IV - 3.20 - 1 of 17
       IV - 3.20 - UNIVERSITY SYSTEM OF MARYLAND POLICY ON
                      INTELLECTUAL PROPERTY
(Approved by the Board of Regents, February 8, 2002; Amended by the Chancellor, 
July 7, 2004; Amended by the Board of Regents, February 13, 2009)


I.   INTRODUCTION
The primary mission of universities is to create, preserve, and
disseminate knowledge.  When that knowledge takes the form of
intellectual property, a university must establish a clear and
explicit policy that will protect the interests of both its
creators and the university while ensuring that society benefits
from the fair and full dissemination of that knowledge.

II.  EFFECTIVE  DATE
This policy will be effective on July 1, 2002 ("Effective Date").
It will apply to all intellectual property disclosed to the
University on or after July 1, 2002.  Intellectual property
disclosed to the University prior to the Effective Date will
remain subject to the UMS Policy on Patents effective May 31,
1990 or the UMS Policy on Copyrights effective May 31, 1990,
unless otherwise agreed by the University and all creators of the
intellectual property (or the heir or assignee of any creator's
share of Revenue).

III. DEFINITIONS
The terms defined in this section are given special meanings in
this policy and appear capitalized throughout.
  
  A.   Personnel. All University employees, full-time and part-
     time, including Student Employees acting within their Scope of
     Employment; non-employee consultants; visitors; and others using
     University resources.
  
  B.   Resources Usually and Customarily Provided.  All resources
     provided unless specified otherwise, in advance and in writing,
     as a condition of using the resource.

  C.   Revenue.  Consideration paid in cash or equity by a third
     party in exchange for specific intellectual property rights.
     Revenue does not include research support in any form (e.g.,
     sponsored research agreements, restricted grants, unrestricted
     grants, or equity), tuition income, and contract income received
     by the University including contract income received in lieu of
     tuition.
     
  D.   Scope of Employment.  All activities, related to the field
     or discipline of the faculty member's appointment, including the
     general obligation of a faculty member to teach, to do creative
     work, and to conduct research, or related to the employment
     responsibilities of non-faculty Personnel, and for which
     Personnel receive compensation from the University, where
     compensation is any consideration, monetary or otherwise,
     including but not limited to, title and the ability to use
     University resources.

  E.   Sponsored Research Agreements. Grants, contracts,
     cooperative agreements, and other agreements under which research
     or development activities will be carried out, or other
     agreements administered by the University that relate to
     intellectual property created under the agreement.
  
  F.   Students.  Persons enrolled in a University, acting within
     the course of their academic work, including, but not limited to,
     undergraduates, graduate and professional students, non-degree
     students, and not-for-credit students.

  G.   Student Employee.  A Student who is also a University
     employee, acting within the Scope of Employment.
  
  H.   University.  One of the following: a constituent institution
     of the University System of Maryland, the University of Maryland
     Biotechnology Institute, the University of Maryland Center for
     Environmental Science, or the University System of Maryland
     Office.

IV.  GENERAL PROVISIONS
  
  A.   Purpose. The purpose of this policy is to set forth the
     terms, conditions, and procedures whereby the University System
     of Maryland, Personnel and Students establish and maintain their
     interests in intellectual property created by or used at USM
     institutions, taking into account intellectual property laws
     governing patents, copyrights, trademarks, and other forms of
     intellectual property.  This policy governs the ownership and
     protection of such property at the University.
  
  B.   Scope of Application. All Personnel and Students shall
     comply with this policy, as amended from time to time.  This
     policy shall be included in the faculty handbook, as directed in
     Board of Regents Policy II - 1.00, Section I. B.2.

  C.   Protecting University Interests. Personnel and Students may
     not (1) sign agreements or take any action on behalf of the
     University unless they are authorized agents of the University,
     or (2) make unauthorized use of the name of the University.  In
     cases where Personnel or Students take such actions, the
     University is not bound to honor those actions or agreements.

  D.   Acquisition.  The University may acquire ownership or use of
     intellectual property by assignment, license, gift, bequest, or
     any other legal means.  The University shall administer such
     intellectual property in accordance with this policy unless
     otherwise required by the terms of the acquisition.

  E.   Administration of Intellectual Property which is not
     University-owned.  At the request of the owner, intellectual
     property not owned by the University may be administered by the
     University.  In such cases this policy shall govern that
     administration unless the University agrees otherwise in writing.

  F.   Sponsored Research
     
     1)   Ownership.  Sponsored research agreements shall provide that
       all intellectual property developed by Personnel or Students
       under such agreements shall belong to the University; however,
       the University, on a case-by-case basis (as circumstances
       warrant, and consistent with applicable private use restrictions
       e.g., under bond covenants), may agree to assign ownership or
       licensing rights to the sponsor, subject to the University's
       right to use and reproduce the intellectual property for research
       and educational purposes. The University's president or designee
       shall approve any such agreement.
     
