracts for consultant lecturers/guest speakers which cover copyright ownership of both pre-existing and specially created materials, builds in consent to record sessions, explains how and where the recording will be used and stored, confirms ownership of the copyright in the recording will be held by the University and explains editing for data protection purposes. Please see the FAQ’s on this page: https://www.exeter.ac.uk/departments/lxi/digitallearning/resourcespolicy/ 

The Digital Learning Resources Policy can be found at: https://www.exeter.ac.uk/v8media/universityofexeter/academicservices/educationenhancement/Digital_Learning_Resources_Policy_Senate_Approved_March_2024.pdf 

6.7 Publishing and Teaching Copyright

The University will waive ownership of copyright in materials of a scholarly nature created by its employees in the course of their employment such as text books (unless such text books were developed using University administered-funds paid specifically to support textbook development), academic journal articles, conference papers and related presentations and materials created for personal use, but excluding any materials which are “University Materials” (see below). In return for the University waiving ownership of copyright the owners will, unless a sponsor or publisher requires otherwise, grant to the University a non-exclusive, irrevocable, worldwide, royalty-free licence to use and adapt the material for teaching, administrative and operational purposes, with a right to sub-license to third parties. The University’s Open Access policies should be read in conjunction with this section of the IP Policy.

However, the University reserves the right to assert ownership of the following types of materials (“University Materials”):

• materials used or created by the University for administrative purposes, promotion and marketing, student and staff recruitment, assessment and examination, handbooks, or for any other institutional purpose (including where materials are being developed for sponsors and other third parties);
• materials that are primarily intended to be used or accessed for any course of study (including course materials, whether to be delivered as flexible and distributed learning material or e-learning material, or on virtual learning environments); this includes both synchronous and asynchronous (whether asynchronous learning resources Type A or Type B) digital learning resources as defined and referred to in the Digital Learning Resources Policy (see 6.6 above)
• materials specified under contract or in writing to be owned by the University;
• materials generated by prior agreement as part of a joint venture with the University; or
• computer code, both closed and open source, that can be reasonably considered to have commercial potential.

If joint authorship is planned between students and/or staff of different institutions, all co-authors must declare their copyright obligations and secure written agreement from the co-authors that these rights will be honoured.

Students will automatically own the copyright to their theses unless there is a sponsor of their research, in which case the University will seek during the negotiations to ensure that the copyright in the theses belongs to the student; if it is not possible to agree this position with the sponsor, this will be made clear to the student.

To warn others against infringing copyright, it is recommended that authors incorporate into the work the copyright symbol © followed by the owner’s name and the date. Be aware that other parties may acquire interests in a work, e.g. exclusive rights to publish or copyright in the typographical arrangement, which do not affect ownership of content but which may limit the author’s or owner’s rights to make copies of published material.

7. Commercialisation

The University will only actively exploit IP that it recognises as having potential for commercial, social, or environmental impact. Several factors are involved when evaluating this: validity, protectability, market readiness, demand, competition, and likely costs vs. benefits. In the event that IP is determined to have sufficient potential, Exeter Innovation will work with the Originators to develop and pursue an appropriate commercialisation strategy from the point of initial disclosure for a period of at least 12 months.

The commercialisation potential will be assessed at a number of key decision points and reviewed no less frequently than once every 12 months.  If in the opinion of Exeter Innovation there is no obvious prospect of successful commercialisation or the IP underpins a strategic objective supported by the relevant Faculty(ies), the University may decline to proceed with commercialisation. In the event that the University declines to proceed with commercialisation (or to vest the IP in a strategic relationship) the IP will be offered at nominal value to the Originators on condition that the University is given a royalty free licence to use the IP for research and educational purposes in perpetuity.

Originators will be required to enter into a Commercialisation Agreement setting out the agreed distribution as a percentage between the Originators of any income which may arise from subsequent commercialisation, taking into account any additional IP or contributions from others, including third parties, to commercialisation. Where commercialisation is via a spin-out company, the Commercialisation Agreement will take the form of the Heads of Terms described in section 8.1 below.  In the event that the Originators are unable to agree percentage distribution, or in the event of a dispute, the matter will be referred to the PVC of the relevant Faculty(ies) and the Director of Exeter Innovation for resolution in the first instance.

