Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 794]

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794

BOARD OF TRUSTEES

[February 18

EQUIPMENT USAGE GRANT FOR THE COMPUTER-BASED EDUCATION RESEARCH LABORATORY, URBANA (18) The University proposes to submit to Control Data Corporation a proposal requesting support for a program of research and development at the Computerbased Education Research Laboratory of the Urbana-Champaign campus. Under the terms of this proposal, Control Data will provide partial support (totaling $1.3 million over a five-year period) for a 6400 computing system. The net leasing charge to the University for this system over this period is $1,930,000. Applications are in process for funding this amount from other than state appropriations. This large computing system will be a key element in the development and operation of the P L A T O I V system, the first phase of which will serve as many as 1,000 student consoles. This will make possible a major demonstration of the economic and educational feasibility of this promising new medium. T h e Control Data 6000-series computer systems are uniquely suited to the P L A T O system application; using the P L A T O software design, these computers will make possible rapid responses to concurrent student inquiries from hundreds (or thousands) of student stations. A careful survey revealed that no other commercially available computer system can perform the rapid transfer rates necessary for this application. Under the terms of the grant, the University of Illinois would (1) enter into a five-year lease of the Control Data 6400 system at the reduced rate, (2) develop the necessary software systems to operate the hardware configuration of the P L A T O I V system, (3) make available to Control Data under appropriate licensing arrangements sufficient documentation to permit the installation and operation of the software systems, and (4) provide to Control Data information concerning associated hardware designs, developments, and innovations with reference to peripheral computer equipment, communications systems, and student consoles. Concurrent with the above grant, Control Data Corporation would enter into licensing agreements with the University or the University of Illinois Foundation covering the hardware and software for P L A T O systems and providing for substantial royalty payments by Control Data. Under the proposed terms, royalty payments on the P L A T O hardware patents would begin after thirty P L A T O systems are sold. If, during the course of the lease, twenty P L A T O systems are sold, title to the computer system will transfer to the University of Illinois without further lease payments. T h e proposed terms of these licensing agreements are outlined in the summary (see below); the execution of the lease contract would be contingent on tbe successful completion of appropriate licensing agreements and upon receipt of funds which may be specially and properly applied to lease rentals. With the concurrence of the appropriate administrative officers, I recommend that the Vice President and Comptroller and the Secretary be authorized to execute such agreements as are necessary to enter into the grant and lease arrangements, subject to such further action by the State Board of Higher Education as might be required.

On motion of Mr. Swain, this recommendation was approved by the following vote: Aye, Mr. Clement, Mr. Hughes, Mr. Swain; no, none; absent, none.

S u m m a r y of P r o p o s e d License A g r e e m e n t s Although some changes may be anticipated in the course of finalizing the agreements, the substantive terms are as follows: A. The Hardware License Agreement 1. CDC shall be granted a nonexclusive license to manufacture and sell hardware invented or developed in the P L A T O program; 2. Royalty payments on licensed apparatus involving the P L A T O system and associated equipment shall be based on the number of student consoles (together with associated peripheral hardware) sold; the royalty rate shall be 2 per cent of the total selling price of the consoles; 3. No royalty payments shall be paid on the first 30 P L A T O systems; a P L A T O system typically would have 250 or more consoles; 4. T h e University shall make available technical information necessary for the practice, manufacture, and use of the inventions;