     2)   Federal Sponsorship.  Any research project that is funded,
       in whole or in part, by a federal agency is subject to specific
       federal statutes and regulations.  Those regulations generally
       allow the University to elect title to any invention that is
       conceived of or first actually reduced to practice in the
       performance of federally-funded research with the purpose of
       commercializing the invention, subject to the government's rights
       which include reservation of a nonexclusive license to use the
       invention world-wide for government purposes.

  G.   Implementation Authority. The Chancellor shall have the
     authority and responsibility for implementation and coordination
     of this policy. Each president shall have the authority and
     responsibility to implement and coordinate this policy within the
     president's University.  Subject to the other provisions of this
     policy and applicable law, the presidents may enter into
     agreements with respect to ownership, licensure, disposition of
     intellectual property, disposition of royalty income, resolution
     of disputes, and other matters related to intellectual property
     in which that University has an interest under this policy, and
     may register intellectual property; seek protection under
     copyright, trademark, and/or patent laws; and enforce, defend,
     manage, and take any action relevant to the institution's
     intellectual property rights that is necessary for the proper
     administration of this policy.
  
V.   COPYRIGHTS
  
  A.   Ownership by Creator. Personnel and Students shall have all
     rights in copyrights of their work, subject to section V.B.
     below, with the following exceptions.
     
     1)   Scope of Employment.  The University owns all rights in
       copyright for work produced by non-faculty Personnel within the
       Scope of Employment.
     
     2)   Sponsored Research Agreements.  The University owns all
       rights in copyright for work produced by Personnel or Students
       under Sponsored Research Agreements.
     
     3)   Signed agreements.  The University owns all rights in
       copyright for all work as stated in written agreements.
     
     4)   Computer Programs and Software.  Ownership of copyrighted
       software and computer programs is addressed in Section VII.
     
     5)   Technology-mediated Instructional Materials.  Ownership and
       use of technology-mediated instructional materials is addressed
       in Section VIII.
     
  B.   Right of Use
     
     1)   University rights.  The University shall have the right to
       use and reproduce for research and educational purposes scholarly
       and original works, whether owned by the University, Personnel,
       or Students, for which it has provided resources.
     
     2)   Additional Rights.  If the University wishes to secure
       additional rights in copyrighted work, it shall so specify in
       writing at the time it provides resources beyond Resources
       Usually and Customarily Provided or other consideration.
  
  C.   Responsibilities of Personnel and Students
     
     1)   Assignment. For work to which the University has or had
       rights of ownership or use under this policy, Personnel and
       Students shall, upon request, execute all legal documents
       designed to assist the University, or its assignees, in proving
       or benefiting from such rights, as deemed appropriate by the
       University.

     2)   External Collaborations. See Section  IV.C  and the Policy
       on Professional Commitment of Faculty, BOR 41.0 II-3.10.
     
     3)   Use of Copyrighted Materials. All Personnel and Students are
       responsible for complying with University guidelines on the fair
       use of copyrighted material and for complying with the
       requirements of copyright law, including obtaining required
       permissions to use copyrighted material.
  
  D.   Responsibilities of the University
     
     1)   Agreement Regarding Use of Resources Beyond Resources
       Usually and Customarily Provided. When the University authorizes
       or directs efforts to create a work or works using University
       resources beyond Resources Usually and Customarily Provided, it
       shall enter into a written agreement addressing the extent of use
       of resources, the schedule for the project (if appropriate),
       control over the work and its revisions, and ownership of the
       work.  When the work done by Personnel routinely involves
       resources beyond Resources Usually and Customarily Provided,
       compliance with this section may be accomplished by including the
       required terms in an employment agreement.

     2)   Sharing of Revenue. The University shall remit to creators
       or their assignees or heirs, their share of Revenue from
       copyrights as specified in Section XI.A. of this policy.

     3)   Use of Copyrighted Materials. The University shall develop
       and disseminate guidelines for the use of copyrighted materials.
       These guidelines should address library and educational fair use
       as well as fair use exceptions for research and scholarly work.

VI.  PATENTS
  
  A.   Ownership
     
     1)   University Ownership
       
       a)   Within Scope of Employment.  The University owns inventions
          created by Personnel within the Scope of Employment.

       b)   Use of University Resources. The University owns inventions
          created by Personnel, Graduate Students, or Professional Students
          with the use of University resources.

       c)   Signed Agreements.  The University owns all inventions made
          by Personnel or Students under Sponsored Research Agreements and
          as stated in written agreements.
       
