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Caption: Board of Trustees Minutes - 1986 This is a reduced-resolution page image for fast online browsing.
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1985] UNIVERSITY OF ILLINOIS 269 The present initiative is based on new communication techniques which make possible interactive terminal service delivery anywhere in North America via satellite relay. U C I will acquire a satellite transmission link in Champaign-Urbana and allow the University access to the antenna at no cost; such access will reduce significantly the University's costs of service distribution. C E R L will develop the first prototype system as an upgrade of its existing P L A T O facility. T h e new C E R L system is designed to increase the number of terminals served from the present level (about 1,400 terminals) to more than 4.000 terminals. C E R L has developed a new, low-cost terminal as part of this system and is completing work on new central processing equipment. Development and deployment of the first prototype system will be carried out as a University project by CERL. When the C E R L prototype system becomes operational (with service to 4,000 terminals), U C I will begin its commercial operation — installing and operating similar systems, and providing service on a private commercial basis. CERL will continue to operate the original prototype system on the same experimental, nonprofit basis as its present P L A T O service but to an expended terminal network. UCI's service will be based on technology acquired under nonexclusive license from the University, including computer software and patentable communications and computer technology. U C I will pay royalties to the University based on a percentage of the net selling price of its services. Software and other technology enhancements made by U C I will be made available to the University for use in its own internal programs. Donald L. Bitzer, director of CERL, and certain other key C E R L employees hold equity in and will serve as the initial management of U C I . As a result, several potential conflicts of interest may arise. New, special, and frequent reporting procedures by C E R L to the campus administration have been developed to address these conflicts of interest. The campus administration has imposed a two-year limitation on concurrent management positions at U C I and CERL. This period will begin after the prototype system at CERL is established, but in no case later than April 1, 1986. Outside consulting by CERL employees for U C I will require approval on a case-by-case basis by the Office of the Vice Chancellor for Research, the unit to which CERL reports. University Patents, Inc. ( U P I ) , the University's patent-servicing agent, also will be an equity partner in this new business. (This arrangement is unrelated to the existing servicing agreement between the University and U P I . ) T o counteract any potential conflict-of-interest effect on the proposed licensing arrangements, outside licensing advice has been secured for review of the terms and royalty ranges of software and patent license agreements with U C I . Approval of a Memorandum of Understanding between the University and U C I is required to assure the parties investing the venture capital for the support of the company that the University is committed to the program. The chancellor at Urbana-Champaign has recommended approval of the Memorandum of Understanding. The vice president for business and finance approves. I concur. On motion of Mr. Madden, this recommendation was approved. St. Charles Horticultural Research Center (21) T h e University has acquired a twenty-year lease at no cost from the Illinois Department of Corrections for the establishment of a twenty-five-acre horticultural research center near St. Charles, Illinois. This tract will be used for vegetable crops and ornamental horticulture research. The chancellor at the Urbana-Champaign campus has recommended that the new center be officially designated the "St. Charles Horticultural Research Center." I concur. On motion of Mr. Madden, this recommendation was approved.
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