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Research Collaboration With Industry Principles

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Requires the dissemination of results and free exchange of ideas ... Non Exclusive Royalty Free (NERF) License. Corporate sponsored research, Sec. 6.02 ... – PowerPoint PPT presentation

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Title: Research Collaboration With Industry Principles


1
Research CollaborationWith IndustryPrinciples
Policies at The University of Texas at Austin
The University of Texas at Austin
  • Bill Catlett
  • Associate Director for Industry Relations
  • Office of Sponsored Projects
  • The University of Texas at Austin

2
FACILITATE INDUSTRY RELATIONS
The University of Texas at Austin
  • Interface with UT Faculty, Research Departments,
    Organized Research Units re their research
    collaborations with Industry
  • Interface with Industry re their research
    collaborations with UT
  • Bridge the Gap between Industry and UTs
    research community
  • Facilitate collaborative research efforts between
    Industry and the UT research community

3
UNIVERSITY RESEARCH SPONSORED BY INDUSTRY
The University of Texas at Austin
  • Goals of the University- fundamental research
    and educational purpose
  • Board of Regents Rules specify UT Austin owns all
    Intellectual Property
  • Requires the dissemination of results and free
    exchange of ideas
  • Relevance of the research should not be specific
    to the commercial activities of the sponsor
  • Contribute to Society-- Provide a unique
    service not otherwise available (not compete with
    commercial establishments)
  • Goals of Industy Sponsors-- generally a
    commercial approach to research
  • If we pay for the research we should own it
  • All data, reports, drawings, materials, and
    inventions
  • We need to protect our competitive advantage
    and maintain our Freedom to Operate
  • Publication of Research Results is prohibited
  • We need specific improvements made to our product
    or processes
  • Designed to achieve a business objective for
    commercial application
  • We need the final deliverable in a specific form
  • Want to retain final approval of the results of
    the project

4
The University of Texas at Austin
5
The University of Texas at Austin
6
Ways for Corporations to work with Researchers
at The University of Texas at Austin
The University of Texas at Austin
  • Gifts
  • Nothing expected in return.
  • Grants
  • For basic research no specified deliverables
    exclusive license rights available for IP.
  • Industrial Affiliate Programs
  • A subscriber program managed by the PI
    standard annual fee set by PI no IDC
    subscribers receive annual report on research
    results, but no IP rights.
  • Research Participation Agreements
  • Multi-year commitment to broad research topic
    tiered membership fee full IDC members have
    option to participate in direction of research
    IP available to certain membership levels.
  • Sponsored Research Agreements
  • Specific research topic(s) with designated
    researcher(s) full IDC exclusive license rights
    available for IP.
  • Master Research Agreements
  • Attractive if field of use adequately defined
    any special conditions are addressed in task
    order, e.g. special IP, funding considerations,
    etc.

7
Developing a Sponsored Research Agreementat the
University of Texas at Austin
The University of Texas at Austin
  • Initiate discussions with interested sponsors
  • Use Non-Disclosure Agreement (NDA) to exchange
    confidential information
  • Use Material Transfer Agreement (MTA) to exchange
    samples for evaluation
  • Initiate the proposal process
  • RMS
  • Obtain sponsors proposal submission guidelines
    and provide to OSP
  • Any estimates and/or budgets should only be
    submitted to sponsor via OSP
  • Negotiating the Sponsored Research Agreement
  • OSP forwards proposal and SRA to sponsor
  • OSP Negotiators work through any contract issues
    with Sponsor
  • Work with PI and OTC to identify any BIP issues
    to Sponsor
  • Final execution of the SRA
  • Only persons with delegated signature authority
    can sign on behalf of UT

8
UT Universal Non-Disclosure Agreement
The University of Texas at Austin
  • Initiated by office of Vice President for
    Research
  • Easily accommodates multi-party exchange of
    Confidential Information
  • Identifies researchers exchanging information
  • Identifies nature of information exchanged
  • provides mechanism for compliance with export
    control regulations
  • PI signs NDA (in addition to UT official)

9
UT Universal Non-Disclosure Agreement
The University of Texas at Austin
10
Identification of Background Intellectual Property
The University of Texas at Austin
11
The University of Texas at Austin
Certain IRS guidelines Affect Industry Sponsored
Research at U.S. Universities
  • Unrelated Business Income Tax (UBIT)
  • Focus of UBIT is on the nature of the sponsored
    research
  • Tax Exempt Status of Bonds used to finance
    Research Facilities
  • Focus is on the license terms for IP resulting
    from sponsored research in the facility

12
Unrelated Business Income Tax (UBIT)
The University of Texas at Austin
  • University may have to pay UBIT on income derived
    from activities not substantially related to
    fundamental research
  • But wait . . . .
  • Code 512(b)(8).  In the case of a college,
    university, or hospital, there shall be excluded
    all income derived from research performed for
    any person, and all deductions directly connected
    with such income.
  • Under this modification any income derived by a
    college, university or hospital from research
    (whether applied or basic or freely available or
    kept private) is not included in UBIT.
  • Although Code 512(b)(8) allows  income from
    both fundamental and applied research to be
    excluded from UBIT, if the research is found to
    be carried on for the primary purpose of
    commercial or industrial application UBIT may
    apply. The term research does not include
    activities of a type ordinarily carried on as an
    incident to commercial or industrial
    applications, for example, the ordinary testing
    or inspection of materials or products or the
    designing or construction of equipment,
    buildings, etc.

