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§ 100608. Revenue Sharing.

17 CA ADC § 100608Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 17. Public Health
Division 4. California Institute for Regenerative Medicine
Chapter 6. Intellectual Property and Revenue Sharing Requirements for Non-Profit and for-Profit Grantees
17 CCR § 100608
§ 100608. Revenue Sharing.
Currentness
(a) Licensing Revenue. A Grantee and Collaborator must share with the State of California a fraction of Licensing Revenue arising in whole or in part from a CIRM-Funded Invention, CIRM-Funded Technology, or results of CIRM-Funded Research, as follows:
In the event that CIRM funds at least one-half of the total cost of the CIRM-Funded Project resulting in the licensed or transferred CIRM-Funded Invention, CIRM-Funded Technology or results of CIRM-Funded Research, then the amount owed is 25 percent of Licensing Revenue received in excess of $500,000 and shall be payable to the State of California for deposit into the State's General Fund (such payments to be used by the State of California in a manner consistent with Title 35 United States Code, Section 202, subdivision (c)(7)). The threshold amount of $500,000 (in the aggregate) shall be adjusted annually by a multiple of a fraction, the denominator of which is the Consumer Price Index, All Urban Consumers, All Items (San Francisco-Oakland-San Jose; 1982-84=100) as prepared by the Bureau of Labor Statistics of the United States Department of Labor and published for the month of October 2009, and the numerator of which is such Index published for the month in which the Grantee accepts the Grant. In the event that CIRM funds less than one-half of the total cost of the CIRM-Funded Project resulting in the licensed or transferred CIRM-Funded Invention, CIRM-Funded Technology or results of CIRM-Funded Research, then the amount owed is 15 percent of Licensing Revenue in excess of the threshold amount described above.
(b) Net Commercial Revenue. A Commercializing Entity must share with the State of California for deposit in the State's General Fund a fraction of Net Commercial Revenue as follows:
(1) A royalty on Net Commercial Revenue at a rate of 0.1% per $1 million of CIRM Grant(s) for the earlier of Ten (10) years from the date of First Commercial Sale of the applicable Drug, product or service, or until such royalty equals nine times the amount of the Grant(s). (By way of example, Grants totaling $15 million will result in royalty payments of 1.5% of Net Commercial Revenues.)
(2) In addition, upon satisfaction of the obligation in subsection (b)(1) above, a 1% royalty shall be owed on Net Commercial Revenues in excess of $500 million per year until the last-to-expire patent covering a CIRM-Funded Invention, if any, that generates or plays a role in the generation of, in whole or in part, said Net Commercial Revenue; provided at least $5 million in CIRM Grant or Grants were made in support of such CIRM-Funded Research, CIRM-Funded Technology or CIRM-Funded Inventions.
(3) For purposes of subdivision (b) of this section, the royalty rate calculation shall apply only to Grants made to For-Profit Grantees and which were awarded subsequent to the effective date of this section, as amended, effective January 27, 2014.
(4) Royalty payments owed pursuant to this section shall be paid within 60 days following the end of each calendar quarter.
(c) Grantees and Collaborators shall include provisions within any license of a CIRM-Funded Technology or CIRM-Funded Invention ensuring that a Commercializing Entity, whether a licensee or sub-licensee, directly owes payments to the state pursuant to subdivision (b) of this section, where applicable.
(d) Revenues due the state according to this section shall be paid to the California State Treasurer's Office, Division of Cash Management.

Credits

Note: Authority cited: Article XXXV, California Constitution; and Section 125290.40(j), Health and Safety Code. Reference: Section 125290.30, Health and Safety Code.
History
1. New section filed 12-17-2009; operative 12-17-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 51). For prior history, see Register 2007, No. 26.
2. Amendment of subsection (b)(3) filed 4-18-2012; operative 4-18-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 16).
3. Amendment filed 1-27-2014; operative 1-27-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 5).
This database is current through 4/26/24 Register 2024, No. 17.
Cal. Admin. Code tit. 17, § 100608, 17 CA ADC § 100608
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