Shaw v. Regents of University of California

In Shaw v. Regents of University of California (1997) 58 Cal.App.4th 44, a professor claimed that the university had no right to alter its patent policy so as to reduce the percentage of net royalties payable to him. The professor had previously signed a patent agreement, which also had printed on it the university's "patent policy." ( Shaw v. Regents of University of California, supra, 58 Cal.App.4th at pp. 47-49.) Although the patent agreement did not expressly incorporate the patent policy, the patent agreement "(1) directed Shaw to 'Please read the Patent Policy on reverse side and above,' and (2) stated that, in signing the patent agreement, Shaw is 'not waiving any rights to a percentage of royalty payments received by University, as set forth in University Policy Regarding Patents.' " ( Id. at p. 54.) The appellate court found, based on these facts, that the patent policy was incorporated by reference into the patent agreement, and that the university was bound by the policy's terms. ( Id. at pp. 54-55.)