Wisconsin Alumni Research Foundation

WARF License Revenue Share Agreement

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Updated model effective July 1, 2026

WARF supports innovation by patenting and licensing inventions and other intellectual property developed by researchers at the University of Wisconsin-Madison and the Morgridge Institute for Research. UW-Madison and Morgridge researchers are required to disclose their inventions to WARF, and WARF encourages researchers to talk with our team early and reach out with any questions.

When WARF chooses to patent an invention, revenue generated through licensing, such as upfront payments, milestone payments and royalties, is shared to recognize inventors and reinvest in the university’s research enterprise.

Beginning with licensing revenue that arrives July 1, 2026, WARF will implement an updated revenue share model that maintains strong incentives for inventors while adjusting how the university’s share supports research activity across labs, departments and schools.

WARF and UW-Madison developed the updated model based on feedback from faculty, administrators, deans, department chairs, gradate researchers and campus leadership.

Overview of the revenue share model

When WARF receives revenue from licensing intellectual property, the funds are distributed as follows:

Recipient Share of Gross Licensing Revenue
Inventors 20%
Inventor’s Lab 5%
Inventor’s Department 5%
Dean’s Office (School/College) 5%

 

Key features of the updated model:

  • Inventors continue to receive 20% of gross licensing revenue.
  • The university share remains 15% of gross revenue, but now is distributed across several stakeholders to better support research activity.
  • Funds distributed to labs, departments and schools must be used to support research and related scholarly activities.
  • The updated model applies to revenue from all licensing agreements beginning July 1, 2026, including those entered into before July 1.

Revenue share distribution 

A simple visual representation of the revenue share model is shown below.

Pie chart. 20% of the chart is in yellow and represents the inventors' share. 5% of the chart is a textured beige and represent the inventor's lab. Another 5% is a different texture and represents the inventor's department. A third 5% is another different texture and represents the dean's office. The remaining 65% of the chart is dark gray and unlabeled.

Gross License Revenue Distribution

  • Inventors – 20%
  • Inventor’s lab – 5%
  • Inventor’s department – 5%
  • Dean’s office – 5%

WARF shares a generous 35% of gross licensing revenue with the inventors and the university.

How the university share supports research

The 15% university share is distributed across three areas of the research ecosystem:

Inventor’s lab – 5%

This portion provides direct support to the laboratory where the discovery originated.

  • Must be used to support research.
  • May be used for equipment, personnel or research expenses.
  • Funds must be spent within 5 years.
  • Total distribution is capped at $1.5M per invention.

Inventor’s department – 5%

Department-level funds help support broader research priorities within the academic unit.

  • Must be used to support research.
  • Funds must be spent within 5 years.

Dean’s office (school or college) – 5%

Providing a share to the dean’s office allows schools and colleges to strategically invest in research capacity and innovation.

  • Must be used to support research.
  • Funds must be spent within 10 years.

Questions

Researchers and administrators with questions about the updated revenue share model may contact:
Elizabeth Schuman, [email protected], Wisconsin Alumni Research Foundation (WARF)

WARF