1. There are two kinds of income when a technology transfer takes place.

2. All payments will be made to the institute as is the case for consultancies.

3. No overhead will be charged by the institute for the technology transfer fee (for consultancies, a 10% overhead is charged on all amounts received).

4. For every technology transfer (or a set of related transfers), a separate virtual account similar to other projects will be created. All money received will be deposited in this account.

5. Expenditure from the technology transfer fees can be made for the related to the technology (such as testing, refining the process / product, extensions etc.). Expenditure for travel, consumables etc. can also be made. The institute rules will govern these expenditures.

6. All or parts of the technology transfer fee can be disbursed to the faculty/staff/students involved in the development of the technology (referred to as inventor (s) from now on). Only employees and students of the Institute will be eligible for receiving payment, except the person concerned has left the Institute, but was in the institute and participated in the development of the technology. If the technology was developed jointly among a number of Institutions, the payments received by the institute will be considered. The disbursal will be as per the details given below.

7. The Institute will take a portion of all royalty received as per the disbursement rules given below. The rest of the amount can be distributed among the inventor (s) or expenditure can be incurred from them as per Project rules.

8. Disbursement Rules. A progressive slab based division of receipts between the Institute and the Inventor (s), along the lines of the income tax slab is proposed.

9. The technology transfer fees will be treated separately from the royalty payments. The amount received will be cumulative. Thus if the first instalment of technology transfer is Rs.10 lakhs it will be disbursed in the ratio 70:30. If the second and last instalment is Rs. 30 lakhs, then Rs.15 lakhs will fall in the second slab (so the ratio will be 60:40) and 15 lakhs will fall in third slab (and the ratio will be 50:50). Similarly, as royalty income is received, depending on the amount received thus far, any new receipt will fall in an appropriate slab. The amount received as technology transfer fees will not be used in deciding the slab for the amount received for royalty.

10. Royalty will be paid to inventor (s) for a maximum period of 15 years from the date of receipt of the first royalty payment, irrespective of whether the inventor is continuing to serve the institute or has retired from service. Thereafter, the institute will have the entire share of royalty.

11. However, if the technology commercialisation takes a long time after transfer of technology, the 15-year period may begin after that time. A ceiling of 30 years will apply on the total duration up to which royalty may be paid to the inventor (s) from the date of transfer of technology. Thus if commercialisation takes place after 20 years, royalty will be paid only for ten years to the inventor, notwithstanding the clause above.

12. In case of death of an inventor, the payment of royalty to the legal heir will be as per relevant legal provisions of the Government.

Dean (II&SI)