UC Irvine-Hitachi Agreement Defended
Michael Schrage’s column, “Colleges May Not Want the Role of Economic Booster” (March 12), which questioned the propriety of UC Irvine’s relationship with Hitachi Chemical Research (HCR), was factually incorrect, biased and, unfortunately, continued a media trend of Japan-bashing.
UCI has provided HCR a lease of R&D; land in exchange for a lease of laboratory space. The 40,000-square-foot, state-of-the-art research facility will revert to the university at the end of the 40-year lease. The lease agreement states that HCR will abide by all University of California policies, and HCR has received absolutely no preferential treatment.
The UCI/HCR arrangement is only one of several joint occupancy arrangements UCI has developed. Because UCI is a public institution and subscribes to “fairness of opportunity” principles, substantial controls are built into all the relationships it has with industrial firms. The agreement with HCR assures that:
* The university retains ownership of all technology coming out of its labs. That includes technology from research specifically sponsored and paid for by HCR. HCR may have a first right to negotiate a license to that technology, but there are no guarantees.
* If HCR does acquire a license to UCI technology where any federal funds were involved (about 75% of UCI’s research is federally funded), HCR will be required to substantially manufacture any resulting products in the United States.
* The federal government retains a non-exclusive, worldwide, royalty-free right to use such technology.
Schrage’s claim that the taxpayers have subsidized a foreign company is absolutely incorrect. The value of the land on which the building rests was exchanged for equal value of high-quality research laboratory space, and the building reverts to the university at the end of the 40-year lease.
UCI is now able to conduct more research, train more students and develop more technology than it could without this space--at no cost to the taxpayer.
Contrary to Schrage’s assertions, the university does participate effectively in economic development. Many useful technologies are developed here.
However, the university’s primary mission is education and research. The most compelling reason for transferring university technology is to benefit the public through, for example, new life-saving drugs and labor-saving devices.
We exist in a global economy. UCI participates in the international community of science and scholarship. The importance and frequency of cross-national research relationships is only going to increase. The key determinant of success or failure will be how these relationships are managed.
The UCI/HCR relationship is a good example of a well-managed university/industry partnership that will contribute to breakthroughs in medicine, science and technology.
PAUL S. SYPHERD
DAVID G. SCHETTER
Sypherd is vice chancellor for research at UCI. Schetter is director of the office of University/Industry Research & Technology .
