ERIC Number: ED407895
Record Type: Non-Journal
Publication Date: 1996-Aug-28
Reference Count: N/A
Implications of Proposed University of Maryland System Patenting Policy Change.
As a result of actual and anticipated growth in the level of entrepreneurial activities within the University of Maryland System (UMS), and corresponding growth in licensing and royalty revenues, a threshold policy was recommended in the Joint Chairmen's Report of 1996. Such a policy would establish a maximum threshold beyond which a portion of licensing and royalty revenues would accrue to the State of Maryland's General Fund. This analysis of the recommendation concludes that this proposed policy would negatively impact the expansion of technology commercialization, a key element of Maryland's strategic plan for economic development while raising only a minor amount of revenue for the State's General Fund. It suggests that the proposed policy change would have a negative impact because it would divert commercialization revenues from the technology transfer office, the inventor, or the University. This would diminish the resources available to faculty and universities and thus reduce their incentives for engaging in commercialization efforts. The revenue potential is small because few university patents or licenses generate sufficient revenue to reach a relatively high threshold. The average revenue from an active UMS license was $12,611 in 1994. If the threshold were low enough to impact most licenses, it would be a strong disincentive for commercialization. Further, the total level of UMS royalties ($945,876 in 1994) would remain small in comparison to other potential revenues sources. (JLS)
Publication Type: Opinion Papers
Education Level: N/A
Sponsor: Maryland Univ. System Administration, Adelphi.
Authoring Institution: Baltimore Univ., MD. Jacob France Center.