USM Bylaws, Policies and Procedures of the Board of Regents
                              
 IV-3.00-POLICY ON PATENTS

 (Approved by the Board of Regents, May 31, 1990; Technical
Amendment May, 2003)
(On February 8, 2002, the Board of Regents replaced this
policy with Policy on Intellectual Property IV-3.20 for
all patents disclosed on or after July 1, 2002.  This
policy remains applicable only for intellectual property
disclosures made before July 1, 2002)

  I.  Objectives

      The objectives of this policy are to encourage and
      aid research at the University of Maryland System, to provide
      financial compensation as well as professional recognition
      to inventors, and to protect and best serve the public
      interest.  To these ends, this policy encourages disclosure of
      inventions and discoveries and their evaluation for possible 
      patenting and licensing and establishes principles for 
      determining the rights of the constituent institutions 
      and inventors.  The University of Maryland System continues 
      to encourage scholarly publication of the results of faculty 
      and student research.


  II.  Applicability

       A. The University of Maryland System Patent Policy applies
          to all personnel.  As used in this policy, "personnel"
          means all paid and unpaid full-time and part-time faculty
          members and staff, and all paid employees (including
          those on approved leaves); and students and fellows.


  III. General Policy

       A. The University of Maryland System has an interest in all
          inventions of personnel which are conceived or first
          actually reduced to practice as a part of or as a result
          of: a University System Administration or constituent
          institution administered program of research; activities
          within the scope of the inventor's employment by the
          University System Administration or constituent
          institution; or activities involving the use, to a
          substantial degree, of University System Administration
          or constituent institution time, facilities, or materials
          or of University System Administration or constituent
          institution information not available to the public.
          "Invention" means any invention or discovery which is or
          may be patentable or which may be commercially
          licensable.  At the time of appointment of visiting
          faculty and staff a signed acknowledgement of this policy
          will be required.  An invention shall be considered as
          resulting from activities "within the scope of the
          inventor's employment" whenever his or her duties
          include research or investigation or the supervision of
          research or investigation and the invention is relevant to
          the general field of inquiry to which the inventor was
          devoted or assigned.  "Time, facilities and materials"
          paid for from funds administered by the University System
          Administration or constituent institution shall be
          considered University System Administration or
          constituent institution time, facilities and materials
          whether the funds arise from federal or state
          appropriations, student fees, donations, grants,
          contracts or other sources.

       B. The University System Administration or constituent
          institution has a right to ownership of any invention in
          which it has an interest.  Unless otherwise agreed, this
          Policy also applies to any inventions in which the
          University System Administration or constituent
          institution has an interest under the terms of contracts,
          grants or other agreements.  An invention in which the
          University System Administration or constituent
          institution does not have a legal interest may be offered
          to the University System Administration or constituent
          institution, and, if accepted, the University System
          Administration or constituent institution will administer
          such invention in accordance with this Patent Policy or
          as otherwise agreed.

       C. Except under special circumstances the University System
          will not agree to assign rights in future inventions to
          private corporations or businesses.


  IV.  Responsibilities of the University of Maryland System and
       Delegations of Authority

       A. The University System shall: (1) notify the inventor
          promptly whenever it decides not to pursue or to abandon
          the pursuit of patenting or commercialization of an
          invention, (2) execute, upon request, all contracts,
          assignments, waivers or other legal documents necessary
          to transfer to the inventor the University System's
          interest in any invention which it has so chosen not to
          pursue, (3) act with reasonable promptness and in good
          faith on all inventions disclosed to it, and (4) remit to
          the inventors their shares of income from inventions as
          specified in Section VI of this policy.  Subject to these
          responsibilities, the University System may, at any time,
          decide not to pursue or to abandon the pursuit of 
          patenting and/or commercialization of an invention in
          which it has an interest.

       B. Authority and responsibility for Patent Policy is
          delegated to the Chancellor (or his designee). The
          Chancellor (or his designee) may seek the advice and
          assistance of the University of Maryland System
          Intellectual Property Committee (hereafter called the
          Intellectual Property Committee; see Section VIII below).
          The responsibility for administration of the University
          of Maryland System Patent Policy (including subparts 1-4
          of IV.A.) is delegated to the chief executive officers of
          constituent institutions, except that rights in future
          inventions shall not be assigned unless the Chancellor
          determines in writing that doing so is in the best
          interests of the System.   Each constituent institution
          shall develop procedures for implementing this policy.

