PrepTest 43, Section 4, Question 28

Difficulty: 
Passage
Game
4

Faculty researchers, particularly in scientific, engineering, and medical programs, often produce scientific discoveries and invent products or processes that have potential commercial value. Many institutions have invested heavily in the administrative infrastructure to develop and exploit these discoveries, and they expect to prosper both by an increased level of research support and by the royalties from licensing those discoveries having patentable commercial applications. However, although faculty themselves are unlikely to become entrepreneurs, an increasing number of highly valued researchers will be sought and sponsored by research corporations or have consulting contracts with commercial firms. One study of such entrepreneurship concluded that "if universities do not provide the flexibility needed to venture into business, faculty will be tempted to go to those institutions that are responsive to their commercialized desires." There is therefore a need to consider the different intellectual property policies that govern the commercial exploitation of faculty inventions in order to determine which would provide the appropriate level of flexibility.

In a recent study of faculty rights, Patricia Chew has suggested a fourfold classification of institutional policies. A supramaximalist institution stakes out the broadest claim possible, asserting ownership not only of all intellectual property produced by faculty in the course of their employment while using university resources, but also for any inventions or patent rights from faculty activities, even those involving research sponsored by nonuniversity funders. A maximalist institution allows faculty ownership of inventions that do not arise either "in the course of the faculty's employment [or] from the faculty's use of university resources." This approach, although not as all-encompassing as that of the supramaximalist university, can affect virtually all of a faculty member's intellectual production. A resource-provider institution asserts a claim to faculty's intellectual product in those cases where "significant use" of university time and facilities is employed. Of course, what constitutes significant use of resources is a matter of institutional judgment.

As Chew notes, in these policies "faculty rights, including the sharing of royalties, are the result of university benevolence and generosity. [However, this] presumption is contrary to the common law, which provides that faculty own their inventions." Others have pointed to this anomaly and, indeed, to the uncertain legal and historical basis upon which the ownership of intellectual property rests. Although these issues remain unsettled, and though universities may be overreaching due to faculty's limited knowledge of their rights, most major institutions behave in the ways that maximize university ownership and profit participation.

But there is a fourth way, one that seems to be free from these particular issues. Faculty-oriented institutions assume that researchers own their own intellectual products and the rights to exploit them commercially, except in the development of public health inventions or if there is previously specified "substantial university involvement." At these institutions industry practice is effectively reversed, with the university benefiting in far fewer circumstances.

Faculty researchers, particularly in scientific, engineering, and medical programs, often produce scientific discoveries and invent products or processes that have potential commercial value. Many institutions have invested heavily in the administrative infrastructure to develop and exploit these discoveries, and they expect to prosper both by an increased level of research support and by the royalties from licensing those discoveries having patentable commercial applications. However, although faculty themselves are unlikely to become entrepreneurs, an increasing number of highly valued researchers will be sought and sponsored by research corporations or have consulting contracts with commercial firms. One study of such entrepreneurship concluded that "if universities do not provide the flexibility needed to venture into business, faculty will be tempted to go to those institutions that are responsive to their commercialized desires." There is therefore a need to consider the different intellectual property policies that govern the commercial exploitation of faculty inventions in order to determine which would provide the appropriate level of flexibility.

In a recent study of faculty rights, Patricia Chew has suggested a fourfold classification of institutional policies. A supramaximalist institution stakes out the broadest claim possible, asserting ownership not only of all intellectual property produced by faculty in the course of their employment while using university resources, but also for any inventions or patent rights from faculty activities, even those involving research sponsored by nonuniversity funders. A maximalist institution allows faculty ownership of inventions that do not arise either "in the course of the faculty's employment [or] from the faculty's use of university resources." This approach, although not as all-encompassing as that of the supramaximalist university, can affect virtually all of a faculty member's intellectual production. A resource-provider institution asserts a claim to faculty's intellectual product in those cases where "significant use" of university time and facilities is employed. Of course, what constitutes significant use of resources is a matter of institutional judgment.

As Chew notes, in these policies "faculty rights, including the sharing of royalties, are the result of university benevolence and generosity. [However, this] presumption is contrary to the common law, which provides that faculty own their inventions." Others have pointed to this anomaly and, indeed, to the uncertain legal and historical basis upon which the ownership of intellectual property rests. Although these issues remain unsettled, and though universities may be overreaching due to faculty's limited knowledge of their rights, most major institutions behave in the ways that maximize university ownership and profit participation.

But there is a fourth way, one that seems to be free from these particular issues. Faculty-oriented institutions assume that researchers own their own intellectual products and the rights to exploit them commercially, except in the development of public health inventions or if there is previously specified "substantial university involvement." At these institutions industry practice is effectively reversed, with the university benefiting in far fewer circumstances.

Faculty researchers, particularly in scientific, engineering, and medical programs, often produce scientific discoveries and invent products or processes that have potential commercial value. Many institutions have invested heavily in the administrative infrastructure to develop and exploit these discoveries, and they expect to prosper both by an increased level of research support and by the royalties from licensing those discoveries having patentable commercial applications. However, although faculty themselves are unlikely to become entrepreneurs, an increasing number of highly valued researchers will be sought and sponsored by research corporations or have consulting contracts with commercial firms. One study of such entrepreneurship concluded that "if universities do not provide the flexibility needed to venture into business, faculty will be tempted to go to those institutions that are responsive to their commercialized desires." There is therefore a need to consider the different intellectual property policies that govern the commercial exploitation of faculty inventions in order to determine which would provide the appropriate level of flexibility.