     2)  Creator Ownership
       
       a)   Outside Scope of Employment.  Personnel, Graduate Students,
          and Professional Students own patent rights to inventions
          conceived and first reduced to practice outside the Scope of
          Employment and without the use of University resources and not
          subject to Sponsored Research Agreements or other written
          agreements
       
       b)   Student Ownership.  Undergraduate, non-degree, and not-for-
          credit Students own inventions they create unless the invention
          is subject to another provision of this section.
       
  B.   Responsibilities of Personnel and Students
     
     1)   Disclosure. Personnel and Students shall disclose inventions
       which are subject to University ownership to the president or
       designee in a timely manner, fully, and in writing.  When
       uncertain about the University's rights, Personnel and Students
       shall disclose.

     2)   External Collaborations. In accord with Section IV.C.,
       Personnel and Students may not: (a) sign patent agreements or
       other documents (e.g., invention reports, licenses, assignments,
       Material Transfer Agreements, or Confidential Disclosure
       Agreements) which abrogate the University's rights; (b) make
       unauthorized use of the name of the University; or (c) transfer
       material relating to intellectual property outside the
       University, except pursuant to a properly authorized Material
       Transfer Agreement. See also the Policy on Professional
       Commitment of Faculty, BOR  II-3.10.

     3)   Assignment. As to an invention in which the University has a
       right to ownership or use, the inventor, upon request, shall
       execute promptly all contracts, assignments, waivers or other
       legal documents necessary to vest in the University, or its
       assignees, any or all rights to the invention, including
       assignment of any patents or patent applications relating to the
       invention.

  C.   Responsibilities of University
     
     1)   Timely Evaluation. The University shall evaluate inventions
       disclosed in accordance with Section VI.B.1) and shall do so with
       reasonable promptness and in good faith. The University shall
       decide whether to seek legal protection of its ownership rights,
       such as filing for patent protection; the scope of patent
       protection; and whether and how to pursue, limit, or abandon
       commercialization. The University may at any time decide not to
       pursue or to abandon the pursuit of patenting and/or
       commercialization of any invention in which it has an interest.

     2)   Timely Information. The University shall inform inventors in
       a timely manner about substantive decisions regarding protection,
       commercialization and/or disposition of inventions disclosed in
       accordance with Section VI.B.1). Terms of agreements which
       constitute proprietary business information may be treated as
       confidential by the University in accordance with applicable law.
       The University shall notify inventors promptly when it decides
       either not to pursue, or to abandon pursuit of, all efforts to
       commercialize an invention.

     3)   Commercialization by Inventors.  The University, at its
       discretion and consistent with the public interest, may license
       intellectual property to the inventors on an exclusive or non-
       exclusive basis. Inventors must demonstrate technical and
       business capability to commercialize the intellectual property.
       Agreements with inventors shall be subject to review and approval
       of conflict of interest issues in accordance with applicable
       University policy.
     
     4)   Assignment of Ownership. The University may assign ownership
       to the inventors as allowed by law, subject to the rights of
       sponsors and to the retention by the University of a license
       which at a minimum shall grant the University the right to use
       intellectual property in its internally administered programs of
       teaching, research, and public service on a perpetual, royalty-
       free, non-exclusive basis.  The University may retain more than
       the minimum license rights, and assignment or license may be
       subject to additional terms and conditions, such as Revenue
       sharing with the University or reimbursement of the costs of
       legal protection.  The University shall negotiate promptly, upon
       written request by the inventors, the transfer to the inventors
       of the University's interest in any invention that it has chosen
       not to protect or commercialize, subject to any legal obligation
       to offer its interest to a sponsor, licensee, or another
       institution with rights to the invention before it can agree to
       negotiate the transfer of the University's interest in an
       invention to the inventors.

     5)   Sharing of Revenue.  The University shall remit to the
       inventors or their assignees or heirs, their share of Revenue
       from inventions as specified in Section XI.B. of this policy.

VII. COMPUTER PROGRAMS AND SOFTWARE
  
  A.   Ownership
     
     1)   University Ownership
       
       a)   Within the Scope of Employment.  The University owns
          computer programs and software created by Personnel within the
          Scope of Employment.
       
       b)   Use of University Resources.  The University owns computer
          programs and software created by Personnel, graduate Students, or
          professional Students with the use of University resources.
       
       c)   Signed Agreements.  The University owns all computer
          programs and software created or made by Personnel or Students
          under Sponsored Research Agreements and as stated in written
          agreements.
       
     2)   Personnel Ownership
       
       a)   Outside Scope of Employment.  Personnel, graduate Students,
          and professional Students own software and computer programs
          conceived and first reduced to practice, and/or authored, outside
          the Scope of Employment and without the use of University
          resources and not subject to Sponsored Research Agreements or
          other written agreements.

       b)   Student Ownership.  Undergraduate, non-degree, and not-for-
          credit Students own computer programs and software they create
          unless the computer program or software is subject to another
          provision of this section.
       
