Repository: UIHistories Project: Board of Trustees Minutes - 1984 [PAGE 464]

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1984]

UNIVERSITY OF ILLINOIS

455

the servicing agreement. The invention was reviewed by U P I Patent Counsel and by its director of Life Sciences and it was concluded that patent protection would be most difficult to obtain, enforce, and license. The University Patent Committee recommends that the University release its rights to the sponsor, the National Institutes of Health. 5. High-Volume Aerosol Concentrator — Donovan B. Yeates, research associate professor of medicine, Health Sciences Center, inventor; developed under the sponsorship of the National Institutes of Health. University Patents, Inc. elected not to subject this invention to the terms of the servicing agreement. This invention was reviewed, and it was concluded that patent protection was not justified due to a lack of commercial interest in it. The University Patent Committee recommends that the University release its rights to the sponsor of this work, the National Institutes of Health. I concur in these recommendations. O n m o t i o n of D r . D o n o g h u e , these 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 .

Renewal of Contracts with Control Data Corporation, Urbana (Report for Information)

(15) On July 21, 1983, the trustees approved a recommendation that the comptroller and secretary execute agreements to amend and renew the following P L A T O relatcd contracts with Control Data Corporation ( C D C ) : the Research and Development Agreement; the Software License Agreement; the Patent License Agreement; and the Agreement for CDC Equipment, Products, and Related Services. The agreements were finalized and executed during December 1983. At the July 1983 meeting, the trustees also directed the administration to report on the final result of negotiations with respect to the provisions concerning the recovery of royalties by the University under the Software License Agreement and the Patent License Agreement. A. The Software License Agreement provides that CDC's responsibility for paying royalties to the University for the sale of licensed software is to be extended through December 31, 1991. The calculation of royalties paid will be based on the license fees CDC charges its commercial customers for central P L A T O software. (A schedule of royalty rates and such fees as they appear in the amendment is filed with the secretary.) The royalty rates applied to the fees charged will vary depending on the number of commercial customers CDC licenses in a given calendar year. Alternatives to this basis for calculating royalties were based on methods of measurement of usage of P L A T O system hardware either by counting the number of terminals installed and connected to CDC's P L A T O systems, or by counting the amount of port capacity available to users on the CDC PLATO system. These methods were not adopted since they were essentially not controllable by CDC. It was mutually agreed by CDC and the University that the level of usage of P L A T O system software should be a more accurate and equitable measure of P L A T O systems usage. The amended software agreement further provides that if CDC's license fees are increased, the University's royalty will be calculated on the fee in effect at the time the P L A T O software is ordered. If the fees are decreased, the fees will continue to be used for the royalty calculation. CDC will pay a minimum royalty of $10,000 per calendar year. CDC and the University further agreed to renegotiate the amended royalty computation method if the method materially fails to accomplish the objective of deriving a royalty computation method