What is an "Inventor's Statement
of Economic Interest In Candidate Licensees"?
It
is a form on which University inventors disclose certain financial interests
in candidate licensees of their inventions. In this form, “inventors” includes
authors of copyrightable works (e.g., software, CAD drawings, etc.) or developers
of other intellectual property or tangible research products (e.g., cell lines,
transgenic mice, chemical compounds) that Berkeley Lab seeks to license. “Inventions”
includes all forms of intellectual property or tangible research products that
Berkeley Lab seeks to license. (Click
here for a printable version of the form and instructions.)
Why
must an inventor complete an "Inventor's Statement of Economic Interest
in Candidate Licensees," and what must the inventor disclose?
University
licensing requires that a University Inventor disclose whether or not he or
she has a direct or indirect financial interest in a candidate licensee of
his or her invention. This disclosure requirement is intended to
help protect the inventor and the University from any actual or perceived
conflict-of-interest in violation of the Political Reform Act (2 Cal. Admin. Code Section 18706).
The Act requires that all University employees and officials disqualify
themselves from participating in a University decision when a financial conflict-of-interest
is present. This disclosure also is
necessary for the University to meet its obligations to DOE under “Contract-98”
for the management of Berkeley Lab.
When must an "Inventor's Statement
of Economic Interest In Candidate Licensees" be filed?
The
inventor must file disclosure statements when the Technology Transfer Department
(TTD) has notified an inventor that the TTD has identified a candidate licensee
of his or her invention. The inventor
must file a new statement upon any change in his or her disclosed financial
interest in a candidate licensee.
Where to send completed Statements
of Economic Interest?
Licensing Manager
Technology Transfer Department
Lawrence Berkeley National
Laboratory
One Cyclotron Road, MS 90-1070
Berkeley, CA 94720
or
Fax: (510) 486-6457
Will the
statements be available to the public?
Yes,
by both University policy and State law the completed statements will be open
to public inspection.
What to disclose?
The
financial disclosure statement must contain:
1. Disclosure of Income
- The name and location of the candidate
licensee;
- the aggregate value of income from the licensee;
- in the case of a gift, the amount of the
gift; and
- in the case of a loan, the value of the
loan.
2. Disclosure of Equity or Ownership Interest
and Disclosure of Position in Candidate Licensee
When
the inventor holds an investment or equity (ownership) interest, or when the
inventor is a director, officer, partner, trustee, employee, or holds any
position of management, the disclosure statement must contain:
-
the
fair market value of the investment or interest; and
-
the position the inventor
holds in the entity.
What is an "equity (ownership)
interest"?
For
the purposes of this policy, an "equity (ownership) interest" is
an investment in the candidate licensee by the inventor, his or her spouse,
or dependent children. This includes without limitation, stock, any
security convertible into stock such as an option or warrant, any put, call,
or straddle, or bonds of a corporation or limited liability company or an
ownership interest in a partnership.
What
is a "gift"?
"Gift"
means, except as provided below, any payment received to the extent that consideration
of equal or greater value is not given in return.
A "gift" includes a rebate or discount in the price of anything
of value unless the rebate or discount is made in the regular course of business
to members of the public without regard to official status. The term "gift" does not include:
1.
informational material such as books, reports, pamphlets, calendars
or periodicals. "Informational material" does not
include payment for travel or reimbursement for any expenses;
2.
gifts which are not used and which, within 30 days after receipt, are
returned to the donor or delivered to a charitable organization without being
claimed as a charitable contribution for tax purposes;
3.
gifts from an individual’s spouse, child, parent, grandparent, grandchild,
brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, aunt,
uncle, or first cousin or the spouse of any such person, provided that a gift
from any such person is considered a gift if the donor is acting as an agent
or intermediary for any person not covered by this paragraph;
4.
any devise or inheritance;
5.
hospitality involving food, beverages or lodging provided by an individual
in his or her home to the person filing a Statement of Economic Interest;
and
6.
exchanges between a person filing
a Statement of Economic Interest and another individual on holidays, birthdays,
or similar occasions. This provision
does not apply to the extent that the gifts received by the filer exceed in
value the gifts that he or she has given.
What is "income"?
"Income"
means, except as provided below, a payment received, including by not limited
to any salary, wage, advance, dividend, interest, rent, proceeds from any
sale, gift, including any gift of food or beverage, loan, forgiveness or payment
of indebtedness received by the filer, reimbursement for expenses, per diem,
or contribution to an insurance or pension program paid by any person other
than an employer, and including any community property interest in income
of a spouse. Income also includes
an outstanding loan. Income of an
individual also includes a pro rata share of any income of any business entity
or trust in which the individual or spouse owns, directly, indirectly, or
beneficially, a 10% interest or greater.
What is a "Personal Financial Effect"?
Financial effects on a University employee or a member of his
or her immediate family are called "personal financial effects."
A licensing decision will have an effect on the employee’s personal
financial interest if the decision will result in the personal expenses, income,
assets, or liabilities of the employee or his or her immediate family increasing
or decreasing. A reasonably foreseeable financial effect on an employee’s
personal finances is considered material if it is at least $250 in any 12-month
period. For example, an employee may expect to receive stock in the company
as payment for consulting services but perhaps does not currently have an
interest in the company simply because the stock has not yet been issued;
this interest should be disclosed.
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