### Tab 1: Commercialization Policy (Policy 404) Under University Policy 404, technologies… — GMAT

### Tab 1: Commercialization Policy (Policy 404)
Under University Policy 404, technologies developed by university faculty using internal funds are owned by the university. Faculty creators are entitled to a 40% share of net licensing revenues, defined as gross licensing royalties minus direct legal protection costs and patent maintenance fees. However, if external commercialization funding exceeding $100,000 is received prior to patent application filing, the university's royalty share increases by 10 percentage points (reducing the faculty creator's share to 30%), unless an explicit exemption is granted by the Vice President of Research (VPR).

### Tab 2: Project Chronology & Financial Audit (Project Helios)
Project Helios, developed by Dr. Vance, received a $25,000 university seed grant in 2023. In January 2024, Dr. Vance secured a$ 150,000 research grant from an industry partner for prototype development. The patent application for Project Helios was filed in August 2024. Direct legal expenses incurred for patent protection totaled $30,000, and initial maintenance fees were$ 10,000. In 2025, Project Helios generated $500,000 in gross licensing royalties. No individual VPR exemption documentation for Project Helios exists in the project registry.

### Tab 3: Executive Memorandum (Office of the VPR)
In July 2024, the VPR issued a policy memorandum clarifying that all industry research grants awarded under the university's Sustainable Energy Initiative are exempt from the 10 percentage point royalty adjustment specified in Policy 404, regardless of award size, provided the grant agreement was executed prior to June 2024. University records confirm Project Helios was formally designated under the Sustainable Energy Initiative upon its initial seed funding in 2023, and Dr. Vance's industry grant agreement was executed in January 2024.

Based on the information provided in the three tabs, what is the total monetary amount Dr. Vance is entitled to receive as creator share from the 2025 licensing royalties of Project Helios?

$184,000Answer
B
$138,000
C
$200,000
D
$150,000
E
$124,000

Answer

Dr. Vance is entitled to receive $184,000.

Synthesizing all three tabs demonstrates that net revenues equal

460,000 (

500,000 gross minus

30,000 legal costs and

10,000 maintenance fees). While external funding exceeded

100,000 before patent filing, the blanket VPR policy in Tab 3 exempts Sustainable Energy Initiative grants executed before June 2024. Since Project Helios satisfies these criteria, Dr. Vance receives the full 40% creator share of

460,000, which equals $184,000.

Step-by-Step Solution

Calculate Net Licensing Revenue

500,000 - (

30,000 +

10,000) =

460,000

Tab 1 defines net licensing revenue as gross royalties minus direct legal protection costs and patent maintenance fees. Data from Tab 2 gives gross royalties of

500,000, legal costs of

30,000, and maintenance fees of $10,000.

Determine Applicable Royalty Share Percentage across Tabs

40% Creator Share applies

Tab 1 states that external commercialization funding over

100,000 prior to filing reduces creator share to 30% unless an exemption is granted. Tab 2 shows

150,000 external funding before filing and notes no individual exemption in the registry. However, Tab 3 establishes a blanket VPR exemption for Sustainable Energy Initiative grants executed before June 2024. Tab 3 confirms Project Helios was designated in 2023 and the grant was executed in January 2024, so the exemption applies and preserves the 40% rate.

Compute Final Creator Share

40% of

460,000 =

184,000

Multiply the net licensing revenue by the creator share percentage.

Key Concept

Multi-Source Policy Exception Synthesis and Net Revenue Calculation

Estimated Time:2m 30s

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