Repository: UIHistories Project: Board of Trustees Minutes - 1986 [PAGE 437]

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426

BOARD OF TRUSTEES

[November 14

obtaining foreign patents would be chargeable to the gross income received from licensing the invention. Of the royalties it receives, U P I would normally retain 40 percent and remit 60 percent to the University. In instances where the University officially requests UPI's consultation services and advice in the negotiation of intellectual property terms in a nongovernmental research contract or grant, U P I would also provide infringement litigation services, collect royalties owed, retain 15 percent of royalties collected and remit 85 percent of royalties it receives to the University. University employees who are inventors would receive a single $200 payment from U P I when a U.S. patent application covering their invention is filed. U P I would be required to obtain the University's approval prior to granting an exclusive license or prior to granting any license where: (1) the licensee is a University employee or agent or a concern with which a University employee or agent has a substantive relationship; (2) the license agreement provides for the licensee to fund University research; or (3) the licensee leases space from the University. The University is required to provide a prompt response to such requests for approval. The University can recapture the rights to an invention if it is determined that U P I has not obtained the maximum reasonable utilization and return. The proposed contract would cover inventions conceived or reduced to practice prior to December 3 1 , 1987, and disclosed to the University prior to July 1, 1988. The University Patent Committee and the vice president for academic affairs have recommended that the Board of Trustees: (1) approve an agreement between the University and University Patents, Inc., on the terms outlined above; and (2) authorize the comptroller to review and approve license agreements presented by U P I for approval. I concur. O n m o t i o n of M r . F o r s y t h , t h e s e r e c o m m e n d a t i o n s w e r e a p p r o v e d .

Lease of Pharmacognosy Field Station, Chicago

(15) The chancellor at Chicago has recommended that the University lease the Pharmacognosy Field Station located at Lisle, Illinois, to Naprotech, Incorporated, for a five-year term commencing January 1, 1986, through December 31, 1990. The annual lease rate is $12,000. The lessee will remodel the facility for office and research laboratory use at its expense; will maintain the requisite property and liability insurance; and will indemnify the University. Professor Norman R. Farnsworth of the College of Pharmacy is the president and part owner of Naprotech, Incorporated. In addition to the lease, it is contemplated that a series of working arrangements will develop between the University and the company, such as retaining faculty members as consultants or research agreements. A statement of conflict of interest is on file with the University and an appropriate administrative oversight will be effected prior to the finalization of the lease agreement and subsequent relationships. Funds accruing from the lease will be deposited in the University Income Fund. The vice president for academic affairs and vice president for business and finance recommend approval. I concur. O n m o t i o n of M r . F o r s y t h , this r e c o m m e n d a t i o n w a s a p p r o v e d .

Establishment of Bank Account for Study Abroad Program, Konan University

(16) The College of Liberal Arts and Sciences at the Urbana campus has administered a Japan Year Abroad Program since 1977. In accord with action of the