Utah Universities Could Own Stock in Inventions under Constitutional Amendment

Legislators in Utah have passed a constitutional amendment that, with approval by voters, would allow the state's universities to take ownership in private businesses in exchange for intellectual property. The proposed amendment cleared the Utah State Legislature with relative ease, despite some concerns it will thwart the incentive of researchers wanting to commercialize their results.

Approved on March 3 with a unanimous vote by the senate, the amendment states that Utah and any of its schools may "acquire an equity interest in a private business entity as consideration for the sale, license, or other transfer to the private business entity of intellectual property developed in whole or in part" by state agencies or schools. The Utah Constitution would retain a ban on state investment in railroad, telegraph or other companies.

Supporters of the amendment pointed to the success of the University of Florida's Gatorade, which has generated more than $80 million in royalties, according to the Associated Press. Critics, however, suggested the amendment would allow universities too much control over profits from inventions and recommended sending such profits to the state treasury. Any profitable discoveries at Utah state schools presently are governed by employment pacts, the AP reports.

Utah residents go to voting booths in November to decide on the proposed amendment. House Joint Resolution 12, which describes the amendment, is available through the Utah State Legislature: http://www.le.state.ut.us/