Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 94]

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BOARD O F TRUSTEES

[September

16

grammetric and cartographic qualities of a high resolution television system over a three-year period starting September 16, 1970. The television system under study is designed to be carried on NASA satellites to collect earth resources data applicable to mapping, land use, weather predictions and many other fields of major importance to society. In addition, the project will lend support to graduate students in Civil Engineering. Under the contract, the government reserves the right to take title to inventions and give the University a royalty-free non-exclusive license to practice. In addition, the contract is conditioned upon the University's agreement to grant licenses on "background patents." Background patents are defined as those (a) which the University, but not the government, has a right to license to others, and (b) which would necessarily be infringed by the practice of any discovery or development made in the course of the contract. Under the contract the University would have no obligation to grant a license to anyone other than the government if an embodiment thereof is available as a commercial item. Under Section 14(d) of the General Rules the Committee created by Section 14(f) is authorized to waive established University policies on ownership of potentially patentable inventions, if required by law or the established policies of governmental or non-profit sponsors, and if the waiver is determined to be clearly in the public interest. The authority does not presently extend to the acceptance of background patent provisions of the type described. The President, with the concurrence of the appropriate administrative officers, recommends acceptance of the foregoing "background patent" provisions of the proposed contract with the Department of Interior, and further recommends that henceforth the authority of the Section 14(f) Committee be extended to the granting of similar background patent rights in future contracts when the other criteria of Section 14(d) are met, and when the action of the Committee will not be inconsistent with the existing arrangements concerning such background patents. O n motion of M r . Jones, this recommendation was approved.

MODIFICATION OF PROPERTY INSURANCE PREMIUM

(33) On June 18, 1969, the Board of Trustees approved the purchase of a Fire, Extended Coverage, Vandalism, and Malicious Mischief insurance policy from the Home Insurance Company. The policy provides coverage subject to a deductible of $1,000 for buildings, contents, and business interruption on revenue-producing properties, trust properties, and leased properties. The three-year policy provided $165,894,107 in coverage at an average rate of .1139 per $100, for a total three-year premium of $178,702. During the first policy year the losses have totaled $311,000, and the insurance company issued a notice on April 2, 1970, of their intent to terminate coverage on the anniversary date of the policy, June 30, 1970. On April 27, 1970, the company agreed to review their decision to terminate the policy and to continue the policy "with certain adjustments in property covered and rates." The Home Insurance Company proposes a three-year average rate of .1556 per $100 on all properties except property under construction which would have a rate of .2126 per $100. The company further stipulated that coverage in the amount of $100,000 on R.O.T.C. uniforms be withdrawn from the contract. The insurance values on June 30, 1970, have increased to $185,534,082, and the total additional premium required under the proposed rates and increased coverage would be $65,072 for the unexpired two years of the contract. Two other bids were received on request for quotations in 1969, Aetna Casualty & Surety Company, .129 per $100; and the Continental Insurance Company, ,3012. These companies have replied that at this time they cannot offer a contract which would be competitive with the rates proposed by the Home Insurance Company. A survey and review of the insurance market has indicated there is no company willing to offer a comparable contract at the proposed rates. The President of the University, with concurrence of the appropriate administrative officers, recommends the Vice President and Comptroller be_ authorized to affect a change in this coverage as outlined above at the increase in premium noted. O n motion of M r . Swain, this recommendation was approved.

PURCHASES

(34) The President submitted, with his concurrence, a list of purchases rec-