Industry Research Agreements

Working with OSU, industry partners get significant benefits:

• World-class faculty with diverse experience in basic and applied research.
• Students ready to use what they’ve learned in real-world application and become a pool of experienced, skilled, career-ready graduates.
• State-of-the-art laboratories and specialized equipment for research, development and testing.
• Fair labor rates with minimal overhead.

Working with Oregon State University 

As a public research institution, OSU is able to leverage its favorable tax status and reputation to generate, low-cost, world class research.  To maintain its public research status and integrity, OSU engages in industry contracting with the following principles in tact:

• OSU has a public duty to publish its research results without restriction;
• Generally, OSU retains ownership of intellectual property created by OSU employees; and
• OSU operates within established rules and norms expected of United States public research institutions.

When a company wants to engage OSU in a research contract, we offer two approaches that we have found through experience to be highly beneficial:  The “Standard Contracting Model” and the “Alternative IP Model,” both described below.

Standard Contracting Model

With the standard contracting model, industry sponsors can:

• Define research objectives with clear milestones and schedules with fixed priced invoicing.
• Protect their confidential information from unauthorized disclosure or use.
• Conduct a review process of all publications prior to release.
• Obtain a non-exclusive, royalty-free license to all intellectual property generated from the research results.
• Enjoy an option to negotiate a royalty-bearing, exclusive-license to intellectual property generated from the research project.

Alternative IP Contracting Model

For some industry sponsored projects, at additional cost, it is possible for industry partners to obtain exclusive patent rights up front, rather than negotiating for them after project completion.

OSU can offer this prepaid exclusive patent option when:

• The sponsored research will be conducted in a building that is permitted for private benefit sponsor engagements.  (When portions of buildings are built or maintained using tax-free bonds, those buildings are typically restricted against private benefit uses.)
• The principal investigator and his/her Dean or direct superior agree to accept the possible limitations on future research that may result from an exclusive license and related terms and conditions.

The cost of the prepaid option to the sponsor is:

• An upfront, nonrefundable fee equivalent to 25% of the total cost (direct costs + indirect costs) or fixed price of sponsored (contracted) research (minimum fee is $18,750, which is  25% of $75K), and
• Reimburse OSU for all incurred patent expenses including patent application filing fees and out-pocket legal expenses.

In addition, when feasible and reasonably needed, OSU can and will:

• Negotiate based on contract proposal of our sponsor.  We also have our own templates but don’t force our sponsors to start negotiations using it.
• Accept unique compliance requirements and develop process plans for them.  Note, the more lead-time our faculty and cognizant contract offices have to plan and prepare for such requirements, the more likely we can accept.  
• Permit sponsors to draft patent applications for patentable results. If OSU is the sole employer of all the inventors, OSU will need to confirm and accept the contents of the patent application.
• Assign patent ownership rights to sponsors when all claims and the specification of the patent application completely conform to the agreed field of use. 

Oregon State University: Key Terms and Rates for Industry Sponsored Research

Term, Condition, Fees

OSU generates low-cost, world-class research. Depending on the company need, we've developed two models that provide valuable results for companies at an equitable cost, while staying within the mission of the university.

Standard Agreement

OSU's standard contracting model is used when a company does not require exclusive rights to the research results - for example, in research that is not expected to produce intellectual property (e.g. patents) or would not directly impact the company's product development strategy.

Alternative Agreement

OSU's alternative model may be more appropriate when research is likely to produce an invention, or the research directly pertains to the sponsor's core business strategy. Due to IRS tax free bonding in many of our buildings and potential future research limitations posed, this model may not be available for all projects. we will work with your company and the OSU research team to find the best fit for your company's needs.

*Indirect costs are not uniquely associated with a particular project but are nonetheless incurred by OSU due to the project. They include costs such as building and facilities operation and maintenance, departmental accounting and clerical support, network support, equipment depreciation, library, general and sponsored projects administration. These costs are budgeted and charged as a percentage of some of the direct cost elements, but not all. As a public university, this rate is set at OSU's actual cost - margins and revenues are not built into OSU's indirect cost rate.