  B.   Responsibilities of Personnel and Students
     
     1)   Disclosure. Personnel and Students shall disclose computer
       programs and software that are subject to University ownership to
       the president or designee in a timely manner, fully, and in
       writing.  When uncertain about the University's rights, Personnel
       and Students shall disclose. Disclosure may include deposit of a
       digital-time-stamped copy of the software program, with
       appropriate annotations.
     
     2)   External Collaborations. See Section IV.C.  See also the
       Policy on Professional  Commitment of Faculty, BOR II-3.10.

     3)   Assignment. As to a computer program or software in which
       the University has a right to ownership or use, the creator, upon
       request, shall execute promptly all contracts, assignments,
       waivers or other legal documents necessary to vest in the
       University, or its assignees, any or all rights to the computer
       program or software, including assignment of any patents,
       copyrights, patent applications, or copyright applications,
       relating to the work.

  C.   Responsibilities of University
     
     1)   Timely Evaluation. The University shall evaluate computer
       programs and software disclosed in accordance with Section
       VII.B.1) and shall do so with reasonable promptness and in good
       faith. The University shall decide whether to seek legal
       protection of its ownership rights, such as filing for patent
       protection, the scope of patent protection, and whether and how
       to pursue, limit, or abandon commercialization. The University
       may at any time decide not to pursue or to abandon the pursuit of
       patenting and/or commercialization of any computer program or
       software in which it has an interest.
     
     2)   Timely Information. The University shall inform creators in
       a timely manner about substantive decisions regarding protection,
       commercialization and/or disposition of computer programs or
       software disclosed in accordance with Section VII.B.1). Terms of
       agreements which constitute proprietary business information may
       be treated as confidential by the University in accordance with
       applicable law. The University shall notify creators promptly
       when it decides either not to pursue, or to abandon pursuit of,
       all efforts to commercialize computer programs or software.

     3)   Commercialization by Creators.  The University, at its
       discretion and consistent with the public interest, may license
       intellectual property to the creators on an exclusive or non-
       exclusive basis. Creators must demonstrate technical and business
       capability to commercialize the intellectual property. Agreements
       with creators shall be subject to review and approval of conflict
       of interest issues in accordance with applicable University
       policy.

     4)   Assignment of Ownership. The University may assign ownership
       to the creators as allowed by law, subject to the rights of
       sponsors and to the retention by the University of a license
       which at a minimum shall grant the University the right to use
       intellectual property in its internally administered programs of
       teaching, research, and public service on a perpetual, royalty-
       free, non-exclusive basis.  The University may retain more than
       the minimum license rights, and assignment or license may be
       subject to additional terms and conditions, such as Revenue
       sharing with the University or reimbursement of the costs of
       legal protection.  The University shall negotiate promptly, upon
       written request by the creators, the transfer to the creators of
       the University's interest in any computer program or software
       that it has chosen not to protect or commercialize, subject to
       any legal obligation to offer its interest to a sponsor,
       licensee, or another institution with rights to the intellectual
       property before it can agree to negotiate the transfer of the
       University's interest in intellectual property to the creators.
     
     5)   Sharing of Revenue.  The University shall remit to the
       creators or their assignees or heirs, their share of Revenue from
       computer programs or software as specified in Section XI.B. of
       this policy.


VIII.     TECHNOLOGY-MEDIATED INSTRUCTIONAL MATERIALS.

  If the University determines that Section VII. is inadequate
  to cover technology-mediated instructional materials, in whole
  or in part, the University shall insert its own policy
  statement in this section. This policy must be consistent with
  the provisions of Section VII above and must be based on the
  University's mission and must define technology-mediated
  instruction and technology-mediated instructional materials,
  specify ownership rights and responsibilities for reporting by
  Personnel and Students, describe how materials may be
  protected and commercialized, specify how costs and Revenue
  will be allocated, and describe conditions attached to use of
  work prepared for technology-mediated instruction by Personnel
  and Students.  If the University elects not to have a separate
  policy statement, this section will say explicitly that
  Section VII applies to technology-mediated instructional
  materials.
  
IX.  OTHER TYPES OF INTELLECTUAL PROPERTY
  
  A.   Tangible Research Property. The principles in Section VI.
     that apply to inventions and patents also apply to tangible
     research property.
  
  B.   Mask Works.  The principles in Section VI. that apply to
     inventions and patents also apply to mask works.

  C.   Plant Varieties.  The University owns and may protect or
     commercialize plant varieties according to the principles of
     Section VI.
  
  D.   Trademarks, Service Marks, and Trade Dress. Trademarks,
     service marks, and trade dress may be created in association with
     an underlying license for another form of intellectual property,
     such as a patent or a plant variety ("associated with other
     intellectual property"), or independently, such as a university
     logo or symbol ("independently created").
     