8. Spin-out Companies

The University supports and encourages spin-out development as part of individual commercialisation strategies where this has been identified as the best route to fulfil at least one of the following:

• deliver meaningful impact from University research and education activities;
• generate income in support of the University Business Engagement and Innovation strategy;
• create value for the regional and national economy.

Originators generating IP that is used to create a spin-out company will have the option to either receive shares in the spin-out company or participate in University revenue sharing as set out in section 9 of this policy. Originators are encouraged to seek independent financial advice when making this decision.

8.1 Decision to form a spin-out company

The decision to form a spin-out company based on University IP will be made jointly by the Director of Exeter Innovation and the PVC of the Faculty from which the IP originated. The default process for the formation of a University spin-out company is:

1. A Business case setting out the rationale for pursuing a spin-out strategy is developed by the Originators and Exeter Innovation and presented to the Director of Exeter Innovation and the PVC of the relevant Faculty(ies) for approval.
2. Heads of Terms are agreed between the University and the Originators defining the intent to form a spin-out company, the products and services it will supply, details of any University IP or facilities the company wishes to use, the Company Founders and the proposed management structure, and the agreed equity distribution between the Founders, the University and any non-Founder Originators.
3. The company is incorporated by the Founders with a standard set of Memorandum and Articles. At this stage, the company will not be trading and must not commence trading until step (4) is completed, such that the company may be dissolved at minimum risk and cost in the event that investment cannot be secured.
4. On completion of the IP licence, the company is established as an arms’ length spinout company, shares are distributed to the Founders, Originators and the University as agreed in the Commercialisation Agreement, and the management and governance of the company is regulated by a shareholders' agreement.

8.2 Vesting of IP in a spin-out company

On formation of a spin-out company, the University will grant the company, in return for a shareholding and/or royalty as set out in section 8.3 below, a licence to commercially exploit the IP in certain specified field(s) of use. On achievement of certain agreed product development, revenue generation, or investment milestones, the University may then assign the IP to the company, but will require back licensing of the IP for research and educational purposes and for commercial exploitation outside the agreed fields of use.

8.3 Equity Distribution and Royalties

The University is committed to adopting best practice for spin-out company creation as identified in the HM Treasury sponsored Independent Review of University Spin-outs. Individual deal terms may be based on equity only, a combination of equity and royalty, or non-dilutable equity to be negotiated within the below landing ranges as set out in the USIT best practice guidelines. Equity stakes at the lower end of the landing range will be expected to command royalties at the upper end of the landing range and vice versa. Royalty only deals may be agreed on a case-by-case basis, but will be negotiated on an arm’s length basis in line with typical royalty rates for the relevant sector, which may fall outside of the ranges stated in the Royalties section below.

8.3.1 University equity stakes

• • Prior to any external investment or the creation of employee option pools, founding equity will be distributed to the Founders (including any Originators of IP required by the spin-out) and the University. As standard, the University will expect an equity stake of between 5-25% of the founding equity, the exact stake to be informed by and compliant with the USIT best practice guidelines for the relevant sector. e.g.
    • Software and unregistered IP-based spin-outs 5-10%*
    • Lifesciences and Deep Tech spin-outs 10-25%*
      *Where there is a difference of opinion between the University and the Founders whether a spin-out is a software / unregistered IP or Deep Tech spin-out the opinion of a patent attorney will be sought and if the IP is considered patentable then the Deep Tech equity position will apply regardless of whether a patent application is filed or not.
  • Alternatively, the Founders may elect for the University to take a 5% equity stake, non-dilutable, up to a cumulative investment threshold typically up to and including Series A investment for the relevant sector.

8.3.2 Founder equity stakes

• • The University expects Founders and Originators to agree distribution of the Founder equity between themselves. Spin-out Founders and Originators are encouraged to adopt amongst themselves proportionate equity distribution that both recognises contributions to the originating IP and continued intellectual support, but also the need to reward and incentivise those individuals who commit considerable effort in taking the company forward.

8.3.3 Royalties

• • Where University IP is licenced to the company, it will be subject to a royalty on net sales of between 0-5% exact rates will be informed by and compliant with USIT best practice guidelines for the relevant sector e.g.
    • Software licences 0-2%
    • Patent and registered IP licences 0-5%
  • A licence or assignment fee in line with sector norms will be payable in instalments over a 5-year period, along with any historic IP registration costs incurred by the University.

