THE UNIVERSITY OF NORTH CAROLINA AT ASHEVILLE
                  POLICIES AND PROCEDURES MANUAL

                                             No.                37    
                                             Date       June 1, 1987  
                                             Page             of    5 
                                             Approved     WHP    


SUBJECT:  Policy Statement on University Research Relations with Private Enterprise and
          on Publication of Research Findings


The following policy on the above subject was passed by the Board of Governors on May 8, 1987.

Section 1.  INTRODUCTION

Cooperation with private enterprise in research programs has a long and rich history in The University
of North Carolina.  These research relationships have contributed materially to economic
development and to the improvement of the quality of life in North Carolina, and new scientific
knowledge and productive applications of existing technology have resulted from collaborations
between private firms and University institutions.  The development of the Research Triangle Park
and of University Research Park in Charlotte are recent and positive instances of the benefits of
university-industry cooperation in research.

The Board of Governors encourages and supports these cooperative efforts with private enterprise
because important public benefits often result, and also because such activities contribute significantly
to the education of scientists, physicians, engineers, and other professionals.  The purpose of this
statement of policy is to establish standards and guidelines for the constituent universities in the future
development of these relationships.


Section 2.  BASIC POLICIES GOVERNING RESEARCH RELATIONSHIPS

The Board of Governors hereby reaffirms its belief in the fundamental importance of academic
freedom and responsibilities as stated in Chapter VI, Section 600, ("Freedom and Responsibility in
the University Community") of The Code of The University of North Carolina:

     The University of North Carolina is dedicated to the transmission and advancement
     of knowledge and understanding.  Academic freedom is essential to the achievement
     of these purposes.  The University therefore supports and encourages freedom of
     inquiry for faculty members and students, to the end that they may responsibly pursue
     these goals through teaching, learning, research, discussion, and publication, free from
     internal or external restraints that would unreasonably restrict their academic
     endeavors.
This commitment carries with it an important public responsiblilty to encourage the open distribution
of the benefits of the new knowledge and information resulting from the research efforts of faculty,
students, and professional staff.  All forms of scholarly and research activities, including those
research activities that are supported by grants, contracts, or other arrangements between the
institution and government agencies and private firms, are encompassed in this University tradition.

Other policies enacted by the Board of Governors and certain administrative actions of the President
are pertinent to the governing of research relationships with private firms.  Of particular importance
are:

  a. "The University of North Carolina Patent and Copyright Policies," adopted by the Board of
     Governors in 1983, prescribes policies concerning the creation and ownership of intellectual
     property and the distribution of income from such property.

  b. The "Policy Statement on External Professional Activities of Faculty and Other Professional
     Staff," adopted by the Board of Governors in 1979, and as thereafter amended, establishes
     policies regulating consulting and other external professional activities for pay.

  c. Administrative Memorandum Number 68, "Grants, Contracts, and Cooperative Agreements
     to Finance Sponsored Programs," issued by the President in 1976, and as thereafter amended,
     sets forth administrative procedures to ensure that all proposals for external sponsorship of
     activities receive appropriate review by senior officers.

In the event of any inconsistency between this document and any of a, b, or c above, this document
controls.


Section 3.  DEFINITION AND DESCRIPTION

a.   General Issues

  American universities, including The University of North Carolina, have been remarkably
  successful in developing a productive and powerfully effective system for conducting basic
  research in conjunction with graduate education.  Private enterprise has been a significant partner
  in this endeavor.  For many years private firms have given assistance to universities in conducting
  research that has materially advanced the frontiers of knowledge.  As the scientific and economic
  advantages of research collaboration between private enterprise and universities have become
  more visible in recent years, the extent of this collaboration between the private sector and the
  academy has expanded.

  There are, however, differing values and priorities between the academy and the private sector
  that must be respected.  Academic research has historically been directed more toward the
  educational experience and the extension of fundamental knowledge than toward commercial
  applications or processes.  Moreover, universities require free and open debate and discussion of
  ideas and newly-published research results.

  In contrast, private firms necessarily must consider profitability and product development and
  marketing.  Since competitive advantage is crucial to the success of commercial ventures, patents
  are important and results of research work often are proprietary and may not be published.  The
  use of university research and advanced education for commercial purposes thus presents
  different challenges and opportunities to universities and to private firms.

b.   Types of University-Private Industry Relationships

  Private firms are in contact with universities and their faculty members in a wide variety of ways. 
  The most common example is through the external professional activities for pay of faculty. 
  Under such arrangements, covered by the Board's "Policy Statement on External Professional
  Activities of Faculty and Other Professional Staff," faculty members serve as paid part-time
  consultants.

  There is also significant direct funding of research costs by private firms through contracts and
  grants, and these activities are governed by Administrative Memorandum Number 68 cited above. 

  Certain universities also have formal programs that involve private firms more directly in the life
  of the institution, such as research centers or consortia and industrial associate programs.  Under
  such arrangements private firms and perhaps some state or federal agencies may pay an annual
  fee to a university in return for which they receive publications and attend on-campus briefings. 
  Similarly, a university or group of universities may arrange a consortium with several private
  companies to conduct research in an area of mutual interest.

  Research partnerships are less common, and they involve joint planning and joint coordination
  of the research program.  These arrangements bring the private firms into a much closer
  association with universities, and usually specify the distribution of patents and may contain a
  prior-notification stipulation on the publication of research results.


Section 4.     UNIVERSITY POLICY ON INDUSTRY RESEARCH RELATIONS AND
               ACTIVITIES

a.   Appropriateness of University Research

  All activities of The University of North Carolina, including any research collaborations with
  private firms, must support its teaching, research, and public service missions.  The University
  environment must allow faculty and students to pursue freely learning and research.  The
  University must also maintain its independence and integrity to assure impartiality, and it may not
  agree to any inappropriate limits on the freedom to publish research findings.  Most importantly,
  The University must retain the public's trust by engaging in research activities that are consistent
  in nature, quality, scope, and importance with its educational purpose, and that are conducted
  under conditions that ensure its academic integrity.  The chancellors are the responsible officers
  for the administration of this policy and they are to take such steps as are necessary to maintain
  it.

b.   Proprietary Information

  Faculty and students of The University must have the right to disseminate freely and openly their
  research findings, and research sponsors may not abridge this basic right; however, in certain
  exceptional cases, the sponsor may be in possession of proprietary and confidential information
  that the institution and the research sponsor must share to conduct the research project.  A
  constituent institution, with the approval of its chancellor, may enter into agreements to guard
  the confidentiality of such proprietary information.  Information in the public domain, or
  information that a constituent institution legally obtains from a third party, or information
  independently developed or possessed by a constituent institution is expressly excluded from the
  definition of proprietary information.  Any agreement that involves the joint use of university
  facilities for proprietary purposes, or that purports to restrict faculty or students from publishing
  freely the results of their own work, shall be reported in writing to the President prior to its
  execution.  No agreement, however, may interfere with the publication or oral defense of research
  theses and dissertations of graduate students.


c.   Classified or Other Secret Research Projects

  Research conducted by faculty or students under any form of sponsorship must maintain The
  University's open teaching and research philosophy and must adhere to a policy that prohibits
  secrecy in research.  However, in cases involving United States government classification, or in
  any other case clearly involving exceptional circumstances, the chancellor is authorized to waive
  this requirement if it is in the national or institutional interest to do so.  All such agreements must
  be reported in writing to the President prior to their execution.


Section 5.  EFFECTIVE DATE

This policy shall become effective upon approval by the Board of Governors.