     1)   Associated with Other Intellectual Property. The University
       owns a trademark, service mark or trade dress if it is associated
       with other intellectual property owned by the University.
     
     2)   Independently Created. The University owns trademarks,
       service marks, and trade dress that are independently created by
       Personnel within the Scope of Employment unless the University
       agrees otherwise in writing.

     3)   Commercialization.  The University may commercialize or
       license its trademarks, service marks, and trade dress.

     4)   Registration. The president or designee shall approve
       registration of trademarks or service marks, at the state or
       federal level.

X.   INTERINSTITUTIONAL AGREEMENTS
  
  A.   Joint Appointments and Affiliations.  This section applies
     when an individual has an appointment in and receives support for
     research or creative work from two or more Universities and when
     a Student or Student Employee is earning a degree in one
     University but doing research or creative work in another.
     
     1)   Ownership.  When more than one University can claim
       ownership to intellectual property under this policy, they own it
       jointly.
     
     2)   Management Agreements.   Universities that are or may become
       joint owners of intellectual property shall enter into agreements
       stating which University will be responsible for management of
       the intellectual property.  Universities are encouraged to
       negotiate standard agreements whenever possible.

       a)   Terms to be Addressed.  The agreements shall state which
          institution will be responsible for prosecution of patent
          applications or other forms of intellectual property protection,
          which institution will license the intellectual property, how
          expenses and deductions from Revenue will be allocated, and how
          institutional net revenue will be shared. The distribution of
          each University's share of Net Revenue, Project Specific Costs,
          and General Costs shall be addressed in the management agreement.
       
       b)   Student Requirements. With regard to Students and Student
          Employees, agreements shall specify whether the degree-granting
          University or the supporting University will be responsible for
          managing intellectual property they create when that property is
          subject to University ownership.

     3)   Responsibilities of Managing University.  The University
       managing intellectual property under an agreement shall promptly
       inform the other University or Universities about steps taken
       with regard to ownership. Such information shall include at
       minimum copies of the invention disclosure form, documents
       associated with filing for statutory protection, assignment of
       rights, and license agreements.  If the managing University
       decides not to proceed, the other owning University or
       Universities shall have the right to assume responsibility as the
       managing University.
     
     4)   Distribution of Revenue.  The managing University shall
       distribute Revenue to the creators and share net revenue in all
       cases according to Section XI.
     
     5)   Disputes. A president may ask the Chancellor to intercede if
       the Universities are unable to reach agreement or differ in their
       interpretation of an agreement.  The Chancellor's decision shall
       be final and binding on all parties.

  B.   Joint Creators.  This section applies when Personnel or
     Students from two or more Universities collaborate.
     
     1)   Early Notification.  As soon as collaborators from different
       Universities recognize that their efforts have resulted in, or
       are likely to result in, the creation of intellectual property
       subject to this policy, they shall inform their respective
       Universities that an agreement is needed.
     
     2)   Agreements Govern. Signed agreements between Universities
       shall determine ownership of intellectual property,
       responsibility for managing it, and distribution of expenses and
       Revenue resulting from its development. Universities whose
       Personnel or Students are engaged in frequent collaboration are
       encouraged to negotiate standard agreements within the framework
       of this policy.

     3)   Disputes. A president may ask the Chancellor to intercede if
       the Universities are unable to reach agreement or differ in their
       interpretation of the agreement.  The Chancellor's decision shall
       be final and binding on all parties.

XI.  REVENUE SHARING
Unless otherwise agreed to in writing by the creators of a work
or inventors of an invention, each named creator or inventor
shall receive equal shares of net Revenue.
  
  A.   Copyrights.  The University shall share with creators
     Revenue it receives from copyrights of their work, subject to
     certain exceptions.
     
     1)   Exceptions
       
       a)   Scope of Employment.  Revenue generated from work produced
          by non-faculty Personnel within the Scope of Employment is
          excluded from sharing.  However, the University may elect, by
          written agreement or University policy, to pay up to fifty
          percent of net Revenue to such non-faculty Personnel.
       
       b)   Contract.  When a third party contract dictates
          apportionment of Revenue different from that specified in this
          policy, the terms of the contract govern.
       
       c)   Equity.  Equity shall be distributed in accord with Section
          XI.G.
       
       d)   Technology-mediated Instructional Materials.  University
          policy adopted to fulfill Section VIII may exclude some or all
          Revenue from sharing.

