How do universities use the royalties earned from licensing?
Royalties earned by academic institutions are used to help advance scientific research and education through reinvestment in the academic enterprise. The royalties are given, in part, to university research departments to provide new opportunities for graduate students, buy research equipment, or fund new research. The royalties help sustain the technology transfer process by paying for a portion of the legal fees associated with patenting and licensing as well as technology management. And finally, as the Bayh-Dole Act requires, a portion of the revenues is shared with the university inventor.
