How are inventor revenues distributed if there are multiple inventors and/or multiple inventions in a license?
While there may be some variation in the procedure, typically when a license agreement is developed, a Revenue Distribution Plan (RDP) is created to document the formula used to distribute any subsequent revenues. The initial RDP includes a draft formula based on the contributions listed in the Invention Disclosure(s) relating to the license. OTC asks one inventor within the group to serve as coordinator and to report the percentages determined by the inventors collectively. All inventors must sign the RDP, signifying their approval. Should the inventors be unable to agree on a revenue distribution plan, OTC will make the final revenue allocation decision. Please refer to OTC’s Revenue Distribution Plan page for more information.