The policy of Loyola University Chicago is intended to encourage University employees in the discovery and the creative pursuit of knowledge for the public benefit; to protect the respective interests of all parties involved; to assist the inventor and the University in realizing tangible benefits from inventions or discoveries; and to encourage further research within the University.

This policy applies to all inventions or improvements, whether patentable or not, conceived or reduced to practice by faculty, staff, or students of the University, with support from or use of resources owned or administered by the University.

All University discoveries and inventions shall be disclosed promptly, by sending a completed Disclosure of Invention form to the Director of Research Services.

If the work leading to an invention is financed in whole or in part by external sponsors, University representatives and University employees making the discovery will confer with the sponsors to arrive at a mutually satisfactory agreement as to ownership, licensing, royalties and the use of the invention. University employees are bound by agreements with external sponsors, and such agreements shall govern, if they conflict with this Policy.

For inventions not financed by external sponsors, the University will conduct an evaluation of a discovery or invention and review of applicable commitments. The University Patent and Technology Management Committee (UPTMC) shall determine the disposition of the invention by either assigning it to the University or its designees or by releasing it to the inventors. The UPTMC will inform the inventors of its decisions regarding disclosed inventions. The inventor(s) shall execute all documents, including patent applications, assignments, and other instruments, which are necessary to carry out the provisions of this Policy.

If the invention is released to the inventor(s) so that she or he may apply for a patent at her or his own expense, the inventor(s) shall grant to the University a royalty-free, irrevocable, nonexclusive license to make or use the invention for its own purposes.

If the University decides to abandon development of a University-owned invention, ownership will assigned to the inventor(s), subject to the rights of sponsors and to the retention of a nonexclusive, royalty-free license to practice the invention for University purposes.

In general, the inventor(s) will receive fifty percent of the net income which accrues to the University from University inventions. Income includes, but is not limited to, royalties and license fees. Net income shall mean the amount remaining after the costs for patenting, marketing, licensing, protecting, producing or administering the invention are deducted from income received by the University.

In cases of multiple inventors, the inventors' share shall be divided among the co-inventors in accordance with their agreement at the time of formal assignment of the invention to the University. If the inventors fail to agree on a division, the University shall determine the division.