Subject:  Routing of Commercial/Industrial 
Proposals through the University System
No.        89-20, Formerly 83-2
Date:    August 21, 1989

(Note: This Important Notice is being sent to Account Managers, Chairpersons, Deans and Chancellors. Please forward to others who have a need to know.)

        The following is the University's policy for dealing with potential industrial and commercial sponsors for research and training programs.

        Faculty members are encouraged to make initial contact with potential sponsors to determine if there is sufficient mutual interest to warrant a formal proposal.  However, before specific budgets and contractual obligations are discussed, a representative of the campus research office or Contract and Grant Administration must be involved.  In most situations firms prefer this arrangement in order to avoid losing valuable time in the negotiation process.  Budgets preliminary or otherwise, must be routed through regular university channels before being presented to potential sponsors.

        The three issues that arise most frequently in these informal discussions are total cost, patent rights and rights in data.

  1. Proposals should include total direct cost including fringe benefits and computer time and indirect cost at the federally approved rates.
  2. Patents which result from projects should be titled to the University with license available to the industrial sponsor.  The University normally receives royalties from the licensee which are shared with the inventor.
  3. The University's objective is to assist the project director in publishing the results of research without altering the confidential nature of the sponsor's information.