VIII. Appropriate Use of University Facilities for Industry-Related Purposes

1. Current University Policies

1. University Regulation No. 4 (June 23, 1958) states that "University participation in tests and investigations shall be limited to activities which lead to the extension of knowledge or to increased effectiveness in teaching. Routine tasks of a commonplace type will not be undertaken. University laboratories, bureaus and facilities are not to be used for tests, studies or investigations of a purely commercial character such as mineral assays, determination of properties of materials, the performance efficiencies of machines, analyses of soils, water, insecticides, fertilizers, feeds, fuels, and other materials, statistical calculations, etc., except when it is shown conclusively that satisfactory facilities for such services do not exist elsewhere."

   This policy as written does not acknowledge or permit the types of activities that are currently being performed by researchers as discussed in Section V.B.2.d. (page 17).

2. University Policy on Outside Professional Activities of Faculty Members (July 1, 1996) provides that consulting activities cannot interfere with University duties, but does not specifically address the use of University facilities for outside consulting purposes.

3. University of California Patent Policy (October 1, 1997) states that an agreement to assign inventions and patents to the University, except those resulting from permissible consulting activities without the use of University facilities, is required for all University employees and/or persons who use University facilities.

4. UCSD PPM 300-40, Guidelines for Recharge and Other Income Producing Activities, defines auxiliary enterprises, service enterprises, academic support activities, support group activities and miscellaneous sales activities as entities which provide, at approved rates and on a regular basis, goods and services to a specific group of users, but does not specifically address the performance for commercial entities of individual, one-time or recurring activities which do not rise to the level of an on-going sales and service facility.

5. UCSD PPM 200-13, Conflict of Interest, states that University resources (supplies, equipment, facilities and staff time) cannot be used for the benefit of a company without proper compensation.

2. Committee Recommendations to Augment or Modify University Policies

1. Revise Regulation 4 to state that University laboratories, including equipment, animal facilities, etc. may be utilized for infrequent, incidental and/or one-time industry projects as long as such use:

1. is approved by the Dean or Department Chair;
2. meets the criteria stated in V.B.2.d. (page 7);
3. is under the direct oversight and responsibility of the researcher whose laboratory is being utilized for such project;
4. is related to the academic mission of the department, school, or laboratory for research or testing purposes only;
5. is for research and testing purposes only including analyses of techniques or processes related to production or manufacturing for sale, but not for direct production or manufacturing for sale;
6. complies at all times with University policies;
7. does not interfere with the researcher's primary research program or the education of students;
8. does not expose the University to liability for the negligent or intentional acts of industry employees participating in such projects.



2. Modify Regulation No. 4 to clarify that use of University facilities may take place only with a pre-determined company protocol and that no inventive contribution may be made by the University. This does not preclude University or company employee participation in the project as long as the criteria under V.B.2.d. (page 17) are met.

3. Modify appropriate University policies to clarify that University researchers and students may not use University research facilities for outside consulting projects. The University may consider exceptions to this rule in accordance with V.B.2.d. (page 17).

4. Reaffirm the requirement in PPM 300-40 that University activities formally approved by the UCSD Recharge Rate Review Committee be reviewed every 5 years in order to confirm whether such activity continues to serve an important University need, is cost effective considering alternative commercial sources, and only incidentally serves the general public.

5. Modify appropriate University policies to address one-time specialized activities which are provided by individual researchers to commercial entities and meet the criteria of V.B.2.d. (page 17) in the Conflict of Interest section.

6. Modify PPM 300-40 to provide that University recharge activities may not perform services for non-University clients if the head of such activity has any financial interest or management responsibility in the company. The University may consider exceptions to this rule (see V.B.2.d., page 17).

7. Clarify that overhead assessed for Regulation 4 activities shall be in accordance with University policies on sales and services to non-University clients, unless the activity providing the service is excluded from the application of PPM 300-40.

8. Clarify that the above policies on the use of University facilities are not intended to apply to those certain facilities, such as the University Libraries and the San Diego Supercomputer Center, which have as part of their mission service to outside users, including companies.

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