Chick, I don't think you need to qualify your response as playing devil's
advocate. This type of situation is rife with possibilities, and a whole lot of
them are just plain bad for the university. Aside from all the other points you
make, I think every institution has got to be increasingly aware of and
cautious about getting involved in situations that even get near insiitutional
conflicts of interest or place our investigators in situations of personal
conflict...be it conflict of interest or commitment.  I would also be concerned
with almost inevitably getting graduate students involved in questionable
areas. It;'s far too easy to get graduate students misdriected to work that
turns out to be of benefit to everyone else but them.  And yes, we consider
this a conflict of commitment on the part of the faculty member...but it would
be even worse if the universiyt sanctioned it through an open-ended agreement
with a company.

We presently have a situation in which an investigators was doing all sorts of
freebies "requested" by a company (unbeknownst to me) and because of this he
couldn't get to the work under the subcontract from the company. The company
turned on us after giving them all their freebies and terminated the
subcontract for cause. As a result,  I feel like putting the standard "sole
agreement" language in 24 point bold letters for all future agreements.

Steve

"Herbert B. Chermside" wrote:

> Just some thoughts -- and be aware that the university's role in society is
> changing!:
>
> What is your justification for expending university/state dollars on
> something which appears to contribute to private profit?  Maybe you have an
> economic development mission?  Who will control the amount of this
> "investment/assistance" so you do not get bled to death?
>
> Is it wise for the institution to take equity in a commercial
> concern?  Might this not lead to Institutional Conflict of Interest
> (remember, Congress has been afraid of this for some time, and has just
> kicked NIH into gear on the subject)?  Can you separate official
> responsibilities for decisions to make this expenditure (clearly you will
> be missing some other opportunity to which the funds could be put) from
> official responsibilities that reap the benefits?
>
> If you take an equity position, will you expect the institution to have a
> seat on the board?  Will this constitute COI?  Suppose the startup company
> is owned/controlled by your faculty member?  And then suppose you gave her
> company this sweetheart deal, but refused such a deal to Joe Doakes (whom,
> unbeknownst to you, is the brother-in-law of the chair of your
> legislature's higher education finance committee)?
>
> "Future" equity positions?  Pie in the sky?  Or even current equity --
> which will be diluted several times over before the company turns a profit
> or makes an IPO?
>
> Please understand that I'm just playing the devil's advocate here!
>
> As solid advice, I strongly recommend that the terms of a master agreement
> be very firm, and unchanged.  If you want to do something risky or
> experimental, at least put it in a unique agreement that has a very high
> picket fence around it!
>
> Chuck

--
Stephen Erickson, Director
Office of Research Administration
Boston College
McGuinn Hall 600
Chestnut Hill, MA 02467
Telephone: 617-552-3344
On-Campus Fax:  2-0747
Fax to my computer:  413-895-8328

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