It seems strange to be arguing about the legitimacy of charging
regular set-rate indirect costs on industry sponsored projects.
Historically, universities have taken the position that indirect
costs are REAL costs and need to be included in the cost of the
project. One could even argue that on projects that are of immediate
and compelling interest to any one specific company the rate should
be higher, because the primary objective in a situation like that is
to provide a" service" for a private  business. The indirect cost rate
for the same projec or "service" at a private company would very likely be much
higher.
 Somehow, however, the notion reappears that
universities need to share what they have with the public, including
individual businesses, for free. It probably stems from the very
essence of what a university is, i.e., an entity that creates and
freely disseminates new knowledge. It gets complicated, however, when
we are asked not just to create new knowledge, but to undertake a
project of special interest to one private busines for "free."

 We will all need to engage in some enlightened discussions to get over
this hurdle, because the university-industry relationship clearly is
valuable to both sides and needs to be nurtured.

Ilze Krisst, PhD
Research Foundation
University of Connecticut