     2)   Deductions from Revenue.  The University shall make the
       following deductions from Revenue before distributing net Revenue
       (Section XI.A.3).
       
       a)   Creators' Share.  First, ten percent of Revenue shall be
          distributed among the creators of the work until the cumulative
          total reaches the limit set pursuant to this paragraph that was
          in effect during the fiscal year in which the University first
          received Revenue. The limit in FY2004 is $10,300 to be shared
          among the inventors. The Chancellor shall establish a new limit
          for each succeeding fiscal year by adjusting the previous year's
          limit by an amount reflecting the change in the Consumer Price
          Index during the last calendar year completed, rounded to the
          nearest $100.

       b)   General Costs. Second, the University will deduct 30% of
          Revenue to cover the general cost of developing, obtaining,
          managing, and defending creative works, unless otherwise agreed
          to by the University and creators, in writing.
       
       c)   Project Specific Costs.  Third, the remaining 60% of the
          Revenue received from a work shall be applied to reimburse any
          specific, incremental expenses incurred by the University in
          obtaining and maintaining the copyright, and in developing,
          marketing, licensing, and defending the work.  After
          reimbursement of the University's expenses, Revenue may be used
          to reimburse costs incurred by creators on behalf of their own
          works but only if the University had authorized such expenses in
          advance in writing.

       d)   Residual Creators' Share.  Fourth, after project specific
          costs have been paid in full, any remaining Revenue shall go to
          the creators until the threshold dollar amount has been paid, as
          specified above in Section XI.A.2)a).
       
     3)   Distribution of Net Revenue.  Net Revenue is the revenue
       remaining after deductions under XI.A.2.
       
       a)   Creators' Share. The University shall distribute among the
          creators fifty percent (50%) of the net Revenue it receives from
          their creative work unless applicable laws, regulations,
          provisions of grants or contracts, or signed agreements with
          creators provide otherwise.

       b)   University's Share. The University shall receive 50% of the
          net Revenue.  Each University shall establish guidelines for the
          use of its share of the net Revenue. Net Revenue received on
          account of copyrighted work shall be dedicated to research,
          scholarship, creative work, and related academic activities.

     4)   Timely Distribution.  The University shall distribute
       accrued Revenue due creators under this policy at least annually.
       Distribution will be made along with a statement of related
       income and expenses.

  B.    Patents and Computer Programs and Software.  The University
     shall share with inventors or creators Revenue it receives from
     their inventions or creations as provided in this section.
     
     1)   Exceptions
       
       a)   Contract. When a third party contract dictates apportionment
          of Revenue different from that specified in this policy, the
          terms of the agreement govern.
       
       b)   Equity.  Equity shall be distributed in accord with Section
          XI.G.

     2)   Deductions from Revenue. The University shall make the
       following deductions from Revenue before distributing net Revenue
       (Section XI.B.3).
       
       a)   Creators' or Inventors' Share. First, ten percent of Revenue
          shall be distributed among the creators or inventors until the
          cumulative total reaches the limit set pursuant to this paragraph
          that was in effect during the fiscal year in which the University
          first received Revenue. The limit in FY2003 is $10,000 to be
          shared among the inventors or creators. The Chancellor shall
          establish a new limit for each succeeding fiscal year by
          adjusting the previous year's limit by an amount reflecting the
          change in the Consumer Price Index during the last calendar year
          completed, rounded to the nearest $100.

       b)   General Costs. Second, the University shall deduct 30% of
          Revenue to cover the general cost of developing, obtaining,
          managing, and defending inventions or creative work, unless
          otherwise agreed to by inventors or creators and the University,
          in writing.
       
       c)   Project Specific Costs.  Third, the remaining 60% of Revenue
          received from a creative work, patent, or invention shall be
          applied to reimburse any specific, incremental expenses incurred
          by the University in obtaining and maintaining the patent and in
          developing, marketing, licensing, and defending the patent or
          licensable invention or creative work. After reimbursement of the
          University's expenses, Revenue may be used to reimburse costs
          incurred by inventors or creators on behalf of their own works
          but only if the University had authorized such expenses in
          advance in writing.

       d)   Residual Creators' Share. Fourth, after project specific
          costs have been paid in full, any remaining Revenue shall go to
          the creators until the threshold dollar amount has been paid, as
          specified above in Section XI.B.2)a).
       
     3)   Distribution of Net Revenue. Net Revenue is the Revenue
       remaining after deductions under XI.B.2.
     
       a)   Creators' Share.  The University shall distribute among the
          inventors or creators fifty percent (50%) of the net Revenue it
          receives from their inventions or creations unless applicable
          laws, regulations, provisions of grants or contracts, or signed
          agreements with inventors or creators provide otherwise.

       b)   University's Share. The University shall receive 50% of the
          net Revenue.  Each University shall establish guidelines for the
          use of its share of the net Revenue. Net Revenue received on
          account of an invention shall be dedicated to research and to the
          promotion of patenting and patents.
     
