Chapter 1-11 – Award Plan for Inventors and Innovators Policy
(Publié aussi en français sous le titre Chapitre 1-11 - Politique sur le programme de récompenses des inventeurs et des innovateurs)
Table of Contents
Policy objective
Policy statement
Application
Policy requirements
Monitoring
Responsibilities
References
Enquiries
Appendix A

Policy objective
To encourage Public Service inventors in science and technology to pursue, through technology transfer, the commercialization of their inventions.
To promote within government laboratories active collaboration with Canadian industry.
Policy statement
It is government policy to allow employees responsible for scientific and technological inventions to share in the financial benefits accruing from the commercialization of the inventions, and to recognize government use of the inventions of its employees during their lifetime.  Such awards are subject to the discretion of the appropriate minister.
Application
This policy applies to all departments and agencies listed in Schedules I and II of the Financial Administration Act, members of the Canadian Forces and the Royal Canadian Mounted Police.
Policy requirements
In light of their specific circumstances, departments and agencies must establish an award plan to allow employees responsible for scientific and technological inventions to share in the financial benefits accruing from the commercialization of the inventions, and to recognize government use of the inventions of its employees during their lifetime. (See Appendix A for more details.)
Monitoring
Departments and agencies must submit an annual report on these awards before April 30 of each year to the Treasury Board Secretariat (TBS).  The TBS will use this report as a basis for monitoring the effectiveness of departmental and agency plans and of the policy.
Responsibilities
Departments and agencies should designate an officer to coordinate this award plan.
References
Award Plan for Inventors and Innovators, approved by the Treasury Board June 2, 1993.
Enquiries
Enquiries about the administration of this policy should be referred to the responsible officers in departmental headquarters who, in turn, may direct questions about policy interpretation to:
Ethics and Incentives
Human Resources Development Division
Human Resources Policy Branch
Treasury Board Secretariat

Appendix A
Payment of Awards
In accordance with Section 10 of the Public Servants Inventions Act (PSIA) "the appropriate Minister may authorize the payment of an award to a public servant who makes an invention that is vested in Her Majesty".  Payments to an inventor may be made for the life of the inventor but must cease at the inventor's death.
1.	Awards for government use of inventions
A.	When Her Majesty has made use of an invention made by a public servant:
(a)	acting within the scope of the public servant's duties, or
(b)	with facilities, equipment, or financial aid provided by or on behalf of Her Majesty, or
(c)	resulting from or connected with the public servant's duties, and
(d)	which vests in Her Majesty pursuant to Section 3 of the PSIA,
an award may be paid to the inventor, but such award or awards should not in the aggregate exceed the sum of $5,000 except with the approval of the Treasury Board.
B.	In determining the amount of an award under Section (2A) above, consideration should be given to:
(a)	the extent to which the invention has been used by Her Majesty;
(b)	the savings to Her Majesty brought about by the use of the invention; and
(c)	other factors as the appropriate minister or his/her delegate considers relevant.
2.	Awards based on royalties and license fees
A.	Normally, awards are to be based on royalties and license fees received by the Crown.  Under this plan, awards would not normally be paid unless the Crown realizes financial returns.  On occasion, the Crown has received consideration for granting a license which are benefits in kind.  In respect of benefits of this type, awards may still be made, but should be based on an assessed equivalent financial value of the benefits received.
B.	Departments and agencies have the discretion and flexibility to determine and issue their own individually tailored award plan with a program of awards for creating commercialized technology.  These awards under Section 10 of the PSIA are ex gratia awards and subject to reconsideration at any time.  Departmental and agency plans should generally conform with the following parameters:
(a)	plans should identify the formula used to calculate the total sum to be distributed as awards, which are generally fixed amounts or are determined by fixed percentages of revenues;
(b)	The amount to be awarded for each invention should be based on the revenues from the invention, (e.g. royalties, licence fees, etc.) and should be:
(i)	not less than 15 per cent of revenues, and
(ii)	not more than:
–	100 per cent of revenues where revenues are $1,000 or less, or
–	the greater of $1,000 and 35 per cent of revenues where revenues are greater than $1,000.
	If there is more than one inventor for any one invention, the award should be divided among the eligible inventors.
(c)	Awards should be determined each year on the basis of revenues received in that year and should be made annually.
(d)	No individual should receive an annual award or awards derived from a single invention, the total value of which is greater than the highest salary level, current at the time of payment, of the SE‑RES 2 classification.
(e)	The balance of calculated awards which exceed the allowable maximum for an individual in a given year would not normally be carried forward to successive years.