Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 342]

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1981]

UNIVERSITY OF ILLINOIS

331

license with Dow during the twelve-month period, the University subsequently proposes to offer an exclusive license to others under terms more favorable to the licensee than those declined by Dow. Further, in the event the University or its assignee decides not to apply for a patent, Dow is given the right to do so. The University Patent Committee has reviewed the proposed agreement with Dow Chemical Company and recommends its approval as an exception to the patent provisions in the General Rules. I concur. O n m o t i o n of M r . H o w a r d , 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 .

Research Agreement with Petrogen, Inc. (Exception to the Genera/ Rules)

(23) The Petrogen corporation of Des Plaines, Illinois, proposes to support research on the microbial recovery of secondary oil over a two-year period in the Department of Microbiology and Immunology at the Medical Center campus in the amount of $588,901. The principal investigator on the University work will be Professor Ananda M. Chakrabarty who has a minority stock interest in the sponsor. Under the terms of the sponsorship, Petrogen, Inc., would receive an exclusive world-wide license in all inventions and discoveries growing out of and directly related to the scope of the work. Royalties would be computed on the basis of net sales price, reduced by 25 percent as a research and development allowance for the first three years of the license or until annual gross sales reach ten million dollars, whichever occurs first. During the next three years, the net sales price would be reduced by 15 percent. The royalty rate would be 4 percent on the first $1 million, 3 percent on the next $4 million, and 2 percent on amounts greater than $5 million. T h e exclusive license can be terminated if the company does not develop the technology within a reasonable time. The University Patent Committee has reviewed the proposed exceptions to the University's patent policy and has recommended approval. T h e final form of the contracts and licensing documents would be subject to the approval of the executive vice president and the university counsel. I concur and recommend approval of the proposed transaction as an exception to the General Rules.

O n motion of Mr. Howard, this recommendation was approved. Lease of Space for Aircraft Maintenance Program, Urbana (Report for Information)

(24) O n February 19, 1981, the Board of Trustees approved an agreement to lease space in Building C, Colony Square, Champaign, subject to the availability of funds to be provided through a contract with Telemedia, Inc. The space was to be used for a program of the Institute of Aviation, Urbana campus, to train Malaysian nationals in aircraft maintenance. Reportedly, Telemedia and the Malaysian government could not agree upon costs and Telemedia therefore has informed the University that a contract will not be executed which would provide the necessary funds for the training program and the leasehold payments. The president of the University reports that the action authorized by the Board of Trustees on February 19, 1981, will not be implemented. (This space was also to be used for a program to train employees from Saudia Arabian Airlines, a program now terminated.)