individuals who contribute teaching materials used in jointly developed and taught University courses thereby grant a nonexclusive, nontransferable license to the University to permit other contributors to the course to continue using those jointly produced teaching materials in University courses. Subd. 3. Derivative Works. Jointly owned works (under section VI above) enable both the faculty member and the University to independently or cooperatively create derivative works from those works where there is shared ownership. As an example, if the University pays a faculty member to develop an online course under a joint ownership agreement stipulated in writing, the faculty member retains the right to develop derivative works, such as an online textbook or a lab manual, and the university also retains the right to develop derivative works, such as modifications to the master course from those online course materials. Section IX. Distribution of Income Subd. 1. In cases where no use has been made of University equipment, facilities, or employee and/or student time, or in traditional cases involving the creation of literary, artistic, and scholarly work, the University will have no claim of equity. In cases where this applies, the inventor is at liberty to pursue patent negotiations independently. However, in such cases, the name of the University may not be used in connection with inventions in which the University has no equity interest without prior written permission. Subd. 2. In cases where the University does have equity rights according to Section VI and there has been normal use of University equipment, facilities, or employee and/or student time devoted to the invention, the University will be deemed to have a 40% of gross equity interest in the invention. Subd. 3. In cases where the University does have equity rights according to Section VI and there has been significantly above normal use of University equipment, facilities, or employee and/or student time or University contributions, including additional salary, devoted to the development of the invention, the University will be deemed to have a 60% of gross equity interest in the invention. Subd. 4. In cases that would normally be covered by Subd. 2 and Subd. 3, but where gross equity has been determined to be less than $5,000, the University shall assert no claim of a percent of gross equity interest. Section X. University Responsibilities The University shall have the responsibility to: 1. Provide oversight of intellectual property management and technology transfer; 2. Establish effective procedures for licensing and patenting intellectual property; 3. Promote effective distribution and marketing of intellectual property; 4. Protect the University’s intellectual property; and 5. Inform individuals covered by this policy about its provisions. Section XI. Responsibilities of Applicable Individuals Covered individuals have a responsibility to: 1. Adhere to the principles and procedures embodied in this policy; 2. Create, retain, and use intellectual property according to the applicable local state, 95