From the issue dated October 5, 2001 -
[Cached Version]
Published on: 5/11/2001
Last Visited: 3/7/2002
Anthony L. Strauss, acting assistant vice president of the university's office of Patents and Technology Marketing, says he worries that any deal that is good enough to interest investors might be bad for the university.
"Someone has to be underselling for the companies to be making money," Mr. Strauss says."If it turns out that the royalty stream blows up, you did a good deed and you'll feel good about it."But if it turns out to have been a bad deal, then "that would likely be a major story."
A deal can also have political ramifications.
That is especially true for a public university, says Mr. Strauss, where legislators might consider a big payoff on royalties to be an excuse to cut the institution's appropriation."I wouldn't say it's a deciding factor, but it's part of the cost-benefit analysis," he acknowledges.
Political factors weighed heavily for officials at the State University of New York at Stony Brook.
The university was close to signing a monetizing deal in 1997 for about $100-million in lieu of the royalty stream it receives on an invention used to make the anti-clotting drug ReoPro.At the time, the institution was receiving more than $7-million a year. (At Stony Brook, 40 percent goes to the inventors.)
But the institution didn't have an immediate need for so big a windfall, and feared a backlash from the state.