13
Tax Exempt Status of BondsIRS Rev. Proc. 2007-47
The University of Texas at Austin
University could lose the tax exempt status on
bonds used to build the facility in which the
research is conducted, unless
  • sponsor pays a competitive price for the IP
    resulting from sponsored research
  • only on the same terms University would permit
    that use by any unrelated, non-sponsoring party
  • some commentators have argued that this requires
    University to offer the same terms to all
    sponsors and
  • price paid . . . must be determined at the time
    the license or other resulting technology is
    available for use

14
Tax Exempt Status of BondsIRS Rev. Proc. 2007-47
The University of Texas at Austin
  • Non Exclusive Royalty Free (NERF) License
  • Corporate sponsored research, Sec. 6.02
  • Price paid by the sponsor must be no less than
    that paid by any non-sponsoring party
  • Collaborative sponsored research, Sec. 6.03
  • Sponsor(s) entitled to no more than a NERF to use
    the product of any of the research
  • Bayh-Dole, i.e. funded by Federal Government or
    sponsoring Federal Agency
  • a NERF license is all that can be granted to the
    Government, Sponsoring Agency, or any third party
    nongovernmental entity
  • Exclusive Royalty Bearing License
  • Sponsor must pay a competitive price
  • Price must be determined when the resulting
    technology is available for use

15
Indirect Costs (IDC)
The University of Texas at Austin
  • What is it?
  • How is IDC calculated?
  • Issues associated with IDC

16
Indirect Costs (IDC) -- What is it?
The University of Texas at Austin
  • Also known as Facilities Administrative Costs
    (FA)
  • Real Costs of the University that can not be
    directly allocated to a research project with
    specificity
  • Facility costs, such as
  • Building depreciation and Maintenance
  • Machinery, fixtures, etc.
  • Interest on the loan to build the facility
  • Administrative costs (infrastructure costs
    necessary to run the University), such as
  • Salaries and overhead associated with operating
    all the various offices and departments, e.g.
  • Accounting
  • purchasing
  • HR payroll
  • Sponsored projects administration
  • The various Deans, and
  • The many other service departments within the
    University
  • Capped at 26 -- University absorbs the rest

17
Indirect Costs (IDC) -- How is it calculated?
The University of Texas at Austin
  • University assembles data for the rate
    calculation, and negotiates with federal
    government
  • IDC Rate varies according to location and type of
    program activity
  • 52 On Campus Organized Research
  • 50 On Campus Instruction
  • 35 On Campus Other Sponsored Programs
  • 26 Off Campus All programs
  • Components of published IDC rate
  • On Campus Off Campus
  • Building depreciation 4.9 --
  • Equipment depreciation 4.2 --
  • Interest 0.6 --
  • Operation Maintenance 13.5 --
  • Library 1.5 --
  • Utility Cost Allowance 1.3 --
  • Administration 26.0 26

18
Indirect Costs (IDC) Issues associated with IDC
The University of Texas at Austin
  • Difference between Universitys calculated IDC
    and negotiated IDC is a real dollar loss
  • University administrators must include this loss
    from research funding with other expenses (such
    as faculty salaries, student tuitions, funding of
    new businesses, admin salary increases, etc.)
    when they balance the Universitys expenses
    against income sources.
  • Universitys calculated IDC is more than the
    negotiated rate.
  • For example, the government places a 26 cap on
    admin costs UTs calculated admin expenses are
    more like 30.
  • UTs recent calculated IDC is 67 (due to
    dramatic increase in expenses related to
    compliance issues)
  • UTs recent negotiated rate is 52
  • Even the calculated IDC rate does not recover all
    costs
  • Not all University costs are included in the IDC
    rate calculation
  • The basis used for average of research costs in
    the rate calculation includes research programs
    which traditionally do not include material
    costs, e.g. Liberal Arts, Education, etc.
  • The federally negotiated rate of 52 is a below
    market rate
  • University typically extends the same government
    negotiated rate to all sponsors. Thus, industry
    sponsors actually get the benefit of the
    governments bargaining position and receive
    research at below the universitys actual cost.

19
Research Policies
The University of Texas at Austin
  • Intellectual Property Policy
  • http//www.utsystem.edu/ogc/intellectualproperty/i
    ppol.htm
  • Conflict of Interest Policy/Outside Consulting
  • http//www.utexas.edu/policies/hoppm/h0319.html
  • Objectivity in Research Policy
  • http//www.utexas.edu/policies/hoppm/h0511.html
  • Office of Sponsored Projects
  • http//www.utexas.edu/research/osp
  • Regents Rules
  • http//www.utsystem.edu/bor/rules.htm

20
Contact Information
The University of Texas at Austin
  • Bill Catlett, M.S., J.D., P.E.
  • Office of Sponsored Projects
  • Office NOA 4.324
  • Email bcatlett_at_austin.utexas.edu
  • Ph 471-6279
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