     4)   Timely Distribution.  The University shall distribute
       Revenue due creators under this policy at least annually.
       Distribution will be made along with a statement of related
       income and expenses.

  C.   Tangible Research Property, Mask Works, and Plant Varieties.
     When tangible research property, mask works, or plant varieties
     are licensed, Revenue shall be distributed in the same manner
     that Revenue is distributed under Section XI.B.

  D.   Trademarks, Service Marks, and Trade Dress
     
     1)   Creators' Share
       
       a)   Associated with Other Intellectual Property. Revenue
          received from commercialization of a trademark, service mark, or
          trade dress that is related to  an intellectual property license
          shall be shared with creators of the  trademark, service mark, or
          trade dress, as specified in Section XI.B.
       
       b)   Independently-created trademark, service mark, or trade
          dress.  Except as provided herein or unless subject to prior
          written agreement between the creators and the University, the
          University will not share the Revenue from commercialization of a
          trademark, service mark, or trade dress with the individuals who
          created the trademark, service mark, or trade dress.
       
     2)   University Ownership.  Revenue received from
       commercialization of a trademark, service mark, or trade dress
       licensed independently and not directly related to another form
       of intellectual property license shall not be shared and shall
       belong to the University.
  
  E.   Joint Appointment.   In situations covered by section X.,
     the University's share of net Revenue shall be divided equally
     among the Universities or as otherwise provided by written
     agreement.
  
  F.   Joint Creators.  If joint creators are from different
     Universities, the University's share of net Revenue shall be
     divided equally unless determined by signed agreements as
     provided in Section X.B.2.

  G.   Equity
     
     1)   Issuance of Shares.  Equity may be issued separately to the
       University and the inventors or creators.

     2)   Distribution of Shares.  Equity in a commercial venture
       received as consideration for intellectual property rights shall
       be shared equally between the University and the creators, unless
       a different distribution is negotiated in an agreement signed by
       the University and the creators of the relevant intellectual
       property.
     
     3)   Timely Distribution.  When the University receives all
       shares directly, as soon as practicable after the University
       receives equity, and subject to the creators receiving any
       conflict of interest exemptions that must be granted and
       complying with any conditions for those exemptions, the
       University shall transfer equity shares to the creators. The
       University and creators shall have independence in their exercise
       of equity holder privileges within the constraints of law,
       policy, specific exemption under Maryland law from the State
       Ethics Law, and contractual agreements.
     
     4)   Unqualified Persons.  Personnel or Students not qualified to
       hold the equity under applicable law shall designate a qualified
       person to receive the equity.  If no designee is named within
       thirty days of a written request by the University to do so, the
       right to a share of the equity shall be forfeited to the
       University.

XII. ADMINISTRATION
  
  A.   Implementation Options.  Each University shall elect one of
     the following options for implementing this policy:
     
     1)   Adoption.  Adopt the USM policy including the requirements
       in XII.B., below;
     
     2)   Modification.  Modify the USM policy, retaining the
       requirements in XII.B., below, to reflect the unique needs of the
       University based on its mission;
     
  B.   University Implementation. Each University shall develop
     procedures for implementing this policy that:
     
     1)   establish the University's policy on technology-mediated
       instructional materials, as required in Section VIII.;
     
     2)   establish guidelines for use of materials protected by
       copyright, as required by Section V.C.3);
     
     3)   establish guidelines for use of the University's share of
       net Revenue within the University, as required by Sections
       XI.A.3)b) and XI.B.3)b);
     
     4)   designate an initial point of contact for intellectual
       property issues;
     
     5)   publicize and make available the University policy and
       implementation procedures;
     
     6)   provide the Chancellor with a copy of the University's
       policy for approval prior to initial adoption as well as prior to
       any subsequent revision (Until such time as the Chancellor
       provides written approval of the initial University document,
       this USM document shall apply to the University.  Subsequent
       revisions shall not go into effect until approved by the
       Chancellor in writing.);
     
     7)   provide the Chancellor with a copy of the University's
       implementation procedures for the record.

  C.   Authority to Subcontract. The University may enter into
     contracts with third parties in connection with the development,
     administration, and protection of its intellectual property.
  
  D.   Special Cases.
     1)   Issues not addressed.  The Board of Regents recognizes that
       special cases will arise that are not specifically covered by
       this policy.  In such cases, Presidents may make a decision on
       how to proceed and report that decision to the Chancellor.
       Alternatively, the President may submit such cases to the
       Chancellor or designee for resolution.  
     2)   Policy waivers.  Only the Chancellor may waive any provision
       of the USM Policy or of any University's approved policy on
       intellectual property.  

