HD31 - Patent and Copyright Issues in Virginia State Government


Executive Summary:
Commission authorized a study of patent and copyright policies of State universities and agencies. The Speaker was concerned that appropriate policies might not be in place to secure the proprietary interest of the State and the taxpayers in the creation and management of intellectual properties. Since taxpayer funding supports a substantial amount of creative work at the universities as well as in State agencies, a major concern is for the public to derive reasonable benefit from those intellectual properties.

The first part of this study effort was completed in November 1984, when a special report was released on the Virginia Tech Library System. This report recognized a need on the part of the Commonwealth to exercise greater oversight of intellectual properties developed with general funds on State time and transferred to non-State entities.

The central Questions addressed in the second phase of the study are: (1) What is the scope of intellectual property development at the State's colleges and universities? (2) To what extent have State universities and colleges formulated patent. and copyright policies, and are they compatible? (3) Are there any State policies for guiding the creation ·and commercial marketing of intellectual properties by State employees? and (4) Should there be a legislative policy on patents and copyrights?

The JLARC staff sent letters to all colleges and universities in Virginia including the Virginia Community College System requesting copies of their patent and copyright policies and a listing of any intellectual properties owned by the university or an affiliated foundation. The JLARC staff interviewed research personnel at the University of Virginia, Virginia Tech, and Virginia Commonwealth University. Interviews were also held with staff of the State Council of Higher Education, State Corporation Commission, Department of Information Technology, and Department of Highways and Transportation. Patent and copyright policies for a number of state universities outside of Virginia were reviewed and critiqued.

Major findings and conclusions of the study are:

1. The primary mission of publicly supported universities is not the production of patentable ideas or inventions. Taken as a whole, however, the State's universities seem to be doing well in creating intellectual properties which earn revenues for their benefit. As of July 1984, universities or their affiliated foundations have administered over 150 patents or copyrights which have generated $2.6 million in total revenues.

2. With the increasing emphasis being placed on research, the enactment of new federal copyright laws, and the advent of the Center for Innovative Technology (CIT), colleges and universities need to formulate intellectual property policies. We found that most universities do not have such policies and, of those that do, the policies vary significantly in terms of substance and format.

3. The General Assembly may wish to enact a law which strengthens legislative oversight of intellectual property development at universities. This could be accomplished by establishing a provision that all patent and copyright policies conform to general principles, by providing the State Council of Higher Education of Virginia a role in monitoring the creation and administration of intellectual properties at the State's universities, or some combination of the two.

4. There seems to be a growing need for the State to formulate policies which regulate the creation of intellectual properties by State agency employees, especially in the area of computer software development. The General Assembly also may wish to forge a marketing linkage between State agencies and the newly created CIT.

5. Some ideas and inventions which have saved the State money have been discovered by classified employees. To date, there is no program for rewarding these individuals for their cost-cutting proposals, although one has been authorized for many years. The General Assembly may wish to encourage the Governor to develop and implement a program of meritorious service awards consistent with § 2.1-114.5 of the Code of Virginia.