Looking for specific examples of University spin-offs where the researchers can earn part of the benefits
The policy at my university for managing patent licensing fees and the like, which is somewhat distinct from a spin-off but somewhat conjoined - for example, you could start a spin-off that then licenses the patent, or find a company interested, etc.
- Division of Patent Royalties
a) All monetary proceeds from the commercialization of University-owned inventions are the property of the University or its assignee. The University or its designee will collect and distribute royalties, fees, equity interests, or dividends to inventors and the University in accordance with the procedures established by the University.
(1) The University or its designee will deduct the costs of obtaining and maintaining legal protection, for each invention, to arrive at “adjusted income” unless other arrangements, agreed to by all parties that share in the income, are made by the relevant branch campus, research unit or program in advance of the expense and agreed to with the OC. Such arrangements may include contracted marketing, licensing and business development. In such cases, any agreed upon expenses will be deducted to arrive at adjusted income.
(2) The Office of Commercialization will deduct twenty percent (20%) from adjusted income and the remainder will be “net income.” This deduction is directed toward covering the expenses (excluding direct patent expenses) for administering the OC and provides initial funds for patent prosecution for other inventions without obvious commercial partners.
(3) Net income will be distributed according to the following schedule. University’s portion of the share will be distributed as follows: 30% to the University, 20% to the college and department (or relevant branch campus, research unit, or Program when appropriate) to be equally split between the two
Cumulative Net Income Inventor/Contributor University
$1-$10,000 100%
Above $10,000 50% 50%
University spinoffs are quiet common, although setting them up can be quite complex. There seem to be reviews of the process and lists of successful ones. Some of the benefits are described in this Nature article. Spin offs are not just limited to the US, UK spinoffs have also been very successful.
As an example, Herbert Boyer progressed up the academic ranks at UCSF from 1966 to 1991. He also co-founded Genentech in 1976 and served as its vice president. While I cannot easily dig up anything that says he received a salary, royalties, or a stake in the company, he did donated $10,000,000 to Yale in 1990.
Michael Mauldin developed Lycos while at CMU. He left his faculty position to become the founder and chief scientist at Lycos, but maintained an adjunct position. Again I didn't find anything about his ownership stake or salary, but most adjunct professors do not retire to their own cattle ranch at age 50.