8 
finance more recombinant DNA research. It may be noted, however, 
that institutional patent agreements contain clauses defining 
rates for royalty return to the investigator and to the insti- 
tution (see Appendix II). The conditions set for royalties provide 
flexibility for the institution or the inventor to use accrued 
royalties in support of continued research. 
3 . Extension of the NIH Guidelines Through the Department 
Patent System 
In light of the control of recombinant DNA research envisioned 
by the NIH Guidelines, there is a potential for achieving uniformity 
in safety practices through conditions of licensure under patent 
agreements. Thus the general views of all commentators were also 
solicited on the possibility of incorporating requirements for 
adherence to the NIH Guidelines in the IPAs.* 
Possible means to accomplish these ends include the following: 
Institutions would retain the right to file patent applica- 
tions for recombinant DNA research, but all licenses would have 
to be reviewed and approved by the Department of Health, Educa- 
tion, and Welfare. The Department would be free to set standards, 
*This action was proposed prior to the creation of the Interagency 
Committee, which recommended in March 1977 that legislation be 
passed to regulate all recombinant DNA activities nationally. 
Legislation was subsequently proposed by the Administration and 
is currently pending before the Congress. 
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