  V.  Responsibilities of Personnel

      A.    Personnel who, either alone or in association with
            others, make an invention in which the University
            System has or may have an interest shall disclose to
            the chief executive officer or designee such inventions
            reasonably promptly.  As to an invention in which the
            University System through the constituent institution
            has an interest, the inventor, upon request, shall
            execute promptly all contracts, assignments, waivers or
            other legal documents necessary to vest in the 
            University System, or its assignees, any or all rights
            to the invention, including complete assignment of any
            patents or patent applications relating to the invention.

      B.    Personnel may not: (1) sign patent agreements with
            outside persons or organizations which may abrogate the
            University System's rights and interests as stated in
            this Policy or which otherwise conflict with this
            Policy, nor (2) without prior authorization use the
            name of the University of Maryland System or 
            constituent institutions in connection with any
            invention.

  VI. Revenue Sharing

      A.    The University System through its constituent
            institutions shall share with the inventors revenue
            which it receives from patents or inventions. Specific
            provisions of grants or contracts may govern rights and
            revenue distribution regarding inventions made in
            connection with sponsored research. Consequently,
            revenues received from such inventions may be exclusive
            of payments of royalty shares to donors or contractors.
            Moreover, constituent institutions may contract with
            outside persons or organizations for the obtaining,
            managing and defending of patents, and any royalty
            share or expenses contractually committed to such
            persons or organizations may be deducted before
            revenues accrue or before the inventor's share is
            distributed.

      B.    The revenues (net, if applicable per the preceding
            paragraph) which are received from a patent or
            invention will be applied first to reimburse the
            University System Administration or constituent
            institution for any specific, incremental expenses
            incurred by it in obtaining and maintaining the patent
            and in marketing, licensing and defending the patent or
            licensable invention.  After provision for such
            expenses, such revenues shall be shared as follows: (1)
            the first $5,000 will be paid to the inventor or
            inventors: (2) thereafter the inventor(s) will receive
            fifty percent of such revenues.  Applicable laws,
            regulations or provisions of grants or contracts may,
            however, require that a lesser share be paid to the
            inventor.

       C.   To the extent consistent with State and University
            System budget policies any net revenue received on
            account of an invention, after sharing with the 
            inventor, will be dedicated to research and to the
            promotion of patenting and patents.  If practicable,
            eighty-five percent of the University System 
            Administration's or constituent institution's share of
            new revenue from each invention will be designated for
            research in the inventor's department or analogous unit
            up to $100,000 in a fiscal year for a particular
            department or analogous unit.  The remaining part of
            the net revenues shall be devoted to research and the
            promotion of patenting and patents as directed by the
            chief executive officer, or designee (or, for the
            System Office, the Chancellor or designee).

       D.   If use of such funds for research within the inventor's
            department or analogous unit is not practicable or for
            an amount in excess of $100,000 per fiscal year, the
            chief executive officer may allocate funds for other
            use within the institution.

  VII. Special Cases

      The University System recognizes that special cases will
      arise which are not specifically covered by this policy or 
      which may justify waivers of this policy.  Such cases may be
      submitted to the Chancellor or designee.

  VIII. Administration

       A.   The Intellectual Property Committee consists of the
            Vice Chancellor for Academic Affairs or designee as an
            ex officio member and chair and no more than fourteen
            other members selected and appointed by the Chancellor
            from candidates nominated by the chief executive 
            officers of constituent institutions.  Members are
            appointed for three-year terms with non-concurrent
            expiration dates and may serve successive terms.

      B.    The Intellectual Property Committee convenes at the
            call of the Vice Chancellor or designee, who determines
            when implementation or interpretation of the University
            of Maryland System Patent Policy requires consideration
            by the committee.  Among the matters which may be
            referred to the committee for recommendation to the
            Chancellor are:  whether the University of Maryland
            System has an interest in an invention; questions not
            covered by policy; and whether some part of the policy
            should be waived.

      C.    When the committee is considering a particular
            invention, the inventor and/or a representative
            designated by the inventor may examine all materials
            submitted to the committee, may make written and oral
            presentations to the committee, and may be present
            during oral presentations of others.

      D.    It is recognized that the evaluation of inventions and
            discoveries and the administration, development and
            processing of patents involves substantial time and
            expense and requires talents and experience not 
            ordinarily found in its staff.  Therefore, the
            University System Administration or constituent
            institution may enter into a contract or contracts with
            third parties in connection with the administration of
            identified inventions, disclosures of invention, and
            developed patents.

      E.    Disputes on patent matters, including the
            interpretation of this Patent Policy, shall be referred
            for resolution to the Chancellor or designee.

  Replacement for:  BOR VII-4.00 and 4.01; BOT XIII-K