FN#8
CAFNR Policy, Practices and Procedures

Section: FINANCETopic: SOYBEAN VARIETY ROYALTIES

Date: March 18, 2011 Backup documentation filed: in ABS
Authorized/Approved by: Patents & Licensing/AES Dean Page 1 of 1

Soybean variety royalties for varieties developed before the 1996 agreement are deposited into the AES Station Sales account (managed by Ag Business Services) and returned to the appropriate faculty member project by budget transfer in the same fiscal year that the royalties are received. 10% of these royalties are retained by the Deans Office and 90% returned to the faculty member project. (Excepting royalties received from out of state, where the faculty member’s AES project will receive all,not divided 10% to Deans Office.)

For soybean varieties developed since the 1996 agreement, royalties received need to be processed through the University Patents & Royalties office and faculty must file disclosures through the same office. If a faculty member would want to convert an ‘old’ variety to the ‘new’ procedure, the Dean’s permission is required.

The ‘new’ procedure for royalties received:

Inventors (faculty member) are paid first.

Then, payroll taxes are deducted from the remainder for the employer’s portion of taxes.

Then, the remainder is divided 95% to AES and 5% to System.

The 95% AES portion is further divided to 10% Deans Office and 90% faculty member’s AES project. (Excepting royalties received from out of state where the faculty member’s AES project will receive all 95%, not divided 10% to Deans Office.)

All “new” system royalties should first be deposited to U-9-90005-1420 and all copies of documentation need to be sent to Patents & Royalties Office (Marla Barrett) so that office can then redistribute the funds after employer payroll taxes are removed and the individual paid.

Effective February 15, 2000, the newest Missouri Soybean Merchandising (MSMC) agreement for soybeans agrees to pay MSMC 25% of the royalties.

Intellectual property rights to individual royalties can be transferred to the individual’s estate. Faculty receiving royalties need to be made aware of this.

Dr. David Sleper is currently the person who divides the soybean royalty checks into their various components. The spreadsheet that accompanies the check explains which variety the funds are for and who receives what from that variety’s funds. “New “and “old” are often mixed in one check.