Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 130]

EXTRACTED TEXT FROM PAGE:

1984]

UNIVERSITY OF ILLINOIS

119

T h e University Patent Committee has recommended approval of these procedures. I concur.

Procedures for Acceptance and Disposition of Stock in Licensed Companies

1. Acceptance. T h e University may accept stock in licensed companies as full or partial consideration for a license when such action will encourage and facilitate the development of the licensed technology. Each such acceptance must be approved by the chair of the Patent Committee or his/her designee and, when possible, should follow consultation with the inventor(s), research administrators, business office personnel, and patent advisors. 2. Distribution and valuation. The Office of Patents and Copyrights will distribute shares of stock to inventor(s) in accordance with the provisions of the General Rules concerning invention income distribution as soon as permissible under the licensing agreement. When possible, the licensing agreement will be negotiated to permit distribution of stock to inventors at the time the University receives the stock. Cash dividends received during any required holding periods will be distributed to inventors and University units in accordance with the General Rules. Valuation of stock, for the purpose of determining cumulative net income from an invention, will be made by the University Investment Office in accordance with procedures developed by that office and approved by the comptroller. 3. Stock management. T h e University's shares of such stock will be retained and managed by the University Investment Office in a separate stock portfolio. Decisions regarding the sale or retention of such stock should be made in consultation with a committee appointed by the vice president for academic affairs and the comptroller, and approved by the Patent Committee. Such decisions should be guided by consideration of the University's commitment to the development of its technology, and the licensee's commitment to the technology as a major product line. In general, the stock should be retained at least through the early stages of commercial development of the technology. Receipts from the sale of stock will be distributed by the Office of Patents and Copyrights to University units in accordance with approved distribution formulas.

On motion of Dr. Donoghue, the procedures were approved as presented. Establishment of Bank Account, USAID Contract, Pakistan

(15) The University recently negotiated a four-year contract for $15.1 million with the U . S . Agency for International Development (USAID) for a project entitled "Transformation and Integration of the Provincial Agricultural Network." University staff from the College of Agriculture will work in cooperation with others from Southern Illinois University at Carbondale to conduct the technical assistance program supporting the North West Frontier Province Agricultural University in the Islamic Republic of Pakistan. The contract requires the University to maintain administrative offices in Pakistan in order to facilitate research and service activities and to pay for services and materials obtained in Pakistan. A team of up to twelve professionals will reside in the province; and considerable logistic, material, and other support will need to be obtained locally. The project will be conducted in cooperation with the North West Frontier Province Agricultural University and the Department of Agriculture of the province. T h e USAID mission to Pakistan will provide oversight of funds advanced and expended locally by University of Illinois staff. I n order to facilitate the handling of financial transactions, I recommend that the comptroller be authorized to establish an account in one of three banks, State