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Conflict of Interest Situations with Possible Management Plans

Materials Transfer/License Agreements

Materials Transfer Agreements (MTAs), are used for incoming and outgoing materials at the University, and are administered by the Office of Technology Transfer (outgoing materials) or DRDA (incoming materials). These agreements describe the terms for sharing materials between University researchers and outside researchers, typically for research or evaluation purposes. Intellectual property rights can be endangered if materials are used without a proper MTA.

Example1: Materials Transfer Agreement with minimal risk

Professor G is the principal investigator of a federally-sponsored project that needs to obtain a compound that is available only from a local company for use in this project. Professor G is listed as an inventor of University-owned technology which has been licensed to this company. Professor G is not an owner or officer of the company. The University will enter into a MTA with the company for access to this compound for use in the research project.

This situation presents "minimal risks" and falls into what conflict of interest committees refer to as an "Administrative Shunt" category requiring disclosure as sufficient management.

Example 2: Materials License Agreement with significant risk

Professor G has an ownership interest in a company that wishes to enter into a Materials License Agreement with the University to manufacture a device under contract with a UM Center. The device in its current form is not patentable due to prior art and public disclosures. The company's efforts will focus on developing products out of mature technologies developed at the UM. Because the lifetime of the UM Center is finite and the Center cannot keep up with demand for the device, the company plans to ultimately take over the manufacture and sale of this device.

This situation presents significant risks. The example solutions provided below are intended to be a guide for demonstrating how particular conflict situations may be managed [note: the details of some situations may make conflict of interset (COI) management unworkable and the project and/or technology transfer will not commence]. The examples are not intended to be all-inclusive as each individual situation may require a greater or lesser degree of management based upon the elements of risk presented.

  1. Professor G would disclose his/her company connection to lab staff, students, oversight committees (IRB, UCUCA), Purchasing, and, potentially, sponsors of current research projects using the technology which the faculty member is a key investigator on as well as in any publications about the research. Any agreements between the company and the UM involving the use of UM facilities will need to be monitored by another faculty member (with no connection to the company). Professor G would be required to perform a "backfit" review of his/her existing sponsored projects to assess whether a new conflict of interest disclosure is now necessary.

    2. and

  2. Students under the direction of Professor G may not simultaneously work at the company, either paid or unpaid.

    3. and

  3. All potential sponsored projects from the company into the University must be disclosed to the appropriate COI committee.

Both examples require disclosure to and approval by the Regents under the State of Michigan Conflict of Interest Statute.

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