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IP rights and options as a quid pro quo

  • 1.  IP rights and options as a quid pro quo

    Posted 7 days ago

    Hi All,

     

    I have been asked to locate the IRS publication or rule that ties to IP rights and options being a quid pro quo as expressed in the new CASE Guidelines, page 25:

     

    Exclusion Criteria: IP Rights

     

    Description: "The agreement assigns to the funder any full or partial rights that may result from the program of activity. This exclusion extends to a provision of royalty-free licenses (whether exclusive or nonexclusive) to the funder, and also to granting the funder the first option or similar exclusive rights to purchase the rights to any subsequent commercial opportunities. If the written agreement includes any actual or potential future benefit of this kind, the funding must be excluded."

     

    Any of our expert colleagues have a lead on this?

     

    Many thanks!

     

    Lesley

     

    Lesley T. Pratt, GSE '20

    Assistant Vice President, Advancement Services

    Office of University Advancement

    Northeastern University

    716 Columbus Avenue, 402 CP, #427

    Boston, MA 02120

    P (617) 373-6192 | C (617) 416-3489 | F (617) 373-5519

    le.pratt@northeastern.edu

    pronouns: she/her/hers



  • 2.  RE: IP rights and options as a quid pro quo

    Posted 7 days ago
    Sure.  There's no difference from earlier CASE Standards.  If in exchange for a donation, the donor retains any IP rights then there is no countable gift.  It is considered an exchange transaction.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: IP rights and options as a quid pro quo

    Posted 7 days ago
    The standard IRS publication 526 that defines that what is not a contribution is the part of a contribution from which you receive or expect to receive a benefit.

    While it goes on to talk about intellectual property that is charitable, one can connect the dots (which CASE is doing in the guidelines specifically) that if the funder/donor of the IP is to receive a benefit, it is not to be considered a gift under the CASE guidelines.

    Thanks.

    Tom

    --
    Thomas Chaves
    Associate VP for Advancement Operations
    Office of Advancement
    Saint Joseph's University
    5600 City Avenue, Philadelphia, PA 19131

    O: 610-660-1255 | M: 610-316-6541 | tchaves@sju.edu
    SJU.edu





  • 4.  RE: IP rights and options as a quid pro quo

    Posted 7 days ago

    Many thanks Tom!

     

    -Lesley

     

    Lesley T. Pratt

     

    (617) 373-6192 w

    (617) 416-3489 c

    le.pratt@northeastern.edu

    pronouns: she/her/hers