In a recent study of faculty rights, Patricia Chew has suggested a fourfold classification of institutional policies. A supramaximalist institution stakes out the broadest claim possible, asserting ownership not only of all intellectual property produced by faculty in the course of their employment while using university resources, but also for any inventions or patent rights from faculty activities, even those involving research sponsored by nonuniversity funders. A maximalist institution allows faculty ownership of inventions that do not arise either "in the course of the faculty's employment [or] from the faculty's use of university resources." This approach, although not as all-encompassing as that of the supramaximalist university, can affect virtually all of a faculty member's intellectual production. A resource-provider institution asserts a claim to faculty's intellectual product in those cases where "significant use" of university time and facilities is employed. Of course, what constitutes significant use of resources is a matter of institutional judgment.

As Chew notes, in these policies "faculty rights, including the sharing of royalties, are the result of university benevolence and generosity. [However, this] presumption is contrary to the common law, which provides that faculty own their inventions." Others have pointed to this anomaly and, indeed, to the uncertain legal and historical basis upon which the ownership of intellectual property rests. Although these issues remain unsettled, and though universities may be overreaching due to faculty's limited knowledge of their rights, most major institutions behave in the ways that maximize university ownership and profit participation.

But there is a fourth way, one that seems to be free from these particular issues. Faculty-oriented institutions assume that researchers own their own intellectual products and the rights to exploit them commercially, except in the development of public health inventions or if there is previously specified "substantial university involvement." At these institutions industry practice is effectively reversed, with the university benefiting in far fewer circumstances.

Faculty researchers, particularly in scientific, engineering, and medical programs, often produce scientific discoveries and invent products or processes that have potential commercial value. Many institutions have invested heavily in the administrative infrastructure to develop and exploit these discoveries, and they expect to prosper both by an increased level of research support and by the royalties from licensing those discoveries having patentable commercial applications. However, although faculty themselves are unlikely to become entrepreneurs, an increasing number of highly valued researchers will be sought and sponsored by research corporations or have consulting contracts with commercial firms. One study of such entrepreneurship concluded that "if universities do not provide the flexibility needed to venture into business, faculty will be tempted to go to those institutions that are responsive to their commercialized desires." There is therefore a need to consider the different intellectual property policies that govern the commercial exploitation of faculty inventions in order to determine which would provide the appropriate level of flexibility.

In a recent study of faculty rights, Patricia Chew has suggested a fourfold classification of institutional policies. A supramaximalist institution stakes out the broadest claim possible, asserting ownership not only of all intellectual property produced by faculty in the course of their employment while using university resources, but also for any inventions or patent rights from faculty activities, even those involving research sponsored by nonuniversity funders. A maximalist institution allows faculty ownership of inventions that do not arise either "in the course of the faculty's employment [or] from the faculty's use of university resources." This approach, although not as all-encompassing as that of the supramaximalist university, can affect virtually all of a faculty member's intellectual production. A resource-provider institution asserts a claim to faculty's intellectual product in those cases where "significant use" of university time and facilities is employed. Of course, what constitutes significant use of resources is a matter of institutional judgment.

As Chew notes, in these policies "faculty rights, including the sharing of royalties, are the result of university benevolence and generosity. [However, this] presumption is contrary to the common law, which provides that faculty own their inventions." Others have pointed to this anomaly and, indeed, to the uncertain legal and historical basis upon which the ownership of intellectual property rests. Although these issues remain unsettled, and though universities may be overreaching due to faculty's limited knowledge of their rights, most major institutions behave in the ways that maximize university ownership and profit participation.

But there is a fourth way, one that seems to be free from these particular issues. Faculty-oriented institutions assume that researchers own their own intellectual products and the rights to exploit them commercially, except in the development of public health inventions or if there is previously specified "substantial university involvement." At these institutions industry practice is effectively reversed, with the university benefiting in far fewer circumstances.

Question
28

The passage suggests each of the following EXCEPT:

Supramaximalist institutions run the greatest risk of losing faculty to jobs in institutions more responsive to the inventor's financial interests.

A faculty-oriented institution will make no claim of ownership to a faculty invention that is unrelated to public health and created without university involvement.

Faculty at maximalist institutions rarely produce inventions outside the institution without using the institution's resources.

There is little practical difference between the policies of supramaximalist and maximalist institutions.

The degree of ownership claimed by a resource-provider institution of the work of its faculty will not vary from case to case.

E
Raise Hand   ✋

Explanations

Most Strongly Supported (except)

This turns out to be a most strongly supported (except) question. All that means is there will be great evidence for four of these answer choices directly in the passage, and there will be weak evidence (if any at all) for the correct answer.

Let's take a look.

A

Wrong. The second paragraph says supramaximalist institutions are the heaviest-handed when it comes to laying claim to IP. This answer choice articulates a clear risk for such institutions.

B

Also wrong. The final paragraph suggests that the only IP claims made by faculty-oriented institutions will involve public health innovations or those involving "substantial university involvement."

C

Tricky, but also wrong. The third paragraph says, "although not as all-encompassing as that of the supramaximalist university, [maximalist policies] can affect virtually all of a faculty member's intellectual production." If this is indeed true, then it must also be true that faculty at these institutions rarely create inventions that fall outside of the policies' constraints.

D

Wrong again. Like D, we get proof of this in the second paragraph.

E

Finally, yes. The last lines of the second paragraph say, "A resource-provider institution asserts a claim to faculty's intellectual product in those cases where 'significant use' of university time and facilities is employed. Of course, what constitutes significant use of resources is a matter of institutional judgment." This means that the outcomes hinge on one's interpretation of "significant use," which apparently fluctuates.

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