Information for NIH Inventors
INVENTOR ROYALTIES
When are royalty payments made to inventors?
What do the payments represent?
How are the payments made to inventors?
Is there a preferred method of inventor payment?
How do I identify a deposit in my bank account as a royalty payment?
Are taxes withheld from the royalty payments?
Will I receive a tax statement for royalty payments?
If I received a check, and don´t cash it, what happens? Maybe I lost it, or misplaced it in my home.
What do I do if I move, change financial institutions and/or change my bank account?
How are the royalty payments calculated?
Whom should I contact when I have questions?
DECEASED INVENTOR ESTATE DISTRIBUTIONS
Are royalties distributed to the estate of a deceased inventor?
Who does the Personal Representative or Next of Kin contact?
When are royalty payments made to inventors?
Royalty payments to inventors are processed two times in the calendar year. The first payment is generally made from late May to late June. The second payment is generally made from late October to late November. Payments cannot be distributed to inventors until the royalty information is completely reconciled to ensure accurate payouts.
What do the payments represent?
The payments represent the inventor´s share of royalty payments from licensees to the NIH during the fiscal year. For example, the first inventor payment is based on money received by the NIH for the period of October 1 through March 31. The second inventor payment is based on money received by the NIH for the period of April 1 through September 30.
How are the royalty payments calculated?
Inventors receive the first $2,000 collected from a licensee. Next, they receive 15 percent of royalties above $2,000 and up to $50,000. Finally, they receive 25 percent of royalties in excess of the first $50,000 collected each year. Each inventor cannot receive more than $150,000 in royalty payments for a calendar year.
How are the payments made to inventors?
The payments are made by either direct deposit to the inventor´s financial institution or by check.
Is there a preferred method of inventor payment?
All payments should be made by direct deposit.
In order to ensure that inventor royalty income is deposited into the correct account, inventors are required to complete the ACH VENDOR/MISCELLANEOUS PAYMENT ENROLLMENT FORM at sf3881-royaltiesonly-101116.pdf and return it to the address below or otherwise provide the information requested on the form to the same address.
E-mail: OFMRoyalty@mail.nih.gov
Attn: Patrice Markle
NIH Office of Financial Management
2115 East Jefferson Street, Suite 3C-315 (MSC 8500)
Bethesda MD 20892-8500
OR
Rockville MD 20852 (Use for FedEx, UPS and other courier services only)
How do I identify a deposit in my bank account as a royalty payment?
Royalty payment transactions sent from the NIH to the U.S. Treasury include the words ROYALTY PAYMENT. When the Treasury sends this information to your financial institution, the ROYALTY PAYMENT identification is included with the direct deposit transaction. Most institutions include this information on your monthly account statement. However, some institutions do not interpret or provide the payment description. Others choose not to provide the description. If the deposit identification does not appear on your statement, you should discuss this matter with your financial institution.
Are taxes withheld from the royalty payments?
The answer is no.
Will I receive a tax statement for royalty payments?
If you receive royalty payments of $10.00 or more in the calendar year, you will receive Form 1099-MISC Miscellaneous Income. Payments for less than $10.00 are taxable, but Form 1099-MISC will not be issued.
If I received a check, and don't cash it, what happens? Maybe I lost it, or misplaced it in my home.
The U. S. Treasury automatically cancels checks that are not cashed after one year from issuance. When this occurs, funds are returned to the issuing agency. Once returned, the NIH has less than four years to reissue these amounts.
What do I do if I move, change financial institutions and/or change my bank account?
If you move, contact the OFM at OFMRoyalty@mail.nih.gov. Provide the office with your updated contact information.
If you change your financial institution or bank account, complete the ACH VENDOR/MISCELLANEOUS PAYMENT ENROLLMENT FORM at sf3881-royaltiesonly-101116.pdf and return to the address below.
Attn: Patrice Markle
NIH, Office of Financial Management
2115 East Jefferson St, RM 4b432, MSC 8500
Bethesda MD 20892-8500
OR
Rockville MD 20852 (Use for FedEx, UPS and other courier services only)
Please note that anyone sending Personally Identifiable Information (PII) to NIH should register at this link to send this information securely. This service allows NIH users and its customers to send email securely and confidentially over an SSL/encrypted connection, with or without large documents.
Whom should I contact when I have questions?
Payments: If you have a question about a royalty payment you have received, contact the OFM by e-mail.
Estate or Probate Issues: If you are the Personal Representative of an Inventors Estate contact Karen Rogers, the Senior Royalties Administrator at 301-435-4359, or by e-mail.
Technology Transfer Matters: For questions concerning technology transfer matters, inventors should contact their Institute Technology Development Coordinator. A list of current Technology Development Coordinators can be found here.
Are royalties distributed to the estate of a deceased inventor?
Yes, royalties will continue if an inventor is deceased. The payments will be issued "To The Estate of ...." and forwarded to the bank account or address on record with the Office of Financial Management. The Personal Representative for the Estate should contact Karen Rogers, Senior Royalties Administrator at 301-435-4359, or by e-mail, for assistance regarding probate issues and disposition of future royalties to estate heirs. She will coordinate interactions with the Office of Technology Transfer, Office of Financial Management and the Office of General Counsel.
Who does the Personal Representative or Next of Kin contact?
If you are the Personal Representative of an Inventors Estate contact Karen Rogers, the Senior Royalties Administrator at 301-435-4359, or by e-mail.
