Royalty Information for CDC Inventors

Royalty payments to inventors are processed two times in the calendar year. The first payment is generally made between late May to late June. The second payment is generally made between late October to late November. Payments cannot be distributed to inventors until the royalty information is completely reconciled to ensure accurate payouts.

The payments represent the inventor´s share of royalty payments from licensees to the CDC during the fiscal year for the particular technology involved. For example, the first inventor payment is based on money received by CDC for the six-month period of October 1 through March 31. The second inventor payment is based on money received by CDC for the six-month period of April 1 through September 30.

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.

The payments are made by direct deposit to the inventor’s financial institution. In order to ensure that inventor royalty income is deposited into the correct account, inventors must complete the Automated Clearing House ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by secure fax to 404-638-5342 or encrypted email to psach@cdc.gov at CDC’s Office of Financial Resources (OFR). Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

The inventor will receive an email notification, from the Automated Royalty Tracking System (ARTS), that a payment is being processed. This will allow the inventor an opportunity to update banking information beforehand if needed.

Please Note: Each inventor must ensure that OFR has a current email address.

The inventor should complete an updated Automated Clearing House ACH ROYALTY PAYMENT ENROLLMENT FORM with new residential or contact information, then return it by secure fax to 404-638-5342 or encrypted email to psach@cdc.gov at OFR. Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

Please Note: Inventors should provide personal contact information (including a personal email address), because that typically does not change upon retirement, job/position changes, or relocation.

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 Automated Clearing House ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by secure fax to 404-638-5342 or encrypted email to psach@cdc.gov at OFR. Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

Please Note: As above, inventors should provide personal contact information (including personal email address), because that typically does not change when retirement, job/position changes, or relocation.

Please Note: Anyone sending Personally Identifiable Information (PII) should send it securely and confidentially over an SSL/encrypted connection.

If the inventor changes financial institutions or bank accounts, complete an updated ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by secure fax to 404-638-5342 or encrypted email to psach@cdc.gov at OFR. Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

Please Note: Anyone sending Personally Identifiable Information (PII) should send it securely and confidentially over an SSL/encrypted connection.

Current CDC Employees should complete the ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by fax to 404-638-5342 or email to psach@cdc.gov at OFR from their CDC account. Please also provide a copy to the Division Program Resource Manager (PRM) or Budget Analyst.

If the inventor no longer works at the CDC or wants to send the information from a personal email account, complete the ACH ROYALTY PAYMENT ENROLLMENT FORM and return it by secure fax to 404-638-5342 or encrypted email to psach@cdc.gov at OFR.

Royalty payment transactions sent from CDC to the U.S. Treasury include the words ROYALTY PAYMENT. When the Treasury sends this information to the financial institution, the ROYALTY PAYMENT identification is included with the direct deposit transaction. Most institutions include this information on the monthly account statement. However, some institutions do not interpret or provide the payment description. If the deposit identification does not appear on the statement, the inventor should discuss this matter with the financial institution.

No.

If the inventor receives royalty payments of $10.00 or more in the calendar year, the inventor will receive Form 1099-MISC Miscellaneous Income. Payments for less than $10.00 are taxable, but Form 1099-MISC will not be issued. Historically, the Form 1099-MISC is sent to the inventor by the end of January.

Send an inquiry to OFR by email to: CDCRelocationTaxes@cdc.gov

The U. S. Treasury automatically cancels uncashed checks after one year from issuance. When this occurs, funds are returned to the issuing agency. Once returned, CDC has less than four years to reissue these amounts.

Payments: For a question about a royalty payment received, contact CDC Technology Transfer Office (TTO) at tto@cdc.gov.

Estate or Probate Issues: If the inventor is the Personal Representative of an Inventor’s Estate contact CDC TTO at tto@cdc.gov.

Technology Transfer Matters: For questions concerning technology transfer matters, inventors should contact CDC TTO at tto@cdc.gov.

Royalty funds can be bequeathed to the inventor’s beneficiaries or estate provided proper documentation (designation of beneficiary form, will, etc.) has been put in place by the inventor. In the absence of documentation, benefits are paid following the “Order of Precedence” (spouse, child/children, and descendants, surviving parent, executor or administrator of the estate, next of kin). The designee should contact CDC Human Resources for assistance regarding the disposition of future royalty payments. When a designee has been established, payments will be directed to an account in the name of said designee via ACH/Direct Deposit.