Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 540]

EXTRACTED TEXT FROM PAGE:

1976]

UNIVERSITY OF ILLINOIS

529

University-CDC agreement instead of the previous CDC-UPI-Foundation arrangement. U P I and the Foundation have relinquished any claim to rights in software. b. The University undertakes to make improvements to the software through December 3 1 , 1982. The software is licensed to CDC on a royalty basis until December 31, 1985, and on a royalty-free basis thereafter. c. Royalty payments are to be made to the University at the rate of 10 percent of the CDC charge for the use of the software, with minimum and maximum payments per system per month ($100 minimum, $200 maximum). A system is based upon each multiple of 1,000 communications outlets or fewer. Software may also be sold by CDC for thirty times the maximum monthly royalty. 3. Patent License Agreement a. CDC is granted nonexclusive licenses under specified patents to manufacture, sell, have made, lease, or use hardware invented or developed at the University's CERL in the P L A T O program, including future development and improvements. (See R and D agreement.) b. The royalty base for the various patent agreements is combined in a single payment based on the number of terminals sold or leased by CDC, or used in a CDC system, at the rate of one percent on the net selling price of the first 20,000 terminals, one and one-half percent on the next 20,000 terminals, and two percent thereafter. This is essentially a "systems license" for P L A T O or equivalent systems. N o n - P L A T O systems' uses of patented and licensed features are paid by royalty on a feature basis, usually 3 percent, except in the case of the Plasma Display Matrix, where the rate is 5 percent. (The prior arrangement called for 40,000 royalty-free terminals, and U P I participated with the Foundation at the rate of 50/50 from terminal 40,001 to terminal 120,000. U P I has agreed to return to a 40/60 split on the basis of the new arrangement.) 4. Plasma Display License Agreement a. University Patents, Inc., grants to CDC a nonexclusive, unrestricted license for the Plasma Display patent. b. The royalty basis is 5 percent of net selling price of the Plasma Display Units. 5. Courseware Agreement a. The University agrees to exercise reasonable efforts to produce courseware for use in Computer-based Education Systems. For existing courseware the University can only provide to CDC whatever rights exist. For prospective courseware, methods of access control will be established to provide CDC the right of first refusal on new courseware. b. Royalty payments are to be computed at the average rate of two and threequarters cents ($.0275) per customer/student contact hour with each item of courseware. 6. Agreement for Control Data Equipment, Computer equipment is to be provided with the option to acquire title by the over a seven-year period. (See R and D Products, and Related Services to the University as specified to use, University on a quarterly credit basis agreement, Item 1 above.)

7. Agreement for Use of Trade and Service Marks A nonexclusive trade and service marks agreement is to be executed between CDC and the University covering the use of the names of P L A T O and T U T O R by CDC. A major change proposed as a part of this Board action is to supersede any and all prior Board actions with regard to authorized payments to software authors