For-Profit Sponsor Negotiations
Contract negotiations with for-profit sponsors can be difficult and complex. The agreements are designed to address issues such as scope of work, budget, payment terms, intellectual property rights, confidentiality, publication rights, indemnification and termination rights for a variety of activities such as basic research, developmental research, collaborative research or testing services.
All sponsored research awards are negotiated pursuant to university policies to ensure that activities are consistent with our status as a nonprofit educational institution. As a public entity of the State of Ohio, Ohio State is bound by certain regulations that influence what we can or cannot accept in a legal agreement. For-profit sponsors generally operate under a very different set of priorities from public universities. These priorities occasionally conflict with Ohio State’s policies. As a result, negotiations can take additional time to reach mutually acceptable terms.
Whenever possible, we prefer to use an Ohio State template agreement appropriate for the work to be conducted. These template agreements include the terms and conditions that are consistent with Ohio State policies and are tailored to address the issues unique to the effort being contemplated. The preferred terms and conditions may not be addressed when working from the sponsor’s agreement which can lead to lengthened negotiations.
Development and Negotiation Resources
All College of Engineering faculty should contact Engineering Sponsored Program Services (ESPS) for assistance.
The Office of Sponsored Program’s Office for Business and Industry Contracts (OBIC) was established to facilitate working relationships with for-profit sponsors for the remaining colleges. OBIC staff members know the details of state law and university requirements concerning projects with business and industry sponsors so the needs of the principal investigator, the university and the sponsor are met. A significant part of OBIC’s work involves industry-sponsored clinical trials.
Principal Investigator Responsibilities
Sponsored Program Officers, Principal Investigators and sponsors will collaborate on project budgeting to ensure both university and projects-specific financial requirements are addressed. Advise the OBIC Sponsored Program Officer of the forthcoming project as early in the process as possible and provide the following information:
- Submit a copy of the statement of work and advise whether it was created by the sponsor or Ohio State
- Advise if a Confidential Disclosure Agreement (CDA) was completed in collaboration with the Office of Innovation and Economic Development
- Advise if existing Ohio State intellectual property or sponsor-owned intellectual property will be used in the project
- Advise if graduate students will be involved in the project