8.4 Board of Directors

As a default position, for as long as the University holds at least 5% of the total equity in the spin-out company, it shall have the right to appoint, at its discretion, either a Director or Observer to the board of the company. In the event that the University elects not to appoint either a Director or Observer it shall have the right to receive board papers in the same way as if an appointment had been made.

8.5 Social Enterprises

Social Enterprises follow the same decision-making process as fully commercial spin-out companies; however, they may adopt a different business model and/or take a different corporate and governance structure appropriate to their social or environmental mission.

9. Revenue Sharing

The University shares its net revenue from the commercialisation of any of its IP (or bundles of IP) according to Table 1 below:

Table 1 – Distribution of Revenue

Cumulative Net Revenue Band	£0 - £2000	£2001 - £50000	£50001 - £200000	£200001 - £500000	£500001+
Revenue Share %
Originators	100%	75%	60%	45%	30%
University	0%	25%	40%	30%	40%
Faculty	0%	0%	0%	25%	30%

Revenue received by the University from the commercialisation of its IP is made up of payments for assignment(s) made, or licence(s) or right(s) granted, in respect of any of the relevant IP by the University, but not:

• shares in a spin-out company (or proceeds from them) or royalties received from a spin-out where the Founders and/or Originators(s) have already received share(s) themselves in such spin-out company in lieu of a revenue share (see below); or
• income representing payments for teaching or research; or
• any sponsorship or payment made to support a student.

Net revenue is the University’s total such revenue less:

• VAT or applicable sales tax;
• all expenses incurred by the University in connection with the registration, maintenance, marketing and commercialisation of the relevant IP (including patent costs and all fees of patent agents and lawyers);

Where the Founders and/or Originators receive shares in a spin-out they are excluded from sharing in revenue generated as a result of the subsequent sale of the University’s shares in the company or from royalties received by the University from licensing IP to the spin-out company as they have received their shareholding in place of the revenue share. Where one or more originators elect not to receive a personal shareholding in a spin-out company but to benefit under the University’s revenue sharing policy instead, the revenue share will apply pro rata to their contribution as set out in the Originators Agreement or Commercialisation Agreement. For example, if an Originator's contribution is 25% they will be entitled to receive 25% of the Originator's share as set out in Table 1 above.

The Revenue Sharing Calculator can be used for an illustration of how the University's revenue sharing policy applies.

All revenue sharing to be made by the University and equity distributions to be allotted to originator(s) pursuant to this IP policy will be subject to the deduction of any applicable income tax and employer’s and employee’s national insurance at source.

9.1 Leavers and Deceased Originators

Each Originator who is no longer employed by the University or, in the case of a deceased Originator, their Estate must ensure that the University is notified in writing at all times of their current address to where any revenue payments due to them may be sent. If the University is not given such current address details, then such an Originator will be a ‘missing Originator’.

All unclaimed revenue for such missing Originators may be invested in a deposit account until such revenue is claimed. The University will not be a trustee of any such unclaimed revenue. Any revenue remaining unclaimed for 5 years from the date it is received by the University will, after that date, be forfeited. Such revenue will revert to the University, which may distribute such revenue payments, plus any net interest actually earned, between any others entitled to share in such revenue stream, excluding the missing Originator, or allocate it to the Faculty in which the missing Originator had worked.

10. Dispute Resolution

In the event of a dispute, the matter will be referred to the PVC of the relevant Faculty(ies) and the Director of Exeter Innovation for resolution in the first instance. If such discussions do not achieve an acceptable way forward, relevant parties may choose to go to mediation in order to attempt to resolve the dispute, with a mutually chosen mediator; each party will be responsible for its own costs in respect of such mediation proceedings.

11. Version history

Updated 10-07-2025 [approved by Council].

This policy comes into force on 10-07-2025 and applies to all IP created, exploitation activities initiated, and income received, by the University and takes precedence over the previous IP policies or strategies of the University which shall no longer be in force or effect. For the avoidance of doubt, revenue sharing arrangements in effect on the date the IP disclosure is made by the Originators to the University will continue to apply for the lifetime of any IP derived from such disclosure.

Previous versions of the IP policy may be accessed via the Ideas Hub or by contacting Exeter Innovation.

Reviewed and changes made 07-07-2016
Reviewed and changes made 29-03-2012
Policy published 01-08-2002