XIII.  REPORTING
     Each University president shall report annually to the
     Chancellor and the Board of Regents on intellectual property
     activity at the University.  The report, in a format to be
     determined by the Chancellor, shall include data for the
     preceding year on disclosures, patent applications, patent
     awards, licenses, and start-up companies, distinguishing
     when appropriate between Maryland-based companies and those
     outside of the State.  The report shall also include data on
     revenue and expenditures associated with the University's
     technology transfer function.


(This policy replaces USM IV-3.00 Policy on Patents and USM IV-
3.10 Policy on Copyrights in their entirety.)
Glossary  (This section is provided for information only.  It is
not part of the policy.)

Commercial venture - a start-up company, limited partnership,
joint venture or any other entity that has obtained an option or
a license to university technology.

Confidential Disclosure Agreement - An agreement or section of an
agreement that prevents parties to the agreement from releasing
knowledge or information without the other's permission.

Copyright - The intangible property right granted by statute for
an original work fixed in a tangible means of expression.  A
copyright provides the owner with the following exclusive rights
over a work: to reproduce, to prepare derivative works, to
distribute, to perform publicly, and to display publicly.
Copyright comes into existence immediately at the time the work
is fixed in a tangible means of expression.

 Creative works - "Original works of authorship" that are fixed
in a tangible form of expression that may be protected by
copyright. The fixation need not be directly perceptible so long
as it may be communicated with the aid of a machine or device.
Copyrightable works include the following categories: (1)
literary works; (2) musical works, including any accompanying
words; (3) dramatic works, including any accompanying music; (4)
pantomimes and choreographic works; (5) pictorial, graphic, and
sculptural works; (6) motion pictures and other audiovisual
works;  (7) sound recordings; and (8) architectural works.

Creator - Refers to an individual or group of individuals who
make, conceive, reduce to practice, or otherwise make a
substantive intellectual contribution to the creation of
intellectual property.  "Creator" follows the definition of
"inventor" used in U.S. patent law and the definition of "author"
used in the U.S. Copyright Act.

Disclose - Formally record the essence of a potentially
patentable concept, the circumstances in which it was conceived,
the persons participating in the invention, and the steps taken
to reduce it to practice, if applicable, in accord with the
requirements of U.S. patent law for establishing precedence

Equity or equity shares - Shares of common or preferred stock,
warrants, options, convertible instruments, units of a limited
partnership, or any other instruments conveying ownership
interest in a commercial venture, or options or rights to
purchase an ownership interest.

First sale - The principle that gives the purchaser of a
copyrighted work the right, among other things, to lend it to
others.

Intellectual property - The intangible value developed by human
creativity that is protected by the legal mechanisms of patents,
trademarks, copyrights, service marks, trade secrets, mask works,
and plant variety protection certificates.  Rights derived from
legislation include ownership and disposition, including
commercialization.  Intellectual property encompasses inventions,
discoveries, know-how, show-how, processes, unique materials,
copyrightable works, original data, and other creative or
artistic works that have value.  It also includes the physical
embodiments of intellectual effort such as models, machines,
devices, designs, apparatus, instrumentation, circuits, computer
programs and visualizations, biological materials, chemicals,
other compositions or matter, plants, and records of research.

Invention - any discovery which is or may be patentable or which
may be commercially licensable.

License - A contract in which an intellectual property owner
grants permission to exercise one or more of the rights that an
owner holds.

Mask work - A series of related images representing a
predetermined, three-dimensional pattern of metallic, insulating,
or semiconducting layers of a semiconductor chip product.

Material Transfer Agreement - A contract covering transfer of
physical possession and use of tangible research property into or
out of the university.

Patent (U.S. only) - The intangible property right to exclude
others from making, using, offering for sale, or selling the
invention in the United States or importing the invention into
the United States. In order to obtain patent protection, an
invention must be useful, novel and unobvious.

Plant variety protection certificate - Registration under the
Plant Variety Act of 1970 that protects sexually propagated
cultivars that are distinctive, uniform and true-breeding.

Royalty - Payment made to an owner of intellectual property for
the privilege of practicing a right held by the owner of the
intellectual property under applicable law

Tangible research property - Includes the physical embodiments of
intellectual effort such as models, machines, devices, designs,
apparatus, instrumentation, circuits, computer programs and
visualizations, biological materials, chemicals, other
compositions of matter, plants, and records of research.
Tangible research property is distinct from intangible properties
such as patents, trademarks, copyrights, service marks, trade
secrets, mask works, and plant variety protection certificates.
Individual items of tangible research property may be associated
with one or more intangible properties.

Trade dress - Distinctive and unique packaging, color
combinations, building designs,
product styles, and overall presentations identifying the source,
product, producer, or distributor of goods and services where the
appearance distinguishes the product or business from other
similar products or businesses but is not distinctive or specific
enough to be considered a trademark.

Trademarks and service marks - Distinctive words or graphic
symbols identifying the source, product, producer, or distributor
of goods and services