Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 538]

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1976]

UNIVERSITY OF ILLINOIS

527

On motion of Mr. Forsyth, the purchases recommended were authorized by the following vote: Aye, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Lenz, Mr. Livingston, Mr. Neal, Mrs. Rader, Mrs. Shepherd, Mr. Velasquez; no, none; absent, Governor Walker.

Contracts with Control Data Corporation, Relating to Computer-based Education, Urban a

(14) O n February 18, 1970, the Trustees authorized agreements with Control Data Corporation (CDC) of Minneapolis to support a program of research and development at the Computer-based Education Research Laboratory (CERL) at the Urbana-Champaign campus. T h e agreements were to be in effect for five years and were renegotiable after five years. O n December 17, 1975, a status report was made to the Board on the renegotiations as follows: It is anticipated that the University and CDC would continue to engage and collaborate in the development of computer-based education systems. The new agreements would facilitate further cooperation between the parties to perfect and improve such systems, thereby advancing the frontiers of knowledge in this area. It is contemplated that the University would acquire a CDC computer for its current use and would acquire title to it at the end of seven years. Control Data Corporation would acquire certain exclusive and nonexclusive rights to develop, enhance, and sell a commercially marketable product in the field of computer-based education. Concurrently, certain existing licensing agreements between CDC and University Patents, Inc., as agent of the University of Illinois Foundation, are being renegotiated. Although changes will be made in the course of preparing recommendations to the Board of Trustees, the substantive terms now under discussion are as follows: 1. In consideration of the use and ultimate transfer of title of the CDC computer equipment as specified in an equipment agreement, the University, for a period of seven years (subject to cancellation by either party), would agree to: a. Grant or provide certain licenses to CDC in relation to the P L A T O system and computer-based education programs, including new developments and improvements made during the life of the agreement; b. Provide technical and consulting assistance to C D C ; c. Perform specific research and development projects in cooperation with CDC, as determined by a joint University and CDC committee, and grant CDC exclusive rights to inventions thereunder. 2. Royalty payments under the various patent license agreements would be combined in a single payment based on the number of terminals on a system at the rate of one percent on the first 20,000 terminals, one and one-half percent on the next 20,000 terminals, and two percent thereafter. 3. A separate software license agreement would provide for separate royalty payments on a different basis. 4. T h e University and CDC would cooperate in the development of courseware agreements. This renegotiation has been and continues to be complex, involving prior agreements between the University, the University of Illinois Foundation, Univer-