CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER

EDUCATION CODE

TITLE 3. HIGHER EDUCATION

SUBTITLE H. RESEARCH IN HIGHER EDUCATION

CHAPTER 153. CENTERS FOR TECHNOLOGY DEVELOPMENT AND TRANSFER

Sec. 153.001. DEFINITIONS. In this chapter:

(1) "Center" means an office, department, or other

organizational unit established under this chapter.

(2) "Governing board" has the meaning assigned by Section

61.003.

(3) "Institution of higher education" has the meaning assigned

by Section 61.003.

(4) "Organization" has the meaning assigned by Section 1.201,

Business & Commerce Code.

(5) "Person" has the meaning assigned by Section 1.201, Business

& Commerce Code.

(6) "Technology" means the application of scientific knowledge

for practical purposes and includes inventions, discoveries,

trade secrets, copyrighted materials, tools, machines, materials,

processes to do work, processes to produce goods, processes to

perform services, processes to carry out other useful activities,

trademarks, and computer software.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.002. FINDINGS. The legislature finds that:

(1) it is essential to the continued economic growth and

diversification of this state that technology development and

transfer be promoted and expanded;

(2) the students, scientists, researchers, faculty, and staff of

the institutions of higher education of this state have developed

and, in all likelihood, will continue to develop technology that

will contribute to the continued growth and diversification of

the state's economy;

(3) the electorate of this state authorized the legislature to

allow for the programs created by this chapter by adopting

Section 52-a, Article III, Texas Constitution; and

(4) an institution of higher education is authorized to engage

in technology development and transfer activities under the

authority provided to its governing board and other state and

federal law.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.003. CREATION OF CENTERS. (a) An institution of

higher education, subject to approval by its governing board, is

authorized to establish centers to manage, transfer, market, or

otherwise commercialize technology owned by it or in which it

owns an interest.

(b) Each center shall be administered within an institution of

higher education.

(c) Centers may provide services to multiple institutions of

higher education. An institution of higher education may contract

with a center under the control of a governing board other than

its own.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.004. OPERATION OF CENTERS. (a) To the extent

authorized by its governing board, an institution of higher

education, through a center established under this chapter, may:

(1) accept and administer funds, including state appropriations,

gifts, grants, contracts, and donations, to aid in the

establishment, maintenance, and operation of the center or to aid

in the discovery, development, protection, or commercialization

of technology;

(2) solicit and enter into agreements to fund the discovery,

development, protection, and commercialization of technology;

(3) make technology owned or controlled by it available to

persons for commercial applications through license agreements,

assignments, or other forms of transfer;

(4) acquire interests in and ownership of technology;

(5) provide business, scientific, and engineering services and

technical assistance to persons engaged in the development,

manufacture, or marketing of technology in which it owns an

interest;

(6) acquire insurance and pay premiums on insurance of any kind

and in amounts considered necessary and advisable to accomplish

the purposes of this chapter;

(7) establish and operate corporations, either for profit or not

for profit, and limited liability companies for the development

and commercialization of technology and convey equity interests

in such entities; and

(8) engage in other related activities required to achieve the

purposes of this chapter.

(b) Property and services of institutions of higher education

may be used to achieve the purposes of this chapter.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.005. PROGRAMS. (a) To the extent authorized by its

governing board, an institution of higher education, through a

center, may operate programs to provide assistance to persons in

commercializing technology owned by it or in which it has an

interest. Assistance may include providing monetary support or

nonmonetary support, including the use of premises, computers,

computer software, telecommunications terminal equipment, office

equipment and supplies, machinery, custodial services, utilities,

or other services that are customarily treated as overhead

expenses by institutions of higher education.

(b) The policies and procedures to be used by an institution of

higher education to assess the qualifications of persons

participating in a center's programs, including objective

criteria for admission and for the measurement of progress and

standards for continuance or termination of participation, shall

be approved by the institution's governing board.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.006. SUPPORT OF CENTERS. (a) In order to carry out

the purposes of this chapter and to support the activities of

centers described in this chapter, to the extent authorized by

its governing board, an institution of higher education may:

(1) enter into agreements establishing royalties, fees, and

other consideration for technology developed in whole or part by

it;

(2) accept equity interests in organizations that license,

manage, or otherwise administer rights to technology belonging to

it or under its control in exchange for such rights, in whole or

in part;

(3) accept equity interests in organizations that license or

otherwise have rights in its technology as consideration for its

providing monetary, business, scientific, or engineering services

or technical assistance;

(4) use income from the commercialization of technology to fund

the activities of the center;

(5) solicit, accept, and administer gifts, grants, and

donations;

(6) enter into contracts for legal services with a competent

lawyer or law firm to:

(A) prepare, file, pursue, and maintain patent applications in

the United States or foreign jurisdictions;

(B) secure copyright protection for computer software;

(C) prepare, file, and pursue trademark and service mark

applications;

(D) pursue litigation to prevent or stop infringement of any

intellectual property rights of the institution; or

(E) handle any other legal matter related to the operation and

activities of the center; and

(7) enter into such other business arrangements as may be

appropriate for achieving the purposes of this chapter.

(b) The fees or other compensation paid in connection with a

legal services contract authorized by Subsection (a) may be paid

on a contingency fee basis, at an hourly rate, or on another

basis the governing board of the institution considers

appropriate.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 1.12, eff.

June 20, 2003.

Sec. 153.007. NO FIDUCIARY DUTY. Except as otherwise provided

by law, a governing board, an institution of higher education, a

university system, a center, or any employee or member of those

entities does not owe a fiduciary duty to any person claiming an

interest in consideration received by a university system or an

institution of higher education in exchange for technology.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.

Sec. 153.008. BIENNIAL REPORT. Not later than December 1 of

each even-numbered year, the Texas Higher Education Coordinating

Board shall report to the governor and to the legislature

regarding activities conducted at institutions of higher

education under this chapter. The form of the report shall be

developed by the Texas Higher Education Coordinating Board in

consultation with institutions of higher education and shall

include the following measures for each institution of higher

education:

(1) revenues received from licenses, royalties, fees, cashed-in

equity, and other forms of income permitted by this chapter;

(2) the number of shares of stock or other equity interest held

under agreements created pursuant to this chapter;

(3) the fair market value of stock or other equity interests

held in publicly-traded enterprises created pursuant to this

chapter;

(4) new invention disclosures received;

(5) the number of new patent applications filed and new patents

granted;

(6) the number of new license agreements executed;

(7) the number of new corporations, partnerships, or other

business entities established to commercialize intellectual

property owned by the institution of higher education; and

(8) direct expenditures for all activities conducted under this

chapter.

Added by Acts 2001, 77th Leg., ch. 749, Sec. 1, eff. Sept. 1,

2001.