2. The revenues (net, if applicable per the preceding paragraph) which the university receives from a patent or invention will be applied first to reimburse the university for any incremental expenses incurred by it in obtaining and maintaining patents and/or in marketing, licensing and defending patents or licensable inventions. After provision for such expenses, the inventor’s share of such revenues received by the university shall be as follows: 50% of the first $25,000, 35% of the next $25,000, 20% of the next $25,000, 15% thereafter. In the case of co-inventors, each such percentage share shall be subdivided equally among them, unless the university in its sole discretion determines a different share to be appropriate. Applicable laws, regulations or provisions of grants or contracts may, however, require that a lesser share be paid to the inventor. In no event shall the share payable to the inventor or inventors in the aggregate by the university be less than 15% of gross royalties received by the university.
3. To the extent practicable and consistent with state and university budget policies, the remaining revenue received by the university on account of an invention will be dedicated to research purposes, including research in the inventor’s department or unit, if approved by the chancellor upon recommendation of the university patent committee.